TCS Q2 profit up 29% on rise in BFSI business

India’s largest software exporter TCS on Friday posted 29.17 per cent jump in net profit for the second quarter at Rs 1,642 crore, driven by a robust growth in its business in banking, financial services and retail spaces.

“Growth has been led by banking, financial services and retail. However, manufacturing, telecom and hi-tech sectors still have to be watched. Recovery has begun for us… We are seeing growth but it is going to be slow,” TCS Chief Executive Officer and Managing Director N Chandrasekaran said.

A company statement said TCS’s strong market presence in the US helped it to capitalise on emerging US recovery. Revenues grew by 6.93 per cent for the period under review at Rs 7,435 crore over same period of the last fiscal.

He said the discretionary IT budgets of companies in manufacturing, telecom and hi-tech are still under stress.

The Tata Group company is at present pursuing more than 20 large deals and has closed 10 deals across various sectors in the UK, US and Europe.

During the reporting quarter, the IT major added 30 new clients. Besides, it added 5,530 employees. The company plans to add 8,000 new professionals in the October-December quarter, the statement said.

The company said there was “strong demand for Application Development and Maintenance Services, while the BPO and Assurance Services continues to gather steam”.

Domestically, TCS planned to up capacity in Chennai and continuing to expand in Hyderabad.

The software exporter added 30 new clients during the quarter and recruited 5,530 employees.

“We plan to add 8,000 new professionals in the October to December quarter. We plan to hire a total of 250 freshers in the US. Of these, 140 have already joined,” TCS Vice-President, Head, Global Human Resources, Ajoy Mehta, said.

In India, the company plans to go to campuses for recruitment in November-December.

“Given the strong performance during the quarter, we have decided to pay 150 per cent of the quarterly component of the variable pay this quarter, applicable for all eligible employees on India payroll,” Mehta said.