TCS Q2 net profit climbs 14% as shares touch new high
Tata Consultancy Services Ltd (TCS) on Friday reported a 14% increase in consolidated net profit for the second quarter, as strong demand for IT services helped it won new clients and pushed its stock to a new high.
India’s biggest software services exporter said it posted a consolidated net profit of Rs 9,624 crore for the July-September quarter, up from the adjusted net income of Rs 8,433 crore a year earlier.
Revenue from operations climbed 17% to Rs 46,867 crore from Rs 40,135 crore a year earlier.
Ahead of the results, TCS shares hit a new high at Rs 3,990 on the BSE in intra-day trade, before closing at Rs 3,935.30 apiece on profit-taking.
The company's board approved a Rs 7 per share interim dividend for the shareholders.
Other key details:
1) TCS added five new clients in $100-million-plus category during Q2, taking the total to 54 customers.
2) It also added 17 new clients in $50-million-plus band, taking the total to 114 clients.
3) Manufacturing vertical recorded 21.7% growth, followed by life sciences and healthcare with 19% growth
4) Retail and consumer products segment posted growth of 18.4%, and BFSI recorded 17% growth in Q2.
5) North America, TCS’s largest market, clocked 17.4% growth. The UK business grew 15.6% and India at 20.1%.
TCS managing director and CEO Rajesh Gopinathan said that the strong and sustained demand environment is “a once-in-a-decade opportunity” for the company to position itself as the preferred growth and transformation partner for its customers.
“We are using the growth tailwind to invest in strengthening relevant capabilities and building out a comprehensive portfolio of offerings that caters to a broader set of stakeholders in the enterprise across business cycles, strengthening our brand, and making our business more resilient,” he said.
TCS finance chief Samir Seksaria said strong growth and disciplined execution helped the company overcome headwinds from currency and supply-side inflation and deliver expanded margins.
“Our industry-leading profitability and strong cash conversion give us the wherewithal to make the right investments needed to build out the business of the future,” he said.
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