India's TCS posts small profits dip in 'challenging' environment
TCS, the leader of India's $254 billion IT sector, earns the bulk of its revenue from Western clients but demand has slowed in recent years due to high inflation and global uncertainty.
It had forecast better demand this year, but both TCS and the broader sector still await growth momentum.
A continuing reluctance by American and European clients to spend on big tech projects as well as US President Donald Trump's chaotic economic policies have also further clouded the industry's outlook.
The company's net profit for the three months ended March 31 fell 1.69 percent year-on-year to 122.24 billion rupees ($1.42 billion).
Analysts had projected a bottom-line of 127.7 billion rupees on average.
Revenue for the March quarter rose 5.3 percent year-on-year to 644.79 billion rupees, missing analyst expectations of 647.41 billion rupees.
Chief financial officer Samir Seksaria said in a statement that the company had delivered profitability in what was a "very challenging environment".
"We delivered robust profitability and cash flows this quarter in a very challenging environment without compromising on the right investments in our people, innovation and infrastructure for long-term value creation," Seksaria added.
TCS's Indian rival Infosys is due to report its quarterly results next week.
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