05:52:46 PM IST, 11 October 2023
TCS Q2 Results | International market
In emerging markets, Middle East & Africa registered a growth of 15.9%, Latin America grew 13.1%, Asia Pacific grew 4.1% and India grew 3.9%.
05:50:36 PM IST, 11 October 2023
TCS Q2 Results | TCS saw attrition levels coming further down in the September quarter. The attrition rate on a 12-month trailing basis was 14.9% compared to 17.8% quarter ago.
With gross additions held below departures, TCS’ total workforce stood at 608,985 as on September 30, which reflects the company’s focus on improving workforce utilization and productivity.
05:49:35 PM IST, 11 October 2023
TCS Q2 Results: Q2 Segment Highlights
Growth was led by the Energy, Resources and Utilities1vertical which grew 14.8%, Manufacturingwhich grew 5.8% and Life Sciences and Healthcare which grew 5%. The Consumer Business Group (CBG)2grew 1%, BFSI grew -0.5%, Communications & Media grew -2.1% and Technology & Services grew -2.2%.
“We continue to makeinvestments in our people and new technologies. We now have a 100,000-strong pool of Gen-AI Readyconsultants and prompt-engineers who are engaged in hundreds of Gen-AI projects for our clients acrosssegments.
– N Ganapathy Subramaniam, Chief Operating Officer and Executive Director
Our clients continue to entrust us withcritical new technology initiatives, and large programs to digitally transform their IT and business operatingmodels. Strong deal momentum delivered us a very large order book in Q2 – our second highest TCV ever ina quarter, and good pipeline. The resilience of demand for our services, our clients’ willingness to commit tolong tenure programs and their continued appetite for experimentation with Gen AI and other newtechnologies give us confidence in our longer-term growth prospects.
– K Krithivasan, Chief Executive Officer and Managing Director, TCS
05:25:38 PM IST, 11 October 2023
TCS Q2 Results | Key Highlights
• Revenue at `59,692 crore, +7.9% YoY
• Constant Currency revenue growth: +2.8% YoY
• Operating Margin at 24.3%; an expansion of 0.3% YoY
• Net Income at `11,342 crore, +8.7% YoY | Net Margin at 19%
• Net Cash from Operations at `11,823 crore ie 104.2% of Net Income
• Diverse and inclusive workplace: Women in the workforce: 35.8% | 152 Nationalities
• Investing in the workforce: 26.4 million learning hours | 2.6 million competencies YTD
• LTM IT Services attrition rate at 14.9%
• Dividend per share: ` 9.00 | Record date 19/10/2023 | Payment date 07/11/2023
05:23:27 PM IST, 11 October 2023
TCS Q2 Results | TCS appoints S. Sukanya as the Senior Vice President and Chief Information Officer.
05:21:34 PM IST, 11 October 2023
TCS Q2 Results: The company announced that Ms. Hanne BirgitteBreinbjerg Sorensen, Mr. Keki Minoo Mistry and Mr. Al-Noor Ramji are not debarred fromholding office of Directors by virtue of any Order passed by Securities and Exchange Board ofIndia or any other authority.
05:18:47 PM IST, 11 October 2023
TCS Q2 Results: Company announce buyback of Rs 17,000 crore-shares at Rs 4150/share
Here’s the pre-buyback shareholding pattern of the company
05:14:06 PM IST, 11 October 2023
TCS Q2 Results: Profit rises 9% YoY to Rs 11,342 crore, beats estimates
Sequentially, the growth was muted, with revenue rising a mere 0.5% and profit up 2.4%.
05:14:33 PM IST, 11 October 2023
TCS Q2 Results: Company announce buyback of Rs 17,000 crore-shares at Rs 4150/share
05:07:34 PM IST, 11 October 2023
TCS Q2 Results: Interim dividend of Rs 9 per share
The second interim dividend shall be paid on Tuesday, November 7, 2023
05:09:01 PM IST, 11 October 2023
TCS Q2 Results: PAT at Rs 11340 crore vs poll of Rs 11095 crore; revenue at Rs 59692 cr vs poll of Rs 60,160 crore
05:00:06 PM IST, 11 October 2023
TCS Q2FY24 Preview: Expectations and Buyback History
04:40:02 PM IST, 11 October 2023
TCS Q2 Preview: Here’s what Kotak Institutional Equities expects
- We forecast marginal revenue growth due to persisting weakness in discretionary spends across several verticals. Revenue growth to moderate to 3.2% on yoy comparison. We do not forecast any revenues from the BSNL deal.
- We forecast a 67 bps qoq increase in EBIT margin to 23.8%, primarily aided by operating efficiencies. The yoy decline is largely due to a slowdown in growth and increase in travel and other back-to-office costs.
- TCS has announced multiple large deals and mega deals with JLR. Furthermore, Tejas Networks announced a ~US$900 mn contract from TCS as part of the BSNL deal. We forecast TCV of deal wins, including the BSNL deal, at US$12 bn, a yoy growth of 48%. TCS has not disclosed TCV from the BSNL deal, but it could be in the vicinity of US$1.8 bn.
- Management commentary on the state of demand, especially in critical financial services and North America, will be keenly watched.
- We expect investor focus on (1) discretionary spending trends, especially in the critical financial services vertical, (2) pipeline of cost take-out and vendor consolidation decisions of clients and win-rates, (3) changes to strategy, key bets and priorities of the organization under a new CEO; (4) health of impacted verticals/geos, especially financial services, telecoms and North America, (5) the impact of the GCC ramp-up on growth of companies and (6) levers to defend and increase margins.
