TCS Q2 Results: Revenue grows in constant currency terms for the first time in three quarters

Tata Consultancy Services Ltd. (TCS), the largest Indian IT services company, reported constant currency revenue growth for the September quarter for the first time in three quarters.

Revenue growth in constant currency terms stood at 0.8% sequentially after two quarters of decline. The June quarter saw TCS report a 3.3% drop in its constant currency revenue.

The company's net profit stood at ₹12,075 crore at the end of the September quarter, which was lower than the ₹12,760 crore it reported during the June quarter. The figure was also lower with the CNBC-TV18 poll estimate of ₹12,528.3 crore.

Revenue in rupee terms rose by 3.7% quarter-on-quarter to ₹65,799 crore. The CNBC-TV18 poll had projected a figure of ₹65,114 crore.

TCS reported Earnings before Interest and Tax (EBIT) stood at ₹16,565 crore, a growth of 6.8% on a sequential basis. The CNBC-TV18 poll had projected the EBIT to grow by 3.8% sequentially to ₹16,103 crore.

EBIT margins for the quarter expanded by 70 basis points to 25.2% from 24.5% in June and higher compared to 24.7% estimate of the CNBC-TV18 poll.

Deal wins during the quarter stood at $10 billion, in-line with what brokerages like Kotak had projected, and higher than the $9.4 billion that the company had won in the June quarter.

TCS has also announced a second interim dividend of ₹11 per share, and the record date for this payout has been fixed as October 15.

How did the various business segments fare:

• BFSI segment grows 1.1% sequentially


• Life Sciences and Healthcare vertical grows 3.4% quarter-on-quarter


• Manufacturing vertical grows 1.6% from the June quarter


• CMI business grows 0.8% amidst industry specific challenges


• All growth figures in constant currency terms

Shares of TCS ended near the highest point of the day on Thursday before the results were announced. The stock ended 1.1% higher at ₹3,060, has gained in three out of the last four trading sessions, and continues to rebound from its 52-week low that it fell to on October 1.

To be updated with more details.