{"id":154817,"date":"2023-10-11T13:59:20","date_gmt":"2023-10-11T17:59:20","guid":{"rendered":"https:\/\/44.250.171.167\/?p=154817"},"modified":"2023-10-12T03:24:56","modified_gmt":"2023-10-12T07:24:56","slug":"tata-consultancy-services-ltd-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/tata-consultancy-services-ltd-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Tata Consultancy Services Ltd Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Tata Consultancy Services Ltd (TCS) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>TCS reported a 7.9% YoY growth in revenue in rupee terms, 2.8% growth in constant currency terms, and 4.8% growth in dollar terms.<\/li>\n<li>Operating margin was 24.3%, up 110 bps sequentially due to higher utilization and productivity.<\/li>\n<li>Net margin was 19%, and the effective tax rate remained at 25.8%.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li><strong>Workforce and Talent Development<\/strong>\n<ul>\n<li>TCS&#8217;s workforce at the end of the quarter was 608,985.<\/li>\n<li>LTM attrition in IT services was at 14.9%, down 2.9% sequentially.<\/li>\n<li>Reduced headcount this quarter due to lower attrition and recalibration of hiring.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Strong Order Book Momentum<\/strong>\n<ul>\n<li>TCV of deals signed in Q2 was $11.2 billion, second-highest ever.<\/li>\n<li>BFSI and consumer business TCV continued to be robust at $3 billion and $1.4 billion respectively.<\/li>\n<li>North America TCV was $4.5 billion.<\/li>\n<li>Two mega deals signed &#8211; BSNL and JLR, each roughly $1 billion TCV.<\/li>\n<li>BSNL payments tied to project milestones, with substantial revenue expected over 12-18 months.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Segments And Products\/Platforms Update<\/strong>\n<ul>\n<li>Energy resources and utilities was the fastest growing vertical at 14.8% growth.<\/li>\n<li>Banking, financial services, and insurance reported a slight decline of -0.5%.<\/li>\n<li>Growth led by UK at 10.7% while caution visible in North America and Europe.<\/li>\n<li>Products\/platforms like ignio, Quartz, TCS BaNCS had several new deal wins and go-lives.<\/li>\n<li>Mastercraft and Jail won 34 new clients in Q2.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Operating Model Transformation<\/strong>\n<ul>\n<li>TCS Cognix is driving strong growth in operating model transformation deals, leveraging AI and ML technologies, including generative AI.<\/li>\n<li>Q2 saw six large operating model transformation deals with TCS Cognix as a core component.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Generative AI Adoption<\/strong>\n<ul>\n<li>TCS is investing in generative AI capabilities and training 100,000 employees; it is launching an AI playground for hands-on experimentation.<\/li>\n<li>Demand for AI services neutral for now, though expected to grow.<\/li>\n<li>Cloud migrations remain a focus area.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Impact of Revenue Deceleration and Reprioritization<\/strong>\n<ul>\n<li>While TCS continues to win new deals, there&#8217;s a focus on conserving cash and optimizing existing spend due to market uncertainty.<\/li>\n<li>Projects may get reprioritized, and long-running projects may end, leading to revenue deceleration.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Performance And Outlook<\/strong>\n<ul>\n<li>TCS expanded margins by 110 bps sequentially in Q2 despite revenue headwinds.<\/li>\n<li>The focus is on utilizing existing levers like productivity, utilization, and subcontractor expenses to continue margin improvement.<\/li>\n<li>Margins expected to continue improving gradually despite PSU deals having lower margins.<\/li>\n<li>Growth recovery will provide further margin leverage.<\/li>\n<li>Furloughs are planned to be normal like every year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Retail Segment Performance<\/strong>\n<ul>\n<li>The retail segment has been weak for multiple quarters, including essentials, traditionally a strong sector.<\/li>\n<li>Growth depends on consumer spending picking up, and conversations with clients are focused on growth indicators.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Impact of New Order Wins on Inflow<\/strong>\n<ul>\n<li>The inflow from new order wins is expected to improve in the second half compared to the first half.<\/li>\n<li>No significant change in Average TCV (ATV) of deals compared to before.<\/li>\n<li>While there are project completions, no significant material completions are anticipated in 2H.