TCS stays mum on US fine, strengthens rumors about growth uncertainty in FY 17

As the top management of Tata Consultancy Services (TCS) declared the quarterly results on Monday evening, everyone was expecting a word or two about the penalty that it is facing from a US jury. However, the management chose to stay silent on this matter, thereby strengthening the rumors that there won’t be much growth in FY17 earnings.

As per reports, TCS has been slapped with a hefty fine of over $940 million in a lawsuit filed by Epic Systems. Considering that the net profit it reported in the March quarter was $936 million, one can imagine the condition that this fine would bring the IT giant to.

Also, this has come at a time when the company's growth (7.1%) has already slowed down as compared to its peer Infosys (9.1%), and that too for the first time since FY10.

However, on a brighter side, TCS has added three clients with $100 million deal size each, along with eight clients with at least $50 million of billing each in the quarter, which makes the investors hopeful about revenue growth.

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