TCS posts lower dollar-revenue growth than Infosys in Q2 FY16
IT major's y-o-y revenue grew 5.8 percent to $4.16 billlion, while profit rose 6.2 percent to $926 million
India’s largest exporter of software services, Tata Consultancy Services (TCS) on Tuesday posted a 3 percent sequential rise in dollar revenue during the July-September quarter of the current fiscal, failing to match smaller rival Infosys’s 6 percent jump in dollar revenue during the same period.
In dollar terms, TCS’s revenue, in the fiscal second quarter, grew by 5.8 percent year-on-year (y-on-y) to $4.16 billion, while its profit stood at $926 million, up 6.2 percent y-o-y and 3.2 percent sequentially. Infosys had posted a profit of $519 million, up 9.1 percent sequentially and 1.6 percent y-o-y in the three-month period.
Besides, TCS announced a second interim dividend of Rs 5.50 per equity share of Rs 1 each of the company.
“We have delivered accelerated growth in constant currency terms for Q2. Driven by great execution on the ground, our broad-based performance has been led by strong sequential growth in BFS, Retail and Life Sciences verticals with UK and North America leading the markets,” said N Chandrasekaran, CEO and managing Director, TCS.
In Q2, TCS recorded a 3.9 percent rise in sequential dollar revenue growth in constant currency terms. India’s second-largest IT-services firm Infosys posted a 6.9 percent jump in dollar revenue growth in the same quarter.
For companies with large foreign operations, constant currency growth is seen as an indicator of real growth. Software services firms use this method to eliminate the effects of exchange rate fluctuations while calculating financial results.
