TCS Reports Moderate Profit Growth Amidst Margin Challenges

Tata Consultancy Services (TCS) reported a modest 4.99% increase in net profit for the September quarter, amounting to Rs 11,909 crore, influenced by financial margin contractions. Revenue saw a 7.06% rise to Rs 64,988 crore, with manufacturing and BFSI showing signs of growth despite geopolitical tensions.

Tata Consultancy Services (TCS), the country's largest IT services firm, revealed a 4.99% rise in net profit for the September quarter to Rs 11,909 crore, though margins remained tight. The previous year's figure was Rs 11,342 crore, against a post-tax profit of Rs 12,040 crore in the preceding June quarter.

Revenue increased by 7.06% to Rs 64,988 crore from the corresponding figure of Rs 60,698 crore a year ago, showing a slight improvement compared to Rs 63,575 crore in the June quarter. TCS's operating profit margin declined to 24.1%, affected by spending on talent and infrastructure.

While North America saw a 2.1% drop in contribution, India's market showed a robust 95.2% growth, indicating varied regional performances. The firm secured USD 8.6 billion in new deal wins amid a challenging demand environment, with the BFSI sector finally showing recovery signs. Generative AI engagements also doubled, promising robust future growth.

(With inputs from agencies.)