Tata Consultancy Services Ltd., India's largest outsourcer by revenue, on Thursday reported a 5.8% drop in net profit amid a changing technology landscape that is forcing a shift in its services.
Mumbai-based TCS said profit in the three months ended June 30 stood at 59.5 billion rupees ($923 million), compared with 63.17 billion rupees a year earlier.
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That was lower than the 61.73 billion rupees projected by analysts surveyed by Thomson Reuters. Revenue grew 1% from a year earlier to 295.84 billion rupees.
TCS has "retooled" itself to "remain relevant to customers and have introduced new service lines," Chief Executive Officer Rajesh Gopinathan said in a statement.
The company and its competitors are trying to move away from a business model based largely on using inexpensive labor to write custom code and manage databases. TCS said revenue from digital services, which refer to technologies like cloud computing and big data analytics, rose 26% from a year ago.
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(END) Dow Jones Newswires
July 13, 2017 08:11 ET (12:11 GMT)