TCS Q2 net falls 2.1% YoY on softness in banking, retail

TCS Q2 net falls 2.1% YoY on softness in banking, retail

During the quarter, TCS saw its IT attrition rate come down by 0.3% sequentially to 11.3 per cent.

TCS, India's biggest IT services outsourcer, today reported a better-than-expected 8.4 per cent sequential jump in its net profit for the July-September quarter to Rs 6,446 crore on the back of good demand across multiple industry verticals.

In April past year, TCS received an unfavourable jury verdict awarding damages totalling Rs 6,145 crore (USD 940 million) to Epic.

The company's blue chip stock of Re 1 face value closed on the BSE at Rs 2,548.55 per share, gaining Rs 48.05 over Wednesday's closing price of Rs 2,500.50 after opening at Rs 2,501.05 and touching a high of Rs 2,555 during intra-trading earlier in the day.

CEO and managing director Rajesh Gopinathan noted that the volume increase had been driven by demand across multiple industry verticals. Strong, broadbased client metrics this quarter demonstrates our increasing success with newer customers. "Large deal wins this quarter, a good pipeline, and bottom-ing out of the retail sector softness positions us well", Gopinathan said.

India's top IT services firm Tata Consultancy Services Ltd (TCS) said it expected an uptick in the retail business segment in the coming quarters but remained cautious about the banking and financial services segments that form the bulk of its revenues.

Several employees injured, fires set during NC prison escape attempt
Students were dismissed, but those who ride the bus were required to have a parent at home when the bus arrived. Several schools in the Elizabeth City area have been since been placed on lockdown .

"We continue to gain share in the fast growing Digital spend of our customers, evident in our industry-leading Digital growth in Q2".

With the exception of retail and communication & Media industries (CMI), all industry verticals grew above the company average led by travel & hospitality (up 8 per cent QoQ), energy & utilities (up 7.2 per cent) and life sciences and health care (up 3.6 per cent).

The first large Indian information technology (IT) service provider to declare quarterly numbers, TCS expects business to grow across sectors while awaiting recovery in investments from clients in banking and financial services and retail later this year.Wipro, its smaller rival, will announce quarterly numbers on October 17, while Infosys, with its co-founder Nandan Nilekani back at the helm, will declare its numbers on October 24.

"EBIT (earnings before interest and tax) margins improved by 170 bps q-o-q at 25.1% well ahead of our estimates of 24%".

TCS said growth was led by Europe (up 5.3 per cent Q-o-Q), Latin America (up 5.7 per cent Q-o-Q), APAC (up 3 per cent Q-o-Q) and United Kingdom (up 2.5 per cent Q-o-Q). The US, its largest market saw growth of 1.4 per cent, as it saw continued softness in business from banking and retail customers.

"Our investment programme remains geared for growth".

Related Articles

  • John Calipari tries to skip question about FBI investigations, reporter demands answer

    John Calipari tries to skip question about FBI investigations, reporter demands answer

    The best line out of a Kentucky basketball gathering Thursday did not come from coach John Calipari or one of his players. However, what's not speculation is the fact that Calipari has a loaded roster this season in Lexington.
    Feminists Outraged After Women's March Chooses Sen

    Feminists Outraged After Women's March Chooses Sen

    Sanders received harsh feedback from Twitter users who said his headlining slot is "hurtful" and "wrong". Some suggested that women should boycott the convention and its organizers.
    She's Gotta Have It trailer released by Netflix

    She's Gotta Have It trailer released by Netflix

    It also stars Chyna Layne, Elise Hudson, Joie Lee , Sydney Morton, and Elvis Nolasco. She's Gotta Have It premieres globally on Thanksgiving Day, November 23 on Netflix.
  • AT&T Estimates 300K DirecTV Now Adds for Q3

    AT&T Estimates 300K DirecTV Now Adds for Q3

    Shares in AT&T Inc ( NYSE:T ) were lower in pre-market trading after the telecoms giant issued a profit warning on Wednesday evening.

    Court grants woman paid sick leave to care for ailing dog

    However, the 12-year-old animal fell ill earlier this year, and had to have a tumour removed from her breast in February. The Italian court ruled her two-day absence will count as paid time off for "serious or family personal reasons".
    Pokémon GO AR Photo Contest Launches

    Pokémon GO AR Photo Contest Launches

    Russia's far-ranging campaign to promote dissension in the United States reportedly included an effort to weaponize Pokémon Go . Once the players caught a Pokemon, they were told to change its name to someone who had been a victim of police brutality.
  • Amazon Studios boss Roy Price placed on leave after sexual harassment allegations

    Price, through a spokesperson, declined comment. "I hope we all continue to inspire each other and ultimately create change". Multiple representatives for Amazon did not respond to requests for comment Thursday evening.

    Congressman may have broken law with biotech he held, watchdog says

    Price's investments in Innate came up during his confirmation process to serve as the head of Health and Human Services. The ethics committee announced in the release of the report that it would start a review of Collins. "Rep.
    Fortnite announces 10 million Battle Royale players

    Fortnite announces 10 million Battle Royale players

    PCGamesN reports that Epic Games is now going after two players named Vraspir and Broom for infringing the company's copyrights. According to Epic, both defendants specifically targeted streamers while cheating.
  • The Evil Within 2 launch trailer has arrived

    The Evil Within 2 launch trailer has arrived

    The company is looking to raise $15,000 for Red Cross disaster relief efforts around the world. Sebastian must rescue Lily before everything falls apart and they are both lost in STEM.
    HSBC bank picks John Flint as chief executive

    HSBC bank picks John Flint as chief executive

    London-based bank HSBC says John Flint will be its new chief executive, replacing the retiring Stuart Gulliver . Recently-appointed chairman Mark Tucker said Flint had "a great understanding and regard for HSBC's heritage".
    Stock In Spotlight: Axalta Coating Systems Ltd. (NYSE:AXTA)

    Stock In Spotlight: Axalta Coating Systems Ltd. (NYSE:AXTA)

    BidaskClub raised Axalta Coating Systems from a "hold" rating to a "buy" rating in a research note on Tuesday, June 20th. Finally, Advisor Group Inc. lifted its stake in shares of Axalta Coating Systems by 217.3% during the second quarter.