TCS Q2 net profit crosses Rs 10,000-crore mark

BENGALURU: India's largest IT services company Tata Consultancy Services on Monday posted 8.4% increase in net profit for the second quarter (July-September) at Rs 10,465-crore compared to Rs 9,653-crore in the same quarter last year.

The company reported an 18% jump in its second quarter revenue at Rs 55,309 crore. TCS posted Rs 46,867 crore revenue in the year-ago period.

The IT company's operating margin stood at 24%, a contraction of 1.6% Y-o-Y. As expected, its attrition rate is above 21%. However, the company said with normalising wage expectations and talent supply catching up across the industry, it expects attrition to start to taper down in H2.

Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS 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."

He added that the company's order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements.

"As clients prepare for a more challenging environment ahead, technologies like cloud that have been embraced now have to be fully leveraged to realise the promised value," Gopinathan added.

TCS' workforce was at 616,171 as on September 30, 2022. It added 9,840 employees during the second quarter. TCS order book stood at $8.1 billion. It declared Rs 8 dividend per share and payment date would be November 7, 2022.