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TCS Q2 profit falls 1%, announces special dividend at Rs 40 per share

Tata Consultancy Services (TCS) on Thursday reported a 1% dip in its second-quarter profit at Rs 8,042 crore, missing expectations. The country's largest software services provider said that its profit in the June quarter stood at Rs 8,131 crore. The year-on-year growth of the TCS was 1.78 percent in bottomline.

TCS Q2 profit falls 1%, announces special dividend at Rs 40 per share

Tata Consultancy Services (TCS) on Thursday reported a 1% dip in its second-quarter profit at Rs 8,042 crore, missing expectations. The country's largest software services provider said that its profit in the June quarter stood at Rs 8,131 crore. The year-on-year growth of the TCS was 1.78 percent in bottomline.

TCS said in its BSE filing that its revenue in rupee terms grew by 2.1% quarter-on-quarter (up 5.8 percent YoY) to Rs 38,977 crore in second quarter oof 2019-20 financial year.

The company also declared a second interim dividend of Rs 5 and a special dividend of Rs 40 per share. On the operating performance front, the earnings of TCS before interest and tax (EBIT) for the quarter at Rs 9,361 crore went down 4.2 year-on-year and margin shrunk 250bps YoY to 24%. The company has registered a growth of 13.3% in its business in United Kingdom, while its business in India grew by 7.7%. 

Here are highlights of TCS Q2 results:

Revenue at Rs 38,977 crore, +5.8% YoY

Constant Currency revenue growth: +8.4% YoY

Net profit at Rs 8,042 crore, +1.8% YoY

Operating Margin at 24%

Earnings Per Share at Rs 1.43, +3.8% YoY

Digital Revenue at 33.2%, Growth of 27.9% YoY

Net addition of 14,097 employees in Q2

IT Services attrition rate at 11.6% LTM