TCS Q2 earnings up 8.4% sequentially to Rs 64.46 bn

Q2FY18 What do analysts expect from TCS

The Tata Consultancy Services headquarters

"With 93 per cent of revenue from exports, including 53 per cent from the United States, 27 per cent from Europe and Britain and 13 per cent from rest of the world, our performance in dollar terms was robust in the July-September quarter", a TCS official told IANS here.

"The digital growth is at par with the industry", said Apurva Prasad, IT analyst, HDFC Securities.TCS said it was taking away contracts from competition, as deal renewals increase for the first time in six quarters.Contract trends were steady in the September quarter with 16.1 per cent year-on-year growth in global ACV (annual contract value), which was the highest in the past six quarters, said Prasad of HDFC Securities, analysing data from Gartner and ISG.

India's largest software exporter TCS today reported a 2.1 per cent dip in net profit to Rs 6,446 crore for the September quarter on softness in banking and retail segments, but gave better guidance based on client optimism.

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".

The company, which is the crown jewel of the Dollars 104 billion salt-to-software Tata Group, declared a dividend of Rs 7 per share and set October 26 as the record date.

He added that the company continues to gain share in the fast growing "digital spend" of its customers. However, considering historically weak growth for the sector in the remaining two quarters of the fiscal, the company may find it challenging to sustain growth. The company has fixed October 26 as the record date for payment of dividend.

During the quarter, TCS saw its IT attrition rate (LTM) come down by 0.3 per cent sequentially to 11.3 per cent.

It added over 3,400 employees on a net basis during the reporting period, up from a fall of 1,400 employees in the preceding quarter, to take its total strength to 3.89 lakh. "Our Continued investments in digital design and transformational capabilities are paying off, and it shows in the strong growth in our Digital business", said Ramakrishnan. During the day, it rose by 2.17 per cent to Rs 2,555.

The scrip gained 1.92 per cent to end at Rs 2,548.55 on BSE. It will announce its Q2 quarterly results for quarter ended September 30.

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