India’s largest IT services company, Tata Consultancy Services posted its September quarter (Q2FY22) results on Friday, 8 October 2021.
TCS’s consolidated revenues (topline) stood at ₹46,867 crore, up 3.2% quarter-on-quarter. Company’s operating margins stood at 25.6%, nearly similar to that of the previous quarter, which was at 25.5%. The IT major’s consolidated net profit stood at ₹9,624 crore, up 6.8% quarter-on-quarter. The Q2 results were broadly in line with street estimates.
The company’s revenue growth was led by the Manufacturing vertical, followed by the Life Sciences and Healthcare verticals, both of which have grown by 20% year-on-year.
All other verticals namely Retail & CPG, BFSI, Communications & Media, and Technology & Services also witnessed double digit year-on-year growth.
In terms of geographies, growth was led by North America & the United Kingdom. Other major markets like Continental Europe, India, Latin America, and Middle East & Africa showed double-digit growth.
The company added five new clients in the $100 million+ category during the quarter. Further, TCS BaNCS, Quartz SmartLedgers, TwinX and TCS Cognix, all had marquee wins during the quarter.
The company’s management gave an optimistic outlook and commented that the current strong demand environment is a once-in-a-decade opportunity.
TCS added close to 20,000 employees in the current quarter, up 4% from the previous quarter employee base, which was nearly about 5 lakh. While the company’s attrition at 11.9% is the lowest in the industry, it rose sharply from the 8.3% seen in the previous quarter.
TCS’s share price rose 5.5% last week ahead of the results. Meanwhile, in the current fiscal, the share price has risen nearly 24%, a little better than the 22% rise seen in the Nifty50. TCS share price closed at ₹3,935 on the day of the results and it’s market capitalization crossed over ₹14.5 lakh crore.
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