TCS Q2 PAT up 28.6% yoy to Rs 9,653cr on better profit traction across all verticals

TCS reported 16.77% growth in total revenue for the September 21 quarter on a consolidated basis to Rs46,867cr. On a sequential basis, revenue grew 3.21% more moderately from Rs45,411cr in the June 21 quarter. TCS has grown over 15% across all of its major verticals including BFSI, Manufacturing, Retail, CMT and Life Sciences.

Major North American revenues increased 17.4% in constant currencies. Operating margins remained stable at 25.6%, although slightly lower year-on-year by 60 basis points. Continuing its focus on premium customers, TCS added 5 customers in the top $ 100 million range during the quarter. Net operating cash flow amounts to 103% of net income.

Among the main growth engines, the manufacturing sector leads with 21.7%, followed by life sciences with 19% and retail trade with 18.4%. BFSE grew 17% while communication and media grew 15.6% year-on-year. In terms of regions, North America leads with 17.4%, followed by the UK with 15.6% and continental Europe with 13.5%. India leads the emerging markets with growth of 20.6%.

For the September 21 quarter, net profits increased 28.64% on an annual basis to Rs 9,653cr while on a sequential basis, profits increased by 6.9%. This is much better than the sequential growth of the last quarter. Operating margins continue to be best-in-class at over 25%, while net margins crossed 20% in the September 2021 quarter.

September 21 financial highlights compared year-over-year and sequentially

Rs in crore Sep-21 Sep 20 YEAR June-21 QOQ
Total income (Rs cr) 46,867 40 135 16.77% 45 411 3.21%
Operating profit (Rs cr) 12,000 ₹ 10,515 14.12% 11 588 3.56%
Net profit (Rs cr) 9 653 7504 28.64% 9031 6.89%
Diluted EPS (Rs) 26.02 19.93 24.35
OPM 25.60% 26.20% 25.52%
Net margins 20.60% 18.70% 19.89%

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