TCS Reports Mixed Q1 Results: Profits Up, Revenue Declines

TCS, India's leading IT services giant, announced a 11.95% increase in net profit for its December quarter, amounting to Rs 12,380 crore. Revenue growth was modest at 5.6%, attributed to challenging macroeconomic conditions and seasonal factors. Notable increases were seen in new order bookings, hinting at optimistic future prospects.

Tata Consultancy Services, India's largest IT services company, reported an 11.95% rise in net profit for the December quarter, totaling Rs 12,380 crore. This is compared to Rs 11,058 crore a year earlier and Rs 11,909 crore in the previous quarter.

The company's revenue grew by 5.6% to Rs 63,973 crore year-over-year, although it represents a slight decrease from the previous quarter's Rs 64,259 crore. New order bookings surged to USD 10.2 billion, up from USD 7.9 billion, despite the typically low activity during the holiday season.

Chief Executive K Krithivasan noted ongoing macroeconomic challenges within the IT sector but expressed confidence in long-term growth due to diverse new orders. While discretionary spending showed early signs of recovery, challenges persist, impacting overall growth to 4.6% for the fiscal year's first nine months.

(With inputs from agencies.)