TCS Q2 net up 6.1% q-o-q at Rs 6,055 cr

TCS has missed market estimates for the fifth straight quarter

Tata Consultancy Services (TCS) , India's largest software-services exporter, reported a 5.8% rise in revenue at Rs 27,165 crore for the quarter ended September 2015. It was Rs 25,668 crore in the previous quarter ended June 2015.

The company has missed market estimates for the fifth straight quarter. Bloomberg estimates had expected revenue to be Rs 27,229 crore.

As per IFRS, the net profit rose 6.1% to Rs 6,055 crore as against Rs 5,709 crore in June 2015.

However, what looked good was volume growth that came in at 4.9 per cent. Infosys had reported volume growth of 3.7 per cent.   

In US dollar terms TCS reported revenue at $4,156 million, a growth of 3 per cent on q-o-q basis. The street was expecting dollar revenue to grow in the range of 3.3 per cent to 3.7 per cent.

“We remain focused on partnering with clients in multiple business dimensions to help them strategize and execute their Digital roadmaps. Given the growing market adoption of Digital, we continue to take new IP-led products and platforms to market successfully as well as invest in training our talent. Over 30,000 TCSers have already successfully trained in new technologies this year using our experiential Digital Learning Platform,” said N Chandrasekaran, CEO & MD, TCS.
 

Meanwhile, the company has surprised everyone by increasing its hiring target for FY16. TCS will hire 75,000 engineers for FY16, up from the earlier target of 50,000. 

The company said that the hiring has been increased due to the growth opportunities it sees over the next two quarters. "We are increasing the hiring numbers because of the volume growth we have seen and also the fact that the attrition has gone up," said Ajoy Mukherjee, HR Head, TCS. 

The company reported attrition of almost 16 per cent, much higher than peers as well as its own metrics of the last few quarters. The company added about 25,186 taking its total headcount to 335,620.

TCS also reported that its utilization for the quarter was at 86 per cent (excluding trainees) and 82.3 per cent (including trainees).

On Tuesday, TCS' scrip on BSE closed 0.19% higher at Rs 2,597.

The company  has announced an interim dividend of Rs 5.5 per share.