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TCS reports Rs 7,901-crore consolidated net profit for second quarter of fiscal 2018-19

TCS reports Rs 7,901-crore consolidated net profit for second quarter of fiscal 2018-19
Gross income under IFRS also grew 10 per cent YoY to $5,215 million from $4,739 million years ago and 3.3 per cent sequentially from $5,051 million quarter ago.(Image Credit: Twitter)

Global software major Tata Consultancy Services (TCS) on Thursday reported Rs 7,901-crore consolidated net profit for the second quarter of fiscal 2018-19, registering a robust 22.6 per cent annual growth from Rs 6,446 crore in the same period a year ago.

In a regulatory filing on the BSE, the city-based IT bellwether said consolidated revenue for the quarter (Q2) under review grew 21 per cent annually to Rs 36,854 crore from Rs 30,541 crore in the like period year ago.

Sequentially, consolidated net profit and revenue grew 7.6 per cent respectively from Rs 7,340 crore and Rs 34,261 crore a quarter ago.

Under the International Financial Reporting Standard (IFRS), net income grew 11.9 per cent year-on-year (YoY) to $1,119 million in Q2 from $1,000 million a year ago and 3.1 per cent sequentially from $1,082 million a quarter ago.

Gross income under IFRS also grew 10 per cent YoY to $5,215 million from $4,739 million years ago and 3.3 per cent sequentially from $5,051 million quarter ago.

Digital revenue grew 28 per cent YoY and operating margin at 26.5 per cent grew 1.4 per cent YoY.Net cash from operations at Rs. 7,363 crore is 93 per cent of net income."The board has recommended Rs 4 or a whopping 400 per cent dividend per share of Re 1 face value," said the company in a statement here later.

Verticals like BFSI (Banking, Financial Services and Insurance) and Retail led the growth 6.1 per cent and 15.6 per cent YoY respectively.

Geographically, Britain and Europe lead the growth of 22.8 per cent and 17.4 per cent respectively.

The company added 4 clients in the $100 million bands, 7 in $20-million, 10 in $10-million and 11 in $1 million bands.

The company and its subsidiaries have added 10,227 techies during the quarter, taking its global headcount to 411,102 employees, with 36 per cent of them being women in 147 countries the world over. Attrition rate remained at 10.9 per cent on annual basis.

The company's blue-chip scrip, however, lost Rs 63.30 or 3.1 per cent per share of Re 1 face value on the BSE, closing at Rs 1,979.75 at the end of Thursday's trading on the BSE as against Wednesday's price of Rs 2,043.04 and opening price of Rs 1,998.70.

The shares also quoted at high of Rs 2,013.55 and a low of Rs 1,943.05 during the intra-day trading.

aceRevenue growth in Q2 was driven by demand for digital transformation across verticals, and acceleration in BFSI and Retail. The digital growth bears testimony to our standing as the preferred partner to our customers," said TCS Chief Executive Rajesh Gopinathan in the statement.

Noting that the company's Business 4.0 thought leadership, knowledge and capabilities differentiated it and drove demand for its solutions and services, Gopinathan said the machine first delivery model (MFDM) and location-independent methods were helping clients integrate automation within their enterprise.

Chief Operating Officer N. Ganapathy Subramaniam said with strong demand in analytics, cloud and automation, the companya¿s quartz blockchain solution was gaining traction as evident from the creation of ecosystems that could transform markets.

"Our Enterprise Agile 2020 vision is shaping open, collaborative workplaces and ways of working. This, along with MFDM, is driving intelligent automation and training machines with contextual knowledge, scaling businesses and creating ecosystems," said Subramaniam.

The company's people-first approach to the machine-first world is seen as a key differentiator by its clients in driving growth, competition and innovation in their businesses.

"It is encouraging to be back in profitability at the operating level. Even as we expand investments to build on our lead in the digital space, our operations, the growth trajectory and a supportive currency make our margins resilient," said Chief Financial Officer V. Ramakrishnan in the statement.

Investments in talent development and innovative employee engagement initiatives helped the company to deliver best-in-class HR (human resource) outcomes.

"We have started democratising the entry-level talent acquisition processes in India with a national qualifier test," TCS global HR head Ajoy Mukherjee added in the statement./Eom/670 words.

(With inputs from agencies.)

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