India's TCS Q2 profit tops view; sees attrition tapering
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BENGALURU -Tata Consultancy Services Ltd, India's top IT exporter, reported a bigger-than-expected 8.4% rise in second-quarter profit on Monday, driven by strong deal wins and said that its staff attrition has peaked.
TCS is the first among its peers to report quarterly earnings, setting the tone for the industry, which has been benefitting from a pandemic-led boom in demand.
Market participants are keenly watching TCS for signals on the demand outlook for the sector, which is staring at the possibility of a recession in the U.S. and Europe from where they draw a bulk of their revenue.
"Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements," Chief Executive Rajesh Gopinathan said in a statement.
TCS also said it expected attrition to "taper down from this point, while compensation expectations of experienced professionals moderate."
TCS and rivals Infosys Ltd, Wipro Ltd and HCL Technologies Ltd have been winning large contracts after the pandemic-led work-from-home phenomenon fired up demand for new technologies.
The Mumbai-based company's order book for July-September stood at $8.1 bln.
The company's net profit rose to 104.31 billion Indian rupees ($1.27 billion) in the three months ended Sept. 30, from 96.24 billion rupees a year earlier.
Analysts on average had expected a profit of 102.44 billion rupees, according to Refinitiv data.
Revenue from operations rose 18% to 553.09 billion rupees.
