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TCS net up 22.6% in second quarter

Global software major Tata Consultancy Services (TCS) posted Rs 7,901 crore consolidated net profit for the second quarter of fiscal 2018-19, registering a robust 22.6 per cent annual growth from Rs 6,446 crore in the same period year earlier.

In a regulatory filing on Thursday, the city-based IT bellwether said consolidated revenue for the quarter (Q2) under review grew 21 per cent annually to Rs 36,854 crore from Rs 30,541 crore in the like period year ago.

Sequentially, net profit and revenue grew 7.6 per cent from Rs 7,340 crore and Rs 34,261 crore respectively a quarter earlier.

Under the International Financial Reporting Standard (IFRS), net income grew 11.9 per cent year-on-year (YoY) to $1,119 million in Q2 from $1,000 a year ago and 3.1 per cent sequentially from $1,082 million a quarter earlier.

Gross income in dollar terms also grew 10 per cent YoY to $5,215 million in Q2 from $4,739 million year ago and 3.3 per cent sequentially from $5,051 million quarter earlier.

Digital revenue grew 28 per cent YoY and operating margin at 26.5 per cent grew 1.4 per cent YoY. Net cash from operations at Rs 7,363 crore is 93 per cent of net income. The board has recommended Rs 4 or a whopping 400 per cent dividend per share of Re 1 face value.

Verticals like BFSI (Banking, Financial Services and Insurance) and Retail led the growth 6.1 per cent and 15.6 per cent YoY respectively.

Geographically, Britain and Euorpe lead the growth 22.8 per cent and 17.4 per cent respectively.

The company added 10,227 techies during the quarter, taking the total headcount to 2,79,000 employees.

The company’s blue chip scrip, however, lost Rs 63.30 or 3.1 per cent per share of Re 1 face value on the BSE, closing at Rs 1,979.75 at the end of Thursday’s trading on the BSE as against Wednesday’s price of Rs 2,043.04 and opening price of Rs 1,998.70.

The shares also quoted at high of Rs 2,013,55 and a low of Rs 1,943.05 during the intra-day trading.

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