TCS net rises 8.4% to Rs6,603 cr in Q2; revenues up 7.8%

Tata Consultancy Services (TCS) posted consolidated net profit of Rs6,603 crore for the fiscal second quarter ended September 2016, an increase of 8.37 per cent compared to a net profit of Rs6,093 in the corresponding quarter of the previous fiscal.

Revenues for the quarter rose 7.8 per cent to Rs29,284 crore from Rs27,165 crore in the year-ago period. Revenues were marginally lower on a sequential basis.

In dollar terms, the company's revenues stood at $4,374 million and net profit at $986 million.

The company declared interim dividend of Rs6.50 per share, same as June quarter, according to regulatory filings with the Bombay Stock Exchange (BSE) on Thursday after market hours.

TCS has fixed the record date for payment of dividend as 25 October and the payout will be on 2 November.

"It has been an unusual Q2 for TCS. Growing uncertainties in the environment is creating caution among customers and resulted in holdbacks in the discretionary spending this quarter. In additional, volatility in markets like India and Latin America also muted revenue growth," N Chandrasekaran, CEO and MD, said.

"It has been a good quarter from a profitability perspective where despite multiple headwinds our disciplined approach and focus on operations has helped us deliver a strong margin performance," he added.

The company added one client in the $50+ million category and six in the $20 million bracket.

Employee count increased by 9,940 in Q2 to take the total headcount to 3,71,519. The attrition rate dropped to 11.9 per cent over the previous quarter. Women employees constituted 34.3 per cent of the total workforce.

TCS shares lost 2.17 per cent to close at Rs2,328.50 apiece on the BSE today. The September quarter (Q2) results were declared after market hours. Infosys will be declaring its Q2 results on Friday.