A strong demand momentum across geographies saw Tata Consultancy Services (TCS) on Monday report a 6.1-per cent growth in its net profit at Rs 2,301 crore for the second quarter ended September 30, 2011. The company has declared a dividend of Rs.3 a share.
Owing to international business growing 9 per cent led by major markets, the company's revenues for the quarter were up 25 per cent at Rs.11,633 crore and volumes increased by 6.25 per cent sequentially. The operating profit at Rs.3,143 crore grew 21.4 per cent and the operating margins at 27 per cent were up 89 basis points.
N. Chandrasekaran, CEO and Managing Director, TCS, said, “Our domain-rich solutions and disciplined execution helped us capture business demand across major markets and deliver stellar growth in international revenues. We see a strong momentum for our full services strategy from customers who are looking for agility and growth. We have created a nimble organisation on the growth to stay close and stay relevant to our customers as there are ambiguities in the external environment in the short-term.'' During the second quarter, TCS grew across all major markets with North America at 9 per cent, the U.K. at over 10 per cent and continental Europe at over 9 per cent. Among new growth markets, Asia Pacific, the Middle East and Africa as well as Latin America grew 10 per cent, 9 per cent and 3 per cent, respectively, while revenues from India were down 4 per cent. According to S. Mahalingam, Chief Financial Officer and Executive Director, TCS, “We continue to make the necessary investments to support our future business growth in different markets as we remain in the expansion mode. However, we are also working to optimise our cost structure and keeping a close watch on economic signals. Given the breadth of our global operations across 45 countries, the recent unprecedented volatility in the foreign currency markets is fresh cause for concern.''
In terms of human resources, the total employee strength of TCS was 2.15 lakh on a consolidated basis at the end of the second quarter.
Keywords: TCS Q2 result