Tata Consultancy Services (TCS) has announced its consolidated financial results for the second quarter ending September 30, 2024.
Key Financial Highlights:
Revenue: $7.67 billion, a 6.4 percent year-on-year growth.
Operating Margin: 24.1 percent, a decline of 0.2 percent.
Net Income: $1.42 billion, reflecting a 3.8 percent increase, with a net margin of 18.5 percent.
TCS added a net headcount of 5,726 employees, bringing the total workforce to 612,724, with women comprising 35.5 percent of the workforce.
The IT services attrition rate was 12.3 percent, reflecting a stable employment environment.
BFSI (Banking, Financial Services, and Insurance), TCS’s largest vertical, showed signs of recovery, contributing 30.8 percent to overall revenue.
Strong performance was seen in Manufacturing (5.3 percent growth) and Energy, Resources, and Utilities (7.0 percent growth), while Technology & Services and Communication & Media faced declines of 1.9 percent and 10.3 percent respectively.
Geographical Insights:
North America remains the largest market, contributing 47.6 percent of total revenue, although it saw a decline of 2.1 percent.
India witnessed the highest growth, with a 95.2 percent increase, and other growth regions included Asia Pacific (7.5 percent) and Middle East & Africa (7.9 percent).
TCS CEO K Krithivasan acknowledged the ongoing cautious economic trends but highlighted recovery in key sectors like BFSI and strong performances in growth markets.
TCS CFO Samir Seksaria reiterated the company’s focus on long-term sustainable growth, backed by strategic investments in talent and infrastructure.
Milind Lakkad, Chief HR Officer, emphasized TCS’s efforts in maintaining a strong talent base and onboarding new associates, alongside plans for campus hiring for FY26.
Gartner comments
TCS continues to grow steadily, as evidenced by its 2.6 percent positive quarter-on-quarter performance. The company demonstrates a clear vision for supporting its clients in the evolving landscape of industries and work, Biswajit Maity, Sr Principal Analyst, Gartner, said.
Under the leadership of its new CEO, TCS has strengthened its focus on customer-centricity and launched several initiatives aimed at enhancing account management and client success oversight.
By prioritizing service delivery excellence, fostering trusting client relationships, and delivering on its promise of assured outcomes, TCS also displays flexibility in relationships and negotiations with clients as well as efficient account management. TCS has firmly positioned itself as a trusted partner, Biswajit Maity said.
Gartner has raised its IT spending forecast in 2Q24 by 1.3 percent (from 7.6 percent to 8.9 percent), reflecting price increases in servers, devices, and software. “Based on insights from Gartner’s Forecast Analysis on Global IT Spending and TCS’s strong business pipeline, we are confident that TCS will continue its growth trajectory in the coming quarters,” Biswajit Maity said.
