India`s TCS misses Q3 revenue estimate as N.America market drags
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Tata Consultancy Services, India's largest software company, posted a smaller-than-expected third-quarter revenue on Thursday as its key North America market underperformed for the fifth quarter in a row.
The company's consolidated revenue increased 5.6% to 639.73 billion rupees ($7.45 billion) in the October-December quarter, falling short of analysts' expectation of 644.52 billion rupees, as per data compiled by LSEG.
Mumbai-based TCS' quarterly net profit rose 12% to 123.80 billion rupees while analysts expected 123.99 billion rupees profit.
The company's total order book stood at $10.2 billion during the quarter, compared with $8.6 billion in the previous quarter and $8.1 billion in the year-ago period.
India's $254-billion IT services industry has been facing a growth slowdown over the last couple of years due to clients in the United States and Europe cutting down on tech spending amid macroeconomic overhangs.
However, analysts expect U.S. President-elect Trump's pro-business policies to benefit Indian IT firms as the North American country accounts for over 40% of the sector's overall revenue.
The Tata Group firm is the first major Indian IT firm to report numbers in the current earnings cycle. Smaller rivals HCLTech, Wipro and Infosys will report numbers next week.
($1 = 85.8420 Indian rupees)
