TCS Q2 profit grows 8.7%, revenue misses estimates
MUMBAI, INDIA — IT services and consulting firm Tata Consultancy Services (TCS) reported an 8.73% rise in quarterly net profit for the second quarter of 2023, falling short of analyst estimates.
The company posted a net profit of Rs 11,342 crore (US$1.36 billion) for the July-September quarter, up from Rs 10,431 crore (US$1.25 billion) in the same period the previous year but below analyst estimates of around Rs 11,409 crore (US$1.37 billion)
Revenue also missed expectations, rising 7.9% to Rs 59,692 (US$7.17 billion) crore versus estimates of Rs 60,300-60,600 crore (US$7.24 billion to US$7.27 billion).
TCS CEO K. Krithivasan cited “macroeconomic uncertainty” and clients requesting “cost optimization” for slower revenue growth this quarter. However, he said the firm’s $11.2 billion order book shows the “resilience of demand” for the TCS services.
In terms of regional performance, Latin America showed robust growth of 13.1%, followed by the United Kingdom (UK), Asia Pacific, West Asia, and Africa. However, North America saw muted growth at 0.1%.
In verticals, the Banking, Financial Services and Insurance (BFSI), technology, and services sectors reported declines, while energy, resources, utilities, manufacturing, life sciences, and healthcare performed better.
TCS Chief Human Resources Officer Milind Lakkad said slower hiring, not attrition, caused a drop in net employee count.
He added TCS will honor job offers to graduates, though joining dates may be delayed based on business needs.
