Tata Consultancy Services second quarter revenues up 17 percent to $3.34 billion

Tata Consultancy Services (TCS) on Tuesday said its second quarter revenues rose 17 percent to $3.34 billion.

The IT outsourcing giant’s profit increased 16.4 percent to $784 million.

Operating profit rose 31.9 percent to $1,007 million.

During the second quarter ended 30 September, TCS added 17,362 employees. Its total headcount stands at 285,250.

TCS says the number of $100+ million clients increased to 22 from 19.

Growth was led by Life Sciences, Media, Energy & Utilities and BFSI. All core markets grew smartly with Europe, North America and UK leading the pack. There was balanced growth across IT and other service lines led by Asset Leverage Solutions, Assurance, Enterprise Solutions, Engineering Services and Infrastructure.

TCS second quarter revenue

TCS said there was a total gross addition of 17,362 people (net addition of 7,664 employees) taking the total employee strength of 285,250 employees on a consolidated basis. The utilization rate (excluding trainees) was at 83.4 percent and that including trainees was 75 percent.

The attrition rate (LTM) was stable at 10.9 percent including BPO. The attrition rate in IT was at 9.9 percent, while BPO attrition was higher at 16.3 percent.

“Our industry leadership status and pro-active employee engagement programs have helped us sustain our best-in-class rates for retention and utilization. What is encouraging is that we have been able to push the utilization rates including trainees further in this quarter,” said Ajoy Mukherjee, executive vice president and Global Head, Human Resources.

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