04:24:37 PM IST, 11 October 2023
JM Financial on TCS Q2 expectations
- We expect c/c revenue growth of 1% with 20bps cross currency headwinds translating into 0. 8% QoQ USD revenue growth
- Expect 55bps expansion in EBIT margin led by lower sub-con expenses, better utilisation and currency benefits
- We expect reported deal TCV to be healthy as indicated by a few large deal wins recently
03:47:04 PM IST, 11 October 2023
TCS Q2 Earnings Preview: Buyback, deal wins among key things to track in muted quarter
03:36:51 PM IST, 11 October 2023
TCS Q2 Results Live: TCS closes in the red ahead of Q2 earnings announcement
03:16:56 PM IST, 11 October 2023
TCS buyback history
For Q2FY24E, we expect TCS to post revenue growth of ~1% QoQ due to persisting weakness in discretionary spends across several verticals. EBIT margin to improve by ~60 bps to 23.8% primarily aided by operating efficiencies. TCS continue to win large deal, but we would closely watch for the management commentary on demand scenario.
– Dinesh Gupta – Fund Manager – Torus Oro PMS
02:17:59 PM IST, 11 October 2023
TCS Q2 Results: Strategy for TCS ahead of Q2 results
Tata Consultancy Services Ltd| Bullish|4,000
Following a new 52-week high, the stock has opened doors for the next upward rally. Stability over 3,600 mark shall endure further accumulation aimed to hit the 4,000-mark. Support for the optimistic sentiment exists at 3,480 level. The price action rising above the consolidation range of 3,550 to 3,000, survived between June 2022 to Sept 2023 is revealing a gradual breakout.
Despite witnessing writing in 3640 CE & 3620 CE, we expect 3,520 CE and 3,500 CE to gather support as option data showcases the bottoming situation. We intend to capitalize on the considerable implied volatility surrounding the results corner, staying the underlying outlook optimistic.
TCS is expected to release its Q2 results on October 11, 2023; we recommend taking a long position in 26 OCT 3,600 CE at 55, CMP: 85. The stop loss is set at 20 and the target is aimed at 150.
01:52:05 PM IST, 11 October 2023
How TCS tends to move post results
If one looks at the historical performance of TCS shares post the earnings, then the stock has given negative returns five times in the last seven quarters.
02:41:36 PM IST, 11 October 2023
Tcs Q2 Results Updates: What are some of the key monitorables in TCS Q2 apart from buyback, margins & deal wins? Take a look
- Eventhough recession fears in the US have ebbed, interest rates are expected to be higher for longer as inflation remains a cause of worry.
- Outlook for key business verticals, particularly the mainstay BFSI and retail will be closely tracked by investors and analysts.
- Besides this, margin trajectory for the rest of the year and levers available to sustain profitability will also be eyed.
01:08:16 PM IST, 11 October 2023
TCS Q2 Results: How will margins pan out?
- While revenue growth is likely to have been muted, operational performance is seen to be better, aided by normalisation in wage hike cost impact and visa costs.
- Analysts expect TCS’ operating margin, calculated as earnings before interest and taxes (EBIT) to expand 30-90 basis points sequentially from 23.2%.
12:40:55 PM IST, 11 October 2023
TCS Q2 Results: Deal wins a key monitorable
- While discretionary spending on IT services has seen a slowdown, analysts expect deal momentum for TCS to continue. During the quarter, tier-I companies led by TCS announced multiple large cost take-out deals and this should result in robust TCV bookings, said InCred Equities.
- Kotak Institutional Equities has forecast deal wins, including the BSNL deal to be worth $12 billion, a YoY growth of 48%. In the quarter ended June, the software services major won deals worth over $10 billion, which was higher than its guided range of $7-9 billion.
12:35:42 PM IST, 11 October 2023
Ahead of TCS earnings, most IT stocks trade in the green
12:35:05 PM IST, 11 October 2023
TCS Q2 Results | All eyes on buyback plan
- TCS announced last week that the board on Wednesday will also consider buyback of shares.
- In the past, TCS has done share buybacks worth Rs 18,000 crore and this time too, analysts expect a similar size.
- In January 2022, TCS had bought back shares worth Rs 18,000 crore through the tender offer route.
- If approved, this will be the fifth time the technology bellwether will be conducting a share buyback program.
12:34:07 PM IST, 11 October 2023
TCS shares trade marginally lower ahead of the Q2 results
12:34:04 PM IST, 11 October 2023
What to expect from TCS Q2 numbers?
For the September quarter, which is traditionally strong for the sector, the bellwether is seen reporting a mere 1.4% sequential growth in consolidated revenue to Rs 60,218 crore, according to the average of estimates by eight brokerage firms. But on a year-on-year (YoY) basis, the topline is seen rising nearly 9%.Consolidated net profit is seen rising 3% sequentially and over 9% YoY to Rs 11,404 crore in the quarter, the estimates showed.
12:31:59 PM IST, 11 October 2023
TCS Q2 Results | Here’s a quick schedule
- After trading hours – Earnings release
- At 5.30 pm – Press conference
- At 7 pm – Earnings conference call
12:30:51 PM IST, 11 October 2023
TCS Q2 results today | Announcement to come after market hours
Tata Consultancy Services Limited will announce its results for the Second Quarter of FY 2024, ended September 30, on Wednesday, October 11, 2023, after-market trading hours.
