Tata Consultancy Services (TCS) saw its consolidated net profit rise 13 per cent to ₹5,244 crore in its traditionally strong second quarter, which ended on September 30, riding on good volumes. The country’s largest IT services provider had posted a net profit of ₹4,633 crore during the same quarter a year ago.
“We have had another strong quarter. We have delivered strong volume growth of 6.1 per cent, and in terms of market growth, it has been well-rounded with Europe and the US doing well,” TCS Chief Executive Officer and Managing Director N Chandrasekaran said at a press conference.
“India has done particularly well,” he said, adding that this was the second quarter of growth after five-six consecutive quarters of declines. However, there was slight “de-growth” in Latin America as a “few ramp-ups did not happen”, he added.
The Tata group company’s total income on a consolidated basis rose to ₹23,816 crore (from ₹20,977 crore) during the quarter under review.
The newly-created entity in Japan, Mitsubishi, added 2.8 per cent on a constant currency basis.
However, the company reported a 5.8 per cent drop in its rupee net profit to ₹4,633 crore sequentially.
During the quarter, TCS won four deals in the over $50-million bracket and about nine in the $20-million range across BFSI, healthcare, education and manufacturing, among others.
It added 20,350 employees during the quarter, though net additions stood at 8,326, while attrition stood at 12.8 per cent.
TCS has also approved the merger of its subsidiary CMC Ltd, in which it holds a 51.12 per cent stake, with itself, subject to requisite approvals.
Forecast TCS sees good opportunities across sectors and markets in the third quarter, which has traditionally been a soft quarter for the IT industry.
“Furloughs are a norm in Q3, which will affect industries such as manufacturing and telecom. Further, due to holidays such as Thanksgiving and Christmas, companies might not take up a lot of projects,” he said.