TCS Reports Modest Profit Growth Amid Narrowing Margins

Tata Consultancy Services (TCS), India's largest IT services firm, reported a 4.99% increase in its net profit for the September quarter. Revenues rose by 7.06%, but the operating profit margin narrowed. Despite strategic investments and a growing employee base, North America showed a revenue decline while India witnessed significant growth.

Tata Consultancy Services (TCS), the country's largest IT services firm, posted a 4.99% rise in net profit for the September quarter, amounting to Rs 11,909 crore. The growth was limited by a decrease in profit margin.

While revenues surged 7.06% to Rs 64,988 crore, the company's operating profit margin narrowed to 24.1%, down 0.2% from the same period last year. The workforce expanded by 5,726 employees, reaching a total of 6,12,724.

Despite a cautious market environment, TCS's largest banking and financial sector showed signs of recovery. However, North American contributions declined by 2.1%, while India's revenue saw a dramatic increase of 95.2%. The board declared a second interim dividend of Rs 10 per share, yet TCS shares closed lower on the BSE.

(With inputs from agencies.)