IT major Tata Consultancy Services (TCS) started off the financial year on a negative note Thursday by reporting lower-than-expected profit and operational numbers, though revenue met expectations.

Hence, overall it was a mixed bag performance.

Profit during the quarter fell 10 percent sequentially to Rs 5,945 crore while revenue declined 0.2 percent to Rs 29,584 crore compared with previous quarter.

"We have seen steady growth across industries in Q1. Robust volumes from major markets driven by good client additions across revenue bands and accelerating digital adoption among customers have given us the right start to the year," Rajesh Gopinathan, CEO & MD said.

Dollar revenue growth was 3.1 percent QoQ at USD 4,591 million, which was in-line with 2.9 percent growth at USD 4,581 million estimated by CNBC-TV18 poll.

Constant currency revenue for the quarter grew by 2 percent QoQ, with volume growth of 3.5 percent.

The company has had excellent wins across all markets and has a good deal pipeline across industries that positions the company well for growth in FY18, he added.

TCS has reported 11 large deals across all verticals, of which 7 are from North America.

It added 1 new client each in USD 50 million and USD 100 million categories. It also added 8 clients in USD 1 million band and 12 clients in USD 10 million category.

Digital business continued to perform well in June quarter, showing 7.6 percent growth QoQ and contributed 18.9 percent to total revenue.

Earnings before interest and tax (EBIT) declined 9.34 percent quarter-on-quarter to Rs 6,914 crore and margin contracted sharply by 230 basis points to 23.4 percent in the quarter ended June 2017, hit by rupee appreciation (3.5 percent during the quarter) and wage hikes.

High currency volatility including sharp rupee appreciation against the dollar resulted in Rs 650 crore loss in reported revenues, V Ramakrishnan, CFO said.

Profit was estimated at Rs 6,195 crore on revenue of Rs 29,580 crore while EBIT was expected at Rs 7,155 crore and margin at 24.2 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

The software services exporter said all industry verticals except retail and BFSI (banking, financial, services and insurance) exhibited strong growth at over 3.5 percent sequentially.

The contribution of BFSI vertical (grew by 2.3 percent in constant currency) to total revenue reduced to 33 percent from 40 percent in previous quarter. Communication & media segment grew by 3.9 percent and energy & utilities 7.6 percent.

All major markets grew in constant currency terms with Europe leading the charge (5.9 percent growth in constant currency QoQ), followed by North America (1.7 percent) and UK.

Among growth markets, it said Latin America led the pack with 2.8 percent growth in constant currency QoQ followed by India (1.5 percent), Asia Pacific and MEA.

During Q1, TCS reorganised its service lines in Q1, adding new lines like cognitive business operations (grew by 5 percent QoQ) and digital transformation services, which have robust pipeline.

The total attrition rate was at 12.4 percent including BPS, with IT attrition at only 11.6 percent (last twelve months), it said.

Meanwhile, the company has declared an interim dividend of Rs 7 per share and the record date is fixed as July 25.

Its board of directors today appointed Aarthi Subramanian as non-executive director with effect from August 17, 2017.

The stock price of Tata Consultancy Services, which announced earnings after market hours, closed up 0.2 percent at Rs 2,444.05 on the BSE.