Tata Consultancy Q2 net up 1.2%, lags forecast

Tata Consultancy Q2 net up 1.2%, lags forecast
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First Published: Wed, Oct 22 2008. 06 52 PM IST
Updated: Wed, Oct 22 2008. 06 52 PM IST
Mumbai: Tata Consultancy Services Ltd, India’s top software services exporter, posted a 1.2% rise in quarterly profit, lagging expectations, as the global economic downturn crimped outsourcing.
The company, part of India’s Tata Group that has interests in cars, commodities and services, said net profit in the September quarter rose to Rs12.62 billion ($256 million) from Rs12.47 billion a year earlier under US accounting rules.
A Reuters poll of brokerages had forecast a net profit of Rs13.74 billion for Tata Consultancy, which caters to firms including General Electric Co, Lloyds TSB Group, French insurer AXA SA and Qantas Airways.
Profit rose to Rs12.71 billion under Indian accounting standards, the company said.
Earlier, Wipro, the No. 3 software exporter, missed estimates with a 1.2% rise in quarterly net profit and joined its rivals in giving a muted forecast due to deteriorating global economic conditions.
Ahead of the announcement, shares in Tata Consultancy, which provides services such as consulting, system integration and back-office outsourcing, ended down 2.6% at Rs546.35 in a Mumbai market that fell 4.8%.
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First Published: Wed, Oct 22 2008. 06 52 PM IST
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