TCS Faces Profit Decline Amid New Labour Codes Impact

TCS reported a 13.91% decline in net profit for the December quarter due to a one-time impact from new labour codes. Despite challenges, the company's revenues showed a 4.86% increase, and operating margins remained stable. The headcount decreased, and new deal wins totaled USD 9.3 billion.

Tata Consultancy Services (TCS) has announced a 13.91% dip in net profit for the December quarter, attributing the decline to the implementation of new labour codes. This has resulted in a significant statutory impact of Rs 2,128 crore on the IT giant's financial performance.

Despite these challenges, TCS's revenue from operations rose 4.86% to Rs 67,087 crore. The company's operating profit margin remained stable at 25.2%. The headcount saw a reduction by 11,151 employees due to restructuring, though the company's new deal wins amounted to a total contract value of USD 9.3 billion.

CEO K Krithivasan noted growth in AI-based revenues, while regional revenues showed mixed results with North America seeing a rise and the UK a decline. The board recommended a substantial dividend, and the TCS stock showed minor upward movement on the BSE.

(With inputs from agencies.)