TCS profit drops 5.4%, revenue up

REDUCTION IN PROJECT DELAYS BRINGS BUOYANCY BACK TO THE TOPLINE

- URVI MALVANIA

TATA CONSULTANCY SERVICES (TCS) on Thursday reported a 5.4% sequential drop in net profit at $12,075 crore for the July-September quarter, weighed down by a onetime restructuring cost of 1,135 crore.

Excluding this charge, the country’s largest software exporter posted a 1.1% rise in profit to $12,904 crore, ahead of Bloomberg’s estimate of %12,594 crore.

Despite the profit dip, the operating performance offered a measure of reassurance. Operating margin expanded 70 basis points sequentially to 25.8%, while Ebit rose 6.5% quarter-on-quarter to 17,978 crore. The company’s disciplined execution, cost focus and steady deal flow helped deliver the improvement, Chief Financial Officer Samir Seksaria said.