TCS Q2 Results: Revenue growth falls short of Street estimates, margin up 110 bps; board approves Rs 17,000-crore buyback, Rs 9 dividend
Tata Consultancy Services (TCS), the countrys largest IT company, kicked off the corporate earnings season for India Inc with a mixed overall performance on Wednesday, October 11. The Tata group IT major reported a 0.5 per cent sequential increase in its consolidated revenue, which fell short of Street expectations.
Tata Consultancy Services (TCS)—the country's largest IT company—reported a 2.4 per cent sequential increase in consolidated net profit to Rs 11,342 crore for the quarter ended September 30, kicking off the corporate earnings season for India Inc. The Tata group IT major's board approved a buyback worth Rs 17,000 crore as well as a dividend of Rs 9 per share.
The Mumbai-based IT company registered 0.5 per cent growth in revenue to Rs 59,692 crore for the three-month period. While the top-line was almost in line, the bottom-line fell clearly short of Street expectations.
According to Zee Business research, the software exporter was estimated to post a net profit of Rs 11,350 crore and revenue of Rs 60,200 crore for the second quarter of the current financial year.
In dollar terms, the company's revenue came in at $7,210 million as against $7,226 million the previous quarter—the first sequential dip in 13 quarters, missing the analysts' estimate of $7,295 million.
Read more on TCS buyback“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," said K Krithivasan, CEO and Managing Director, TCS.
The Tata group firm's order book stood at $11.2 billion for the quarter under review, remaining above the $10 billion mark for the third quarter in a row.
"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,” Krithivasan added.
Read more on TCS dividendTCS shares finished the day weaker by Rs 19, or 0.5 per cent, at Rs 3,610.2 apiece on BSE ahead of the announcements.
The Tata group stock finished the September quarter with a gain of seven per cent, sharply outperforming a 2.3 per cent rise in the headline Nifty index.
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