India's TCS profits fall by 6 percent

July 13, 2017

India's largest IT services firm Tata Consultancy Services reported a nearly 6 percent fall in quarterly earnings Thursday owing to a strengthening rupee, the company said.

Net profit for the three months ending June fell to 59.5 billion rupees ($923.2 million) from 63.18 billion rupees for the same period last year, the said in a statement.

"During the quarter high currency volatility, including sharp rupee appreciation against the dollar, resulted in (6.5 billion rupees) loss in reported revenues," chief financial officer V. Ramakrishnan said in a statement.

For the quarter TCS reported of 295.8 billion rupees, marginally up from 293 billion rupees for the same period last year.

TCS gets about 82 percent of its revenues from the US and Europe and a strengthening rupee hurts profits.

India's $150-billion IT sector has long been one of its flagship industries but is facing upheaval in the face of automation, a failure to keep up with new technologies and US President Donald Trump's clampdown on visas.

Indian media has reported major IT firms are gradually laying off thousands of staff while research has claimed hundreds of thousands of jobs could disappear in the next four years.

The companies themselves have refused to comment on numbers.

TCS competitor Infosys is set to release its first quarter results on Friday.

Explore further: India's TCS records fourth quarter profit

Related Stories

India's TCS records fourth quarter profit

April 18, 2017

India's biggest IT sourcing firm Tata Consultancy Services (TCS) reported a 4.2 percent increase in quarterly earnings on Tuesday, just missing analysts' estimates.

India's Infosys posts 5.00% rise in profits

July 21, 2015

Indian software giant Infosys Technologies reported a five percent rise in quarterly net profits on Tuesday, aided by a weak rupee and strong demand from the United States.

India's TCS profits rise 8.8 percent

October 13, 2016

India's Tata Consultancy Services reported an 8.8 percent year-on-year rise in quarterly profits Thursday as strong growth in Europe helped the IT giant override a slump in its domestic market.

Recommended for you

Printing microelectrode array sensors on gummi candy

June 22, 2018

Microelectrodes can be used for direct measurement of electrical signals in the brain or heart. These applications require soft materials, however. With existing methods, attaching electrodes to such materials poses significant ...

EU copyright law passes key hurdle

June 20, 2018

A highly disputed European copyright law that could force online platforms such as Google and Facebook to pay for links to news content passed a key hurdle in the European Parliament on Wednesday.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.