India's Tata Consultancy Expects Growth in Country's Insurance Sector

  • India's Tata Consultancy Expects Growth in Country's Insurance Sector

India's Tata Consultancy Expects Growth in Country's Insurance Sector

However, the net profit for the October-December 2017 quarter declined by 3.6% compared to that in the October-December 2016 quarter when the company had made a profit of Rs 6,778 crore.

In a regulatory filing on the BSE, TCS said the Directors have declared the third interim dividend of Rs 7 per equity share of Re 1 each and it would be paid to all the equity shareholders in the company's records as on January 23.

Its revenues in constant currency (CC) and net profit grew at 1.3% quarter-on-quarter, aided by robust growth in its digital services, lower tax and employee cost and higher other income. The majority of these charges are expected to be recorded over the first three years of the agreement, with approximately Dollars 100 million of transition and conversion charges reflected in the first half of 2018.

Digital services also grew at 39.6% and increased its contribution to total revenue to 22.1% from less than 20% a quarter ago.

Ltd, India's top IT services firm, said its insurance services business would soon post faster growth thanks to higher client spending but remained cautious on a turnaround in its key banking segment.

"The investments we have been making over the last few years in research and innovation, and in building intellectual property, are giving us a distinct winning such large transformational programmes", Gopinathan said, adding that the focus on digital has helped TCS bag over 150 deals in this space. Last quarter, TCS had reported an improvement in operating margin by 170 basis points sequentially to 25.1 per cent.

The growth was led by Latin America (+5% Q-o-Q), Continental Europe (+2.6% Q-o-Q) and North America (+1.5% QoQ).

It added that employees transitioning to TCS will be given the opportunity to remain in the same United States cities where they are now based. "TCS was carefully selected because of its significant, ongoing investments in technology and its expertise in the insurance and annuity industry", said Mark Mullin, Transamerica President & Chief Executive Officer.

CLSA said CY17 saw a better-than-feared year for IT sector even as growth & earnings disappointed.

"We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive USA capabilities, and are proud to partner with Transamerica in its ongoing transformation and welcome the transitioning employees to promising new careers at TCS", TCS CEO and MD Rajesh Gopinathan said.

At NSE, shares of the company went up 3.6 per cent to close at Rs 2,806.60.