Tata Consultancy Services (TCS), India's leading software exporter has witnessed a 8.41% rise in the net profit on year-on-year basis and 3.74% rise on sequential basis to Rs 60.85 billion for the second quarter ended September 2015.
Revenues moved up 5.83% on sequential basis and 14.06% on year-on-year basis to Rs 271.65 billion. In constant currency terms, the company reported a 3.9% growth sequentially.
The company has missed the analysts expectations of revenue growth. Analysts had expected revenues to come at Rs 272.30 billion
Operating income went up 8.7% on sequential basis and 15.1% on year-on-year basis to Rs 73.07 billion. At the same time, operating margin stood at 26.9% for the second quarter ended September 2015.
TCS has added six additional clients in USD 10 million + band and three clients in USD 100 million + band.
The company has added 25,186 associates on gross basis. Total employees strength stood at 3,35,620 as at Sept. 30, 2015. Utilization rate was 82.3% excluding trainees, the company said.
Commenting on the Q2 performance, N Chandrasekaran, CEO and Managing Director of TCS said, 'We have delivered accelrated groth in constant currency terms for Q2. Driven by great execution on the ground, our broad-based performance has been led by strong seqential growth in BFS, retail and life sciences verticals with UK and North America leading the markets.
Rajesh Gopinathan, CFO said, 'In a dynamic external enviornment, we continue to manage our operations with discipline and agility to ensure that we can support business growth. Our focus on profitability have increased our margins seqentially and generated strong cash flows while investing for future growth.'
The board of directors declared an interim dividend of Rs. 5.50 a share of Re. 1 each of the company.
Shares of the company gained Rs 5, or 0.19%, to settle at Rs 2,597.40. Total volume of shares traded on the bourses today was higher by 139.76% to 2,858,797 compared with 22-day average volume of 1,192,351.