TCS Q2 results: Net profit grows 5% YoY, misses estimates; firm declares interim dividend of ₹10

The company's revenue came in at ₹64,259 crore, up 2.62% QoQ and 7.65% on a YoY basis. 

The profit missed Street estimates. For instance, Bloomberg, as per reports, projected TCS' (net profit) to come in at ₹12,543 crore.  Revenue was pegged at ₹64,186 crore. 

The company also announced an interim dividend of ₹10. 

"The second interim dividend shall be paid on Tuesday, November 5, 2024, 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 Friday, October 18, 2024, which is the record date fixed for the purpose," the company said in its earnings statement. 

In its earnings release, the company said its revenue in constant currency (CC) terms grew by 5.5%. 

The IT behemoth added that all the "growth markets" delivered above company average: India (+95.2%), Middle East & Africa (+7.9%), Asia Pacific (+7.5%), Latin America (+6.8%). 

TCS' operating margin came in at 24.1%, a decline of 0.2% YoY, while net margin stood at 18.5%. 

Net cash from operations was ₹11,932 crore, which is 100.2% of net income, it added. 

Commenting on the Q2 results, K Krithivasan, Chief Executive Officer and Managing Director, said: “We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI, showed signs of recovery. We also saw a strong performance in our Growth Markets. We stay focused on sharpening our value proposition to our clients, employees and other stakeholders”.

The company said that the growth led by Energy, Resources and Utilities (+7.0%), Manufacturing (+5.3%). 

TCS added that its workforce strength at the end of the September 2024 quarter stood at 612,724. It added a total of 5,726 staff during the quarter. 

Milind Lakkad, Chief HR Officer, said: “We welcomed 11,000 associates in the first half of the year, and we remain on track for trainee onboarding as planned. We have also commenced the campus hiring process for FY26. Our strong talent base and increased learning intensity prepares us well for the complex technology transformations that customers entrust us with”.

Order book

Total contract value (TCV) stood at $8.6 billion, sequentially 3.6% higher. North America TCV stood at $4.2 billion; BFSI TCV at $2.9 billion; and Consumer Business TCV at $1.2 billion.