TCS Q1 profit soars as demand from banks picks up

Increased demand from financial services firms has led to better than expected first quarter earnings for Indian IT firm Tata Consultancy Services (TCS).

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TCS Q1 profit soars as demand from banks picks up

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TCS posted net income of 15.2 billion rupees, up 23% on the same period the previous year, prompting shares to gain 15% in trading in Mumbai.

Revenues rose 12% to 72.1 billion rupees, with financial services firms accounting for 44% of this.

One of the Indian firm's biggest clients is Citi, and CEO, Subramanian Ramadorai, told Bloomberg Television that demand from the American banking giant "is increasing as we speak".

Last October TCS agreed to buy the bank's Indian back office division for a cash consideration of $505 million. As part of the deal Citi agreed to award TCS outsourcing business worth $2.5 billion over nine and a half years.

In addition, Ramadorai told Bloomberg that JPMorgan Chase & and Bank of America are both interested in the company's services.

Ramadorai says there is also interest from banks across geographies "looking at rationalization, some of the consolidation with the mergers that took place, some of the compliance related activities".

Tata Consultancy Sees More Demand at Citigroup, Banks - Bloomberg

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