Tata Consultancy Services Q2 Results FY2024, Net profit at Rs. 11,380 crores

On 11th October 2023, India’s one of the leading IT company, Tata Consultancy Services (TCS) 
announced its quarterly results.

Key Highlights:

- The company reported revenue at Rs. 59,692 crore, up by 7.9% YoY, up by 2.8% YoY in constant currency 
- Order Book at $11.2 billion 
- Operating Margin at 24.3%; expansion of 0.3% YoY 
- The company’s net income at Rs. 11,342 crore, up by 8.7% YoY 
- Net Margin at 19% 
- The company’s net cash from operations at Rs. 11,823 crore i.e. 104.2% of Net Income
- The company reported its net profit at Rs. 11,380 crores.

Employee count:

- TCS’ workforce stood at 608,985 as on September 30th. Year till date, TCSers have clocked 26.4 million learning hours, and acquired 2.6 million competencies including 350,000 high demand competences. IT services’ attrition was at 14.9% for the last twelve months. 

Segment Highlights:

- Industry segment growth was led by  Energy, Resources and Utilities vertical which grew 14.8%, Manufacturing which grew 5.8% and Life Sciences and Healthcare which grew 5%. The Consumer Business Group (CBG) grew 1%, BFSI dropped by 0.5%, Communications & Media dropped by 2.1% and Technology & Services dropped by 2.2%
- Among major markets, the United Kingdom led with 10.7% growth; North America grew 0.1% and Continental Europe grew 1.3%. In emerging markets, Middle East & Africa grew 15.9%, Latin America grew 13.1%, Asia Pacific grew 4.1% and India grew 3.9%. 

Partnerships:

- BSNL has selected TCS to roll out a modern 4G and 5G mobile communication infrastructure across India covering 100K telecom sites
- In order to speed up the digital transformation of its entire enterprise, JLR, a sizable international automaker with headquarters in the UK, has increased its strategic collaboration with TCS.
- Athora Netherlands, a Dutch provider of life insurance and pensions, chose TCS to revamp their closed book life business.

Commenting on the results, K Krithivasan, Chief Executive Officer and Managing Director, said: “Our clients continue to entrust us with critical new technology initiatives, and large programs to digitally transform their IT and business operating models. Strong deal momentum delivered us a very large order book in Q2 – our second highest TCV ever in a quarter, and good pipeline. The resilience of demand for our services, our clients’ willingness to commit to long tenure programs and their continued appetite for experimentation with Gen AI and other new technologies give us confidence in our longer-term growth prospects.”
Board Announces Buyback Valued at Rs.17,000 crore at Rs.4,150 per share. The board announced dividend of Rs.9 per share.