TCS posts robust revenue, net growth in Q2

Mumbai, Oct 12 : Indian IT major Tata Consulting Services (TCS) posted robust revenue and net growth for the second quarter of 2017-18 in dollar terms on sequential and annual basis, said a company official on Thursday.

"With 93 per cent of revenue from exports, including 53 per cent from the US, 27 per cent from Europe and Britain and 13 per cent from rest of the world, our performance in dollar terms was robust in the July-September quarter," a TCS official told IANS here.

Under the International Financial Reporting Standards (IFRS) or in dollar terms, the net income at $1,000 million in Q2 was up 8.4 per cent from $923 million quarter ago and 1.6 per cent up from $984 million in the same period year ago.

"Our net income touched $1 billion for the first time in a quarter in dollar terms," the official said. 

Revenue at $4,739 million in Q2 was up 3.2 per cent from $4,591 million quarter ago and 8.3 per cent up from $4,374 million in the like period year ago.

Under the Indian Accounting Standards (IAS), the global software major reported Rs 6,446 crore net profit for Q2, registering 8.4 sequential growth from Rs 5,945 crore last quarter but a 2.1 per cent annual decline from Rs 6,586 crore in the same period last year.

Revenue at Rs 30,541 crore for the quarter under review was up 3.2 per cent from Rs 29,584 crore sequentially and 4.3 per cent up from Rs 29,284 crore in the like period year ago.

"Operating margin expanded 1.7 per cent sequentially to 25.1 per cent for the quarter, while volume growth was up 3.2 per cent quarterly," said the company in a statement.

Revenue from digital services was 19.7 per cent, which is up 5.9 per cent quarterly and 31 per cent yearly.

Net cash from operations at Rs 5,809 crore was 90 per cent of the net income.

The firm added 28 clients during the quarter, with one in $100 million rate, six each in $50 million, $20 million and $10 million bands.

TCS has declared a whopping 700 per cent second interim dividend of Rs 7 per share of Re 1 face value. This is in addition to Rs 7 per share first interim dividend given in July after the first quarter.

The company's blue chip stock of Re 1 face value closed on the BSE at Rs 2,548.55 per share, gaining Rs 48.05 over Wednesday's closing price of Rs 2,500.50 after opening at Rs 2,501.05 and touching a high of Rs 2,555 during intra-trading earlier in the day.