Mumbai-headquartered TCS on Thursday posted a 2 percent decline in second-quarter profit on Thursday, held back by sluggish growth in the banking and retail sector.
All segments of the business, except the banking, financial services and insurance (BFSI) and retail sectors, grew revenue above 9.5 percent. BFSI accounts for more than 30 percent of TCS' revenues, while retail makes up about 13 percent.
"In retail we're seeing a significant amount of traction... I think we should see a turnaround in retail in the next few quarters itself," Chief Executive Rajesh Gopinathan told reporters in Mumbai.
"Directionally it [BFS] is positive but difficult to say when the turnaround in BFS is likely to happen."
TCS posted a net profit of Rs 6,446 crore ($990 million) in the three months to Sept. 30, beating analysts' average estimate of Rs 6,306 crore, Thomson Reuters data showed.
Income from operations rose 4.3 percent to Rs 30,541 crore from a year earlier.
It added 15,868 employees in the quarter. The company said earlier this year it would increase local hiring in the United States as it prepares for possible change in the visa system for Indian workers.
Local brokerage Kotak said in a note to clients that TCS' "vulnerable maintenance-heavy portfolio" is likely to remain a risk. It maintained a reduce rating on the stock.
TCS is the first among India's software services exporters to report earnings for July-September. Smaller rival Wipro Ltd is scheduled to report next week.
Shares in TCS closed 1.9 percent higher ahead of earnings in a broader Mumbai market that ended 1.1 percent up.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)