TCS Chief Financial Officer Samir Seksaria highlighted the company’s ability to maintain profitability in a difficult climate, as concerns over U.S. corporate spending loom.
India’s largest software services provider, Tata Consultancy Services, posted lower-than-expected revenue for the fourth quarter due to persistent weakness in North America, its largest market.
Its consolidated revenue rose 5.3% to ₹64,479 crore ($7.49 billion) in the quarter. Analysts, on average, expected ₹64,758 crore, per data compiled by LSEG.
India’s $283 billion IT sector was counting on U.S. President Donald Trump to revive client confidence and discretionary spending in its biggest market, but analysts now expect tariff-induced uncertainty to limit corporate budgets in America.
Quarterly net profit for TCS fell 1.69% to ₹12,224 crore, compared with analysts’ mean estimate of ₹12,654 crore.
Deal wins for the quarter stood at $12.2 billion, down from a record $13.2 billion in the same period last year.
Emerging markets led growth for the second consecutive quarter, while the U.S. market remained under stress.
TCS Chief Financial Officer Samir Seksaria said in a statement the company delivered profitability and cash flows “in a very challenging environment”.
Revenue in banking, financial services and insurance (BFSI), the company’s largest vertical, grew 2.5%, while verticals such as consumer business, life sciences and healthcare, manufacturing, and communications and media, declined year-on-year.
The Tata Group firm is the first major Indian IT firm to report results in the current earnings cycle. Smaller rivals Infosys, HCLTech, Wipro and Tech Mahindra will report in the coming weeks.
Accenture, the world’s largest IT services company and a bellwether for the Indian IT industry, last month warned that spending on discretionary projects in the quarter was constrained and flagged no meaningful increase in client budgets.
TCS shares closed 1.4% lower on Wednesday, with a basket of IT stocks dropping more than 2%. The Nifty IT index has dropped 10.4% since Trump announced reciprocal tariffs on dozens of countries.
Published on April 10, 2025
