Business

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.

Analysts in a CNBC-TV18 poll had predicted that the company would report quarterly profit of Rs 9,731 crore on revenues of Rs 47,466 crore.

In dollar terms, 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 have grown 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 tailwinds of growth to invest in building relevant capacity and building a comprehensive portfolio of offerings that reaches out to a wider range of business stakeholders across business cycles. , thereby strengthening our brand and making our business more resilient. We are convinced of it. 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 unlock expanded 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.

TCS recorded a net increase of 19,690 in its workforce during the quarter, bringing its total number of employees to 528,748 as of September 30. The company said its IT services attrition rate (on a rolling basis) of 11.9% was the lowest in the industry. (Highlights)

Dividend

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.

CEO renewal

The Board of Directors welcomed the reappointment of Gopinathan as Managing Director and Chief Executive Officer for five years.

TCS shares have rewarded investors with a 69% return over the past year.

TCS shares ended up 1.1% at Rs 3,935.3 a piece on BSE before the results were announced. The stock has returned 69% over the past year.

(Edited by : Sandeep Singh)

First publication: STI


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Eleon Lass

Eleanor - 28 years I have 5 years experience in journalism, and I care about news, celebrity news, technical news, as well as fashion, and was published in many international electronic magazines, and I live in Paris - France, and you can write to me: eleanor@newsportal365.com

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