TCS Slips After Profit In June Quarter Declines Marginally

TCS's revenue from operations advanced 4 per cent sequentially to Rs 45,411 crore as against Rs 43,705 crore in the previous quarter.

Shares of the country's largest information technology company - Tata Consultancy Services (TCS) - fell as much as 1.3 per cent to hit an intraday low of Rs 3,211.85 after it reported June quarter earnings which were below analysts' estimated. TCS' net profit in June quarter declined 2.57 per cent to Rs 9,008 crore compared with Rs 9,246 crore crore in the previous quarter. According to Refinitiv IBES data, analysts were expecting the IT giant to report net profit of Rs 9,372 crore. However, on an annual basis, Tata Consultancy Services reported a 29 per cent rise in quarterly profit powered by higher demand for cloud services and strong growth in its mainstay banking and finance business. TCS's revenue from operations advanced 4 per cent sequentially to Rs 45,411 crore as against Rs 43,705 crore in the previous quarter. Its operating margin or EBIT margin expanded 1.9 per cent annually to 25.5 per cent and in constant currency terms, TCS' revenue advanced 16.4 per cent annually. During the quarter, TCS added 20,409 employees and its workforce strength stood at 5,09,058 employees.