India’s largest software services company Tata Consultancy Services (TCS) has declared its quarterly (Q2) numbers (ended September 30). TCS CEO and MD N Chandrasekaran summarised the performance succinctly thus, “We have delivered accelerated growth in constant currency terms for Q2. Driven by great execution on the ground, our broad-based performance has been led by strong sequential growth in BFS, retail and life sciences verticals with the UK and North America leading the markets.” Here we present top 10 key takeaways:
1. TCS reported a net profit for Q2 of Rs 6,055.20 crore, whereas revenues are Rs 27,165.50 crore for the quarter, as per IFRS – TCS reported a profit of Rs 5,244.28 crore in the corresponding period last fiscal.
2. TCS total income from operations for the quarter rose 14.06 per cent to Rs 27,165.48 crore as against Rs 23,816.48 crore last year.
3. TCS announced a dividend of Rs 5.50 per share.
4. TCS operating margin for the quarter stood at 27.1 per cent.
5. The company continued to hire to support business growth. There was a total gross addition of 25,186 people (net addition of 10,685 employees) taking the total employee strength of 335,620 employees on a consolidated basis. The utilization rate (excluding trainees) was at 86 % and that including trainees was 82.3%.
6. Tata Consultancy Services’ (TCS) order book grew 30 per cent in the quarter, the highest ever for the company, giving the indication that things are looking good for it.
7. TCS delivered growth in constant currency terms for Q2. Driven by a broad-based performance has been led by strong sequential growth in BFS, retail and life sciences verticals with Britain and North America leading the markets.
8. Revenues from the digital platform has jumped to 13.3 per cent from 12.5 per cent quarter-on-quarter. Traction in digital services and solutions continues to be strong with a 10.7 per cent Q-o-Q growth. Margins were better than estimates at 27.1 per cent.
9. TCS attrition rate, which stood at 16.2 per cent in Q2, has stabilised compared to previous quarter and the company said it is working on steps to further bring it down in third and fourth quarter of the fiscal. In India too attrition has come down compared to last quarter and month on month there has been a decline.
10. The company said core markets like North America and Europe grew smartly along with emerging markets like Latin America, India and Middle East and Africa.