TCS' profit after tax up by 8.4% in September quarter

11 Oct 2022 , 08:59 AM

Tata Consultancy Services, or TCS, the largest exporter of software services from India, stated on Monday that for the three months ending in September 2022, its revenue increased by 18% year over year to Rs55,309 crore. Its net profit after tax was Rs10,431 crore, up 8.4% year over year.

In terms of revenue and profit, the IT major’s Q2 report card managed to surpass market expectations. A second interim dividend of Rs8 per equity share was also disclosed by TCS.

Even though PAT for the first time exceeded Rs10,000 crore, the company’s operating margin shrank from 1.6% YoY to 24%.

The IT major’s revenue increased 15.4% year over year in constant currency terms. The retail and CMI segments have had the most increase overall among all industry sectors. The order book for TCS was $8.1 billion.

TCS CFO Samir Seksaria stated that with help from leverage from strong growth, the flattening of the workforce pyramid, gradually rising productivity, and currency assistance, the company is making progress toward meeting operational margin priority for the year.

The largest market, North America, saw growth of 17.6%, followed by Continental Europe at 14.1% and the UK at 14.8%. India increased by 16.7%, Latin America by 19.0%, the Middle East and Africa by 8.2%, and the Asia Pacific by 7.0% in terms of emerging markets.

For the second interim dividend of Rs8 per share, TCS has set October 18 as the record date and November 7 as the distribution date.

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