TCS Q2 net up 15% to Rs 2,439 cr

TCS Q2 net up 15% to Rs 2,439 cr

TCS Q2 net up 15% to Rs 2,439 cr

Notwithstanding the continuing uncertainty in global economy, TCS still managed to capture demand across major markets with its revenue for the quarter under review grew by 25.3 per cent at Rs 11,633.5 crore as compared with Rs 9,286.4 crore in Q2FY11.

At the same time, other income for the quarter includes foreign exchange loss of Rs 79.90 crore which the company ascribed to some of hedging transactions matured during the quarter. Meanwhile, TCS board at its meeting this day proposed an interim dividend of Rs 3 per equity share. Its operating margin in the second quarter was up 89 basis points at 27 per cent.

Briefing reporters, TCS CEO & Managing Director N Chandrasekharan said “There are ambiguities in the external environment in the short-term.”  The debt crisis in Europe and the unemployment and economic uncertainties in the US is a major worry for Indian software service providers as the two regions account for a major share of their revenues.

However, he continued, as of now there is no cutting back by the company on recruiting nor on its R&D spend. Responding to a query, TCS chief pointed out that North America business grew 9 per cent, Europe grew over 9 per cent and UK grew by over 10 per cent, in the second quarter.

During the quarter, he said TCS signed 10 large deals, while 10 large deals are being chased currently.  In that sense, he said:"Order book is quite bright, though macro negativity remains." 

According to him, TCS added 35 new clients in the second quarter. TCS Chief Financial Officer S Mahalingam said: “We continue to make the necessary investments to support our future business growth in different markets as we remain in expansion mode. However, we are also working to optimise our cost structure and keeping a close watch on economic signals.” During the quarter,  TCS net added 12,580 employees in July-September and had 2,14,770 employees as of September 30.

The company said attrition rate dropped to 13.7 per cent in July-September from 14.8 per cent in April-June. TCS added 2 $100-million+ customers to make the tally to 12, reflecting traction for full services strategy. The company also enjoyed a high utilisation rate at 83.1 per cent (excluding trainees).

"We are on course to meet our hiring target for the current financial year. Our employee engagement efforts are helping to curtail attrition and increase retention of talent in the company," said Ajoy Mukherjee, executive vice president and global head, human resources.

Meanwhile, for the six-month period ended September 30, consolidated net profit rose to Rs 4,715 crore from Rs 4,075 crore in the same period previous year. Revenues jumped to Rs 22,430 crore in the six-month period under review from Rs 17,503 crore during the same time last fiscal.

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