BENGALURU, July 11 (Reuters) - Tata Consultancy Services, India's top IT services company, reported first-quarter revenue slightly above estimates on Thursday helped by the execution of large deals bagged in previous quarters and growth in the manufacturing segment.
The company's consolidated revenue rose 5.4% to 626.13 billion rupees ($7.50 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 120.40 billion rupees in the first quarter, barely above the 119.78 billion rupees forecast by analysts.
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 bolstered by mega deals, such as Bharat Sanchar Nigam (BSNL) and insurer Aviva. TCS announced four mega deals or contracts sized over $500 million in the last fiscal year even as clients clamped down on discretionary tech spending due to an uncertain macroeconomic environment.
Revenue from the manufacturing segment rose 9.4% year-over-year. Four out of its eight verticals, including banking and financial services, fell. Sanjeev Hota, head of research at Sharekhan by BNP Paribas, called it a "solid" quarter with strong revenue growth.
"Expecting an overall demand recovery in second-half of FY25 (for the Indian IT sector) as most of the headwinds are bottoming out while FY26 will be a full-blown recovery," Hota added.
The US tech giant said it would open its tap-and-go mobile payment systems to rivals.
Indian IT companies, which earn a significant share of their revenue from the U.S., stand to benefit from a likely early rate cut in the world's biggest economy, according to analysts. Conclusion of U.S. presidential elections could also aid demand recovery this year, they added.
TCS' shares closed 0.37% higher ahead of the results.