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Monday 11 October 2021

TCS Q2 grows double-digit across all sectors

TCSHaving crossed the symbolic $6bn quarterly revenue mark in Q1, TCS has continued to put on impressive growth in Q2, growing 16.8% (15.5% in constant currency) YoY to $6.33bn for the quarter. Head count, which also breached the symbolic 500,000 mark in Q1, continued to grow to just shy of 529,000 by the end of Q2. Operating margins remained constant at 25.6% (25.5% in Q1) but remain at a lower level than a year ago (Q2 FY21 26.2%).

TCS grew double-digit YoY across all its industries. Growth was led by Manufacturing (+21.7%), followed by Life Sciences and Healthcare (+19%), Retail and CPG (+18.4%) and BFSI (+17%). Communications & Media (+15.6%) and Technology & Services (+14.8%) also grew double-digit.

The story was not that dissimilar across major geographies. All the major markets showed strong growth, led by North America at 17.4%. The UK grew 15.6%, and Continental Europe grew 13.5%. Elsewhere, India grew by a whopping 20.1%, followed by Latin America with 15.2%, Middle East & Africa at 13.8% and Asia Pacific at 7.6%.

The UK and Ireland business has returned to form and continues to add significant client wins. Its TfL deal  (See - TCS lands 10-year TfL Taxi admin deal) was a particular highlight of Q2 making ground in UK Public Sector with its DigiGOV platform on public cloud. Other UK centric deals from Q2 included a cyber security services contract with a major UK supermarket chain. TCS has also been making progress with long standing client M&S’s transformation, helping implement its HR Transformation Programme and a foods category management system to help enhance store ranges and space utilisation.

TCS also continues to refine and develop number of new propositions and my colleague Dale’s recent look at their new Education offer is definitely worth a read (see - TCS: Reimagining Education).

Posted by: Marc Hardwick at 08:37

Tags: results   offshore  

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