TCS Q2 profit surges 5% to ₹11,909 cr, revenue up 7.6%

Tata Consultancy Services (TCS), the country’s largest software exporter, has kicked off the September quarter earnings season on a positive note, posting 5% year-on-year (YoY) growth in its net profit at ₹11,909 crore as compared to ₹11,074 crore in the same quarter last year. The net profit, however, fell short of market estimates of ₹12,450 crore. On a quarter-on-quarter basis, TCS' profit fell from ₹12,040 crore in the April-June quarter.

The revenue from operations rose 7.6% YoY to ₹64,249 crore from ₹59,381 crore in the same quarter last year. On a QoQ basis, the consolidated revenue surged from ₹62,613 crore in the first quarter of the fiscal year.

The board of the country’s most valued IT company also declared an interim dividend of ₹10 per equity share of ₹1 each of the company. The record date has been fixed at October 18 and the payment date as November 2, 2024.

The company's operating margin came in at 24.2%, a decline of 0.2% YoY, while the net margin stood at 18.5%.

The company says in Q2 FY25, the growth was led by energy, resources and utilities, which recorded 7% growth and manufacturing saw 5.3% growth in the second quarter. TCS says all the growth markets march above the company average, with India at 95.2%, Middle East & Africa at 7.9%, Asia Pacific at 7.5%, and Latin America at 6.8%.

In the first half of the fiscal year, TCS added around 11,000 employees, says the IT major. As on 30th September 2024, the company had applied for 8,354 patents, including 160 applied during the quarter and been granted 4,369 patents including 223 granted during the quarter.

K Krithivasan, chief executive officer and managing director, says: “We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI showed signs of recovery. We also saw a strong performance in our Growth Markets. We stay focused on sharpening our value proposition to our clients, employees and other stakeholders”.

Samir Seksaria, chief financial officer, says: “We made strategic investments this quarter in talent and infrastructure to ensure sustainable growth. Our disciplined execution resulted in superior cash conversion. Our longer-term cost structures remain unchanged, and we remain confident in our ability to continue delivering industry-leading profitable growth”.

Milind Lakkad, chief HR officer, says: “We welcomed 11,000 associates in the first half of the year, and we remain on track for trainee onboarding as planned. We have also commenced the campus hiring process for FY26. Our strong talent base and increased learning intensity prepare us well for the complex technology transformations that customers entrust us with”.

The TCS share closed 0.56% lower at ₹4,228.40 on the BSE today. The company's m-cap stands at ₹15.2 lakh crore.