TCS Q2 net profit up 8.4% QoQ

TCS Q2 net profit up 8.4% QoQ

 

Tata Consultancy Services reported its consolidated financial results according to IFRS and IndAS for the period ending September 30, 2017.The company reported net profit of Rs.6446 crore for Q2,a growth of 8.4% QoQ.

Financial Highlights for Quarter Ended September 30, 2017

Revenue at $4,739 mn, +8.3% Y-o-Y; +3.2% Q-o-Q
Net Income at $1 bn, +1.6% Y-o-Y; +8.4% Q-o-Q
Operating Margin at 25.1%, an expansion of 1.7% Q-o-Q
Net Cash from Operations at Rs. 5,809 crore i.e. 90.1% of Net Income
Earnings Per Share at $0.52
Dividend per share of Rs. 7.00

Business Highlights for Quarter Ended September 30, 2017

Digital revenue at 19.7%, +31% Y-o-Y; +5.9% Q-o-Q (CC)
1 new client in $100M+ band; 6 clients each added in $50M+, $20M+ and $10M+ bands
28 clients added in $1M+ band
IT Attrition rate (LTM) down further by 0.3% to 11.3%
Total employees: 389,213; Gross addition: 15,868 employees

Commenting on the Q2 performance, Rajesh Gopinathan, CEO and MD, TCS, said: “We experienced robust volume growth in Q2, driven by good demand across multiple industry verticals. Strong,broadbased client metrics this quarter demonstrates our increasing success with newer customers.

Large deal wins this quarter, a good pipeline, and bottoming out of the Retail sector softness positions us well.”

Rajesh added: “We continue to gain share in the fast growing Digital spend of our customers,evident in our industry-leading Digital growth in Q2. By sharpening our focus on individual components of the Digital service stack, we have been able to bring to bear the full power of our contextual knowledge, research and innovation, and investments in location-independent agile, automation and cloud on our customers’ transformational imperatives and become a trusted partner in their Business 4.0 journeys.”

N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director, TCS, said: “It has been a very satisfying performance this quarter, striking a good balance between pursuing revenuegrowth, particularly in Digital opportunities, while tightening our execution to deliver greater efficiency. Our client-centricity and business depth are resulting in industry-leading customer satisfaction levels and strong client metrics. With the sectoral headwinds slowly abating, we expect steadier and stronger growth ahead.”

V. Ramakrishnan, Chief Financial Officer, TCS, said: “Rigor and discipline in our operations helped accomplish an impressive margin performance and progress along the profitability path wehad outlined earlier. Our investment program remains geared for growth. Continued investments in digital design and transformational capabilities are paying off, and it shows in the strong growth in our Digital business.”