DBT Bureau
Bengaluru, 10 October 2024
India’s largest IT services firm, Tata Consultancy Services (TCS) on Thursday kickstarted the earnings season of the Indian IT industry.
The Tata Group company posted a net profit of the company at Rs 11,909 crore, an increase of 5% over the same period last year. Its revenue stood at Rs 64,219 crore, which was an increase of 7.6% over the past year.
Its revenue stood at $7.67 billion in dollar term, up 5.5% year-on-year basis in constant currency term.
“We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI showed signs of recovery. We also saw a strong performance in our Growth Markets. We stay focused on sharpening our value proposition to our clients, employees and other stakeholders,” K Krithivasan, Chief Executive Officer & MD of TCS said.
After several quarters, the company said it witnessed growth uptick in its largest vertical, BFSI (banking, financial services & insurance). BFSI vertical grew marginally in the second quarter after several quarters of decline.
However, its operating margin dropped 60 basis points sequentially to 24.1%. However, the company said its long-term cost structure remains intact.
““We made strategic investments this quarter in talent and infrastructure to ensure sustainable growth. Our longer-term cost structures remain unchanged, and we remain confident in our ability to continue delivering industry leading profitable growth,” Samir Seksaria, Chief Financial Officer of TCS said.
In geographical term, North America saw a degrowth of 2.1%, while Latin America saw a growth of 6.8%. In Europe, UK continued to grow for TCS as the company saw its revenue growing 4.6% during the second quarter. In the Growth markets, India outshined others as the company reported a growth of 95% over the same period last year.
Giving signs of recovery, TCS saw its headcount growing for the second consecutive quarter. Its net headcount increased by 5,726 employees in the second quarter of FY25 to take the total headcount to 6,12,724.
“We welcomed 11,000 associates in the first half of the year, and we remain on track for trainee onboarding as planned. We have also commenced the campus hiring process for FY26. Our strong talent base and increased learning intensity prepares us well for the complex technology transformations that customers entrust us with,” Chief Human Resources Officer, Milind Lakkad said.
