TCS Q2 net profit down 2.1% to Rs 6,446 crore

Mumbai: Tata Consultancy Services (TCS), India's largest software services company, on Thursday said its net profit fell 2.1 per cent to Rs 6,446 crore in the September quarter of the current fiscal.

The Mumbai-based company had posted net profit of Rs 6,586 crore in the July-September quarter of last fiscal, the company said in a BSE filing.

TCS registered revenues at Rs 30,541 crore in the second quarter of 2017-18, up 4.3 per cent from Rs 29,284 crore in the year-ago period.

The company has declared a dividend of Rs 7 per share.

"We experienced robust volume growth in Q2, driven by good demand across multiple industry verticals... Large deal wins this quarter, a good pipeline, and bottoming out of the retail sector softness positions us well," TCS CEO and MD Rajesh Gopinathan said.

He added that the company continues to gain share in the fast growing 'digital spend' of its customers.

"Our investment programme remains geared for growth. Continued investments in digital design and transformational capabilities are paying off, and it shows in the strong growth in our Digital business," TCS CFO V Ramakrishnan said.

TCS' digital revenue saw an increase of 31 per cent year- on-year and accounted for 19.7 per cent of the company's revenues.

During the quarter, TCS saw its IT attrition rate (LTM) come down by 0.3 per cent sequentially to 11.3 per cent. It added 15,868 employees (gross) and 3,404 people (net) in the September 2017 quarter, taking its total headcount to 3,89,213 people.

The company recruited 3,725 employees outside India, bringing the total to 6,979 in the first half of the fiscal year.