TCS profit slips two percent Rs. 6,446 crore on banks. India’s largest software exporter TCS today reported 2.1 percent dip in net profit to Rs 6,446 crore for the September quarter on softness in banking and retail segments but gave better guidance based on client optimism. The Tata group company had posted a net profit of Rs 6,586 crore in the year-ago period.
The company, in a regulatory filing, asserted that it has received legal advice that the order and the reduced damages awarded are not supported by the evidence presented during the trial and a strong appeal can be made to the superior court to fully set aside the order. Epic had filed a legal claim against TCS in the court of Western District Madison, Wisconsin alleging infringement of Epic’s proprietary information.
We experienced robust volume growth in the second quarter, driven by good demand across multiple industry verticals. Strong, broad-based client metrics this quarter demonstrates our increasing success with new customers. Large deal wins this quarter, a good pipeline and bottoming out of the retail sector softness position us well, CEO and managing director said.
It added 15,868 employees in the quarter. The travel and hospitality and energy and utilities drove higher growth than other verticals for the company. Our client-centricity and business depth are resulting in industry-leading customer satisfaction levels and strong client metrics. North America, which accounts for 54% of the revenue, grew barely 1.4% sequentially, weighed by the slowdown in financial services and retail spending.
On the Epic lawsuit, the company said a strong appeal can be made to the superior court to fully set aside a recent ruling which reduced damages to Rs 6,446 crore. It, however, considered that amount as a contingent liability. Analysts at domestic brokerage Emkay Global said the numbers are ahead of its estimates, welcoming the surge in the margins.