TCS Q2 Results: IT Major's Profit Rises 22% to Rs 7,901 Crore as Rupee Fall Boosts Margins
The country’s largest IT services provider got a boost from the rupee fall as it bills majority of the US and overseas clients in dollars. The rupee declined 5.6 percent in the quarter, making it the worst performing Asian currency.
(Photo: Reuters/Vivek Prakash)
The country's largest software exporter TCS Thursday reported a 22.6 per cent jump in consolidated net profit at Rs 7,901 crore in the July-September 2018 quarter, buoyed by strong demand for digital services.
Tata Consultancy Services (TCS) had posted a net profit of Rs 6,446 crore in the same period last fiscal, the company said in a statement.
The Tata group company saw a revenue growth of 20.7 per cent at Rs 36,854 crore in the September quarter, up from Rs 30,541 crore a year ago. Its earning per share for the quarter was at Rs 20.66.
The IT services provider got a boost from the rupee fall as it bills majority of the US and overseas clients in dollars. The rupee declined 5.6 percent in the quarter, making it the worst performing Asian currency.
TCS CEO and MD Rajesh Gopinathan said, "We are very pleased with our all-round strong performance in Q2. Revenue growth was driven by expanding demand for digital transformation across verticals, and continued acceleration in banking, financial services and insurance (BFSI) and retail."
N Ganapathy Subramaniam, chief operating officer and executive director, at TCS termed the September quarter as a "good" one and said there was a strong demand in areas like analytics, cloud and automation.
The company has declared a dividend of Rs 4 per share.
The net employee addition in September 2018 quarter was at 10,227 professionals, highest in 12 quarters, the company said. Total employees strength at the end of Q2 stood at 4,11,102 on a consolidated basis.
IT services attrition rate was steady at 10.9 per cent on last 12 months basis.
Shares of TCS had fallen by over 3 per cent Thursday ahead of declaration of second quarter earnings. The stock declined 3.10 per cent to close at Rs 1,979.75 on BSE. During the day, it slumped 4.89 per cent to Rs 1,943.05.
At NSE, shares of the company went down 2.37 per cent to end at Rs 1,995. In terms of equity volume, 3.58 lakh shares of the company were traded on BSE and over 47 lakh shares changed hands at NSE during the day.
Selling was also seen in other IT stocks, with HCL Technologies falling 4 per cent, Infosys 3.61 per cent, Wipro 0.90 pe cent and Tech Mahindra 0.40 per cent on BSE.
Led by weakness in these stocks, the BSE IT index went down 3.21 per cent to settle at 14,413.70. The broader market also depicted extreme weak sentiment, with the BSE barometer falling sharply by 759.74 points or 2.19 per cent to end at 34,001.15.
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