NEW DELHI: India’s largest software services firm Tata Consultancy Services (TCS) on Monday reported 8.38% jump in its consolidated net profit for the second quarter (Q2) ended September 30.
The company posted a net profit of Rs 10,431 crore as against a profit of Rs 9,624 crore posted in same quarter last year.
TCS is the first among its peers to report quarterly earnings, setting the tone for the industry, which has been benefitting from a pandemic-led boom in demand.
The Tata Group company said its total revenue from services grew at a much faster pace of 18% to touch Rs 54,309 crore in the period under review.
The IT major had reported consolidated revenue of Rs 46,867 crore in the year-ago quarter from which it had earned Rs 9,624 crore net income.
However, its operating margin narrowed by 1.60 percentage points to 24%.
Commenting on the results, chief executive officer and managing director of TCS Rajesh Gopinathan said: “Demand for our services continues to be very strong. We registered strong, profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements.”
The company added 9,840 employees on a net basis during the quarter to take its overall strength to 6.16 lakh, making it the largest segmental employer.
TCS also said it expected attrition to “taper down from this point, while compensation expectations of experienced professionals moderate.”
Milind Lakkad, chief HR officer said: “Reflecting our culture of being committed to our employees, we have honored all the job offers we had made. We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate.”
Shares of TCS closed 1.84% up at Rs 3,121.20 apiece on the BSE as against a 0.34% correction in the benchmark sensex.
(With inputs from agencies)
The company posted a net profit of Rs 10,431 crore as against a profit of Rs 9,624 crore posted in same quarter last year.
TCS is the first among its peers to report quarterly earnings, setting the tone for the industry, which has been benefitting from a pandemic-led boom in demand.
The Tata Group company said its total revenue from services grew at a much faster pace of 18% to touch Rs 54,309 crore in the period under review.
The IT major had reported consolidated revenue of Rs 46,867 crore in the year-ago quarter from which it had earned Rs 9,624 crore net income.
However, its operating margin narrowed by 1.60 percentage points to 24%.
Commenting on the results, chief executive officer and managing director of TCS Rajesh Gopinathan said: “Demand for our services continues to be very strong. We registered strong, profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements.”
The company added 9,840 employees on a net basis during the quarter to take its overall strength to 6.16 lakh, making it the largest segmental employer.
TCS also said it expected attrition to “taper down from this point, while compensation expectations of experienced professionals moderate.”
Milind Lakkad, chief HR officer said: “Reflecting our culture of being committed to our employees, we have honored all the job offers we had made. We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate.”
Shares of TCS closed 1.84% up at Rs 3,121.20 apiece on the BSE as against a 0.34% correction in the benchmark sensex.
(With inputs from agencies)
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