TCS net profit rises by 22.6%, bags Rs 7,901 crore in Q2FY19; BFSI boosts earnings

The largest IT giant in India Tata Consultancy Services (TCS) reported a good second quarter result for the fiscal year (Q2FY19). TCS consolidated net profit was in line with expert estimates as the company posted consolidated PAT of Rs 7,901 crore rising by 22.60% from Rs 6,460 crore in the corresponding period of previous year. The Q2FY19 PAT was also higher by 7.67% compared to Rs 7,362 crore in the preceding quarter. A Bloomberg poll of analysts predicted net profit to come in at Rs 7,925 crore for TCS during this quarter. 

TCS's consolidated revenue stood at Rs 36,854 crore which was higher by 20.67% from Rs 30,541 crore a year ago same period. While the revenue was up b y 7.56% as against Rs 34,261 crore in preceding quarter. 

On segment-wise performance, revenue from BFSI came in at Rs 14,648 crore up by 19.78% on yearly basis. While revenue from manufacturing was at Rs 3,919 crore higher by 19.19% yoy, retail and consumer business rose by 24.25% yoy to Rs 6,348 crore and Communication, Media and Technology business increased by 14.04% to Rs 6,009 crore this quarter. 

Rajesh Goplnathan, CEO and MD, said: "We are very pleased with our aIl-round strong performance in Q2. Revenue growth was driven by expanding demand for digital transformation across verticals, and contInued acceleration in BFSI and Retail. Our industryleading digital growth, and best-in-class client metrics bear testimony to our standing as the preferred partner in our customers' growth and transformation Initiatives."

He added: "Our Business 4.0 thought leadership framework, contextual knowledge, and full stakeholder capabilities differentiate us, and drive demand for our solutions and services. Our Machine First Delivery Model (MFDM) and Location-Independent Agile methods are helping customers Integrate automation deep within their enterprise, and orchestrate a more effective human-machine Interplay to deliver superior bcustomer experience at scale." 

Growth was led by UK (+22.8%), Europe (+17.4%), and Asia Pacific (+12.5%). Revenue growth in North America accelerated further to 8.1%, versus 7% growth in Q1. India grew 7.4%. 

For six month end period of FY19, TCS's revenue stood at Rs 71,115 crore higher by 18.27% from Rs 60,125 crore in 1HFY18, while net profit was at Rs 15,289 crore up by 23.19% versus net profit of Rs 12,410 crore in 1HFY18. 

On BSE, the stock price of TCS ended at Rs 1,979.75 per piece down by Rs 63.30 or 3.10%.