TCS flags weak demand, revenue up 7% in June quarter

BENGALURU: TCS has warned about a weakness in demand even as its revenue grew 7% in the June quarter over the year-ago period. Revenue in dollar terms rose 6.6% to $7.2 billion in the June quarter led by business from the UK, life sciences and healthcare and manufacturing verticals. North America, Europe, retail consumer packaged goods growth was below the company average.

The IT giant has indicated that there is softness in the demand environment that might scale back its double-digit growth ambition in this financial year. Sequentially, revenue was flat reflecting a slowdown in banking & financial services and telecom sectors as clients are pulling back on discretionary spending and pausing non-critical projects.