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For the first time since 2019, TCS sees a fall in Sep quarter margins | Mint

Livemint · 19d

- Tata Consultancy Services (TCS) reported a sequential decline in profit for the September quarter due to increased equipment costs and a decline in revenue from the Americas. - The net profit for the quarter stood at $1.43 billion, down 1.59% from the previous quarter, marking the first sequential decline in five years for TCS. - However, the company saw a 2.2% sequential and 6.38% yearly increase in revenue, reaching $7.67 billion. - The growth in revenue was primarily led by TCS's communication, media, and technology business segment, which accounted for more than 90% of the incremental revenue. - Despite the revenue growth, TCS experienced a decline in operating margins for the first time since September 2019, with profitability narrowing to 24.1%. - TCS's India business showed promise, contributing almost 9% or $681 million to its revenue, with domestic clients driving 74% of the incremental revenue in the quarter.