Friday, 21 September, 2018

TCS Q2 net profit rises 8.3% QoQ

TCS Chairman Natarajan Chandrasekaran TCS Chairman Natarajan Chandrasekaran
Nellie Chapman | 13 October, 2017, 16:37

The country's second-largest software exporter reported 3.2 per cent sequential growth to $4,739 million for the September 2017 quarter.

While the growth momentum in the second quarter was strong, the constant currency revenue grew at a slower pace of 1.7 per cent sequentially compared with the reported pace of growth.

"With 93 per cent of revenue from exports, including 53 per cent from the USA, 27 per cent from Europe and Britain and 13 per cent from rest of the world, our performance in dollar terms was robust in the July-September quarter", a TCS official told IANS here.

The Tata group company posted a net profit of Rs 6,586 crore in the year-ago period.

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

"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.

"We continue to gain share in the fast growing Digital spend of our customers, evident in our industry-leading Digital growth in Q2", Mr Gopinathan said.

The company, which is the crown jewel of the Dollars 104 billion salt-to-software Tata Group, declared a dividend of Rs 7 per share and set October 26 as the record date.

TCS said most businesses, barring financial services and retail, grew above 9.5% in the last quarter.

In an interview to CNBC-TV18, Apurva Prasad, Research Analyst at HDFC Securities discussed his take on Tata Consultancy Services' (TCS) Q2 earnings.

N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: "it has been a very satisfying performance this quarter, striking a good balance between pursuing revenue growth, particularly in Digital opportunities, while tightening our execution to deliver greater efficiency". North America, which accounts for 54% of the revenue, grew barely 1.4% sequentially, weighed by the slowdown in financial services and retail spending.

Shares in TCS closed 1.9 percent higher ahead of earnings in a broader Mumbai market that ended 1.1 percent up.