TCS Shares Fall as Q1 Results Miss Estimates

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TCS Shares Fall as Q1 Results Miss Estimates

Shares of Tata Consultancy Services (TCS), India’s largest IT services company, fell by more than 3% on Wednesday after the company reported its quarterly results. The IT giant’s net profit rose by 15% year-on-year to Rs. 9,478 crore, but missed analysts’ estimates.

TCS’s revenue for the quarter grew by 16.2% year-on-year to Rs. 45,850 crore, but also missed analysts’ estimates. The company’s profit margin stood at 25.5%, down from 26.4% in the previous quarter.

The company’s performance was impacted by a number of factors, including the ongoing war in Ukraine, which has led to a slowdown in demand from European clients. The company also said that it had faced some challenges in the US market.

TCS’s results were also weighed down by the company’s decision to raise salaries for its employees. The company said that it had increased salaries by an average of 8%, which had a negative impact on its margins.

Despite the miss, TCS’s results were still better than those of some of its peers. Infosys, another large Indian IT services company, reported its quarterly results on Wednesday and its net profit fell by 1.9% year-on-year. Wipro’s net profit also fell by 1.6% year-on-year.

The performance of India’s IT services companies is being closely watched by investors, as the sector is a major driver of the Indian economy. The sector is expected to continue to grow in the coming years, but the pace of growth is likely to slow down as the sector matures.

tcs result: TCS Q1 results fell short of analyst estimates. Here's what they said - The Economic Times

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