India’s largest IT service company Tata Consultancy Services posted it’s September quarter (Q2FY22) results on Friday, 8th of October, 2021.
TCS’s consolidated revenues (topline) stood at ₹46,867 crores, 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%. IT major’s consolidated net profit stood at ₹9,624 crores, up 6.8% quarter-on-quarter. The Q2 results were broadly in line with street estimates.
Company’s revenue growth was led by the Manufacturing vertical followed by Life Sciences and Healthcare vertical both of which have grown by 20% year-on-year.
All other verticals namely Retail & CPG, BFSI, Communications & Media, 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, 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 lakhs. 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 prices rose 5.5% last week ahead of the results. Meanwhile, in the current fiscal, the share price has risen nearly 24%, little better than the 22% rise seen in Nifty50. TCS share price closed at ₹3,935 on the day of the results and it’s market capitalization crossed over ₹14.5 lakh crores.
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