India's largest IT company, Tata Consultancy Services (TCS) reported a net profit of Rs 6,586 crores for the quarter ending Sept 30, 2016. This was against Rs 6,317 crore reported in the last quarter ending June 30, 2016.
Commenting on the Q2 performance, N Chandrasekaran, CEO and MD, TCS, said, "It has been an 'unusual Q2' for TCS. Growing uncertainties in the environment is creating caution among customers and resulted in holdbacks in discretionary spending this quarter. In additional, volatility in markets like India and Latin America also muted revenue growth. It has been a good quarter from a profitability perspective where despite multiple headwinds our disciplined approach and focus on operations has helped us deliver a strong margin performance."
Chandrasekaran added, "With technology increasingly at the forefront of business, we are confident that this is temporary. We continue our strong tradition of investing in building IP and solutions as well as talent for the future. Over 180,000 TCSers are now trained with significant expertise in new Digital technologies."
During Q2, growth was led by Life Sciences and Healthcare which grew at 4.7% sequentially in constant currency followed by Energy & Utilities (up 3.6%), Manufacturing (up 3.1%), Travel & Hospitality (up 2.3%) and Communication and Media which grew 2%.
From a geography perspective, Europe saw strong growth at 3.7% and Asia Pacific at 3.5% sequentially in constant currency while North America grew 1.4% sequentially and UK was flat. India declined by 7.6% sequentially and Latin America also continued to show volatility.
Shares of TCS last closed at Rs 2334 on the NSE.