Q2 is seasonally a strong quarter for IT companies and TCS did not disappoint. Reporting a good 8% (QoQ) jump in net profit at Rs.7901 crore on 21% rise in revenue at Rs.36,854 crore. Revenue growth was driven by expanding demand for digital transformation across verticals and continued acceleration in BFSI and Retail.

The company showed a 147 bps jump in operating profit margin jumped up over 26% for the first time in seven quarters. This is probably the highest margin in the Indian IT industry. Out of this, 100 bps jump was on account of rupee depreciation and 47 on account on operational efficiency.

In terms of geographical growth, UK led the show at 22.8% growth (QoQ), followed by Europe at 17.4, Asian Pacific at 12.5%, India at 7.4% and USA at 8.1%.

TCS added 10,227 employees on a net basis in July-September, the highest net addition in 12 quarters. Total employee strength at the end of Q2 stood at 4,11,102 on a consolidated basis. 

The results are good but the stock price figures among the top five losers on the BSE, going down almost 3.5% at Rs.1913.60. This is typical profit booking after the buildup and as such the stock price, thanks to the rupee depreciation had spurted sharply.