TCS Q2 FY24 Results HIGHLIGHTS: Tata Consultancy Services shares under pressure after IT major stages a mixed Q2 show

TCS shares remain under pressure after IT major stages mixed Q2 performance 

The Tata Consultancy Services (TCS) stock is trading with a cut of Rs 52.9, or 1.5 per cent, at Rs 3,557.3 apiece on BSE, having declined by as much as Rs 64.2, or 1.8 per cent, to Rs 3,546 apiece earlier in the day.  

Image: BSEIndia.com

TCS Shares News | Tata Consultancy Services stock declined by Rs 50 in first few minutes of trade

TCS shares begin the day on a soft note, weakening by as much as Rs 50.2, or 1.4 per cent, to Rs 3,560.1 apiece on BSE. 

The minor losses in the IT country are in contrast to a mildly positive start in both the benchmarks, which rise as much as 0.2 per cent in early deals.

The Sensex gains by 104.6 points to touch 66,577.6 at the strongest level of the session so far, and the Nifty50 climbs up to as high as 19,843.3, adding 32 points to its previous close. 

Catch latest market updates here

TCS Shares News | Tata Consultancy Services shares down 0.7% at Rs 3,585 in pre-open market 

The TCS stock settles weaker by Rs 25.2, or 0.7 per cent, at Rs 3,585 apiece in pre-opening trade on BSE.

Meanwhile, the 30-scrip Sensex index is up 91.5 points, or 0.1 per cent, at 66,564.6.

TCS Q2 Results | How brokerages view Tata Consultancy Services shares after September quarter results

TCS Q2 Results | Anil Singhvi says buyback below expectations, margin & guidance strong

Zee Business Managing Editor Anil Singhvi has pointed out the following key points about the TCS earnings report: 

Negative

• Buyback price and size below expectations
• Negative growth in dollar revenue

Positive

• Strong margins and guidance
• Strong new order win at $11.2 billion

TCS Q2 Results | Market guru Anil Singhvi sees support for TCS futures at Rs 3,555-3,575, higher levels at Rs 3,640-3,665

Zee Business Managing Editor Anil Singhvi suggests adopting a 'buy on dips' strategy on TCS shares after the IT major's earnings announcement. 

He believes that the IT sector as a whole has begun the process of bottoming out.

TCS Q2 Results LIVE | Take a glance at IT major's segment-wise revenue

TCS Q2 Results LIVE | 'We continue to make investments in our people and new technologies,' says TCS COO  

"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 TCS COO and ED N Ganapathy Subramaniam. 

“During the quarter, BSNL awarded us the project to integrate and deploy a modern, indigenous pan-India 4G and 5G mobile network. This is a huge milestone for TCS, and we have commenced the supply, planning, design, installation and commissioning, and optimization of this mobile network, satisfying a detailed set of requirements conforming to 3GPP standards and the roll-out will be completed in about 18 months."

TCS Q2 Results LIVE | Attrition cools down to 14.9% | Catch key takeaways as India's largest IT firm kicks off corporate earnings season

Attrition rate

TCS' IT services attrition rate eases to 14.9 per cent on a trailing 12-month (TTM) basis, from 17.8 per cent in the previous quarter. 

“Our focus on improving employee utilisation, while driving productivity improvement and cost efficiency across the organization, has helped us expand our operating margin... We will continue to push the growth, efficiency and innovation levers to further improve our profitability."

—Samir Seksaria, CFO, TCS  

Read more on key takeaways here

TCS Q2 Results LIVE | Gross additions below departures lead to easing of IT services attrition at TCS

The company says that its total workforce stands at 6,08,985, as of September 30. The gross additions being higher than departures reflect its focus on improving workforce utilisation and productivity, says TCS.

The Tata group IT major also says that its employee base remains "very diverse, with 35.8 per cent women and with 152 nationalities". 

TCS Q2 Results LIVE | Here is a breakup of market-wise growth registered by the IT bellwether

TCS Q2 Results LIVE | IT major says its strategy of hiring bright freshers, investing in training them with right skills 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 Officer, TCS. 

TCS Q2 Results LIVE | TCS will continue to push growth, efficiency, innovation levers to further improve its profitability, says CFO Samir Seksaria

“Our focus on improving employee utilisation, while driving productivity improvement and cost efficiency across the organisation, has helped us expand our operating margin to 24.3 per cent," says Samir Seksaria, CFO, Tata Consultancy Services. 

TCS Q2 Results LIVE | Strong deal momentum delivered us a very large order book, says Tata Consultancy Services CEO K Krithivasan 

“Our clients continue to entrust us with critical new technology initiatives, and large programs to digitally transform their IT and business operating models. Strong deal momentum delivered us a very large order book in Q2–our second highest TCV ever in a quarter, and good pipeline," says TCS CEO and MD K Krithivasan. 

"The resilience of demand for our services, our clients’ willingness to commit to long tenure programs and their continued appetite for experimentation with Gen AI and other new technologies give us confidence in our longer-term growth prospects," he adds. 

Image: tcs.com

TCS Q2 Results LIVE | BREAKING—Tata Consultancy Services board approves Rs 9 interim dividend

The board of the Tata group IT major also approves a dividend of Rs 9 per equity share. This is a second interim dividend for the financial year. 

The company has set October 19 as the record date for the payout.

