Tata Consultancy Services (TCS), India's leading IT services company, has reported a robust performance in its latest quarterly results, surpassing market expectations and demonstrating resilience in a challenging global economic environment.

Revenue Growth

TCS posted a quarterly revenue of ₹65,799.00 crore, marking a significant increase from ₹63,437.00 crore in the same period last year. This growth showcases the company's ability to expand its business and secure new contracts despite market uncertainties.

Analyst Expectations Exceeded

The company's performance exceeded analyst estimates, which had projected a revenue of ₹65,114.00 crore. This outperformance highlights TCS's strong market position and its ability to deliver results that surpass market expectations.

Financial Highlights

Shareholder Returns

In a move that will likely please investors, TCS has recommended an interim dividend of ₹11.00 per share. This decision reflects the company's commitment to delivering value to its shareholders and its confidence in its financial stability.

Conclusion

TCS's latest quarterly results demonstrate the company's continued growth trajectory and its ability to navigate through global economic challenges. The revenue growth and the declaration of an interim dividend underscore TCS's strong financial position and its focus on shareholder value creation.

As the IT services landscape continues to evolve, TCS's performance will be closely watched by investors and industry analysts alike. The company's ability to consistently deliver results above market expectations positions it well for future growth in the competitive global IT services market.

Tata Consultancy Services (TCS), India's largest IT services company, reported a consolidated net profit of ₹12,075 crore for the second quarter, marking a 5.4% decline from the previous quarter. The company also addressed concerns about the new $100,000 annual H-1B visa fee and reported its first constant currency revenue growth in three quarters.

Financial Performance

TCS's Q2 results show a mixed picture:

The company's revenue grew by 3.7% quarter-on-quarter, reaching ₹65,799 crore. However, the net profit declined by 5.4% compared to the previous quarter's ₹12,760 crore.

Key Highlights

• Constant currency revenue growth of 0.80% sequentially, marking the first growth after two quarters of decline.
• TCS reported a one-time restructuring expense of ₹1,135 crore.
• Total contract value increased to $10 billion from $9.4 billion in the previous quarter.

Workforce Reduction

TCS reported a significant decline in its workforce, with the total number of employees falling below 600,000. The company reduced its workforce by 1% at mid and senior levels due to skills mismatch, with 20,000 headcount reduction from voluntary and involuntary resignations.

H-1B Visa Concerns

TCS dismissed concerns about the new $100,000 annual H-1B visa fee, stating it has only 500 associates in the US on H-1B visas. The company emphasized that its business model can adapt to immigration policy changes.

Market Response

TCS shares closed 1.14% higher at ₹3,061.70 but have declined 29% over the past 12 months.

Outlook

While TCS has shown its first constant currency revenue growth in three quarters, the impact of global economic uncertainties may continue to pose challenges. The company's ability to maintain this growth trajectory and improve profitability will be closely watched by investors and industry analysts in the coming quarters.

As the IT services landscape evolves, TCS's performance in navigating these changes and maintaining its market leadership will remain a key focus for stakeholders. The significant workforce reduction and the company's stance on H-1B visa changes indicate a strategic shift in its operational approach, which may shape the company's future growth and efficiency.