TCS Q2 Results: Margins beat expectations, one-time cost drags profit

Tata Consultancy Services Ltd. (TCS), the largest Indian IT services company, reported results for the July-September quarter, which were higher than expectations on most parameters.

The company's net profit stood at ₹12,075 crore at the end of the September quarter, which was lower than the ₹12,760 crore it reported during the June quarter. The figure was also lower with the CNBC-TV18 poll estimate of ₹12,528.3 crore.

Revenue in rupee terms rose by 3.7% quarter-on-quarter to ₹65,799 crore. The CNBC-TV18 poll had projected a figure of ₹65,114 crore.

TCS reported Earnings before Interest and Tax (EBIT) stood at ₹16,565 crore, a growth of 6.8% on a sequential basis. The CNBC-TV18 poll had projected the EBIT to grow by 3.8% sequentially to ₹16,103 crore.

EBIT margins for the quarter expanded by 70 basis points to 25.2% from 24.5% in June and higher compared to 24.7% estimate of the CNBC-TV18 poll.

Shares of TCS ended near the highest point of the day on Thursday before the results were announced. The stock ended 1.1% higher at ₹3,060, has gained in three out of the last four trading sessions, and continues to rebound from its 52-week low that it fell to on October 1.

To be updated with more details.