- Order book consistently exceeded $10 billion in the past three quarters.
- Revenue growth has been muted due to completed transformation projects and downsizing in some cases.
- In Q2, revenue grew 7.9% in rupee terms, 2.8% in constant currency terms, and 4.8% in dollar terms.
- Operating margin was 24.3% with a sequential expansion of 110 basis points.
- Net income was at 19%, and EPS grew by 8.7% year-on-year.
- Effective tax rate remained unchanged at 25.8%.
- Net cash from operations was `118.23 billion, 104.2% of net income.
- Free cash flow was `113.57 billion.
- Interim dividend of `9 per share and a buyback of `17,000 crore recommended.
- Workforce of 608,985 with a focus on hiring and training fresh talent.
- 35% of the workforce is women.
- Investment in talent development with over 100,000 Gen AI ready employees.
- Strong growth in Energy Resources and Utilities (14.8%) and Manufacturing (5.8%).
- Consumer Business Group grew by 1%.
- Banking, Financial Services and Insurance showed a small decline.
- Products and platforms are offered on a SaaS basis.
- Notable wins and go-lives in products like ignio™, TCS BaNCS, Quartz blockchain, and TCS ADD Safety.
- Focus on building Gen AI capabilities and strengthening client relationships.
- Focus on cost optimization and large outsourcing deals.
- Strong order book with a TCV of $11.2 billion.
- Deal momentum in operating model transformation with AI and Gen AI integration.
- Attracting first-time outsourcers and integrated Business-as-a-Service offerings.
- TCS is winning large deals, particularly in sectors like media and IT applications and infrastructure support.
- The company's holistic approach, deep contextual knowledge, and speed to value are strong competitive advantages.
- TCS's innovative solutions, including Gen AI, TwinX, and ignio, differentiate it in the market and drive deal wins.
- Gen AI is a dominant conversation with IT and business leaders, with high interest in using it for productivity and customer experience.
- TCS is co-innovating with clients across various industries, exploring a wide range of Gen AI use cases, from simple knowledge discovery to complex applications in finance, insurance, healthcare, and more.
- TCS is increasingly involved in broader, enterprise-wide Gen AI deployments, helping clients develop comprehensive strategies.
- The company is using Gen AI to reimagine entire activities, such as architectural plans in construction and product innovation in manufacturing and packaging.
- TCS has trained a large workforce in Generative AI, with a focus on deepening expertise.
- The company is launching an AI Playground, enabling employees to experiment with large language models and startup technologies in a secure environment.
- TCS is infusing Generative AI into its products, such as ignio and OmniStore, to enhance automation and deliver more context-aware and intuitive solutions.
- These innovations aim to drive autonomous operations, enhance customer satisfaction, and create growth opportunities for clients.
- TCS has secured a significant deal with BSNL for the supply, installation, commissioning, and design of 4G and 5G networks.
- The deal's initial phase is valued at over $1 billion, and it's expected to be implemented over the next 12 to 18 months.
- While TCS has been winning substantial deals, revenue growth has been moderated by reprioritization and cost optimization by clients.
- The company is focused on margin improvement through productivity, utilization, and cost optimization, which may continue to outpace historical trends.
- The revenue outlook depends on factors like client cost optimization, project reprioritization, and economic uncertainties.
- TCS aims to continue margin improvement and accelerate it when growth returns.
- In Q2, TCS reported revenue growth of 7.9% in Rupee terms and 2.8% in constant currency terms.
- The growth was impacted by clients holding back discretionary spending.
- Operating margin expanded by 110 basis points to 24.3%, with a net margin of 19%.
- Generative AI is a focus, with numerous opportunities in the pipeline and investments in building capabilities.
- TCS has over 100,000 Generative AI-ready employees and is developing AI solutions.
- Deal momentum remained strong, with an order book of $11.2 billion, the second-highest TCV ever.
- TCS has recalibrated grass hiring to better utilize existing capacity.
- The LTM attrition rate in IT services decreased to 14.9%.
- The Board recommended a second interim dividend of `9 per share.
- A share buyback of `17,000 crore at `4,150 per share was also announced.
- The company is focusing on delivering value to its shareholders.
- Q2 performance reflects resilience and adaptability in a challenging environment.
- TCS continues to invest in training and development of its employees.
- The company sees demand for Generative AI solutions in the market.
- Improved utilization, productivity, and efficiencies contributed to margin expansion.
- Deal wins remained strong, indicating client confidence.
- Attrition rate is under control, and hiring has been recalibrated.
- TCS is committed to delivering long-term value and maintaining a strong financial position.
- The second interim dividend and share buyback demonstrate the company's commitment to shareholder returns.
- TCS remains well-positioned to navigate market dynamics and deliver consistent growth.