On October 11, Indian IT major, Tata Consultancy Services (TCS) reported a net profit of Rs 11,342 crore for the September quarter of the current financial year.
TCS Q2 Result Out
The growth seems to be driven by a strong order book, especially in the BFSI segment, despite a tough business environment.
Similarly, the firm’s consolidated revenue for the quarter came in at Rs 59,692 crore.
India’s biggest IT services player’s order wins for Q2 stood at $11.2 billion, which was higher quarter-on-quarter (QoQ).
Continuing the trend, its EBIT margin for the quarter increased to 24.3 percent compared to 23.2 percent (QoQ).
When it comes to the dollar revenue for the IT major, it stood at $7,210 million.
Although, its PAT beat estimates but rupee revenue growth came in below estimates.
So, the revenue declined by 0.2 percent from the previous quarter to $7.2 billion, in dollar terms.
In the meantime, the IT firm has announced an interim dividend of Rs 9 per share.
The company’s order book stood at $11.2 billion at the end of Q2FY24.
Which seems to be in line with analyst estimates of $11-13 billion and the book-to-bill ratio stood at 1.6.
It is noteworthy here that the order book is higher from the $10.2 billion TCV the company had in the previous quarter.
TCS’s EBIT margin or the operating margin was up to 24.3 percent.
Again an expansion from 23.2 percent in the previous quarter as the company recovered from the wage hike cycle in the April-June period.
TCS Confident in Long-term Growth
The company has a large order book that led to its second-highest TCV in a quarter, said K Krithivasan, the Chief Executive Officer in a statement.
Further adding, “The resilience of demand for our services, our clients’ willingness to commit to long tenure programs and their continued appetite for experimentation with Gen AI and other new technologies give us confidence in our longer-term growth prospects.”
The focus on improving employee utilization, productivity improvement and cost efficiency across helped the company expand its operating margin, said Samir Seksaria, Chief Financial Officer.
Adding, “We will continue to push the growth, efficiency and innovation levers to further improve our profitability.”
