Last updated: 08 Oct, 2021 | 04:53 pm
Net Profit misses estimates: TCS has reported a 6.8% on-quarter rise in net profit to ₹9,624 crore in Jul-Sep 2021 period, a tad below street expectations. Analysts had earlier estimated a net profit of about ₹9,750 crore. The net profit margin rose to 20.5% from 19.8% in the previous quarter. On a yearly basis, the profit grew by 14.1%.
Revenue rises: TCS' revenue increased 3.2% on-quarter to Rs 46,867 crore in Jul-Sep 2021, slightly below expectations. Analysts had anticipated a revenue of Rs 47,466 crore. On a yearly basis, the revenue increased 16.8%. Revenue in dollar terms stood at $6.333 million. TCS has delivered 15%+ growth across all revenue segments with BFSI which makes up 40% of total revenues, crossing the $2 billion mark.
Geographical Revenue: Geography-wise, the growth was led by North America (up 17.4%), UK (up 15.6 %), and Continental Europe (up 13.5%). Among emerging markets, growth was led by India (up 20.1%), followed by Latin America (up 15.2%), Middle East & Africa (up 13.8%) and Asia Pacific ( up 7.6%).
Margins remain steady: TCS’s operating margin stood at 25.6% almost similar to the last quarter’s. However, on a YoY basis margins declined by 0.6%.
TCS Key Highlights :
Deal wins: The company managed to secure deal wins worth $7.6 billion in the quarter, a drop from $8.1 billion in the last quarter. TCS has added five new clients in the $100 million plus category, and there was addition of 17 new clients in the $50 million plus band.
Attrition least in industry: TCS said that the attrition has fallen to just 11.9%, the lowest in the industry. TCS also saw the quarterly net headcount addition of 19,690, taking the overall workforce strength to 5,28,748 employees.
Dividend: The board has declared an interim dividend of Rs 7 per share for the second consecutive quarter.This will be paid on 3rd Nov, 2021. The company has fixed 19th Oct 2021 as the record date.
Board Members: The Board reappointed Rajesh Gopinathan as CEO and MD for a term of five years from February 21, 2022 to February 20, 2027. N Ganapathy Subramaniam has been reappointed as COO and Executive Director from February 21, 2022 to May 19, 2024. Further, the Board has appointed Pradeep M. Gaitonde as Company Secretary and Compliance Officer with effect from November 1, 2021, to take over from Rajendra Moholkar.
TCS Q2 results review: TCS has reported Q2 results in line with street estimates for Jul-Sep 2021 period. The company has also continued to report strong deal wins, helping it to cross the $6 billion milestone again in quarterly revenue this quarter.
According to the company, this was a once in a decade opportunity as Q2 saw strong demand for growth and transformation services. Customers took a longer-term view of their businesses, driven by improving vaccination levels and business outlook. There was broad-based growth across services led by cloud, enterprise application services, analytics and IoT.
Strong growth and disciplined execution helped the company overcome headwinds from currency and supply-side inflation and deliver expanded margins. The shares of the company ended 1.3% higher at NSE to Rs 3,943. Given its leadership position, TCS is well-positioned to take advantage of emanating demand going forward.