TCS Q2 Results LIVE | BREAKING—Tata Consultancy Services board gives nod to Rs 17,000-crore buyback 

The Tata group IT giant's board approves a proposal to buy back  4,09,63,855 equity shares for an aggregate amount up to Rs 17,000 crore, representing 1.12 per cent of its total paid-up equity, at Rs 4,150 apiece. 

Read more on TCS buyback

TCS Q2 Results LIVE | Tata Consultancy Services' revenue grows 0.5% sequentially

Tata Consultancy Services' consolidated revenue for the second quarter of the current financial year stands at Rs 59,692 crore, translating into a quarter-on-quarter increase of 0.5 per cent but falling short of analysts' estimates. 

According to Zee Business research, the Tata group IT major was estimated to report consolidated revenue of Rs 60,200 crore for the quarter ended September 30.   

TCS Q2 Results LIVE | BREAKING—Tata Consultancy Services net profit at Rs 11,342 crore, up 2.4% sequentially

TCS Q2 Results LIVE | Nirmal Bang pegs revenue at Rs 60,859 crore 

Analysts at Nirmal Bang Securities expect the IT major's quarterly revenue to come in at Rs 60,859.1 crore, which translates into a sequential increase of 2.5 per cent. They peg the company's revenue in dollar terms at $7,346 million, up 1.7 per cent.

The Nirmal Bang analysts estimate Tata Consultancy Services' quarterly net profit to register a quarter-on-quarter increase of 3.7 per cent to Rs 11,481.8 crore.

Image: tcs.com

IT services industry growth seen remaining weak in Q2

Analysts at Motilal Oswal Financial Services are of the view that the country's IT services companies are expected to register median revenue growth of 1.5 per cent on a sequential basis in the second quarter of the financial year 2023-24.

This rate of growth is among the slowest observed over the last decade, despite a marginal impact from forex fluctuations, they add.

Read more on what analysts expect from the IT space in Q2

Image: Reuters

TCS Q2 Results LIVE | Here is how Tata Consultancy Services shares have fared in the recent past

TCS shares finished the September quarter with a gain of seven per cent, sharply outperforming a 2.3 per cent rise in the headline Nifty index. 

As of October 11, 2023, here's how the TCS stock has performed in the past year: 

Image: BSEIndia.com

TCS Q2 Results LIVE | Tata Consultancy Services shares take minor losses ahead of earnings announcement  

TCS shares finished the day weaker by Rs 15.9, or 0.4 per cent, at Rs 3,613 apiece on NSE and by Rs 19, or 0.5 per cent, at Rs 3,610.2 apiece on BSE, as investors awaited the IT major's financial results due later in the day. Read more on Tata Consultancy Services shares here

Here's how the stock moved on BSE in intraday trade on October 11:

Image: BSEIndia

TCS Q2 Results LIVE | Will Tata Consultancy Services announce a share buyback today? 

Well, in case it does, it will be its fifth buyback over a span of six years. 

Here's a summary of the IT major's buybacks in the past years: 

TCS Q2 Results LIVE | Tata Consultancy Services board to consider buyback today

Besides the financial results for the three-month period, the board of the Tata group IT major will also consider a share buyback proposal today.

According to Zee Business research, TCS could buy back about 1.2-1.3 per cent of its equity, worth an estimated Rs 19,500-21,500 crore, through the buyback. 

TCS Q2 Results LIVE | Tata Consultancy Services seen registering margin expansion of 90 bps sequentially 

According to Zee Business research, the Tata group IT giant is estimated to clock a margin of 24.1 per cent for the second quarter of the financial year 2023-24. 

This marks an improvement of 90 basis points (bps) compared with its margin for the previous three months.

Image: tcs.com

TCS Q2 Results LIVE | Tata Consultancy Services seen posting quarterly EBIT of Rs 14,500 crore

Zee Business analysts estimate the Tata group IT major, Tata Consultancy Services (TCS), to report Rs 14,500 crore in earnings before interest and taxes (EBIT) for the July-September period, which means an increase of 5.4 per cent compared with the previous three months. 

TCS Q2 Results LIVE | Zee Business analysts estimate Tata Consultancy Services’ revenue growth at 1.4% 

According to Zee Business research, the Tata group IT major is expected to register consolidated revenue of Rs 60,200 crore for the second quarter of the current financial year (Q2 FY24). That translates into growth of 1.4 per cent on a quarter-on-quarter basis. 

In dollar terms, the analysts estimate the IT company’s revenue at $7,295 million, up one per cent sequentially. 

Image: tcs.com

TCS Q2 Results LIVE | Zee Business analysts peg Tata group IT major’s consolidated net profit at Rs 11,350 crore

Analysts expect Tata Consultancy Services (TCS) to stage early single-digit growth in the top-line as well as the bottom-line for the quarter ended September 30, 2023. 

According to Zee Business research, TCS is estimated to report a net profit of Rs 11,350 crore for the second quarter of the current financial year. This translates to a sequential—or quarter-on-quarter—increase of 2.5 per cent. 

TCS Q2 Results LIVE | Tata group IT major to kick off Q2 earnings season today  

Tata Consultancy Services (TCS)—the country's largest IT company by market value as well as sales—will today report its financial results for the second quarter of the current financial year, becoming the first Nifty50 company to report its numbers in the current season. 

Tata Consultancy Services—the country’s largest IT company—is all set to kick off the corporate earnings season for India Inc on October 11, 2023. 

Follow this space to catch minute-by-minute LIVE updates on TCS results, the views of Zee Business Managing Editor Anil Singhvi and other experts, and much more, only on Zeebiz.com.