TCS Q2 net jumps 13% to Rs 5,244 cr

Tata Consultancy Services on Thursday reported a 13.2 per cent rise in its net profit at Rs 5,244 crore (Rs 52.44 billion) and a revenue growth of 13.5 per cent at Rs 23,816 crore (Rs 238.16 billion) in the September quarter, driven by strong volumes.

In the year-ago period, its net profit stood at Rs 5,057.8 crore (Rs 50.57 billion).

The Tata Group company, which has the largest market capitalisation in the country, saw its margins slip by 0.07 per cent or 7 basis points to 22 per cent on an annual basis.

The fall is 3.16 per cent sequentially.

The city-headquartered company also announced the merger of its subsidiary CMC Ltd with itself.

The merger ratio is 1:1.26 or 79 TCS shares for 100 CMC shares.

TCS had bought CMC from the government in the 1990s through a divestment process.

"Driven by strong volumes and robust utilisation rates, this has been a quarter of steady, consistent performance.

"Our well-rounded showing has been highlighted by broad-based growth in our key markets, industries and services as we continued to deepen our engagement with customers," managing director and chief executive N Chandrasekaran, who recently got a five-year extension, told reporters.

Volumes grew strongly at 6.1 per cent, he said.

The company crossed the milestone of employing 100,000 women professionals, taking its total head-count to 313,000 at the end of the reporting quarter with a gender diversity ratio of 32.9 per cent.

In Q2, the company added 20,350 employees.

Chandrasekaran said the company added four $50 million clients and nine $20 million ones.

"Our customers are focused on using digital technologies to reimagine their business in multiple dimensions and with our significant investments as well as deep capabilities in these areas, we remain well positioned to act as a catalyst and enable their business innovation across the enterprise," he added.

Chief financial officer Rajesh Gopinathan said, "Our cash generation has been strong resulting in high cash conversion ratios and we continue to make investments for the business growth."

On crossing the 100,000-mark women employees, HR head Ajoy Mukherjee said, "Diversity of talent remains a key source of strength for the organisation and during the quarter, we crossed the milestone of having 100,000 women professionals in our workforce."