TCS Earned Rs 116 Crore/Day In 90 Days; Hires 20,000 Freshers, All Job Offers Honored

On Monday, the country’s largest software services exporter, Tata Consultancy Services(TCS) reported an 18% YoY growth in its revenue at Rs 55,309 crore for the quarter ended September 2022. 

TCS Growth Report For Q2 2022

This indicates a net profit increase of 8.4% YoY to Rs 10,431 crore.

It appears that IT firms’s Q2 report card has already exceeded the Street expectations on revenue and profit front. 

Contrary to this, the company’s operating margin contracted from 1.6% YoY to 24%.

For the first time in history, the PAT crossed the Rs 10,000 crore mark for the firm.

TCS CEO and MD Rajesh Gopinathan said, “Demand for our services continues to be very strong. We registered strong, profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements,”.

If we talk in constant currency terms, the IT major’s revenue grew 15.4% YoY. 

Moreover, this growth has broad-based across verticals, led by retail and CMI segments, while TCS’s order book stood at $8.1 billion.

Steady Growth For TCS

TCS is steadily making its way towards achieving operating margin priority for the year, aided by leverage from good growth, the flattening of the workforce pyramid, steadily improving productivity and currency support, said the TCS CFO Samir Seksaria.

Further adding, “Very importantly, the headwinds from the supply-side challenges are abating, so that sets us up well for the seasonally weak second half of the year,”.

Spiked Attrition Rate

During the said quarter, TCS added 9,840 employees and when it comes to attrition rate in IT services, it was 21.5% on the last twelve months basis.

While talking about the same, the Chief HR Officer TCS, Milind Lakkad said, “We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate,”.

TCS Declaration Of Interim Dividend

The Q2 results also brought good news for investors as the IT giant announced a second interim dividend of Rs 8 per equity share.

Regarding the same, the IT giant has fixed October 18 as record date and November 7 as payment date for the second interim dividend.

During an exchange filing while announcing its quarterly results, TCS said, “We would like to inform you that at the Board Meeting held today, the Directors have declared a second interim dividend of Rs 8 per Equity Share of Rs 1 each of the Company,”.