Tata Consultancy Services (TCS), India’s largest IT services company, on Wednesday kick-started India’s Q2FY24 earnings season. The company posted an 8.73 per cent growth in its net profit to Rs 11,342 crore for the September 2023 quarter. Its revenue during July-September 2023 rose 7.92 per cent to Rs 59,692 crore, compared with Rs 55,309 crore a year ago.
TCS had posted a net profit of Rs 10,431 crore in the corresponding period last year (Q2 FY22).
The company has also declared its interim dividend of Rs 9 per share.
The board of directors also approved a proposal to buyback up to Rs 4,09,63,855 equity shares of the company for an aggregate amount not exceeding Rs 17,000 crore being 1.12 per cent of the total paid-up equity share capital at Rs 4,150 per equity share, subject to approval from shareholders, according to the BSE filing.
Its operating margin stood at 24.3 per cent during the September 2023 quarter, an expansion of 0.3 per cent YoY.
TCS’ dollar revenue declined for the first time in 4 years.
The company’s IT services attrition on the last-twelveth-month stood at 14.9 per cent during the September 2023 quarter, which is lower than in previous quarters.
With gross additions held below departures, TCS’ workforce stood at 608,985 as on September 30, 2023. The employee base continues to be diverse, with 35.8 per cent women and with 152 nationalities.
TCS saw significant growth in the UK (+10.7% YoY) region, and in sectors including energy, resources and utilities (+14.8%) and manufacturing (+5.8%).
K Krithivasan, chief executive officer and managing director, said: “Our clients continue to entrust us with critical new technology initiatives, and large programs to digitally transform their IT and business operating models. Strong deal momentum delivered us a very large order book in Q2 – our second highest TCV ever in a quarter, and good pipeline.”
He said the resilience of demand for the company’s services, its clients’ willingness to commit to long-tenure programmes and their continued appetite for experimentation with Gen AI and other new technologies give us confidence in our longer-term growth prospects.
N Ganapathy Subramaniam, chief operating officer and executive director of TCS, said, “We continue to make investments in our people and new technologies. We now have a 100,000-strong pool of Gen-AI Ready consultants and prompt engineers who are engaged in hundreds of Gen-AI projects for our clients across segments.”
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