Cagey clients, BSNL blues chip away at TCS revenue

Deferred spending slows contracts; revenue from BSNL begins to trickle

- Jas Bardia

Tata Consultancy Services Ltd kicked off the earnings season ona gloomy note on Thursday, clocking a third straight quarter of lower revenue, as its global clients awaited clarity and its Indian business engines cooled.

India’s largest IT services company recorded revenue of $7.42 billion in the June quarter, down 0.59% from the preceding quarter and 1.12% from a year before. The earnings lagged estimates of 33 analysts polled by Bloomberg, who expected TCS to clock $7.54 billion in revenue. This was the Mumbai-headquartered company’s worst QI performance since June 2020 when its revenue fell 7% sequentially.

MD and CEO K. Krithivasan sounded cautious when he spoke to reporters after the earnings announcement.