BENGALURU: The country's largest IT services company Tata Consultancy Services (TCS) on Wednesday posted an 8.7% increase in its consolidated net profit for the second quarter that ended September 30 at Rs 11,342 crore. Its revenue for the September quarter stood at Rs 59,692 crore, up 7.9% YoY.
The company also announced a buyback valued at Rs 17,000 crore at Rs 4,150 per share. TCS' operating margin for the quarter stood at 24.3%; an expansion of 0.3% YoY.
K Krithivasan, Chief Executive Officer and Managing Director, TCS 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, and a good pipeline. The resilience of demand for our services, our client’s 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.
The company also said that they would honour all placement offers and that they have asked all employees to return to the office all five days a week. About 70% of its employees have already started working from the office for all five days.
The company's Order Book stood at $11.2 billion, and it has a 100,000 pool of Gen-AI Ready consultants who are engaged in hundreds of Gen-AI projects for its clients across segments. The company's headcount has declined by 6,333 in the second quarter.
Milind Lakkad, Chief HR Officer, said, “Our strategy of proactively hiring bright freshers and investing in training them with the right skills is paying off." On the Israel-Hamas war situation and its clients in Israel, TCS said its focus is to support them and that they can't say "it is business as usual." TCS employs over 250 employees in Israel.
The directors have declared a second interim dividend of Rs 9 per equity share and it will be paid on November 7.
