Tata Consultancy announced its second-quarter results for the financial year 2023-24, reporting a 2.8 per cent sequential jump in its profit to Rs 11,380 crore. Some of the key features of its results today were the IT giant announcing the buyback of around 4.9 crore of its equity shares, and an interim dividend of 900 per cent, or Rs 9 on the face value of Rs 1. 
In this write-up, ZeeBiz takes you through the five key takeaways from TCS Q2 results. 

Net profit jumps

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The company reported a net profit of Rs 11,380 crore, up from Rs 11,120 crore in the first quarter.

The company's profit in the September 2022 quarter was Rs 10,465 crore. It registered 0.5 per cent growth in its revenue to Rs 59,692 crore for the July-September period.

The IT firm's top-line and bottom-line fell short of Street estimates. 

Zee Business research had estimated the software firm to post a net profit of Rs 11,350 crore and revenue of Rs 60,200 crore.

Share buyback

TCS on Wednesday announced that it would buy back nearly 4.09 crore equity shares for an amount over Rs 17,000 crore.

In its regulatory filing, the IT firm said, "The Board of Directors at its meeting held on October 11, 2023, has approved a proposal to buy back up to 74,09,63,855 equity shares of the company for an aggregate amount not exceeding 17,000 crore being 1.12 per cent of the total paid-up equity share capital at 74,150 per equity share subject to approval from shareholders."

Interim dividend 

TCS announced an interim dividend of 900 per cent, or Rs 9 per equity share of Rs 1 each. "The second interim dividend shall be paid on Tuesday, November 7, 2023, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Thursday, October 19, 2023, which is the Record Date fixed for the purpose," said the company in its BSE filing on Wednesday. 

Attrition Rate

TCS' IT services attrition rate eased to 14.9 per cent on a trailing 12-month (TTM) basis, from 17.8 per cent in the previous quarter. 

“Our focus on improving employee utilisation, while driving productivity improvement and cost efficiency across the organization, has helped us expand our operating margin... We will continue to push the growth, efficiency and innovation levers to further improve our profitability," said Samir Seksaria, CFO, TCS.  

The TCS stock finished the trading session on Wednesday weaker by Rs 19, or 0.5 per cent, at Rs 3,610.2 apiece on BSE ahead of the result announcement.