Strong Revenue Growth in Q2; TCS Rolls out Salary Hikes
Indian tech major TCS announces consolidated financial results according to Ind AS and IFRS, for the quarter (Q2) ending September 30, 2020. While the revenue was clocked at $5.424 billion, which is a 1.7 percent decrease on YoY, the company witnessed a healthy 7.2 percent QoQ growth and Constant Currency (CC) revenue growth of 4.8 percent QoQ.
The growth is largely driven by BFSI (+6.2 percent QoQ) and Retail (+8.8 percent QoQ) segments. Furthermore, the company’s operating margin expands 2.2% YoY to clock 26.2%. Following the
results, the company also announced that the salary increases will be rolled out, effective October 1st.
In a statement regarding the company’s Q2 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS, said: “Driving accelerated business value realization of our customers’ digital investments has resulted in broad-based revenue growth. The strong order book, a very robust deal pipeline, and continued market share gains give us confidence for the future.”
Rajesh added, “What we are witnessing right now is the start of the first phase of a multi-year technology transformation cycle. In the current phase, enterprises are building a cloud-based foundation that will serve as a resilient, secure and scalable digital core. In subsequent phases, we will see the native capabilities of these platforms being utilized to create innovative new business models and differentiated customer experiences. Our investments in building deep expertise on these platforms, in research and innovation and in industry-specific solutions leveraging our contextual knowledge, position us very strongly to benefit fully from this secular demand driver.”
A part of the Tata group, TCS has over 453,000 trained consultants operating cross 46 countries. The company generated consolidated revenues of $22 billion in the fiscal year ended on March 31, 2020. Following its appreciable performance in the Q2, the shares of TCS increased to an all-time high, implicating the recovery from the disruptions caused by the Covid-19 pandemic.