TCS

The company posted a muted set of numbers; though it met most estimates, its topline came as a disappointment. Its consolidated net profit for Q2FY16 rose 6% (QoQ) at Rs.6055 crore  and revenue rose 6% at Rs.27,165 crore with volume and digital driving broadbased growth. Volume growth during the quarter was just a tad better than Q1 – up from 4.8% to 4.9%. EBITDA was up 9% at Rs.7354 crore and margin was up at 27.1%, a jump of 80 bps – of this 68 bps was on account on forex fluctuation. The bottomline could have been much better but for the decrease in other income and 10% rise in tax outgo. Dollar revenue showed a 3% rise to US$4156 million; this was one of the weakest growth.  

In terms of segmental break-up, the growth was led by BFS, retail and life sciences – up 6% sequentially. The other verticals – manufacturing, telecom, media and entertainment also showed growth but it was more muted at around 4% each. The company stated that its overall order book was the highest ever in Q2. It added 3 customers in the $100 million + bracket and 6 clients in the $10 million + category. During the quarter, it added a huge 25,186 employees (gross) thus taking the total employee tally to 3,35,620. The company has hiked up its hiring target  y 15,000, expecting to hire 75,000 this fiscal. Utilisation rate excluding trainees dipped marginally to 86% and employee attrition was at 16.2%.