TCS net up 14% to Rs 9.6K cr, despite currency headwinds

COMPANY ADDS 19,690 EMPLOYEES IN Q2, SAYS WILL OFFER COMPLETE SUPPORT TO AIR INDIA

India's largest software services firm Tata Consultancy Services (TCS) on Friday reported a 14.1 per cent rise in consolidated net profit to Rs 9,624 crore in the September 2021 quarter.

The company had logged a net profit of Rs 8,433 crore (excluding adjustment) in the year-ago period, TCS said.

The net profit excluded Rs 1,218 crore-provision towards a legal claim. Including this number, the net profit in September 2020 quarter was Rs 7,475 crore. Its revenue grew 16.7 per cent to Rs 46,867 crore for the September 2021 quarter from Rs 40,135 crore in the year-ago period.

The strong and sustained demand environment is a once-in-a-decade opportunity to position the company as the preferred growth and transformation partner for its customers, TCS CEO and Managing Director Rajesh Gopinathan said.

"We are using the growth tailwind to invest in strengthening relevant capabilities and building out a comprehensive portfolio of offerings that caters to a broader set of stakeholders in the enterprise across business cycles, strengthening our brand, and making our business more resilient.

"We believe this is the most sustainable pathway to create longer-term value for all our stakeholders," he added.The company has also announced an interim dividend of Rs 7 per share.

"Strong growth and disciplined execution helped us overcome headwinds from currency and supply-side inflation and deliver expanded margins. Our industry-leading profitability and strong cash conversion give us the wherewithal to make the right investments needed to build out the business of the future," TCS Chief Financial Officer Samir Seksaria said.

The company added 19,690 people (net), taking its headcount to 5,28,748 people.

Air India is a "nostalgic airline" for most TCS employees and the IT services major will offer its complete support in whatever form it can, to contribute to the revival of the airline to its former glory, Gopinathan said.

"Air India is quite a nostalgic airline for most TCSers. Almost all of us took our first international trip on Air India, and we used to go with this return ticket and that used to be our safety guard that if all else fails, we just have to get to an Air India office somewhere, and we'll get back home," Gopinathan recalled.