TCS beats estimates, profit declines 3.2% to Rs 12,040 crore

Led by BSNL’s 4G network deal, and revenue flow from AI cloud business, saw Tata Consultancy Services (TCS), report a higher than expected earnings during the April-June quarter. This also signals that cuts discretionary spending by clients may have bottomed out and may begin to rise hereon.

Net profit during the period declined 3.2% quarter-on-quarter to Rs 12,040 crore, but beat Bloomberg consensus estimate of Rs 11,959 crore. The sequential decline in net profit was due to the wage hike implemented by the company during the quarter. The same was the case with operating margin, also known as the earnings before income and tax, which fell 130 basis points quarter-on-quarter to 24.7%.