TCS Q2 profit grows 34% to Rs 4,702cr on weak rupee, new deals

Country's largest software exporter TCS today reported 34 per cent rise in consolidated net profit at Rs 4,702 crore for the July-September quarter on the back of large deal wins and currency 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 (IFRS) in the second quarter of the current fiscal from Rs 15,620.75 crore in the corresponding quarter last fiscal, Tata Consultancy Services (TCS) said in a filing to the BSE after close of market hours. All these numbers are according to IFRS standards.

"We continue 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," TCS CEO and MD N Chandrasekaran said.
The IT major signed eight large deals, including two each in BFSI and telecom segments, during the quarter, its CFO Rajesh Gopinathan told reporters here.
Margins were improved by over 300 basis points due to currency depreciation, he added.

In dollar terms, consolidated profit grew by 16.4 per cent year-on-year to USD 748 million. Revenues jumped by 17 per cent to USD 3.34 billion.

Banking, financial services and insurance (BFSI) and manufacturing verticals led the growth. All core geographies witnessed good demand, especially Europe, North America and the UK.
"As the industry benefited from a record flow of new contracts, TCS quarterly profit rose 34 per cent... This is the quarter when currency depreciation of 13 per cent have significantly boosted their profits," said Rikesh Parikh VP - Institution Corporate Broking, Motilal Oswal Securities.
The company added three new USD 100-million clients. It also saw 7,664 employees joining the company, taking the total headcount to 2,85,250.
"Strong volumes, currency tail winds and firm execution helped us post industry-leading operating margins in this quarter," Gopinathan said.