Skip to content
Search

Latest Stories

TCS misses profit estimates

INDIA'S largest software exporter Tata Consultancy Services (TCS) on Thursday (10) reported weak quarterly earnings, missing profit estimates as demand for its key banking and financial sector services shrank.

The Mumbai-headquartered firm posted a 1.8 per cent rise in consolidated net profit to Rs 80.41 billion for the quarter ended September, up from Rs 79.01bn a year earlier, the company said.


The downbeat figures come as India's economy endures a prolonged slowdown with the software giant's revenues seen as an indicator of the health of the country's IT export sector.

"We ended the quarter with steady growth despite increased volatility in the financial services and retail verticals," TCS chief executive Rajesh Gopinathan said in a statement.

"We remain confident as the medium and longer term demand for our services continues to be very strong, as evidenced by our Q2 order book the highest in the last six quarters."

Known as India's second-most valuable company, TCS was at the forefront of an IT boom that saw the country become a back office to the world as firms largely in developed nations subcontracted work, taking advantage of a skilled English-speaking workforce.

TCS earns more than 80 per cent of its revenues from Western markets including Britain, the US and Europe.

The September-ended quarter is generally considered a strong one for India's IT service exporters due to increased spending from clients in Western markets.

But US-China trade tensions have sparked fears for the global economy, with the International Monetary Fund forecasting the weakest growth in a decade.

India, Asia's third-largest economy, saw growth fall to five percent in the June quarter, according to official data as manufacturing activity and consumer demand cooled.

Many financial agencies have revised India's growth projections for the 2019-20 financial year, with some warning that a stronger dollar would cause the rupee to fall throughout 2019, stoking inflation and eroding demand further.

On Thursday, ratings agency Moody's revised the country's GDP growth forecast to 5.8 per cent from a previous estimate of 6.2 per cent for the financial year 2019-20, lower than the 6.1 per cent projected by the Reserve Bank of India.

TCS shares were down 0.80 per cent in Mumbai after the earnings announcement.

 (AFP)

More For You

Tesco Clubcard Changes: Update Your App Before the Deadline

The digital Clubcard offers convenience and flexibility

Getty

Tesco Clubcard changes: Customers urged to update app before Monday deadline

Tesco has issued an urgent call for action to millions of its Clubcard users, advising them to update their Tesco Shopping & Clubcard app before Monday, 31 March 2025. The supermarket giant is rolling out an important update to improve data protection and online security, and failure to update the app by the deadline will leave customers unable to access their digital Clubcard benefits.

Update to ensure enhanced security

The upcoming changes are being implemented to enhance the security of customer data and improve overall protection. Tesco has highlighted the importance of this upgrade, as it seeks to safeguard customer information and keep their online shopping experiences secure.

Keep ReadingShow less
OpenAI Restricts ChatGPT’s Image Feature After Viral Ghibli Trend

Altman addressed the impact of the popular Ghibli-style image trend on OpenAI’s resources

Getty

OpenAI limits ChatGPT’s image generation feature amid viral Ghibli image trend

OpenAI CEO Sam Altman has announced temporary limitations on the company’s image generation feature in response to overwhelming demand driven by a viral trend. On Thursday, Altman addressed the impact of the popular Ghibli-style image trend on OpenAI’s resources, particularly its reliance on GPUs (graphics processing units). Altman revealed that the surge in demand for ChatGPT’s image generation tool has led to significant strain on the company’s infrastructure, prompting the introduction of temporary speed limits for users.

In a post on X (formerly Twitter), Altman shared the company’s response to the unexpected demand, stating, “It’s super fun seeing people love images in ChatGPT, but our GPUs are melting. We are going to temporarily introduce some rate limits while we work on making it more efficient. Hopefully won’t be long! ChatGPT free tier will get 3 generations per day soon.”

Keep ReadingShow less
UK-business-district-Getty
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)

Economic growth in 2024 slightly higher than estimated: ONS

THE UK economy grew slightly more than first estimated in 2024, according to official data released on Friday, providing a small boost for the government after it revised down its growth forecast for 2025.

The Office for National Statistics (ONS) said gross domestic product expanded by 1.1 per cent in 2024, up from an initial estimate of 0.9 per cent.

Keep ReadingShow less
Sri Lanka posts five per cent GDP growth as it ends years of economic decline

Sri Lanka's president Anura Kumara Dissanayake

Sri Lanka posts five per cent GDP growth as it ends years of economic decline

CASH-STRAPPED Sri Lanka’s economy grew by five per cent in 2024, marking the first full year of expansion since its unprecedented meltdown in 2022, official data showed last Tuesday (18).

The last quarter of 2024 saw the economy expand by 5.4 per cent, bringing the full calendar year’s GDP growth to five per cent, compared to a contraction of 2.3 per cent in 2023.

Keep ReadingShow less
Donald Trump

Speaking from the Oval Office, Trump said, 'What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the US.'

Getty Images

Trump imposes 25 per cent tariffs on foreign-built cars

US president Donald Trump has announced a 25 per cent tariff on imported cars and auto parts, escalating trade tensions with key partners.

The new duties take effect on 3 April and apply to foreign-made cars and light trucks, with additional levies on key auto parts set to follow within the month.

Keep ReadingShow less