Shares of Tata Consultancy Services (TCS) fell nearly 2% to Rs 3,183.15 on the BSE in intraday trade on Thursday after the company reported revenue growth of just 0.6% quarter-on-quarter (QoQ) in constant currency (cc) by 2023 March quarter (Q4FY23) basis.

In Rs. terms, revenue rose 16.9% year-on-year to Rs 59,162 crore. That was one of the slowest revenue growth in constant currency in more than 11 quarters.

TCS’s net profit rose 14.8% year-on-year and 5% quarter-on-quarter to Rs 11,392 crore for the quarter. EBIT margin was flat at 24.5% as some site sticky costs offset benefits from cost pyramid optimization, better utilisation etc.

The company’s fourth-quarter results missed Bloomberg’s forecast for revenue but met profit expectations. Bloomberg estimated income at Rs 59,410 crore. Net profit was also slightly below estimates of Rs 11,533 crore.

Revenue growth was impacted by a slowdown in the BFSI vertical in the second half of the quarter. TCS indicated a slowdown in demand across key verticals, mostly on discretionary spending, while cost-efficiency expenditure remained robust. Deal TCV was strong at $10 billion in Q4 (+28% QoQ, 1.4x book-to-bill), and FY23 TCV at $34.1 billion (flat YoY) despite a subdued macro environment.