TCS Q2 profit up 34% to Rs 4,702cr on new deals, rupee slide

Country's largest software exporter TCS today reported a healthy 34 per cent rise in consolidated net profit to Rs 4,702 crore for the July-September quarter on the back of large deal wins and rupee depreciation.
The company had posted a profit of Rs 3,512 crore in the same period last year.
Total revenue grew 34.3 per cent to Rs 20,977.24 crore in the second quarter ended September 30 from Rs 15,620.75 crore in the corresponding quarter last fiscal.
These numbers are according to IFRS (International Financial Reporting Standards).
"It has been an excellent quarter for us, volumes going by 2.7 per cent sequentially and the operating margins at 340 basis point sequentially. The growth has come from all our markets. All our industries and service segments have delivered growth," TCS CEO and MD N Chandrasekaran told reporters here.

Margins improved by over 300 basis points due to rupee depreciation, he said, adding the execution has been exemplary both in terms of realisation of margins and net income.

The volume growth stood at 7.3 per cent during the quarter under review, the highest-ever in the last nine quarters. Operating profits crossed billion dollars mark at USD 1,007 million (Rs 6,330 crore), the company said.
TCS continues to see a robust demand pipeline across markets and a unique opportunity to strategically partner and participate with clients as they re-imagine their future in multiple dimensions, Chandrasekaran said.
He said deals have been clinched across multiple sectors and across continents. The company added three new USD 100-million clients during the reporting quarter, taking the the number of USD 100 plus clients to 22.

The company has added 30 new customers in the one-million band, he said.
Earlier in the day, TCS shares rose to 52-week high of Rs 2,258 in anticipation of robust earnings, but ended the day flat at Rs 2,218 apiece. TCS earning figures came after close of market hours.