{"id":7469,"date":"2023-04-12T16:28:14","date_gmt":"2023-04-12T16:28:14","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/indias-tcs-beats-q4\/"},"modified":"2023-04-12T16:31:34","modified_gmt":"2023-04-12T16:31:34","slug":"indias-tcs-blames-u-s","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/indias-tcs-blames-u-s\/","title":{"rendered":"India&#8217;s TCS blames U.S. banking crisis for weak fourth quarter"},"content":{"rendered":"<p>By Sethuraman N R<\/p>\n<p>BENGALURU (Reuters) -Tata Consultancy Services said on Wednesday fourth-quarter results were weaker than it had expected as some of the IT company&#8217;s clients in the North American banking space deferred project spending amid the U.S. financial crisis. <\/p>\n<p>India&#8217;s top IT exporter flagged &#8220;a lot of uncertainty&#8221; in its banking, financial services and insurance segment over the near-term in the North American market as clients rushed to conserve cash.<\/p>\n<p>&#8220;The quarter has come out weaker than what we originally anticipated and primarily coming out of North America,&#8221; TCS CEO Rajesh Gopinathan said in a media conference. <\/p>\n<p>A meaningful recovery in North America has not materialised as expected and has worsened instead, he said.  <\/p>\n<p>The collapse of two mid-sized U.S. lenders in March had left the financial ecosystem shaken and driven an extraordinary government effort to reassure depositors and backstop the system.    <\/p>\n<p>&#8220;It is difficult for us to call how long this will last and how the near- to medium-term will turn out,&#8221; Gopinathan said.  <\/p>\n<p>TCS is the first among its peers to report quarterly earnings, setting the tone for an industry that is also staring at a recession in its major markets &#8211; the U.S. and Europe.<\/p>\n<p>The results also come as the company goes through a CEO transition, with K Krithivasan taking over as the top role on June 1 in place of Rajesh Gopinathan, who resigned in March. <\/p>\n<p>Quarterly net profit rose 14.8% to 113.92 billion rupees ($1.39 billion), topping analysts&#8217; expectations of 110.13 billion rupees, according to Refinitiv IBES data.<\/p>\n<p>Its January-March order book stood at $10 billion, down 11.5% from a year ago, but with an &#8220;all-time high number of large deals.&#8221; For the ongoing quarter, TCS forecast a range of $7 billion to $9 billion.<\/p>\n<p>Revenue from operations rose about 17%.<\/p>\n<p>($1 = 82.0700 Indian rupees)<\/p>\n<p> (Reporting by Nallur Sethuraman and Anuran Sadhu in Bengaluru; Editing by Janane Venkatraman and Devika Syamnath)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/indias-tcs-blames-u-s\/illustration-shows-tata-consultanct-services-logo\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ3B0FG-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3B0FG-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Sethuraman N R BENGALURU (Reuters) -Tata Consultancy Services said on Wednesday fourth-quarter results were weaker than it had expected as some of the IT company&#8217;s clients in the North American banking space deferred project spending amid the U.S. financial crisis. India&#8217;s top IT exporter flagged &#8220;a lot of uncertainty&#8221; in its banking, financial services [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":7470,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1220],"tags":[1223],"class_list":["post-7469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-technology","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ3B0FG-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/7469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=7469"}],"version-history":[{"count":4,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/7469\/revisions"}],"predecessor-version":[{"id":7860,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/7469\/revisions\/7860"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/7470"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=7469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=7469"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=7469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}