Indian design and technology services firm Tata Elxsi on Monday posted its smallest rise in profit in 15 quarters.

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The company's profit rose marginally by 2.2 per cent year-on-year to 1.89 billion rupees ($23 million) in the quarter ended June 30, while revenue from operations climbed 17.1 per cent to 8.5 billion rupees ($103.6 million).

WHY IT MATTERS

Large Indian IT services companies have flagged discretionary spending cuts by clients and an uncertain demand environment.

Tata Elxsi on Monday said some deal closures were delayed in this quarter, while it saw muted growth in its media and communications business as the media, telecom and technology sector is "still soft" globally, and the company remains cautious on short-term growth in this sector.