TCS Q2 profit up 8% to $1.3Bn
India-headquartered IT services and consulting firm Tata Consultancy Services (TCS) reported an eight per cent growth in its Q2 profits, reaching US$1.3 billion.
This figure topped analysts’ US$1.2 billion estimates after the tech services exporter won more deals during the period, helping it weather a slowdown in tech spending by corporations.
So far, the firm has remained bullish on winning deals from clients across North America and Europe. However, the company remains cautious as the war between Russia and Ukraine and concerns of a global recession intensify.
As Indian IT services providers grapple with rising employee costs and stiff talent competition, TCS’ attrition rate also increased from Q1’d 19.7% to 21.5%.
“There is that increasing sense that we need to be wary of uncertainties,” said TCS Chief Executive Officer Rajesh Gopinathan.
“Will we be totally insulated? Very difficult to say. But our intent will be to stay very close to the customers and minimize the impact of volatility,” he added.
Earlier this year, TCS revamped its organization with specialized groups to target startups and large global enterprises as it sees $50 billion in annual sales before 2030.
The company and its peers are betting on services such as cloud computing, artificial intelligence (AI), machine learning, and analytics to shore up long-term revenue.
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