Growth at Tata Consultancy Services Ltd. was subdued in what is seasonally a strong quarter for India’s $250-billion IT services sector.
Revenue of India’s largest IT services firm rose 0.52% over the previous three months to Rs 59,692 crore in the quarter ended Sept. 30, according to an exchange filing on Wednesday. That compares with the Rs 60,641 crore consensus estimate of analysts tracked by Bloomberg.
TCS Q2 Results: Key Highlights (QoQ)
- Revenues up 0.52% at Rs 59,692 crore. (Bloomberg estimate: Rs 60,641 crore)
- EBIT up 5.02% at Rs 14,483 crore. (Bloomberg estimate: Rs 14,420 crore)
- EBIT margin at 24.26% vs 23.2% (Bloomberg estimate: 23.78%)
- Net profit up 2.42% at Rs 11,342 crore. (Bloomberg estimate: Rs 11,372 crore)
In constant currency terms, TCS’ revenue rose 2.8% year-on-year to $7.21 billion in July-September.
The company has declared a share buyback worth Rs 17,000 crore at Rs 4,150 apiece. That’s a 14.95% premium to Wednesday’s close. An interim dividend of Rs 9 per share has also been declared.
The company’s order book stood at $11.2 billion with a book-to-bill ratio of 1.6. The attrition rate was 14.9% on a trailing 12-month basis in July–September, as against 17% in the April–June quarter.
“A strong deal of momentum delivered us a very large order book in Q2—our second highest TCV ever in a quarter—and a good pipeline,” K Krithivasan, chief executive officer at TCS, said in a statement.
On Wednesday, TCS shares fell 0.52% to Rs 3,610.20 apiece on the BSE, even as the benchmark Sensex ended the day 0.60% higher at 66,473.05 points. The quarterly results were declared after market hours. Bloomberg