TCS Q2 results: profit rises 15% to about ₹13,900 crore as AI revenue crosses $3 billion; ₹12 dividend declared

Tata Consultancy Services (TCS), India’s largest IT services company, reported a rise of about 15% in quarterly profit on Thursday, 8 October, the first of the big IT firms to report for July-September. “TCS results” was among India’s top searches overnight.

The numbers

• Net profit: ₹13,884 crore, up 15% from ₹12,075 crore a year earlier and up 4% from the previous quarter, according to Kotak Neo. Business Today reported ₹13,934 crore, against ₹12,131 crore a year ago.
• Revenue from operations: ₹73,188 crore, up 11.2% year on year and 1.3% on the previous quarter. Kotak Neo says LSEG analysts had expected ₹73,148 crore.
• Operating margin: 24%, with a net margin of 19%.
• Deal wins: total contract value of $9.6 billion.
• Cash flow: ₹14,190 crore from operations, or 102.2% of net income.

AI business crosses 10% of revenue

TCS said its AI services now bring in $3.1 billion a year, up from $2.6 billion last quarter and more than 10% of its revenue. The quarter’s notable deals include a five-year strategic partnership with Porsche and an agreement to turn Best Buy’s Global Capability Centre in India into an AI Capability Centre.

“We are pleased with the broad-based growth in all our international markets and most industry segments,” said CEO K Krithivasan.

Dividend and jobs

The board declared a second interim dividend of ₹12 per share. The record date is 14 October and it will be paid on 30 October. TCS ended the quarter with 598,056 employees, and attrition in IT services over the past 12 months was 13.3%.

Shares and what’s next

TCS shares closed 0.42% lower at ₹2,075.25 before the results, according to Business Today. The results come on the same day the US Labor Department suspended TCS and seven other firms from its green card sponsorship programme, so investors will be watching both when markets open on Friday.

Sources: Business Today, Kotak Neo, The Week.