Tata Consultancy Services Ltd., India's biggest software maker, had an unexpected drop in fourth-quarter profit as it boosted staff bonuses and a weaker dollar curbed U.S. sales growth.
Net income in the three months ended March 31 fell to 4.69 billion rupees ($107 million) from 4.7 billion rupees a year earlier, under U.S. accounting rules, the Mumbai-based company said in a statement. Sales rose to 25.84 billion rupees from 20.37 billion rupees.
"The earnings are bad," said Apurva Shah, a Mumbai-based analyst with ASK Raymond James & Associates Ltd. "Even after taking into account the cost of employee incentives the result is significantly below expectations."
Tata Consultancy said it won 53 new customers in the quarter ended March 31 compared with 72 customers in the preceding quarter. The company added 1,775 employees in the quarter for a total of 45,992 employees.
Tata's U.S. training center is in Buffalo.