TCS Q2 Results Highlights: Net profit rises 4.9% YoY to ₹11,909 crore, dividend announced

• Revenue at ₹64,259 crore, a growth of 7.6% YoY, 2.6% QoQ
• Net profit at ₹11,909 crore, a growth of 4.9% YoY, -1% QoQ
• Second interim dividend of ₹10 per share of ₹1 each declared. The record date is October 18, 2024. The payment date is November 5, 2024.
• Net cash from operations at ₹11,932 crore i.e. 100.2% of net income
• Workforce strength: 612,724 | Net headcount addition of 5,726

As on September 30, 2024, the company had applied for 8,354 patents, including 160 applied during the quarter and been granted 4,369 patents including 223 granted during the quarter.

In the company’s Americas business, revenue growth contributed by Latin American markets increased 6.8% year over year in constant currency. However, revenue from North American markets declined 2.1% YoY Q2FY25.

TCS reported revenue growth across verticals, with Regional Markets and others contributing 50.4% YoY growth in constant currency, followed by Energy, Resources, and Utilities contributing 7% YoY. However, revenue from Technology and Services, communication, and media declined.

Alan Newby, Director, Research and Technology, Rolls-Royce, said, "We welcome TCS to our hydrogen research programme and their engineering skills will play a valuable role in addressing our technology goals. We’ve already made great progress and having TCS with us gives us additional capability as we move forward on our journey to enable the energy transition for the aviation sector."

Margot Torres, Managing Director at GADC, stated, "This partnership with TCS is another step in our continuous digital transformation. The implementation of SAP S/4HANA on RISE will provide us greater agility through data-driven insights, enabling us to continuously improve our customer and employee experience."

Shibashish Roy, Deputy CEO, Croma, said, "Croma’s vision is to be number one in customer experience and satisfaction. Many of today’s shoppers want to learn and shortlist products online—so when they arrive at the store, they can select the right items, check out, and be on their way out. Crafting a seamless, delightful omnichannel journey is, therefore, an imperative for us, and OmniStore is key to enabling it. We have enjoyed our unique and truly integrated partnership with TCS to co-develop and co-innovate multiple aspects of the customer experience, and that’s exactly what we needed to succeed in an ambitious initiative like this."

TCS’ workforce stood at 612,724 as on September 30. The employee base is very diverse, with 35.5% women and with 150 nationalities.

TCSers have clocked 26.1 million learning hours and acquired 2.6 million competencies YTD. IT services’ attrition was at 12.3% for the last twelve months.

• Partnered with the Sydney Marathon, Australia’s largest marathon for a five-year partnership, which will see TCS leverage its expertise to enhance the marathon’s use of advanced technologies, sustainability, accessibility, and charitable impact while continuing to support running and wellbeing across Australia.
• Expanded partnership with Rolls-Royce, a British multinational specializing in civil aerospace, defense aerospace, services and power systems, to advance its sustainable initiatives and involves research into hydrogen fuel system technology.
• ASDA has recently partnered with TCS to enhance its IT operations by streamlining its IT infrastructure service landscape.
• Selected by Banco de Crédito del Perú (BCP) to transform their IT technology landscape.
• Selected by a leading global financial institution headquartered in Chicago, Illinois, for end-to-end application management and support for its Hedge Fund Administrator platform.
• Selected by Follett Higher Education, North America’s leading college store operator, to strengthen its information technology infrastructure and cybersecurity services.
• Announced a strategic collaboration with TÜV SÜD Middle East, a leading provider of testing, inspection, certification and training services, to accelerate the carbon management and sustainability journeys of its customers in the Middle East.
• Launched TCS Pace Studio in Stockholm, Sweden and Manila, Philippines, to offer its customers in the Nordics and APAC region, exclusive access to its innovation ecosystem.
• Selected by Primark, a leading international fashion retailer across 17 countries in Europe and the US, to transform its technology operations to support the retailer’s ambitious plans for global growth over the next five years.
• Entered a strategic partnership with Mansfield Building Society in the UK to digitally transform its business.
• Selected by Qantas, for Managed services of Airline's Technology Domains including Airline Experience, Airline Operations, Commercial Airline Technology, Corporate & Business to Customer, TCS will drive an operating model transformation to transition their operations to a product-centric operating model towards maximizing the benefits from cloud transformation.
• George Yang-led Golden Arches Development Corporation (GADC), the master franchise holder of McDonald's in the Philippines selected TCS to standardize and digitize the IT operations for its 760+ restaurants.
• Launched a new delivery centre in Warsaw, Poland, expanding its operations in the country.
• TCS partnered with one of the largest ground handling companies based in Europe, to help them improve their cybersecurity maturity and reduce risk exposure.
• Openreach, UK’s largest telecom infrastructure company has selected TCS as its strategic partner for the business operation transformation of their national roll-out of next-gen fibre networks.

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."

Samir Seksaria, Chief Financial Officer, said, "We made strategic investments this quarter in talent and infrastructure to ensure sustainable growth. Our disciplined execution resulted in superior cash conversion. Our longer-term cost structures remain unchanged, and we remain confident in our ability to continue delivering industry leading profitable growth."

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."

• Current price: ₹4,230 (-0.52%)
• Previous close: ₹4,252.9
• Open: ₹4,253.2
• High: ₹4,293.8
• Low: ₹4,198/6

• Revenue growth and margins
• Management commentary
• Deals pipeline
• Client acquisitions
• Attrition and hiring

• Artificial intelligence
• Cybersecurity
• Network solutions and services
• Cloud
• Data and analytics
• Cognitive business operations
• Enterprise solutions
• Consulting
• IoT and digital engineering
• TCS Interactive
• Sustainability services

• Current price: ₹4,235.9 (-0.4%)
• Traded volume (Lakhs): 10.34
• Traded Value (Crore): ₹440.98
• Total market capitalisation (Crore): ₹15,32,603.78
• Free float m-cap (Crore): ₹4,32,628.21

• Current price: ₹4,290 (+0.87%)
• Previous close: ₹4,252.9
• Open: ₹4,253.2
• High: ₹4,293.8
• Low: ₹4,253.2

• N Chandrasekaran, Chairman (Non-Independent, Non-Executive)
• Aarthi Subramanian, Non-Executive Director
• Dr Pradeep Kumar Khosla, Director (Independent, Non-Executive)
• Hanne Sorensen, Director (Independent, Non-Executive)
• Keki Mistry, Director (Independent, Non-Executive)
• Al-Noor Ramji, Director (Independent, Non-Executive)
• K Kiithivasan, Chief Executive Officer and Managing Director

After a board meeting, the company will inform the stock exchanges—the National Stock Exchange (NSE) and the BSE—about its latest July-September quarter report card.

TCS Q2 results preview

The net profit, as per experts, could surge 3% to 4% QoQ and 9% to 10% YoY to ₹12,000 crore to ₹12,450 crore in the second quarter of fiscal 2025.