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TCS revenue rises 2.8% in fiscal Q2; growth below analysts’ estimates

October 12, 2023

Revenue at IT services giant Tata Consultancy Services Inc. rose 7.9%, or 2.8% year over year in constant currency, in its fiscal second quarter ended Sept. 30. However, Reuters reported analysts had estimated growth of 8.9%.

In comparison, first-quarter revenue at TCS had risen by 12.6% year over year, or 7% in constant currency.

Headcount at TCS also fell by 6,320 in the second quarter compared to the first. Headcount at the firm now totals 608,998.

Still, TCS reported strong deal momentum and noted its pool of generative AI consultants available to clients.

“We continue to make investments in our people and new technologies,” COO and Executive Director N. Ganapathy Subramaniam said in a press release. “We now have a 100,000-strong pool of Gen-AI-ready consultants and prompt engineers who are engaged in hundreds of Gen AI projects for our clients across segments.”

By geography, revenue from North America rose by 0.1% in constant currency. However, the fastest growth was in the UK, where revenue rose 10.7% in constant currency.

Looking at revenue growth based on the industry served, the “energy, resources and utilities” vertical led the way with revenue growth of 14.8% in constant currency. It was followed by revenue growth of 5.8% in manufacturing.

TCS announced earnings on Oct. 11.

In addition, the company reported Al-Noor Ramji was appointed to its board. Ramji’s previous experience includes serving as group chief digital officer at Prudential plc. TCS also announced that independent director Daniel Hughes Callahan will not seek reappointment for a second term after his current term ends on Jan. 9.

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