Valuation of top-10 firms plunges Rs 4,95,061 crore
This was in line with a bearish trend in equities, where Tata Consultancy Services (TCS) and Reliance Industries faced the sharpest erosion.
IT major Tata Consultancy Services registered a rise in net profit at Rs 11,342 crore in the second quarter of the financial year 2024 (Q2 FY24), marking a growth of 8.7%, the company said in a BSE filing. For the last fiscal, it registered Rs 10,431 crore.
The revenue for Q2 came at Rs 59,692 crore, an increase of 7.9% year-on-year. In constant currency terms, the revenue growth was 2.8% YoY.
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The company’s EBIT margin for the quarter increased to 24.3% compared to 23.2%. Sequentially, PAT beat estimates but rupee revenue growth came in below estimates.
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In dollar terms, the revenue declined by 0.2% from the previous quarter to $7.2 billion. The dollar revenue for the IT major stood at $7,210 million.
The company’s order book at the end of Q2FY24 stood at $11.2 billion. This is in line with analysts’ estimates of $11-13 billion and the book-to-bill ratio stood at 1.6.
Speaking on the results, K Krithivasan, TCS CEO and MD, said, “Our clients continue to entrust us with critical new technology initiatives, and large programs to digitally transform their IT and business operating models. Strong deal momentum delivered us a very large order book in Q2 – our second highest TCV ever in a quarter.”
“The resilience of demand for our services, our clients’ willingness to commit to long tenure programs and their continued appetite for experimentation with Gen AI and other new technologies give us confidence in our longer-term growth prospects,” he added.
TCS boasts over a lakh-strong Gen AI-ready workforce, but the total headcount dipped to more than 6,300 in Q2. The attrition rate has reduced to 14.9% during the quarter against 17.7% in the previous quarter.
Importantly, TCS also announced a share buyback worth Rs 17,000 crore at Rs 4,150 per share. It announced a dividend of Rs 9 per share. The record date will be October 9, 2023, and the payment date is November 7, 2023.
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