Revenue from operations grew by 7.6 percent quarter-on-quarter to Rs 36,854 crore on robust digital growth.
Country's largest software company Tata Consultancy Services has reported 7.6 percent sequential growth in second quarter profit to Rs 7,901 crore with growth across sectors. The year-on-year growth was 22.6 percent.
Profit in June quarter stood at Rs 7,340 crore.
Revenue from operations grew by 7.6 percent quarter-on-quarter (up 20.7 percent YoY) to Rs 36,854 crore for the quarter ended September 2018, driven by robust digital growth.
"Revenue growth was driven by expanding demand for digital transformation across verticals, and continued acceleration in BFSI and Retail," Rajesh Gopinathan, CEO and MD said.
In dollar terms, the company reported 3.2 percent sequential growth in topline to $5,215 million while revenue growth in constant currency terms was 3.7 percent QoQ, which was largely in line with expectations.
Digital business, which contribution to total revenue increased to 28.1 percent against 19.7 percent in same quarter last year, grew 16.5 percent sequentially and 59.8 percent year-on-year in constant currency terms.
The company remained confident about its double digit growth this year due to strong digital business and improving sectoral performance.
"We have the numbers to ensure that double digit constant currency growth continues this year," Gopinathan said, adding the company will now shift its focus to medium & long-term growth and is confident of the business environment & deal pipeline.
He further said their interactions with clients gave positive outlook on budget but it is too early to talk about it.
On the operational front, earnings before interest and tax (EBIT) grew by 13.9 percent to Rs 9,771 crore with margin expansion of 147 basis points on sequential basis, thanks to rupee depreciation and absence of wage hikes.
The Indian rupee depreciated by 5.87 percent during the quarter to 72.49 against the US dollar.
Among verticals, the Tata Group firm said revenue growth accelerated in BFSI to 6.1 percent (YoY) during the quarter against 4.1 percent in Q1, and Retail & CPG to 15.6 percent (YoY) against 12.8 percent in previous quarter. In constant currency respectively, BFSI and retail & CPG grew 3.5 percent and 3.4 percent QoQ respectively while communication & media was flat QoQ.
North America business showed 2.6 percent sequential growth (8.1 percent YoY compared to 7 percent in Q1), Continental Europe 4.1 percent and UK 6 percent in constant currency terms also led overall revenue growth for the quarter.
The software services exporter has added 4 new clients in $100 million or more category, 7 clients in $20 million and 10 in $10 million or more category.
TCS has added 10,227 employees on a net basis during the quarter, the highest net addition in last 12 quarters. "Total employee strength at the end of Q2 stood at 4,11,102 on a consolidated basis."
At the end of September quarter, the IT services attrition rate was steady at 10.9 percent (last twelve months).
As of September 2018, the company has applied for 4,185 patents, including 207 applied during the quarter and has been granted 782 patents.
Board of directors of the company declared a second interim dividend of Rs 4 per equity share for the quarter.
The stock price fell 3 percent (on top of 2 percent correction in previous session) ahead of quarterly earnings announced market hours.