MUMBAI - INDIA'S biggest software services exporter TCS reported on Thursday that its third-quarter net profit rose by a lower-than-expected 1.57 per cent from a year earlier, hit by the global economic slowdown.
Net profit for Tata Consultancy Services (TCS) in the three months ended December rose to 13.52 billion rupees (S$412.3 million) from 13.31 billion rupees in the same period a year earlier, using US accounting norms.
The figures were below analysts' expectations that profits would rise by 10 to 11 per cent. TCS is part of the sprawling tea-to-steel Tata group.
Revenues increased 24 per cent to 72.77 billion rupees, the company said.
'This is obviously a challenging period and the global economy has taken a further downturn. We aim to improve our efficiencies in uncertain times,' said Mr S. Ramadorai, TCS chief executive.
Software companies have seen earnings growth shrink as their US-based clients lower their IT spending budgets.
TCS shares fell 28.45 rupees or 5.28 per cent to 510 rupees on the Mumbai stock exchange ahead of the results announcement.
The company added 41 new clients in the third quarter and 11,773 employees.
TCS traditionally gives no earnings guidance. -- AFP
