TCS Q2 profit up 14 percent on strongest volume growth in 2 years
India's largest outsourcing company booked a net profit of US$748 million on the back of a 14 percent rise in revenue lifted by the rupee's depreciation. This gives further indication of a U.S. market recovery.
Tata Consultancy Services (TCS) has booked its strongest volume growth in nine quarters in Q2, and is optimistic of continuing the momentum on the back robust demand pipeline and favorable currency conditions.
For the second quarter ended September 30, it posted a 14 percent on-year rise in net profit at US$748 million on the back of the same growth in revenue at US$3.33 billion, according to earnings released on Tuesday.
"Strong volumes, currency tailwinds and firm execution helped us post industry-leading operating margins in this quarter," said Rajesh Gopinathan, chief financial officer, in the statement.
Growth in Q2 was broad-based, and led by sectors such as Life Sciences, Media, Energy and Utilities and Banking and Financial Services. All core markets grew smartly with Europe, North America and the U.K. leading the pack, it added.
"We continue to see a robust demand pipeline across markets," said TCS CEO N. Chandrasekaran. Last Friday, India's second-largest outsourcing company Infosys beat expectations with sales growth of 3.8 percent, in another indicator of a revival of key market U.S.