TCS Q2 net rises 22.6% on strong revenue growth

Tata Consultancy Services (TCS), the country's largest software exporter, on Thursday reported a 22.6 per cent jump in consolidated net profit at Rs 7,901 crore in the July-September 2018 quarter, buoyed by strong demand for digital services.

TCS had posted a net profit of Rs 6,446 crore in the same period last fiscal, the company said in a statement.

The Tata group company saw a revenue growth of 20.7 per cent at Rs 36,854 crore in the September quarter, up from Rs 30,541 crore a year ago. Its earning per share for the quarter was at Rs 20.66.

Strong revenue growth was seen in its Banking, Financial services and Insurance (BFSI) and retail segments.

Revenue from the company’s biggest revenue stream BFSI, rose 19.8 percent to Rs 14,648 crore, the company said on Thursday.

“Revenue growth was driven by expanding demand for digital transformation across verticals, and continued acceleration in BFSI and retail,” Chief Executive Rajesh Gopinathan said.

Revenue from its retail and consumer business grew about 24 per cent, while income from operations rose 20.7 per cent to Rs 36,854 crore.

TCS CEO and MD Rajesh Gopinathan said, "We are very pleased with our all-round strong performance in Q2. Revenue growth was driven by expanding demand for digital transformation across verticals, and continued acceleration in banking, financial services and insurance (BFSI) and retail."

N Ganapathy Subramaniam, chief operating officer and executive director, at TCS termed the September quarter as a "good" one and said there was a strong demand in areas like analytics, cloud and automation.

The company has declared a dividend of Rs 4 per share.

The net employee addition in September 2018 quarter was at 10,227 professionals, highest in 12 quarters, the company said. Total employees strength at the end of Q2 stood at 4,11,102 on a consolidated basis.