Indian IT giant TCS misses profit estimates on US weakness

Tata Consultancy Services (TCS), India's largest IT services company, has reported a lower-than-expected profit for the quarter ending June 30, 2019. The company's net profit stood at Rs 8,131 crore ($1.18 billion), missing analysts' estimates of Rs 8,280 crore ($1.2 billion).

The company attributed the lower-than-expected profit to weakness in its key market, the United States. TCS generates more than half of its revenue from the US market, and the ongoing trade tensions between the US and China have impacted the company's business.

Despite the lower profit, TCS reported a 10.6% increase in revenue, which stood at Rs 38,172 crore ($5.5 billion) for the quarter. The company also added 12,356 employees during the quarter, taking its total headcount to 436,641.

TCS CEO Rajesh Gopinathan said in a statement, "We had a steady quarter despite the apparent volatility in the financial services and retail verticals. We see customers continuing to spend on their growth and transformation initiatives, and that is reflected in our strong order book and deal pipeline this quarter."

TCS is one of the largest employers in the Indian IT industry and has a significant presence in the US market. The company's performance is closely watched by analysts and investors as an indicator of the health of the Indian IT sector.

https://www.lifetechnology.com/blogs/life-technology-technology-news/indian-it-giant-tcs-misses-profit-estimates-on-us-weakness

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