TCS Reports Dip in Profit Despite Rising Revenue

Tata Consultancy Services (TCS) reported a decline in Q3 net profit by 13.91% to Rs 10,657 crore. Revenue increased by 4.86% to Rs 67,087 crore. Operating margins were stable, and AI revenue jumped over 17% to USD 1.8 billion. New contracts totaled USD 9.3 billion.

Tata Consultancy Services (TCS), India's largest IT services provider, announced a 13.91% decline in net profit for the third quarter, totaling Rs 10,657 crore. This decrease was reported against last year's profit of Rs 12,380 crore.

Despite the dip in profit, the company's revenue from operations grew by 4.86% to Rs 67,087 crore. The operating profit margin remained stable at 25.2%, slightly up from 24.5% in the same quarter last year, according to a company statement.

TCS CEO K Krithivasan noted continued growth momentum and a significant 17% increase in revenue from artificial intelligence, reaching USD 1.8 billion. The company's new contracts amounted to USD 9.3 billion. The TCS stock closed at Rs 3,235.70 on the BSE, up 0.86%.

(With inputs from agencies.)