TCS, retail cluster outperformed during the quarter despite continuous weakness in discretionary retail CPG and travel and hospitality sub vertical.
Tata Consultancy Services (TCS) reported a profit after tax of Rs 7,475 crore for the quarter ended September 2020, registering a 6.7 percent sequential growth, with a share buyback of up to Rs 16,000 crore and deal wins of $8.6 billion.
Consolidated revenue from operations for the quarter grew by 4.7 percent sequentially to Rs 40,135 crore, while the company registered a 4.8 percent QoQ growth in constant currency and 7.2 percent in dollar revenue for the quarter ended September 2020.
The deal wins for the quarter were strong with total contract value at $8.6 billion, against $6.9 billion in Q1FY21.
Here are the highlights of TCS' Q2 FY20 earnings call as compiled by Narnolia Financial Advisors:
Management Participants: Rajesh Gopinathan- CMD, V Ramakrishnan- CFO, N Ganapathy Subramaniam- COO, Milind Lakkad- Executive Vice-President & Global Head HR
According to the management of TCS, retail cluster outperformed during the quarter despite continuous weakness in discretionary retail CPG and travel and hospitality sub vertical. In addition to increase digital investment management is benefited from the ongoing flight quality resulting in market share gain.
The company's portfolio award winning products and platforms continued to report strong demand and business expansion in Q2FY21. Ignio cognitive automation software acquired 10 new logos in Q2 and in this period 12 customers went live on the product.
The management continues to expand digitate channel partnerships adding four new partners in Q2. During the quarter, the digitate academy trained and certified 449 professions from customers as well as partner organization which is an indicator of strong demand of Ignio skills in the market. This is banks or flagship sweet product in the financial services domain at five new wins and 10 go lives in Q2, it said. Management had two new wins for digital banking platform, two for security platform and one for payment.
Quartz- The Smart Ledger added two new wins and one co live in Q2. One of the wins is to implement distributed ledger ecosystem for a leading private sector bank in India to enable their seamless exchange of information with their counter party bank and significantly improve their efficiency in interbank borrowing process.
HOBS safe platform for communication service provider had two new wins in both cases the customers are looking to power their business process transformation, the management said.
In Q2 there are 12 new wins for MasterCraft, Agile – 3 new wins. In Q2 management added two new clients in USD 100+ million, three clients to USD 20+ million and 11 clients to USD 5 million and 44 clients USD 1 million band.An exceptional item of Rs 1,284 crore created as provision against the legal claim during the quarter. Salary increase for the year is from October. Buy back of shares are approved by the management upto Rs 16,000 crore at Rs 3,000 per share, the TCS management added.