TCS posts robust net, revenue growth in Q2

Mumbai, Oct 13 (IANS) IT major Tata Consultancy Services (TCS) Ltd on Tuesday posted robust net and revenue growth in double digits in rupee terms for second quarter of fiscal 2015-16.

Its net profit increased 14.5 percent year-on-year and 6.1 percent sequentially to Rs.6,055 crore under the Indian accounting standard.

Revenue also increased 14.1 percent over last year and 5.8 percent sequentially to Rs.27,165 crore for the quarter under review.

Under the International Financial Reporting Standard (IFRS), net income grew 6.2 percent over last year and 3.2 percent sequentially to $926 million, while revenue grew 5.8 percent over last year and 3 percent sequentially to $4.16 billion.

“Similarly, operating profit grew 15.1 percent YoY and 8.7 percent sequentially to Rs.7,307 crore and operating margin was 26.9 percent, while volume growth was robust at 4.9 percent,” the city-based company said in a statement here.

The outsourcing major bagged three $100 million and six $10 million customers during the quarter

“We have delivered accelerated growth in constant currency terms for Q2. Driven by great execution on the ground, our broad-based performance has been led by strong sequential growth in banking and financial services, retail and life sciences verticals with Britain and North America leading the markets,” TCS chief executive N. Chandrasekaran said in the statement.

The company paid dividend of Rs.5.50 per share of 1 rupee value at par to its institutional and retail investors and its earnings per share stood at Rs.30.88.

Though the company announced the financial results after the markets closed, its blue scrip value increased by Rs.5 to Rs.2,597.40 on the Bombay Stock Exchange (BSE) when trading ended, as against Monday’s closing rate of Rs.2,592.40 and opening rate of Rs.2,605 earlier in the day.

“We remain focused on partnering with clients in multiple business dimensions to help them strategize and execute their digital roadmaps. Given the growing market adoption of digital, we continue to take new IP-led products and platforms to market and invest in training our talent,” Chandrasekaran added.

The growth was also balanced across service lines led by asset leveraged solutions, innovation and Intellectual Property (IP), followed by assurance, entertainment solutions, infrastructure and business process services.

“In a dynamic external environment, we continue to manage our operations with discipline and agility to ensure that we can support business growth. Our focus on profitability increased our margins sequentially and generated strong cash flows,” said chief financial officer Rajesh Gopinathan.

The company added 25,186 people in the quarter. With 14,501 techies leaving during the period, net addition was 10,685, taking its total employees to 335,620. Attrition rate was at 16.2 percent on annualised basis.

“Our retention level improved with a net addition of over 10,000 employees in the quarter. Our hiring continues to be strong with all time-high of over 25,000 joining the company from July to September,” said global head for human resources Ajoy Mukherjee.

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