Cloud, big data, and analytics pushes TCS Q1 revenue to $4.4b
IT services and consultancy firm Tata Consultancy Services (TCS) has reported an 8.1 percent year on year growth in revenue to $4.4 billion for the first quarter ending June 30, 2016, attributing it to strong customer adoption of cloud, big data, and analytics across key markets.
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India's largest IT service provider also reported net income of $940 million, up 4.7 percent year on year, and digital revenues at 15.9 percent, which the company said was driven by demand for business agility in the first quarter.
More specifically, the company said adoption in cloud, big data, and analytics was driven by demand in manufacturing, energy and utilities, and communications, as well as consumer businesses such as retail and life sciences.
During Q1, TCS also posted incremental revenue of $155 million, which the company claimed was the highest in the last seven quarters driven by growth across core markets in North America, the UK, Europe, and in particular India.
"Our investments in platforms are gaining significant traction as customers look to boost business agility and enhance their time-to-market advantage to gain a competitive edge," TCS CEO and managing director N Chandrasekaran said.
As of June 30, 2016, the company said had applied for 2,928 patents, including 67 in the first quarter, and has since been granted 385 patents. It said this was reflective in the quarter on quarter growth in investment to $3.6 billion.
The company's CFO Rajesh Gopinathan said the quarter marked a "good financial performance".
"Our disciplined approach to operations have helped us counter strong headwinds in the form of annual salary hikes and promotions as well as global currency and market volatility through the quarter. We continue to invest in people, platforms, and products as we look to strengthen our competitive position across key markets," he said.
Last March, TCS expanded its operations in Singapore, opening a new centre to service global banks operating in the Asia-Pacific region.
"Singapore is our regional headquarters for APAC operations, and we are committed to expand our presence in this market and to assist our global clients," Girish Ramachandran, Asia-Pacific president of TCS, said at the time.