Tata Consultancy Services posts 4.3 per cent rise in Q2 profit

Mumbai: India’s IT bellwether Tata Consultancy Services (TCS) beat market expectations by announcing a net profit of Rs 6,586 crore in the three months ending September 30, up 4.3 per cent boosted by increase in operating margins. Operational income at '7,617 crore grew 3.7 per cent q-on-q. CEO and MD N. Chandrasekaran described it as “an unusual quarter for TCS.

He said “Growing uncertainties in the environment is creating caution among customers and resulted in hold backs in the discretionary spending to the tune of Rs 180 crore this quarter.” Additionally, volatility in markets like India and Latin America also muted revenue growth, he said. “It has been a good quarter from a profitability perspective where despite multiple headwinds our disciplined approach and focus on operations has helped us deliver a strong margin performance,” he added. Digital India he said offered “huge business,” and 1,80,000 TCS staffers are now trained with significant expertise in new digital technologies.

They have added 22,665 employees bringing the total to 371,519. Asked about the impact of Brexit and the U.S. elections, Mr Chandrasekaran said Britain was continuing with its programmes and they are not anticipating anything “negative.” The U.S. elections  will take place in Q3 so he could not make any definite comment at this moment. He expected the third quarter to be better as the lost momentum in Q2 will gather speed in Q3 as retail will bounce back.  The  company is engaged with supply chains and is setting up the largest real time analytics solutions in banking, retail and cross sectors.