TCS Q3: Weak deal wins, negative headcount signal slowdown, say analysts

TCS Q3 results: QoQ decline of 2,200 employees in the total headcount and de-growth of 3.7 per cent in deal bookings at $7.8 billion are indicators that point towards a slowdown, analysts say

Tata Group-major Tata Consultancy Services (TCS) beat revenue expectations in the October-December quarter (Q3) but missed the mark on profit estimates.

It reported a 19 per cent year-on-year (YoY) revenue growth to Rs 58,229 crore while net profit rose 11 per cent YoY to Rs 10,846 crore.

A Business Standard poll had pegged the revenue at an average of Rs 57,446 crore and profit at Rs 11,046 crore.

As of 11 am, TCS scrip was down 2 per cent on the bourses as the management’s positive demand commentary failed to cheer investors.

Moreover, a quarterly decline of around 2,200 employees