TCS Q2 net zooms nearly 35% to Rs4,633 cr; revenue swells to Rs20,977 crore

Tata Consultancy Services (TCS), the country's top IT services, consulting and business solutions firm, has reported a 34.9-per cent year-on-year increase in its consolidated net profit for the July-September 2013-14 quarter at Rs4,633 crore.

TCS said second quarter net profit was also 20.7 per cent higher compared to the previous quarter (April-June 2013-14).

Revenues surged 34.3 per cent year-on-year and 16.6 per cent quarter-over-quarter to Rs20,977 crore in Q2 driven by a 7.3 per cent growth in sales volume – the highest growth in the last nine quarters, TCS said.

Operating profit expanded by a whopping 50.1 per cent year-on-year and 30.1 per cent quarter-over-quarter to Rs6,305 crore, while operating margin stood at 30.1 per cent.

In dollar terms, profits grew by 16.4 per cent year-on-year to $748 million. Revenues jumped by 17 per cent to $3.34 billion.

''We continue to see a robust demand pipeline across markets and a unique opportunity to strategically partner and participate with clients as they re-imagine their future in multiple dimensions,'' TCS CEO and MD N Chandrasekaran said.

''We have demonstrated all-round strong growth across markets and industries highlighted by efficient and rigorous execution,'' he added.

The company added three new $100-million clients. It also saw 7,664 employees joining the company, taking the total headcount to 2,85,250.

The utilisation rate stood at 83.4 per cent while the attrition rate was stable at 10.9 per cent, it added.

''Strong volumes, currency tail winds and firm execution helped us post industry-leading operating margins in this quarter,'' TCS CFO Rajesh Gopinathan said. Its operating margin stood at 30.1 per cent.

TCS declared a dividend per share of Rs4. Earnings per share stood at Rs23.63.