TCS Beats Expectations, Net Profit Jumps To Rs 6,446 Crore In Q2

Adjust Comment Print

TCS also declared a dividend of Rs 7 per share.

Revenue from digital services was 19.7 per cent, which is up 5.9 per cent quarterly and 31 per cent yearly. Operating Margin at 25.1%, an expansion of 1.7% q-o-q. "People are looking at multiple technologies and how to leverage them", he said.

Tata Consultancy Services Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 478667.61 Crore) operating in Information Technology sector. TCS had reported a net profit of Rs 5,945 crore on revenues of Rs 29,584 crore in the quarter ending June 30, 2017. Profitability beat was driven by strong cost management both on operational factors (sub-contracting) and selling, general and administrative expenses (savings on visa/travel and other G&A).

All segments of the business, except the banking, financial services and insurance (BFSI) and retail sectors, grew revenue above 9.5 percent. Revenue of the Mumbai-based outsourcer rose 3.2 per cent quarter-on-quarter to Rs 30,541 crore. Improvement on BFSI and growth in the continental European market are two positives.

TCS witnessed a volume growth of 3.2 per cent in Q2. On the NSE, shares of the company jumped 1.91 per cent to close at Rs 2,548.20.

Indian IT major Tata Consulting Services (TCS) posted robust revenue and net growth for the second quarter of 2017-18 in dollar terms on sequential and annual basis, said a company official on Thursday.

It added 15,868 employees in the quarter. North America grew by 1.4 per cent Q-o-Q with continued softness in banking and retail. Strong, broadbased client metrics this quarter demonstrates our increasing success with newer customers.

Gopinathan said the softness in the retail business is slowly "bottoming" out.

N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: "it has been a very satisfying performance this quarter, striking a good balance between pursuing revenue growth, particularly in Digital opportunities, while tightening our execution to deliver greater efficiency". But now they realise that fintech will be one more component and banks are turning around how to get them to be part of the system", said Gopinathan.While retail was disrupted with the threat of e-commerce, largely on price, Gopinathan said, brick and mortar companies are fighting back with the customer experience and regaining business."As these models evolve, directionally the fear was old economy (companies) will be wiped out by the new economy (firms).