On the surface, Tata Consultancy Services delivered in its first quarter what Street analysts love to see in any first-quarter results - expanding margins, healthy profits, and reassuring commentary about artificial intelligence transforming client engagement. Net profit rose 6% to ₹127.6 billion while operating margins expanded 30 basis points sequentially to 24.5%.Strip away currency fluctuations—the accounting calculation that flatters reported revenue—and TCS's constant currency revenue declined 3.1% year-on-year. TCS earns most of its revenue in dollars and euros, which convert to more rupees when the Indian currency weakens. The 4.4 percentage point gap between reported growth of 1.3% and constant currency decline of 3.1% reveals how much currency movements propped up the headline number.
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