scorecardresearchTCS Q3 earnings: IT major posts lower-than-expected profit as clients tighten spending

TCS Q3 earnings: IT major posts lower-than-expected profit as clients tighten spending

Updated: 09 Jan 2023, 06:07 PM IST
TL;DR.
  • TCS is the first among its peers to report quarterly earnings, setting the tone for the industry, which had been riding a pandemic-led boom in demand.
The company also said it would pay shareholders a special dividend of 67 rupees a share on top of an interim dividend of 8 rupees.

The company also said it would pay shareholders a special dividend of 67 rupees a share on top of an interim dividend of 8 rupees.

(Reuters) - India's Tata Consultancy Services Ltd on Monday reported a lower-than-expected profit for the third quarter, as clients tightened spending amid a challenging macro-economic environment that prompted the country's top IT exporter to reduce its workforce.

TCS is the first among its peers to report quarterly earnings, setting the tone for the industry, which had been riding a pandemic-led boom in demand.

The company also said it would pay shareholders a special dividend of 67 rupees a share on top of an interim dividend of 8 rupees.

Consolidated net profit for the three months ended Dec. 31 rose to 108.46 billion Indian rupees ($1.32 billion) from 97.69 billion rupees a year earlier, the company said in an exchange filing.

Analysts on an average expected a profit of 110.46 billion rupees, according to Refinitiv data.

The Mumbai-based company's order book for the October-December period stood at $7.8 billion, down from $8.1 billion in the September quarter.

Market participants are keenly watching TCS for signals on the demand outlook for the sector, which is staring at the possibility of a recession in the U.S. and Europe from where it draws a bulk of its revenue.

The Tata Group flagship said its employee count reduced by 2,197 on a net basis to 613,974 as on Dec. 31.

 

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First Published: 09 Jan 2023, 06:07 PM IST