Global IT services major Tata Consultancy Services (TCS) on Friday announced that its net profit for the quarter ended September 2021 increased 28.75 per cent to ₹9,624 crore compared to ₹7,475 in the same quarter last year.
On a sequential basis, profits rose 6.84 per cent over the first quarter. Revenue from operations grew 16.77 per cent YoY to ₹46,867 crore (₹40,135 crore). On a quarterly basis, the revenue rose 2.9 per cent.
Gopinathan reappointed
Rajesh Gopinathan, Chief Executive Officer and Managing Director, said, “The strong and sustained demand environment is a once-in-a-decade opportunity to position ourselves as the preferred growth and transformation partner for our customers.” Gopinathan was reappointed MD and CEO for five years.
“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 stakeholders,” Gopinathan said.
The quarter also showed strong client addition with five added in the $100-million-plus category taking the total to 54 and 17 in the $50-million-plus setb taking the total to 114.
TCS’ operating margin remained stable at 25.6 per cent (25.5 per cent in the preceding quarter).
According to analysts, TCS has missed the street estimates. Jyoti Roy, DVP - Equity Strategist, Angel One, said, “The demand environment is expected to remain strong which bodes well for the company and the entire IT sector. Overall, the company reported numbers which were below street estimates for the quarter and the markets will now look forward to the Infosys numbers which will be declared on October 13.”
Hiring and attritions
The attrition rate for the quarter for IT services (LTM) was at 11.9 per cent, up from 8.6 per cent last quarter. TCS added 19,690 employees in Q2, taking its workforce total to 528,748. The company has been actively hiring freshers which also balances the overall cost of hiring. Gopinathan said 45,000 freshers were onboarded this quarter.