Tata Consultancy Services Ltd, the country’s top software services exporter, posted a 1.6 per cent rise in quarterly profit, lagging expectations, as global economic turmoil crimps outsourcing and puts pressure on fees.
The firm said net profit rose to Rs 1,352 crore in October-December under US accounting rules. Revenues increased 24 per cent to Rs 7,277 crore, the company said.
The figures were below analysts' expectations that profits would rise by 10 to 11 per cent.
“This is obviously a challenging period and the global economy has taken a further downturn. We aim to improve our efficiencies in uncertain times,” said S Ramadorai, chief executive officer, TCS, said.
Software companies have seen earnings growth shrink as their US-based clients lower their information technology spending budgets.
TCS shares fell Rs 28.45 or 5.28 per cent to Rs 510 on the Bombay Stock Exchange ahead of the results announcement.
The company added 41 new clients in the third quarter and 11,773 employees.
On Tuesday, Infosys Technologies beat market expectations with a one-third jump in quarterly profit but trimmed its annual forecast.