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Tata Consultancy Services Ltd (TCS) Q2 FY24 Earnings Concall Financial Performance TCS reported a 7.9% YoY growth in revenue in rupee terms, 2.8% growth in constant currency terms, and 4.8% growth in dollar terms. Operating margin was 24.3%, up 110 bps sequentially due to higher utilization and productivity. Net margin was 19%, [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[10169,5075,9124],"class_list":["post-154817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-earnings","tag-it-services","tag-software-technology-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":160322,"url":"https:\/\/alphastreet.com\/india\/tata-consultancy-services-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":154817,"position":0},"title":"Tata Consultancy Services Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 12, 2024","format":false,"excerpt":"Key highlights from Tata Consultancy Services Ltd (TCS) Q4 FY24 Earnings Concall Revenue Growth Q4 revenue grew 2.2% YoY in constant currency, 3.5% in rupee terms. FY24 revenue grew 3.4% YoY in constant currency, 6.8% in rupee terms, 4.1% in dollar terms. Regional markets led growth at 26%, followed by\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":157685,"url":"https:\/\/alphastreet.com\/india\/tata-consultancy-services-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":154817,"position":1},"title":"Tata Consultancy Services Ltd Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 12, 2024","format":false,"excerpt":"Key highlights from Tata Consultancy Services Ltd (TCS) Q3 FY24 Earnings Concall Q3 Financial Performance Revenue grew 4% in rupees, 1.7% in constant currency, and 2.9% in dollars YoY. Operating margin was 25% and net margin was 19.4%. Continued momentum in deal wins across markets. Focused effort to reduce unbilled\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":131050,"url":"https:\/\/alphastreet.com\/india\/tata-consultancy-services-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":154817,"position":2},"title":"Tata Consultancy Services Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"July 11, 2022","format":false,"excerpt":"https:\/\/youtu.be\/DOAeyPKrACU Key highlights from Tata Consultancy Services Ltd (TCS) Q1 FY23 Earnings Concall Management Update: TCS said its LTM attrition in IT services was at 19.7% for the quarter, and expects it to rise further in Q2. Q&A Highlights: Ankur Rudra of JP Morgan enquired about margin headwinds in June\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":143656,"url":"https:\/\/alphastreet.com\/india\/tata-consultancy-services-ltd-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":154817,"position":3},"title":"Tata Consultancy Services Ltd Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"April 13, 2023","format":false,"excerpt":"https:\/\/youtu.be\/UIhh6l0AmVw Key highlights from Tata Consultancy Services Ltd (TCS) Q4 FY23 Earnings Concall Management Update: [00:06:43] TCS said it on-boarded over 44,000 freshers, and highest number of experienced professional during FY23. [00:14:39] TCS said its clients, especially in North America and Europe took a cautious approach to their projects, resulting\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":171441,"url":"https:\/\/alphastreet.com\/india\/tcs-q2-fy26-earnings-results\/","url_meta":{"origin":154817,"position":4},"title":"TCS Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"October 9, 2025","format":false,"excerpt":"Tata Consultancy Services is the flagship company and a part of Tata group. It is an IT services, consulting and business solutions organization that has been partnering with many of the world's largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered, integrated portfolio\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"TCS Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/1.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/1.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":126262,"url":"https:\/\/alphastreet.com\/india\/tata-consultancy-services-ltd-q3-fy22-earnings-conference-call-summary\/","url_meta":{"origin":154817,"position":5},"title":"Tata Consultancy Services Ltd Q3 FY22 Earnings Conference Call Summary","author":"Praveen","date":"January 13, 2022","format":false,"excerpt":"Key highlights from Tata Consultancy Services (TCS) Q3 FY22 Earnings Concall Management Update: TCS expects to increase its investments in its digital core offerings, technology and operations, with cloud continuing to be the big growth driver. The company mentioned that on a LTM basis, the company's attrition in IT services\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/01\/Tata-Consultancy-Services-Q322.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/01\/Tata-Consultancy-Services-Q322.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/01\/Tata-Consultancy-Services-Q322.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/01\/Tata-Consultancy-Services-Q322.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/01\/Tata-Consultancy-Services-Q322.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/154817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=154817"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/154817\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=154817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=154817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=154817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}