TCS' Q2FY17 beats estimates; reports 4% rise in net profit
The company's revenue for the Q2FY17 stood at Rs 29,284 crore, up 7.8% on y-o-y basis.
Tata Consultancy Services (TCS) on Thursday beat the estimates as it announced its financial results for the quarter ended on September 30. The company reported a net profit of Rs 6586 crore, up 4.3% quarter on quarter basis. The company's consolidated net profit stood at Rs 6,603 crore for the quarter ended on September 30, a jump of 8.3%, as against Rs 6,093 crore during the same period last year.
The company's revenue for the Q2FY17 stood at Rs 29,284 crore, up 7.8% on y-o-y basis. The operating margins were up 94 basis points sequentially to 26%.
The total income increased from Rs 27,848 crore for the quarter ended on September 30, 2015 to Rs 30,341 crore for Q2FY17, a rise of 8.9%.
Commenting on Q2 performance, N Chandrasekaran, CEO and MD, TCS, said, "It has been an 'unusual Q2' for TCS. Growing uncertainities in the environment is creating caution among customers and resulted in holdbacks in discretionary spending this quarter. In addition, volatility in markets like India and Latin America also muted revenue growth. 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."
Talking about the performance, Rajesh Gopinathan, Chief Financial Officer, said: “This has been a quarter of good financial performance with sequential improvement in profitability and strong cash generation despite multiple headwinds including global currency and market volatility through the quarter.”
A Bloomberg poll of 23 analysts estimated that the TCS would likely to post a net profit of Rs 6,300 crore in the given quarter. The company had reported a consolidated net profit of Rs 6,318 crore in the first quarter as against a net profit of Rs 6,055 crore.
The shares of the company closed at Rs 2328.50 per piece, down 2.17% or Rs 51.60.