TCS net profit up by 14.1% to Rs 9,624 crore

Tata Consultancy Services announced its results for Q2FY22, and saw a growth of 14.1% year-on-year to Rs 9,624 crore in net profit. The company had logged a net profit of Rs 8,433 crore (excluding adjustment) in the year-ago period, TCS said in a regulatory filing. The net profit excluded Rs 1,218 crore-provision towards a legal claim. Including this number, the net profit in September 2020 quarter was Rs 7,475 crore.

The strong and sustained demand environment is a once-in-a-decade opportunity to position the company as the preferred growth and transformation partner for its customers, TCS CEO and Managing Director Rajesh Gopinathan said.

"We are using the growth tailwind to invest in strengthening relevant capabilities and building out a comprehensive portfolio of offerings that caters to a broader set of stakeholders in the enterprise across business cycles, strengthening our brand, and making our business more resilient. We believe this is the most sustainable pathway to create longer-term value for all our stakeholders," he added.

TCS revenue grew 16.7% to Rs 46,867 crore for the September 2021 quarter from Rs 40,135 crore in the year-ago period. The company’s operating margin was down 0.6% year-on-year. 

The company saw all verticals grow by over 15%. It saw the most growth in the manufacturing vertical at 21.7%, life sciences and healthcare at 19%, Retail and CPG at 18.4%, BFSI at 17%, Communications and Media at 15.6%) and Technology and Services at 14.8%.

In terms of markets the company operates in, TCS saw growth in North America (which contributes to more than half of the company’s revenue) at 17.4%. It saw growth in the UK market at 15.6%, Continental Europe at 13.5%, India at 20.1%, Latin America at 15.2%, Middle East and Africa grew at 13.8% and Asia Pacific at 7.6%.

The company has also announced an interim dividend of Rs 7 per share.

Strong growth and disciplined execution helped us overcome headwinds from currency and supply-side inflation and deliver expanded margins. Our industry-leading profitability and strong cash conversion give us the wherewithal to make the right investments needed to build out the business of the future," TCS Chief Financial Officer Samir Seksaria said.

The company added 19,690 people (net), taking its headcount to 5,28,748 people.

With agency inputs