Wage hikes-demand slowdown combo weighs on TCS first quarter net profit
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India's largest software services firm Tata Consultancy Services (TCS) reported a sequential 3.16% drop in net profit in the June quarter due to the impact of wage hikes for many of its 600,000-plus workforce and an unabated slowdown in demand. TCS posted a net profit of ₹12,040 crore, below analyst expectations but 8.7% up from last year. It reported revenue of ₹62,613 crore, up 5.4% from a year ago and 2.25% sequentially. The company didn't signal any significant uptick in technology services demand, which has hit an all-time low due to macroeconomic uncertainties and geopolitical strife that's impacted the US, the UK and Europe markets. ETMarkets.com Growth Driven by AI, Cloud, IoT Much of the incremental growth came from the Rs 15,000 crore deal with state-owned telco Bharat Sanchar Nigam Ltd (BSNL) signed last year that led to its India business showing a jump of 61.8% from the year earlier. While chief executive K Krit...