IT giants TCS and Wipro announced their earnings on Wednesday, which were lower than the market expectations. This indicates that the outlook for the software services exporters is definitely worrisome.
The second quarter earnings of Indian IT biggies TCS and Wipro, is a reflection of the uncertainty engulfing the sector with both the companies failing to meet street expectations.
While TCS witnessed its sales at Rs 6953 crore, up 8.46 per cent from the previous quarter, Wipro’s sales was at Rs.6409.4 crore, up 7.5 per cent from the previous quarter.
A huge forex loss of Rs 261 crore took the shine off TCS' bottom line. Mahalingam, Executive Director and CFO at TCS, said, “Margins could have been higher by 55 basis points.”
As a Wipro, a one per cent volume growth and flat guidance for Q3 were a disappointment. Suresh Vaswani, ED and Joint CEO of IT Business at Wipro, said, “We are seeing a delay in decision making, so customers are being circumspect in terms of discretionary spending.”
There was, however, some respite for TCS with healthy client adds and robust hiring.