TCS Share Q2 Results

It was another robust quarter for TCS, India’s largest and most valuable software company and the second most valuable company on the stock exchange after RIL. TCS reported 16.77% growth in total sales at Rs.46,867 crore for the Sep-21 quarter. The sales were also higher on a sequential basis, albeit at a more moderate level of 3.21%. There was all-round growth seen across all verticals of the company.

Here is a gist of the top line, bottom line and margin numbers for Sep-21 quarter:

_{Data Source: Company Filings}
 

Here are some of the highlights of the results announced by TCS for the Sep-21 quarter.

A) North America has driven TCS top line not only in terms of volumes but also in terms growth, showing 17.4% YoY growth in constant currency terms.

B) Among other markets, while UK grew by 15.6%, continental Europe grew at 13.5% yoy. Among the emerging markets, India showed the best growth traction at 20.6%.

C) Growth was a lot more decisive in terms of specific verticals. Manufacturing led the way at 21.7%, followed by life sciences growing 19% and retail at 18.4%. The BFSI growth at 17% is less of a trigger to growth compared to other verticals. 

D) Operating margins or OPM remained steady at 25.6%, but was certainly slightly lower by 60 bps on a yoy basis. The net margins crossed 20% for the first time in the last few quarters. 

E) The premium client segment of $100 million plus continues to be the high profile focus area for this business. TCS added 5 clients in the $100 million plus bulge bracket and also enjoyed a healthy net cash from operations at 103% of net income. 

Unlike the other IT companies like Infosys, Wipro and HCL Tech; TCS does not provide guidance on earnings. But it is one more quarter of top line and bottom line surprising on the upside.

Also Read:- 

TCS crosses $200 billion market capitalization

TCS Share Q1 Results