TCS Q2FY22 Results: IT major reports Q2 profit at Rs 9624 cr; declares second interim dividend at Rs 7/share

Tata Consultancy Services (TCS) Ltd reported a net profit of Rs 9624 cr on Friday for the quarter ended September, compared to Rs 9,008 cr reported in the June quarter. 

The IT bellwether reported a net profit of Rs 7,475 cr in the corresponding quarter of last fiscal.

Shares of TCS closed with gains of over 1 per cent at Rs 3,935. It hit a fresh 52-week high of Rs 3,990 on the BSE ahead of the results.

TCS revenues rose by 16.8 per cent on a year-on-year basis to Rs 46,867 cr, the company said in the press release. It reported industry-leading operating margins at 25.6 per cent.

The Directors have declared a second interim dividend of Rs 7 per Equity Share of Rs 1 each of the Company. The second interim dividend shall be paid on Wednesday, November 3, 2021 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 Tuesday, October 19, 2021 which is the Record Date fixed for the purpose.

Key Highlights of September quarter:

• Operating Margin at 25.6%; +0.1% QoQ, -0.6% YoY

• Net Income at Rs 9,624 crore, +14.1% YoY | Net Margin at 20.5%

• Strong Client Addition: 5 New Clients (total: 54) in $100Mn+; 17 new clients (total: 114) in $50Mn+

• Net Cash from Operations at Rs 9,945 crore ie 103.3% of Net Income

• Net headcount addition of 19,690 |Workforce strength: 528,748

• Diverse and inclusive: Women in the workforce: 36.2% | 157 Nationalities

• Building a G&T workforce: 417K+ employees trained in new technologies | 26K+ Contextual Masters identified | 6,900+ Elevate graduates

• Best in class talent retention: LTM IT Services attrition rate at 11.9%; lowest in the industry

Commenting on the results, TCS CEO and Managing Director Rajesh Gopinathan, "The strong and sustained demand environment is a once-in-a-decade opportunity to position the company as the preferred growth and transformation partner for its customers." 

"We are using the growth tailwind to invest in strengthening relevant capabilities and building out a comprehensive portfolio of offerings that caters to a broader set of stakeholders in the enterprise across business cycles, strengthening our brand, and making our business more resilient. We believe this is the most sustainable pathway to create longer-term value for all our stakeholders," he added.

The company has also announced an interim dividend of Rs 7 per share.

"Strong growth and disciplined execution helped us overcome headwinds from currency and supply-side inflation and deliver expanded margins. Our industry-leading profitability and strong cash conversion give us the wherewithal to make the right investments needed to build out the business of the future," TCS Chief Financial Officer Samir Seksaria said.

The company added 19,690 people (net), taking its headcount to 5,28,748 people.