Fall of TCS Quarter 2 profits by 2 percent

Tata Consultancy Services declared their quarter 2 profits of 2017 as Rs 6,446 crore which is a decrease of 2.16 percent of profits from the first quarter. In spite of the drop in profits, there was a revenue growth of about Rs 30,541 crore. The revenue generated by Tata Consultancy Services was as expected and it was possible because of the improved business offered by the clients. The profits were not estimated correctly by the analytics team. The analyzed a profit of about Rs 6,287 crore.

Tata has been able to go grow its business by signing more work for their clients and signing more clients also. Tata is working for Lloyd’s a British insurance company with over 4 million clients using their platform. Tata is also known for stealing the clients of its rivals to grow its digital business. Tata’s digital went up to 31 percent in a year which contributed to 19.7 percent of its revenue. There has been a 3.2 percent growth in Tata’s revenue and volume.

The volume and revenue of Tata Consultancy Services increased about 3.2 percent from the previous quarter. The operating profit margins increased about 1.7 percent points to 25.1 percent due to the efficiency across the organization and currency gains. According to the data, Tata Consultancy Services have made a profit of around Rs 6586 crore on the revenue generated of Rs 29,284 crores in the Fiscal year 2017 Quarter 2. Tata Consultancy Services have had a profitable performance and steady and strong growth despite all the weak rupee realizations and sustained pricing pressure. Tata Consultancy Services is the first and the largest India IT services company. TCS is expected to grow its business in all the sectors. TCS is waiting for the recovery of the investments in banking and financial sectors from the clients.

Wipro is about to declare the growth and profit numbers on October 17 and Infosys on the 24th of October. Tata Consultancy Services has declared that it has won a client with $100 million and six other clients with around $50 million, $20 million and $10 million. The attrition of TCS has reduced to about 11.3 percent like most of the focus is going in training the resources in digital and emerging technologies. In the past quarter, TCS re-skilled and trained about 30,000 employees. The stock of TCS has gone up to 1.92 percent at Rs 2,548.55 on the Bombay Stock Exchange.