TCS Q2 Results Are Here: Profit Of Rs.11,909 Crore With 5% YoY Growth, Dividend Of Rs.10 Per Share Declared
Yesterday, Tata Consultancy Services officially revealed the results of Q2 FY25. As per the results, the company observed a 5.0% YoY growth in its net profit with Rs.11,909 crore net income in Q2. Last year the company received a net income of Rs.11,342 crore in Q2.
Revenue from operations rose 7.6% YoY to Rs.64,259 crore while in constant currency the revenue growth was 5.5% YoY. Operating margin saw a decline of 0.2% YoY, at 24.1%. The net margin was at 18.5%. TCS also added 5,726 employees during this quarter resulting in 612,724 workforce strength. At the same time, the percentage of women in this workforce was 35.5%.
For this new addition of employees, Milind Lakkad, Chief HR Officer, said: “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 LTM IT services attrition rate for Q2 was 12.3%. Meanwhile, if we look at the company’s growth based on different markets, North America saw a decline of 2.1% in YoY CC growth, Latin America saw a 6.8% YoY CC growth, the UK saw a growth of 4.6% YoY in CC terms, Continental Europe saw 1.8% YoY CC growth, Asia Pacific saw 7.5% YoY CC growth. In comparison, India grew by 92.5% YoY in CC terms.
Based on Domain, BFSI, consumer and life sciences rose by 0.1% each. In contrast, tech and media services declined in YoY growth by 1.9% and 10.3% respectively, resources & utilities saw a YoY growth of 7% in CC terms, and regional markets and others have 50.4% YoY CC growth.
In the press release, K Krithivasan, Chief Executive Officer and Managing Director said: “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, said: “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”.
TCS has also declared the second interim dividend of Rs.10 per share, record date has been set to 18th October 2024 while the payment date is set at 5th November 2024.
