Indian software behemoth Tata Consultancy Services Ltd (TCS) reported a lower first-quarter profit on Thursday, missing estimates, as the Covid-19 pandemic forced its clients to cut spending on IT services.
TCS said net profit for the three months ended June 30 fell 13.8% year-on-year to 70.08 billion rupees ($934.94 million). Analysts’ on average had expected a profit of 77.05 billion rupees, according to Refinitiv data.
Revenue rose marginally to 383.22 billion rupees from 381.72 billion rupees a year ago.
TCS, the country’s largest IT exporter, is the first among its peers to report earnings in what is expected to be one of the worst quarters for the sector due to the pandemic. ($1 = 74.9563 Indian rupees) (Reporting by Derek Francis in Bengaluru; Editing by Rashmi Aich)