TCS Earned Rs 7475 Cr In 90 Days; Declares Upto Rs 16,000 Cr Share Buyback (But Why?)
The Indian IT giant Tata Consultancy Services (TCS) has reportedly registered great profit numbers in the 2nd quarter. In fact, the IT giant beat estimates on all earnings parameters.
TCS Registers Share Buyback Worth Rs 16,000 Crore
The IT giant reported all of its profit and revenue numbers yesterday.
- It registered a profit sum of Rs 7,475 crore after tax, in the 2nd quarter (ended in September), with sequential growth of 6.7%.
- It registered Deal wins of $8.6 billion and conducted share buyback of upto Rs 16,000 crore.
It was reported that the bottomline (profit) was affected by the EPIC Systems Corporation legal case, after making a provision of Rs 1,218 crore.
The adjusted profit growth was reported at 20.3% at Rs 8,433 crore, due to growth in revenue and margin expansion.
All the Numbers and Profits Listed
The Chief Executive Officer and Managing Director of TCS, Rajesh Gopinathan states,
“Driving accelerated business value realisation of customers’ digital investments has resulted in broad-based revenue growth.
The strong order book, a very robust deal pipeline, and continued market share gains give confidence for the future”.
- Revenue from operations for Q2 has risen by 4.7%, to operations,
- TCS has registered a QoQ growth of 4.8% in constant currency,
- While a dollar revenue growth of 7.2% in the 2nd quarter, surpassing the expected revenue was at $5,297 million.
- The deal wins in this quarter (2nd) were recorded with total contract value at $8.6 billion, against $6.9 billion in the 1sT quarter of FY21.
All the Different TCS Markets Booming
The revenue growth of TCS in the 2nd quarter was led by consecutive growth in different sectors.
- Retail: up by 8.8% QoQ
- Life Sciences and Healthcare: high by 6.9%
- Banking, financial services and insurance (BFSI): up by 6.2%
- Technology & Services: high by 3.1%
- Communications & Media: up by 2.4%
- Manufacturing: up by 1.4%
Additionally, TCS commented all the markets showing sequential growth too,
- Continental Europe: up by 6.1%
- Latin America: up by 5.5%
- MEA: up by 8%
- North America: up by 3.6%
- UK: up by 3.8%
- Asia Pacific: up by 2.9%, and
- India by 20%