Tata Consultancy Services Ltd missed analysts' earnings estimates as clients, especially banks, turned abruptly cautious about spending amid a crisis in the US and Europe.
Net profit rose 15% to ₹11,392 crore in the March quarter, TCS said in a statement on Wednesday. Profit rose 5% from the preceding three months. Analysts had estimated a profit of ₹11,530 crore on average, according to a Bloomberg poll. Sales rose 17% to ₹59,160 crore.
As people return to pre-pandemic activities and offices, the spike in demand that Indian IT companies saw during the peak of the covid-19 pandemic from digitization spending by clients is tapering.
In addition, the impact of higher interest rates and the collapse of banks in the US and Europe have forced many companies to curb their spending.
Sequential rupee revenue growth slowed to 1.6%, primarily due to sluggishness in the banking, financial services, and insurance (BFSI) sector. This quarter, BFSI saw a modest 9.1% growth, compared to 16.6% in Q3FY23.
Rajesh Gopinathan, the outgoing managing director and chief executive, painted a picture of caution.
“Last quarter, we expected North America to recover through the start of the year meaningfully. This recovery has obviously not materialized and turned out to be more negative, or slower than what we originally expected — and the numbers show that as well," Gopinathan said.
Denne historien er fra April 13, 2023-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 13, 2023-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Quick Edit: The market's green role
The world needs to bend its rising curve of carbon emissions, a goal that's proving elusive. Adding to the challenge, US climate policy is likely to flip back into neglect mode next year.
Growth shouldn't suffer for want of a market fix
Packaged food companies should drive a food-processing revolution and run a campaign for substitution of fresh-veggie demand. It'll crush price volatility and open up space for rate cuts
We should reform import tariffs to boost Make in India!
Tariff reforms to resolve duty inversions can arrest the 'cost competitiveness leak' of Indian manufacturing
Trying to quantify everything may worsen human decisions
'Quantification fixation' is real—and we should learn to resist it
Hope has sprung anew amid the thick haze hovering over COP-29
The climate summit has seen rules being ratified for a carbon market, progress on finance and high corporate participation
Trump's return is set to send the world scouting for fresh options
His confrontational stand on issues will ruffle feathers and make nations review their alignments
Why national pride has not helped clean up Delhi's air
A sense of shame was expected to get it done. That hasn't worked. Do we lack the will and talent?
SEBI CAN DO MORE TO DISSUADE RETAIL F&O SPECULATION
A recent Securities and Exchange Board of India (Sebi) report highlighted the significant losses individual traders have incurred in the equity futures and options (F&O) segment between FY22 and FY24.
Is filing ITR in old regime still valid?
I am with the Indian Army. Until last year, we received Form 16 under the old tax regime, including allowances such as HRA, travel and uniform.
Avoid common mistakes in NRO, NRE accounts: A guide for NRIs
Tips on using NRE and NRO accounts to effectively manage funds, repatriate money and remain tax-compliant
