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. Revenue of the Mumbai-based outsourcer rose 3.2 per cent quarter-on-quarter to Rs 30,541 crore. Analysts polled by Reuters had expected the outsourcer to post a net profit of Rs 6,306 crore in September quarter. TCS had reported a net profit of Rs 5,945 crore on revenues of Rs 29,584 crore in the quarter ending June 30, 2017.
Commenting on Q2 earnings, CEO and managing director Rajesh Gopinathan said: "We experienced robust volume growth in Q2, driven by good 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 bottoming out of the retail sector softness positions us well,".
TCS' profit was boosted by a 170 basis points increase in its EBIT margin or operating margin to 25.1 per cent in Q2.
"We continue to gain share in the fast growing Digital spend of our customers, evident in our industry-leading Digital growth in Q2," Mr Gopinathan said.
TCS witnessed a volume growth of 3.2 per cent in Q2.
TCS shares closed 1.91 per cent higher at Rs 2,548.20 apiece on the National Stock Exchange today compared to 1.11 per cent gain in the broader Nifty. TCS reported its earnings after market closing today.