TCS Q3 profit up 3.9% quarter-on-quarter, lags estimates
Tata Consultancy Services said its net profit grew to Rs 12,380 crore in the third quarter of fiscal 2025, clocking a lower-than-expected expansion of 3.9% sequentially and 5.5% year-on-year as demand slowed in its primary markets across the US and the UK amid the holiday season.
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Continuing softness in discretionary demand for technology services also dragged down the sequential revenue growth for India’s largest software exporter, which dipped by 0.44% from the previous quarter to Rs 63,973 crore, marking one of the lowest sequential revenue expansions for the firm in recent years.
On a YoY basis, revenue grew 5.59%. TCS’s operating margins dropped 40 basis points from a year ago and headcount was down by 5,370 from the previous quarter.
To be sure, December is typically a weak quarter for India’s $254 billion IT industry as business slows in its largest markets.
Chief executive officer K Krithivasan sounded an optimistic note saying there is “improvement in sentiments on discretionary spend” especially in the key verticals of banking, financial services, consumer business, and a few other verticals.
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