TCS Q2 results 7 key takeaways: From profit to revenue growth, check out the whopping numbers

Tata Consultancy Services (TCS), an IT services, consulting and business solutions organization, has declared its results for the quarter ended September 30, 2018. TCS today reported a 22.6 per cent jump in consolidated net profit at Rs 7,901 crore for the period ending September 30, 2018. The company stated to have posted a net profit of Rs 6,446 crore, in the same period last fiscal, with a revenue growth of 20.7 per cent at Rs 36,854 crore in the September quarter, up from Rs 30,541 crore a year ago.
 
Commenting on the Q2 performance, Rajesh Gopinathan, CEO and MD, said: “We are very pleased with our all-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 industry-leading 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 customer experience at scale.” 

Meanwhile, the key takeaways of the company's stellar performance are: 
 
TCS Q2 results 7 key takeaways:  
 
1. Industries: Revenue growth accelerated in BFSI (+6.1% vs +4.1% in Q11 and Retail & CPG (+15.6% vs + 12.8% in Q1) In Q2. Other verticals to show strong growth were: Energy & Utilities (+22.2%), and life Sciences & Healthcare (+14.7%).
 
2. Markets: 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%.
 
3. Services: Business & Technology Services saw strong and broad-based revenue growth across service practices. Investments in new services and offerings, assets, thought leadership and Innovation have started showing results in terms of deal wins and pipeline build-up, as well as through client and analyst endorsements and thought leadership publications.
 
4. Consulting & Services Integration: The full-stakeholder strategy Is playing out nicely and helping win and deliver end-to-end transformation in initiatives for business stakeholders. Strategic offerings which address priorities of board-Ievel significance, such as Enterprise Agility, M&A and Finance Transformations, saw excellent traction in Q2.
 
5. Digital Transformation Services: TCS' Business 4.0 thought leadership framework to guide and shape the re-imagination of businesses for growth and transformation continues to resonate strongly with customers. Cloud Services, Analytics, loT, TCS Interactive, Cyber Security and Enterprise Intelligent Automation, all experienced strong growth during the quarter. Newer service lines - Blockchain, Digital  Workplace and Quality Engineering & Transformation - are seeing strong pipeline build-up.
 
6. Cognitive Business Operations: CBO saw solid growth on a large base and the holistic, outcome-based approach continues to see strong traction in the market as customers seek to leverage TCS digital innovations such as MFDM for enhancing their customer experience and other priorities. 
 
7. Human Resources: TCS added 10,227 employees on a net basis In Q2, the highest net addition in 12 quarters. Total employee strength at the end of Q2 stood at 411,102 on a consolidated basis. The percentage of women in the workforce rose further to 35.7%, while the total number of nationalities represented grew to 147.
 
The company's investments in organic talent development resulted In a cumulative 12.4 million learning hours, that trained over 278K employees in digital technologies, and over 279K employees in Agile methods. TCS continued to have the best retention rate in the industry, with IT Services attrition rate (LTM) staying unchanged sequentially at 10,9%.
 
As part of the 'Billion Steps Challenge', one of the largest employee engagement initiatives undertaken as part of the company's year-long golden jubilee celebrations, employees were challenged to walk or run individually or in groups within a 10-day window, so as to collectively log a billion steps in a special app. This unique employee challenge drew 200,000 participants globally who logged a record 3 billion steps.

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"Our investments in organic talent development and innovative employee engagement Initiatives continue to deliver best-in-class HR outcomes. This quarter, we introduced yet another Innovation, democratizing the entry-level talent acquisition processes in India with the TCS National Qualifier Test. To the talented youth out there, I want to say this: Regardless of where you are from, if you have the talent and the drive, we have a career for you,"  Ajoy Mukherjee, Executive Vice President and Global Head, Human Resources said.