TCS shares end flat post Q2 results

TCS Q2 net profit beats estimates rises at 8.4% to Rs 6,446 crore in September quarter

"Operating margin expanded 1.7 per cent sequentially to 25.1 per cent for the quarter, while volume growth was up 3.2 per cent quarterly", said the company in a statement.

Employee attrition rate was 30 basis points lower at 11.3 per cent.

Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions firm, witnessed a 2.1% fall in the consolidated net profit on year-on-year basis (a 8.4% rise on sequential basis) to Rs 64.46 billion for the quarter ended September 2017. In the first quarter, the company had reported net profit of Rs 5,945 crore. Bloomberg consensus estimates had forecast the IT major's net profit at Rs 6,287 crore on revenues of Rs 30,508 crore.

Commenting on Q2 earnings, CEO and managing director Rajesh Gopinathan said: "We experienced robust volume growth in Q2, driven by good demand across multiple industry verticals". Strong, broad-based client metrics this quarter demonstrates our increasing success with newer customers.

TCS said most businesses, barring financial services and retail, grew above 9.5% in the last quarter. The company has declared a dividend of Rs 7 per share.

Revenue from digital services was 19.7 per cent, which is up 5.9 per cent quarterly and 31 per cent yearly.

On a constant currency basis, which discounts the impact of currency changes and over which companies have no control, India's biggest software services company by revenue reported 1.7% growth, lower than the 2% it reported in the April-June period. North America, which contributes the lion's share of the revenue, was up by just 1.4%, hurt by sluggish growth in the banking and retail sectors. "With the sectoral headwinds slowly abating, we expect steadier and stronger growth ahead".

V. Ramakrishnan, Chief Financial Officer, said: "rigour and discipline in our operations helped accomplish an impressive margin performance and progress along the profitability path we had outlined earlier".

Shares of TCS gained 1.9% in Mumbai trading on Thursday before the earnings were released, while the benchmark S&P BSE Sensex closed up 1.1%.

Related:

Comments


Other news