Net profit up 6.8% qoq to Rs 9,624 crore, misses street estimates
Tata Consultancy Services (TCS) kicked off the corporate earnings season by posting a net profit of Rs 9,624 crore on revenue of Rs 46,867 crore for the second quarter, minus Street’s estimates.
Tata Consultancy Services (TCS) – the country’s largest IT company – on Friday reported net profit of Rs 9,624 crore for the quarter ended September 30, without Street’s estimates. This marked a 6.8% growth from the previous quarter.
The IT barometer posted a turnover of Rs 46,867 crore for the period July-September, up 3.2% from one quarter to another.
In dollars, second quarter revenue was $ 6,333 million, up 2.9% sequentially.
Banking, Financial and Insurance Services (BFSI) segment revenues grew 1.6% quarter-on-quarter to Rs 18,445 crore. Manufacturing revenue rose 3.2% to Rs 4,538 crore, according to a regulatory filing.
Year over year, TCS said its sales grew 15.5% in constant currency terms. All verticals recorded growth of over 15%, he said.
“The environment of strong and sustained demand is a unique opportunity to position ourselves as the preferred growth and transformation partner of our customers,” said Rajesh Gopinathan, CEO and Managing Director of TCS.
“We are using the growth winds to invest in building relevant capacity and building a comprehensive portfolio of offerings that reaches out to a broader set of business stakeholders across business cycles, thereby strengthening our brand and making our business more resilient. We think so. is the most sustainable way to create long-term value for all of our stakeholders, ”added Gopinathan.
Its profit before interest and taxes (EBIT) rose to Rs 12,000 crore during the period July-September, against Rs 11,588 crore in the previous quarter.
Tata Consultancy Services’ net profit margin was 20.5% in the second quarter. Its operating margin – or EBITDA margin – stood at 25.6%, compared to 25.5% in the previous quarter. The operating margin expansion occurred despite higher expenses, currency headwinds and increased use of contractors, TCS said.
The CNBC-TV18 poll put the company’s EBIT at 12,364 crore rupees and the margin at 26.05%.
“Strong growth and disciplined execution have helped us weather the headwinds of currency and supply inflation and drive increased margins. Our industry-leading profitability and strong cash conversion empower us to make the right investments necessary to grow the business of the future, ”said Samir Seksaria, CFO of Tata Consultancy Services.
TCS recorded a significant addition of customers during the quarter under review. It added five new clients in the $ 100 million and over category, bringing the total to 54. It also won 17 new clients in the $ 50 million and over category.
The board of directors of the company declared a second interim dividend of Rs 7 per share. He set October 19 as the registration date and November 3 as the payment date.
The Board of Directors welcomed the reappointment of Gopinathan as Managing Director and CEO for five years.
TCS shares ended up 1.1% at Rs 3,935.3 each on BSE before the results were announced. The stock has returned 69% over the past year.
(Edited by : Sandeep Singh)
First publication: STI