Global IT services giant Tata Consultancy Services (TCS) has reported a record net profit of US$1.07 billion for the first quarter of 2018.
Growth in its North American unit was the highest in 12 quarters, with strong demand for services such as cloud transformation, cybersecurity, data privacy, and automation.
“We are starting the new fiscal year on a strong note, with the growth engine firing on all cylinders,” said the company’s CEO Rajesh Gopinathan (pictured) in a statement.
The company also reported a rebound in spending from its US clients in the banking, financial services and insurance (BFSI) industry.
In July last year, TCS said it was focusing on winning small and medium-scale clients in the US, as its large clients were hesitating to award contracts.
Large US banks have now resumed spending, with financial companies increasingly using digital technologies to improve backend systems as well as customer experience in areas such as wealth management.
“Our banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum,” Gopinathan added.
TCS profits were helped by the US dollar rising against the Indian rupee, which seems to have helped the company offset the increase in wages, as well as its US visa expenses.
The United States has long been the largest source of clients for TCS, and, according to a recent study by Cambridge Group, the Indian company is also the top employer of US talent in its sector. In the past three years, TCS has invested nearly US$3 billion in the country, mostly into employment and new innovation labs.
During the five-year period that ended December 2016, the company hired 12,500 Americans and its US employee growth rate averaged 57%, the highest in the US technology services industry.