TCS Share Q2 Results

TCS Reports 29% Growth in Net Profit at Rs.9,653 Crore

Indian Market
by 5paisa Research Team Last Updated: 2022-12-13T13:45:53+05:30

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:

 

TCS Ltd

 

 

 

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 46,867

₹ 40,135

16.77%

₹ 45,411

3.21%

Operating Profit (Rs cr)

₹ 12,000

₹ 10,515

14.12%

₹ 11,588

3.56%

Net Profit (Rs cr)

₹ 9,653

₹ 7,504

28.64%

₹ 9,031

6.89%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 26.02

₹ 19.93

 

₹ 24.35

 

OPM

25.60%

26.20%

 

25.52%

 

Net Margins

20.60%

18.70%

 

19.89%

 

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

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