TCS Reports 15% Rise in Q2 Profit to Rs 13,884 Crore, Revenue Up 11%

Tata Consultancy Services (TCS), the country's largest IT services company, on Thursday reported a 15 per cent rise in net profit to Rs 13,884 crore for the September quarter, marking a strong start to the second-quarter earnings season.

The company's net profit stood at Rs 12,075 crore in the year-ago period and Rs 13,349 crore in the preceding June quarter. Revenue from operations increased 11.22 per cent year-on-year to Rs 73,188 crore during the July-September quarter, compared with Rs 65,799 crore a year earlier. Revenue in the June quarter was Rs 72,275 crore.

TCS Chief Executive Officer K Krithivasan said the company witnessed broad-based growth across international markets and industry segments. Annualised revenue from artificial intelligence-related services rose to USD 3 billion in the September quarter from USD 2.6 billion in the preceding quarter, Chief Operating Officer Aarthi Subramanian said.

The company reported total contract value (TCV) of USD 9.6 billion for the quarter, marginally higher than USD 9.5 billion in the June quarter. TCS added 4,258 employees on a net basis during the quarter, taking its total workforce to 5,98,056 as of September 30. Attrition in its IT services business stood at 13.3 per cent.

The company's pre-tax margin remained unchanged from the June quarter at 24 per cent.

Among business segments, energy, resources and utilities posted the strongest growth, with revenue rising 5.7 per cent year-on-year in constant currency terms. The consumer business declined 1 per cent.

North America, TCS' largest market, recorded 1.5 per cent growth in constant currency terms, while India was the fastest-growing region, with revenue rising 6 per cent. The company board recommended a dividend of Rs 12 per share, with October 14 fixed as the record date.

TCS shares closed 0.42 per cent lower at Rs 2,075.25 on the BSE, compared with a 1.44 per cent decline in the benchmark index.