MUMBAI: India’s largest IT services firm Tata Consultancy Services (TCS) reported on Thursday a 22.6 percent rise in quarterly earnings due to the rupee’s fall and growth in its banking and financial services division.
The Mumbai-headquartered conglomerate said its profits were boosted by client additions in the United Kingdom and Europe.
A falling rupee helps the services exporter as it bills these companies in dollars thereby boosting its profits.
TCS, India’s biggest software services exporter, reported a net profit for the three months to September of 79.01 billion rupees ($1.07 billion)from 64.46 billion a year earlier, the company said.
TCS gets over 80 percent of its revenues from western markets.
Growth was driven by continued acceleration in banking, financial services, insurance and retail,TCS’ Chief Executive Rajesh Gopinathan said in a statement.
“We now have the numbers on board and the momentum to ensure that the double digit growth continues for the rest of the year. That’s why it is a landmark quarter for us,” Gopinathan added.
India’s rupee, Asia’s worst performing currency, has fallen by 14 percent against the dollar this year as investors withdraw from emerging economies.
India’s $150 billion IT sector has long been one of its flagship industries but is facing upheaval in the face of automation, a failure to keep up with new technologies and visa restrictions.
Rival Infosys is due to release its quarterly results next Tuesday. —AFP