TCS and Infosys log muted sales growth
Tata Consultancy Services (TCS) said its consolidated net profit rose 2% on-year to Rs 11,058 crore in the December quarter even as its closest rival Infosys recorded a 7.3% decline at Rs 6,106 crore, due in large part to an unprecedented cyber-attack as well as hefty wage hikes.
The muted YoY numbers found an echo in the sequential performance, with TCS reporting a 2.5% QoQ drop in profits in the third quarter of fiscal 2024, while that of Infosys declined 1.7%. Meanwhile, revenue dropped 0.4% sequentially for Infosys, while it rose 1.5% for TCS.
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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Advanced Data Science For ManagersVisitNorthwestern UniversityKellogg Post Graduate Certificate in Product ManagementVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitAt the post-results briefings, senior executives at the top two software exporters said there were few signs of recovery in global demand for technology services, which has been buffeted by macroeconomic and geopolitical uncertainty for nearly two years now.
Infosys Narrows Revenue Forecast
Infosys further narrowed its guidance to a maximum of 2% growth in the fiscal year — its slowest in several decades.
TCS and Infosys reported a combined drop of 35,000 in headcount since the third quarter of previous fiscal even as the industry leaders battle a talent crisis in their senior ranks.
TCS chief executive officer K Krithivasan said that “the optimism around interest rates” has not resulted in a reduction of the uncertainty in decision-making.
“The sentiments have remained the same so I don’t think we are ready to say that it will recover by Q4,” he said, pointing out that the
