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TCS Q2 net profit climbs 8.4 per cent to Rs 6,586 cr

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Press Trust of India Mumbai
Last Updated : Oct 13 2016 | 5:23 PM IST
Tata Consultancy Services (TCS) today reported an 8.4 per cent rise in consolidated net profit to Rs 6,586 crore for the second quarter ended September 30 and said uncertainties in environment had resulted in holdbacks in discretionary spend by customers.
The country's largest software services firm had posted a net profit of about Rs 6,073 crore in the year-ago period.
The consolidated revenue grew nearly 8 per cent to Rs 29,284 crore for the said quarter as against Rs 27,165 crore in July-September 2015, the Mumbai-based firm said in a BSE filing.
The figures are as per Indian Accounting Standards (Ind AS).
TCS CEO and Managing Director N Chandrasekaran termed the second quarter as an "unusual" one for the company.
"Growing uncertainties in the environment are creating caution among customers and resulted in holdbacks in discretionary spending this quarter. In addition, volatility in markets like India and Latin America also muted revenue growth," Chandrasekaran added.

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He said the quarter was "good" from a profitability perspective "where despite multiple headwinds, our disciplined approach and focus on operations have helped us deliver a strong margin performance".
"With technology increasingly at the forefront of business, we are confident that this is temporary... Over 180,000 TCSers are now trained with significant expertise in new digital technologies," he said.
Compared with April-June 2016, the company's net profit was up 4.3 per cent, but revenue declined marginally in the said quarter, which is considered to be a strong one for the industry.
During the second quarter, growth was led by life sciences and healthcare, which grew at 4.7 per cent sequentially in constant currency, followed by energy and utilities (up 3.6 per cent.
Europe saw strong growth at 3.7 per cent and Asia-Pacific at 3.5 per cent sequentially in constant currency while North America grew 1.4 per cent sequentially and the UK was flat.
India declined by 7.6 per cent sequentially while Latin America also continued to show volatility, TCS said.
The company announced a total dividend of Rs 6.5 a share.
TCS added 22,665 employees on a gross basis and 9,440 net employees, taking its total headcount to 3.71 lakh as of September 30, 2016.

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First Published: Oct 13 2016 | 5:23 PM IST

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