India's largest software services exporter, Tata Consultancy Services (TCS) reported Q3 numbers that were below street estimates. Dollar revenues were at 4145 million, which was down 0.3 per cent, against analysts estimates of a growth of 1 per cent.
Net profit for the quarter ending Dec 31, 2015 was placed at Rs 6110 crores, which was in line with estimates.
Most analysts were expecting a muted growth, as the third quarter is traditionally a weak quarter for most IT companies. Also, the company was affected by rains in Chennai where it lost crucial man days. Utilization rates were placed at 80.9 per cent, including trainees. EBIT margin for the company was placed at 26.6 per cent.
The digital business of the company has done well, with a 4 per cent growth. The company says that digital would continue to remain a focus area for the company.
The attrition rate dropped to 15.1 per cent. TCS Q3 numbers were below estimates and the stock may open lower in trade on Wednesday. The shares have already hit a new 52-week low today.