TCS Q1 review: Brokerages caution against early signs of demand slowdown

The company has indicated that the near-term demand outlook remains strong, but senior-level client executives have started discussing a potential recession, said Nomura.

Shares of Tata Consultancy Services (TCS) dropped over 4 per cent to Rs 3,111 apiece on the BSE on Monday as investors exited the counter after the company reported a soft June quarter (Q1FY23).

While TCS beat Street estimates on the revenue front, reporting a 16.2 per cent increase on a yearly basis to Rs 52,758 crores, the net profit rose by 5.2 per cent to Rs 9,850 crore, which came below expectations.

The margins for the quarter also touched a multi-year low of 23.1 per cent -- lowest since Q1FY09 -- falling 2.4 per cent year-on-year (YoY) due