TCS Q2 earnings: Net profit rises 5%, revenue climbs to Rs 64,259 crore
TCS Q2 earnings: The IT major reported a 5% rise in net profit to Rs 11,909 crore (profit attributable to shareholders) for the September 2024 quarter compared with Rs 11,342 crore in the same quarter last year. Profit came below street estimates.
- Oct 10, 2024,
- Updated Oct 10, 2024 5:23 PM IST
Tata Consultancy Services Ltd (TCS) on Thursday reported a 5% year on year (Y-o-Y) rise in net profit attributable to shareholders to Rs 11,909 crore for the September 2024 quarter compared with Rs 11,342 crore in the same quarter last year. The profit came below street estimates. Profit was lower on a quarter on quarter basis from Rs 12,040 crore in Q1.
Revenue for the second quarter came at Rs 64,259 crore, up 7.65% against Rs 59,692 crore in the September 2023 quarter. In the June 2024 quarter, revenue came at Rs 62,613 crore. TCS said sales climbed 5.5% YoY in constant currency terms.
On a YoY basis, brokerage Nirmal Bang expected TCS to report a revenue of Rs 64,389 crore, up 7.9 per cent YoY. On the net profit front, Nirmal Bang saw a 11 per cent YoY rise in profit at Rs 12,591 crore for the IT major.
Operating margin came at 24.1% falling 0.2% on a YoY basis. Net income climbed to Rs 11,909 crore, rising 5% on a YoY basis. Net Margins for the quarter stood at 18.5%.
The IT firm said growth was led by energy, resources and utilities (7%) and manufacturing (5.3%) verticals.
In the first half of FY25, the IT major made net headcount addition of more than 11,000 employees.
K Krithivasan, Chief Executive Officer and Managing Director, said: “We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI showed signs of recovery. We also saw a strong performance in our Growth Markets. We stay focused on sharpening our value proposition to our clients, employees and other stakeholders”.
Samir Seksaria, Chief Financial Officer, said: “We made strategic investments this quarter in talent and infrastructure to ensure sustainable growth. Our disciplined execution resulted in superior cash conversion. Our longer-term cost structures remain unchanged, and we remain confident in our ability to continue delivering industry leading profitable growth”.
The firm announced second interim dividend of Rs 10 per share. The second interim dividend shall be paid on Tuesday, November 5, 2024, to the equity shareholders of the company, The company has fixed Friday, October 18, 2024 as the Record Date fixed for the interim dividend.
Tata Consultancy Services Ltd (TCS) on Thursday reported a 5% year on year (Y-o-Y) rise in net profit attributable to shareholders to Rs 11,909 crore for the September 2024 quarter compared with Rs 11,342 crore in the same quarter last year. The profit came below street estimates. Profit was lower on a quarter on quarter basis from Rs 12,040 crore in Q1.
Revenue for the second quarter came at Rs 64,259 crore, up 7.65% against Rs 59,692 crore in the September 2023 quarter. In the June 2024 quarter, revenue came at Rs 62,613 crore. TCS said sales climbed 5.5% YoY in constant currency terms.
On a YoY basis, brokerage Nirmal Bang expected TCS to report a revenue of Rs 64,389 crore, up 7.9 per cent YoY. On the net profit front, Nirmal Bang saw a 11 per cent YoY rise in profit at Rs 12,591 crore for the IT major.
Operating margin came at 24.1% falling 0.2% on a YoY basis. Net income climbed to Rs 11,909 crore, rising 5% on a YoY basis. Net Margins for the quarter stood at 18.5%.
The IT firm said growth was led by energy, resources and utilities (7%) and manufacturing (5.3%) verticals.
In the first half of FY25, the IT major made net headcount addition of more than 11,000 employees.
K Krithivasan, Chief Executive Officer and Managing Director, said: “We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI showed signs of recovery. We also saw a strong performance in our Growth Markets. We stay focused on sharpening our value proposition to our clients, employees and other stakeholders”.
Samir Seksaria, Chief Financial Officer, said: “We made strategic investments this quarter in talent and infrastructure to ensure sustainable growth. Our disciplined execution resulted in superior cash conversion. Our longer-term cost structures remain unchanged, and we remain confident in our ability to continue delivering industry leading profitable growth”.
The firm announced second interim dividend of Rs 10 per share. The second interim dividend shall be paid on Tuesday, November 5, 2024, to the equity shareholders of the company, The company has fixed Friday, October 18, 2024 as the Record Date fixed for the interim dividend.