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TCS Q2 revenue up 6.9% to INR69.5 billion

Revenue from BFSI segment increased 14% to INR33.65 billion

Tata Consultancy Services has reported revenues of INR74.35 billion in the second quarter of 2009, up 6.9% compared to INR69.5 billion in the same period last year.

TCS said that its international business grew 5.3% sequentially in rupee terms and its strong market presence in the US helped the company capitalise on emerging US recovery. In the UK, wins in the public sector, energy and retail help mute continued weakness.

Chandrasekaran CEO and MD of TCS, said: “TCS has delivered a sterling performance during the quarter. We are seeing an improvement in market conditions. With our client budgets still being tightly managed, we continue to deliver higher value to customers, deepening our relationships and focusing on superior operational management.”

“The investments made by TCS in its market footprint and its full services offerings holds us in good stead to capitalise on emerging growth opportunities.”

For the quarter ended September 30, 2009, the company posted a net profit of INR16.42 billion, up 29.2% compared to INR12.70 billion in the same period a year ago.

Among verticals, revenue from Banking, Financial Services and Insurance (BFSI) increased 14% to INR33.65 billion from INR29.6 billion in the previous year, and revenue from Manufacturing totalled INR6.1 billion, down 14% from INR7.09 billion in the same period last year. The Retail and Distribution revenue rose 43% to INR7.76 billion from INR5.41 billion, while revenue from Telecom fell 11% to INR10.73 billion from INR12.1 billion in the same quarter last year.

In terms of service lines, there is a strong demand for Application Development and Maintenance Services, while the BPO and Assurance services continues to gather steam as customers realise the combined value of a full services offering together with the Global Network Delivery Model, TCS said.

Under US GAAP, the company’s net income was $336m, up 8% compared to $287m in the same quarter last year. Revenue was down 2.3% to $1.54 billion from $1.57 billion.

Mahalingam, chief financial officer of TCS, said: “We have focused on all round cost optimisation and our sustained emphasis on operational efficiency is resulting in continuous margin improvements and financial strength. Our growth across markets indicates that TCS is successfully leveraging the sales and other infrastructure it has created to deliver higher growth and profits.”