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Tata Consultancy's fiscal Q2 earnings miss estimates

Tata Consultancy Services Ltd. reported weaker-than-expected earnings for its fiscal second quarter, which was described by CEO Rajesh Gopinathan as a period of "increased volatility" for the company's financial services and retail businesses.

The Indian IT services giant posted net income of 80.42 billion Indian rupees, or 21.43 rupees per share, in the quarter that ended Sept. 30, up from 79.01 billion rupees, or 20.66 rupees per share, a year earlier.

The S&P Global Market Intelligence consensus normalized EPS estimate for the fiscal second quarter was 22.10 rupees.

Revenue also missed expectations despite climbing year over year to 389.77 billion rupees in the fiscal second quarter from 368.54 billion rupees. The S&P Global Market Intelligence consensus revenue estimate was 393.89 billion rupees.

"We ended the quarter with steady growth despite increased volatility in the financial services and retail verticals," Gopinathan said in the company's earnings release.

Gopinathan said demand for the company's services in the medium term and the longer term remain "very strong," as reflected by its order book in the fiscal second quarter, which was the largest in the previous six quarters.

In reporting the latest quarterly earnings, the company also announced an interim dividend of 5 rupees per share and a special dividend of 40 rupees per share, to be paid Oct. 24 to shareholders on record as of Oct. 18.

As of Oct. 9, US$1 was equivalent to 71.10 Indian rupees.