TCS Q2 Results: Tata Group's profit increased by 5%, dividend also announced
TCS Q2 Results: Tata Group's leading IT company TCS has released the results of the second quarter. The company has registered a profit of Rs 11909 crore in the July-September quarter. TCS's net profit in the same quarter last year was Rs 11342 crore. This means that TCS's profit has increased by 5 percent on an annual basis. The company will also give the gift of dividend to the shareholders.
Tata Consultancy Services (TCS), the country's largest IT company, has revealed its results for the second quarter of the financial year 2024-25. The company's consolidated net profit climbed by 5% on an annual basis. TCS made Rs 11,909 crore in profits during the July-September period. TCS' net profit for the same period the previous year was Rs 11,342 crore.
TCS revenue increased 8% year on year to Rs 64,259 crore in the September quarter. The energy, resources, and utilities industry contributed the most to the company's revenue growth. TCS also declared a dividend for shareholders. TCS shares fell 0.56% to Rs 4228.40 today.
Additionally, TCS announced a second interim dividend for shareholders, paying out Rs 10 per share. October 18 has been set as the record date. This implies that you alone will benefit from the dividend if you have TCS shares in your demat account through Friday, October 18, 2024. Prior to this, on July 19, 2024, TCS had distributed an interim dividend of Rs 10.
K Krithivasan, the managing director and chief executive officer of TCS, has voiced concerns about the state of uncertainty in the world. According to him, this quarter's cautious pattern carried over from the previous few. Our largest vertical, BFSI, showed signals of progress despite the geopolitical environment. Strong results were also observed in our growing markets.
TCS revenues were weaker than market estimates. Analysts had dubbed Tata Group's second-quarter revenue growth for TCS as expected to sail on the back of major deals, especially the ongoing partnership with BSNL. A good increase in net profit was expected given the strong execution of deals along with growth in North America, BFSI, and retail.
The second-quarter results at TCS have come amid the expansion of BSNL's Rs 15,000 crore deal, part of which covers data center deployment and 4G sites across the country, in addition to laying the foundation of 5G infrastructure for the future. Market experts believe the company's financial performance will be better than this in the next quarter as well.
