TCS Announces Q2 Results: Revenue Jumps 18% To Rs 55,309 Crore For June-September 2022 Quarter

India's largest software services exporter Tata Consultancy Services has released its financial results for Q2 (June-Sept 2022) of FY2022-23 today, i.e.on Monday.

The IT giant has reported an 18% year-on-year growth in its revenue at Rs 55,309 crore. Its net profit jumped 8.4% year on year to Rs 10,431 crore. The company has also announced a second interim dividend of Rs 8 per equity share.

In an exchange filing, TCS said its operating margin contracted from 1.6% YoY to 24%. TCS shares closed nearly 2% higher at Rs 3,121 on the BSE, ahead of the announcement of its Q2 results, and Rs 3,124 on the NSE. The company's quarterly profit after tax (PAT) crossed Rs 10,000 crore mark for the first time, as per ET.

TCS added 9,840 employees during the June-Sept quarter. The attrition rate in IT services was 21.5% on the last twelve months basis.

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In its earlier set of results in Q1 which were announced in July 2022, TCS announced that its net profit had risen 5.2% to Rs 9,478 crore in the April-June quarter. It had also reported a 16.2% rise in revenue to Rs 52,758 crore.

Also Read: TCS Struggles To Get Millennial Employees Back To Office

What TCS Officials Said

After the announcement of the Q2 results, TCS CEO and MD Rajesh Gopinathan said ¡°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."

On the other hand, TCS CFO Samir Seksaria said the company is steadily making its way towards achieving 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," he said, as per the report.

"We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate," said Milind Lakkad, Chief HR Officer, TCS.

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Interim Dividend Payout

TCS has fixed October 18th as the record date and November 7th as payment date for the second interim dividend of Rs 8 per share. "We would like to inform you that at the Board Meeting held today, the Directors have declared a second interim dividend of ?8 per Equity Share of ?1 each of the Company," TCS said in an exchange filing while announcing its quarterly results.

Also Read: TCS Fined $140-Million Penalty By US Court

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