IT bellwether Tata Consultancy Services (TCS) posted a 16 per cent rise in net profit in the second quarter, riding on strong volume growth and rising revenues from digital services. The company said it will hire 75,000 personnel this financial year, exceeding the earlier projection of 60,000.

TCS posted net profit of ₹6,084.66 crore during the seasonally strong July-September period, compared with ₹5,244.28 crore recorded during the year-ago period. The company’s total income rose to ₹27,867.90 crore (₹24,479.11 crore).

“We have had another very good quarter. There is always an acceleration from the first quarter to second quarter, which has happened this year also… we have delivered a secular growth across sectors,” said CEO and Managing Director N Chandrasekaran.

The Mumbai-based company’s revenues from the digital segment rose to 13.3 per cent from 12.5 per cent a quarter ago.

TCS continues to see “softness” across Japan and Diligenta (its UK subsidiary) for the next couple of quarters, even as Latin America has been registering growth.

“The growth was broad-based in Q2 with all verticals growing on a sequential basis, led by banking and financial services, retail, life sciences and travel and hospitality. Core markets such as the UK, North America and Europe grew smartly along with emerging markets like Latin America, India and Middle East and Africa,” said Chief Financial Officer Rajesh Gopinathan.

The company also announced a second interim dividend of ₹5.50 per equity share. 

Analysts said TCS has largely delivered satisfactory performance on all counts except the revenue growth in dollar terms, which is lower than expected.

“However, the negative impact would be limited as margins and net profits are better than expectations,” said Pankaj Sharma, Head of Equities at Equirus Securities.

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