TCS' net profit jumps 14.1% to Rs 9,624 cr YoY for July-Sept quarter

IT services giant Tata Consultancy Services (TCS) today reported a net profit of Rs 9,624 crore for the July-September quarter, thereby recording a 14.1 per cent rise on a year-on-year basis. The company's revenue grew 16.8 per cent year-on-year to Rs 46,867 crore, while the net margin stood at 20.5 per cent.

TCS' operating margins for the said quarter stood at 25.6 per cent, which declined by 0.6 per cent on a year-on-year basis. The company made a "strong client addition" in the said quarter, with five new clients in over $100-million category, and 17 in over $50-million category.

The company's net cash from operations stood at Rs 9,945 crore, i.e. 103.3 per cent of its total income. As of September 30, TCS' overall headcount stood at 5,28,748, with an addition of 19,690 in Q2. Of this, women in the workforce accounted for 36.2 per cent of its employees. The company's IT services attrition rate stood at 11.9 per cent in Q2, which, it claims, is the lowest in the industry.

The TCS board has also announced a second interim dividend of Rs 7 per equity share of Rs 1 each of the company. It will be paid on Wednesday, November 3, 2021, to TCS' equity shareholders.

TCS Chief Executive Officer and Managing Director Rajesh Gopinathan said the company is using the growth tailwind to invest in "strengthening relevant capabilities" and building out a "comprehensive portfolio" of offerings. This, he said, will cater to a "broader set of stakeholders" in the enterprise across business cycles, strengthening its brand, and making the business more resilient.

The Bengaluru-headquartered company said all its verticals showed strong, double-digit year-on-year growth. Growth was led by the manufacturing vertical (21.7 per cent), followed by life sciences and healthcare (19 per cent), retail and consumer packaged goods (18.4 per cent), and banking, financial services and insurance (17 per cent). Communications and media (15.6 per cent) and technology and services (14.8 per cent) also witnessed accelerated growth.

In terms of markets, the growth was led by North America (over 17.4 per cent), followed by the UK (over 15.6 per cent), and continental Europe (13.5 per cent). The TCS stock closed at Rs 3,943, which is up Rs 50.10 or 1.29 per cent, compared to the previous session close of Rs 3,892.9, on the National Stock Exchange (NSE).

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