Information technology firm Tata Consultancy Services on Thursday reported a net profit of Rs 6,586 crore with earnings of Rs 29,284 crore for the second quarter (July-September) of the financial year, NDTV reported. The company’s net profit saw an 8.4% rise from the same period last year, ahead of analysts’ forecasts of around Rs 6,293 crore.
TCS Chief Executive Officer and Managing Director N Chandrasekaran said it had been an “unusual” quarter for the company. “Growing uncertainties in the environment is creating caution among customers and resulted in holdbacks in the discretionary spending this quarter,” he said. Volatility in markets like India and Latin America “muted revenue growth”, he added.
The earnings came just three days after a report said India’s information technology sector faced its worst second-quarter performance in eight years. The report said revenues at the country’s largest IT companies are expected to grow between 0.5%-3% during the quarter compared to the previous one (April-June). The report cited “broad-based” weaknesses in the banking, financial services and insurance industries as well as the economic fall-out of Britain’s decision to exit the European Union as reasons for the drop in performance.