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TCS Reports Fall in Q3 Margins Amid Rising Equipment Costs

CosmicTaco · 2024-10-11T08:57:50.164654+05:30

- Tata Consultancy Services (TCS) reported a sequential decline in Q3 profit as equipment costs doubled and American revenue fell. - Despite a 1.59% drop in net profit, revenue rose 2.2% sequentially and 6.38% year-on-year, reaching $7.67 billion. - Increased equipment costs, partly due to a $1.83-billion 4G network deployment order from BSNL, impacted margins and net profit. - TCS's operating margins fell for the first time since September 2019, narrowing to 24.1%. - However, the company's India business, contributing almost 9% to its revenue, remained a bright spot. Source: [Mint](https://www.livemint.com/companies/ratan-tata-tcs-decline-data-centres-bsnl-4g-network-net-profit-equipment-costs-it-industry-krithivasan-chatgpt-genai-11728571417976.html)

Tata Consultancy Services (TCS) reported a sequential decline in Q3 profit as equipment costs doubled and American revenue fell.
Despite a 1.59% drop in net profit, revenue rose 2.2% sequentially and 6.38% year-on-year, reaching $7.67 billion.
Increased equipment costs, partly due to a $1.83-billion 4G network deployment order from BSNL, impacted margins and net profit.
TCS's operating margins fell for the first time since September 2019, narrowing to 24.1%.
However, the company's India business, contributing almost 9% to its revenue, remained a bright spot.

Source: Mint