India's TCS beats first quarter revenue estimates

BENGALURU (Reuters) -- Tata Consultancy Services, India's top IT services company, reported a slightly bigger-than-expected first-quarter revenue on Thursday helped by the executionof large deals agreed to in previous quarters and boost from manufacturing segment.

The company's consolidated revenue rose 5.4% to 626.13 billion rupees ($7.5 billion) in the June quarter. Analysts, on average, expected revenue at 622.07 billion rupees, as per LSEG data.

The Tata group company's net profit rose 8.7% to 120.4 billion rupees in the three-month period, barely abovethe 119.78 billion rupees estimated by analysts, as per LSEG data.

The company won deals worth $8.3 billion during the quarter.It bagged a record $13.2 billion worth of deals in the previous quarter and $10.2 billion in the first quarter of fiscal 2024.

The revenue was helped by mega deals, such as Bharat Sanchar Nigam (BSNL) and insurer Aviva. TCS announced four mega deals or contracts sized over $500 million during the previous fiscal year even as clients clamped down on discretionary tech spending due to weak macros.

Revenue in the manufacturing segment rose 9.4% year-over-year. Four out its eight verticals, including banking and financial services, fell.

TCS is the first Indian tech major to report first-quarter results and its commentary sets the tone for the sector.

Shares listed in Mumbai closed 0.37% higher ahead of the results.