MUMBAI — Indian IT giant Tata Consultancy Services' June-quarter revenue fell short of expectations, figures reported Thursday showed.

 

Consolidated sales at the leader of India's IT sector rose 1.3 per cent year-on-year to 634.37 billion rupees ($7.4 billion), shy of the 646.66 billion rupees analysts had projected.

 

It had forecast better demand this year, but both TCS and the broader sector still await growth momentum.

 

"The continued global macro-economic and geopolitical uncertainties caused a demand contraction," said chief executive officer K Krithivasan.

 

While US President Donald Trump's stop-start tariffs do not directly affect India's IT firms, trade tensions may make clients more hesitant to spend on big tech projects.

 

TCS registered a modest, six per cent rise in quarterly profits, up year-on-year to $1.53 billion, slightly ahead of analyst estimates.

 

The IT services sector is one of India's biggest employers and revenue earners.

 

Infosys, India's second-largest software services exporter and TCS's main rival, is due to report its quarterly results later this month.