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TCS Q2 profit gets a big boost from digital services

Revenues stood at Rs 27,165.50 crore. "Revenue from digital services increased to about 13 per cent of the total", said CEO N Chandrasekaran.

Mail Today Bureau   Mumbai     Last Updated: October 14, 2015  | 08:45 IST
TCS Chief Executive N Chandrasekaran
Tata Consultancy Services (TCS) Chief Executive N Chandrasekaran poses for a picture after a news conference in Mumbai, India, October 13, 2015. (Photo: Reuters)

Tata Consultancy Services (TCS), the country's largest software services exporter, met market expectations on Tuesday with an over 16-per cent rise in net profit at Rs 6,084.66 crore for the second quarter as against Rs 5244.28 crore in the year-ago period backed by strong performance of its digital platform and recovery in Latin America and the home market.

Revenues stood at Rs 27,165.50 crore. "Revenue from digital services, a relatively new business segment, increased to about 13 per cent of the total," said managing director and chief executive N Chandrasekaran.

Outsourcing project wins in the quarter included developing a digital banking platform for a European bank and developing a social media road map for a leading Middle East bank, the company said.

Chandrasekaran said, "We have delivered accelerated growth in constant currency terms for Q2. Driven by great execution on the ground, our broad-based performance has been led by strong sequential growth in BFS, retail and life sciences verticals with the UK and North America leading the markets."

"The order book grew 30 per cent in the quarter, the highest ever for the company, giving the indication that things are looking good," he added.

Observing that its attrition rate, which stood at 16.2 per cent in Q2, has stabilised compared to previous quarter, the company said it is working on steps to further bring it down in third and fourth quarter of the fiscal.

Attrition in absolute number has come down compared to last year.

I am quite hopeful that all the initiative we are taking to control attrition will pay out. In Q3 and Q4 the attrition is expected to come down further, executive VP and global head Ajoy Mukherjee said.

Betting on demand for IT services, TCS said that it plans to add 75,000 staff this fiscal year through March on top of its existing 335,620 employees, mostly located at its facilities in India.

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