TCS Q2 Results: Profit up 8.7% to ₹11,342 cr; revenue rises 10%

IT bellwether Tata Consultancy Services announced the financial results for the July-September quarter on October 11. During the quarter under review, the company’s consolidated net profit rose 8.7% year-on-year (YoY) to ₹11,342 crore as against ₹10,431 crore in the same period last year.

The revenue from operations of the IT major stood at ₹59,692 crore in the September quarter this year, up 10% (YoY) as against ₹55,309 crore in the same period last year.

 "We continue to make investments in our people and new technologies. We now have a 100,000-strong pool of Gen-AI Ready consultants and prompt engineers who are engaged in hundreds of Gen-AI projects for our clients across segments," says N Ganapathy Subramaniam, chief operating officer and executive director, TCS.

The company says that during the quarter under review, the attrition rate at Tata Consultancy Services stood at 14.9%. In the September quarter, the workforce of Tata Consultancy Services stood at 6,08,985 employees. "Our strategy of proactively hiring bright freshers and investing in training them with the right skills is paying off. With that talent coming on stream and with reduced attrition, we were able to recalibrate our gross additions, keeping it below the departures during the quarter, driving up productivity and enhancing project outcomes," says Milind Lakkad, Chief HR, TCS.

Notably, the company has also announced a share buyback proposal of ₹17,000 crore. "The Board of Directors of the Company at its meeting held today has approved a proposal to buyback up to 4,09,63,855 (four crore nine lakh sixty three thousand eight hundred and fifty five) equity shares of the company for an aggregate amount not exceeding ₹17,000 crore (Rupees seventeen thousand crore only) (hereinafter referred to as the "Buyback Size"), representing 1.12% of the total paid-up equity share capital, at ₹4,150 (Rupees four thousand one hundred and fifty only) per Equity Share (hereinafter referred to as the "Buyback Price")," the company says in a regulatory filing.

Moreover, Tata Consultancy Services has declared the second interim dividend of ₹9 per equity share of ₹1 each of the company. The second interim dividend shall be paid on November 7, 2023, according to the company.