Home >Companies >Company Results >TCS Q2 net profit surges 29% to 9,624 cr; firm to pay 7 interim dividend
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Tata Consultancy Services (TCS) on Friday reported a consolidated net profit of 9,624 crore for the quarter ending 30 September, 2021 (Q2FY22), an increase of 29% from 7,475 crore clocked in the year-ago period.

However, on a sequential basis, the profit after tax (PAT) rose nearly 7%. In the June quarter, the IT heavyweight posted a net profit of 9,008 crore.

Its revenue from operations rose 17% to 46,867 crore in the reporting period. It was 40,135 crore in the same quarter last year. The revenue growth in constant currency was at 15% over last year.

A Bloomberg consensus estimate has pegged TCS net profit at 9,652 crore and revenue was seen at 47,356 crore for the September quarter.

The Board has also approved a second interim dividend of 7. The company has re-appointed Rajesh Gopinathan as MD and CEO.

“The strong and sustained demand environment is a once-in-a-decade opportunity to position ourselves as the preferred growth and transformation partner for our customers," TCS CEO Rajesh Gopinathan said.

TCS attrition rate has increased to 11.9% in the September quarter, up from 8.6% in the previous quarter. The company management said it is concerned about the current attrition levels and that the trend would continue for next two to three quarters.

"We are using the growth tailwind to invest in strengthening relevant capabilities and building out a comprehensive portfolio of offerings that caters to a broader set of stakeholders in the enterprise across business cycles, strengthening our brand, and making our business more resilient. We believe this is the most sustainable pathway to create longer term value for all our stakeholders," he said.

The company said that the demand pipeline continues to stay strong as clients' digital agendas accelerate.

TCS said it has added 19,690 employees on a net basis in Q2, taking the total employee base to 528,748 as of September 30. The firm also plans to hire 35,000 fresh graduates in the second half of the current financial year, taking the total hiring to 78,000 for full financial year.

"The company’s ability to attract and retain talent at scale, and its continued investments in organic talent development, have enabled it to fulfill much of the incremental demand in newer technologies using internal candidates," TCS said in an exchange filing.

All verticals of the company grew over 15% on a year-on-year basis in the September quarter. The BFSI business has crossed $2 bn in quarterly revenue run rate.

The company said it has strong client additions during the quarter, including 5 new ones in $100 million-plus club. The takes the total clients to 54. 17 new clients have also been added in the $50 million-plus category, taking the total to 114.

On Friday, TCS scrip gained nearly 1.1% to settle at 3,935 on NSE. Ahead of the results, the stock hit a fresh 52-week and an all-time high of 3,989.9 in intraday trade.

The IT blue chip stock has given stellar returns to investors with a surge of over 33% since the start of 2021.

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