Tata Consultancy Services (TCS) on Thursday reported a 5.4% sequential drop in net profit at Rs 12,075 crore for the July–September quarter, weighed down by a one-time restructuring cost of Rs 1,135 crore. Excluding this charge, the country’s largest software exporter posted a 1.1% rise in profit to Rs 12,904 crore, ahead of Bloomberg’s estimate of Rs 12,594 crore.

Despite the profit dip, the operating performance offered a measure of reassurance. Operating margin expanded 70 basis points sequentially to 25.8%, while Ebit rose 6.5% quarter-on-quarter to Rs 17,978 crore. The company’s disciplined execution, cost focus and steady deal flow helped deliver the improvement, Chief Financial Officer, Samir Seksaria said. “We expanded margins while continuing to invest in wage hikes, capabilit

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