TCS net profit jumps 8 per cent to Rs 10,431 crore in Q2
Oct 10, 2022
Mumbai (Maharashtra) [India], October 10 : Tata Consultancy Services (TCS), the country's largest software exporter, on Monday said its consolidated net profit jumped by 8 per cent year-on-year to Rs 10,431 crore for the quarter ended September 30, 2022.
The company's consolidated revenue from operations rose surged by 18 per cent to Rs 55,309 crore in the second quarter of 2022-23 as compared to Rs 46,867 crore in the corresponding quarter of the last year.
"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," Rajesh Gopinathan, Chief Executive Officer and Managing Director of TCS, said in a statement.
"As clients prepare for a more challenging environment ahead, technologies like cloud that have been embraced now have to be fully leveraged to realize the promised value. TCS has the combination of contextual knowledge, technology expertise and execution rigor to deliver on this imperative," Gopinathan said.
The company's growth during the quarter under review was led by Retail and CPG (22.9 per cent), Communications & Media (18.7 per cent), and Technology & Services (15.9 per cent). Manufacturing as well as Life Sciences & Healthcare verticals grew by 14.5 per cent, while BFSI grew by 13.1 per cent.
N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, TCS, said, "This was another quarter of excellent execution that saw us delivering several transformational projects like the largest migration of 2.3 million policies to our TCS Insurance platform in one go in the UK, or the trading platform at the Gift City. Our delivery leadership congregated during the quarter and are raising the bar further on execution excellence with frameworks like Rigor in Transformation. We are pleased that our office facilities are becoming once again the place of buzz with more and more of our employees and clients celebrating togetherness to realize their full potential."
Samir Seksaria, Chief Financial Officer, TCS, said, "We are steadily making our way towards achieving our operating margin priority for the year, aided by leverage from good growth, the flattening of the workforce pyramid, steadily improving productivity and currency support. 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."
Among major markets, North America led with 17.6 per cent growth; Continental Europe grew 14.1 per cent and UK grew 14.8 per cent. In the emerging markets, India grew 16.7 per cent, Latin America grew 19.0 per cent, Middle East & Africa grew 8.2 per cent and Asia Pacific grew 7.0 per cent.
