TCS Q2 net up 8.5% to Rs. 10,465 cr

Order Book Intact

- Despite odds, demand continues to be very strong

- No change in demand environment 

Bengaluru: IT services major Tata Consultancy Services (TCS) reported a strong set of performance for the second quarter of FY23 with sound revenue growth along with improved operating margin. The consolidated net profit of TCS was at Rs10,465 crore for the quarter ended September 2022, a growth of 8.41 percent over the same period of previous fiscal. The Mumbai-headquartered firm's revenue from operations grew by 18 percent Y-o-Y to Rs55,309 crore compared to Rs46,867 crore in the same quarter last year.

In dollar term, revenue was at $6.87 billion, which was a rise of 15.4 per cent in constant currency term over the same period of last year. In sequential term, revenue grew by 4 per cent in constant currency term.

"We have a satisfying quarter with strong growth coming across the verticals and geographies. Despite a challenging environment, demand for our services continues to be very strong. We have not seen any change in demand environment as of now. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements," said Rajesh Gopinathan, CEO & MD of TCS. "As a full-services player, we are seeing demand resilience as we remain relevant to the client in all kinds of environment," he added. For the quarter ended September, operating margin of the IT major was at 24 per cent, a fall of 1 per cent year-on-year basis.

"We are steadily making our way towards achieving our 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," said CFO of TCS,Samir Seksaria.