TCS posts weaker growth than expected; Q2 net profit up 1.8% at Rs 8,042 cr

Industry leader Tata Consultancy Services (TCS) on Thursday reported weaker than expected numbers in the quarter ended September 30, indicating that double-digit growth may elude the Mumbai-based IT services company in FY20. This is despite record deal closures in several quarters.

In the second quarter, the company’s revenue and profitability were adversely affected largely owing to softness in financial services and retail verticals.

With 8.4 per cent rise in revenue in constant-currency terms, the IT bellwether fell short of its double-digit revenue-growth target.

Also, the 1.6 per cent sequential revenue growth recorded by TCS in constant-currency terms was the lowest in the past two years.