TCS Q2 net rises 1.4% to `12,075 cr, logs in AI drive
IT major announces dividend of Rs11/ share; Setting up AI infrastructure including 1-GW capacity AI datacenter in India
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Bengaluru: India’s biggest IT services firm, Tata Consultancy Services (TCS) on Thursday posted largely inline second quarter performance with big bets on artificial intelligence (AI) space. The Tata Group company reported a 1.4 per cent growth in its net profit at Rs12,075 crore as compared to Rs11,909 crore reported a year ago.
TCS’ revenue from operations stood at Rs65,799 crore, an increase of 2.4 per cent over Rs64,259 crore posted in the corresponding quarter of the last financial year. In dollar term, revenue was at $7.46 billion, an increase of 0.8 per cent over the previous quarter in constant currency term.
The company said it is setting course to become the world’s largest AI-led technology services company as it announced a series of strategic investments. TCS launches a new business entity to build a 1 GW capacity AI datacentre in India.
After a long time, TCS also announced acquisition of ListEngage, a Salesforce-focused firm. “We are on a journey to become the world’s largest AI-led technology services company. Our journey is anchored in bold transformation across talent, infrastructure, ecosystem partnerships and customer value. The investments including the building of a world-class AI infrastructure business demonstrate our commitment to this transformation,” K Krithivasan, CEO of TCS, said.
Growth was mostly broad-based across verticals. The largest vertical- BFSI posted a sequential growth of 1.1 per cent, while life sciences & healthcare saw a growth of 3.4 per cent during the second quarter. Manufacturing also posted a sequential growth of 1.6 per cent during this pe-riod.
Among major geographies, North America posted a growth of 0.8 per cent sequentially, while growth rate in the UK declined 1.4 per cent during this period. India was among the fastest-growing markets with 4 percent sequential growth among regional markets.
“We delivered strong growth momentum led by Data, Cloud and AI powered enterprise trans-formation. Our new AI and Services Transformation unit will further scale and integrate our ef-forts,” Aarthi Subramanian, COO of TCS said. The company held the world’s largest ‘Ideate and Build with AI’ Hackathon with 275,000 TCS staffers participating in it. Operating margin of the company expanded by 70 basis points to 25.2 per cent during July- September period.
“We achieved good growth momentum across all verticals this quarter. Our disciplined execution helped us expand our margins while making strategic investments. Looking ahead, our financial resilience and robust balance sheet will support both internal transformation initiatives and exter-nal investments,” Samir Seksaria, CFO of TCS said. The company announced Rs11 as interim dividend for its shareholders.
