Tata Consultancy Services (TCS) on October 10 reported a consolidated net profit of Rs 10,465 crore for the quarter ending September 2022, a growth of 8.41% year-on-year from Rs 9,663 crore logged in the corresponding quarter of the previous year. Sequentially, the net profit increased by 9.93%.

TCS said the revenue from operations grew by 18.01% year-on-year to Rs 55,309 crore as against Rs 46,867 crore in the same quarter last year. Sequentially, the revenue grew by 9.93%.

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The IT major’s operating margin came in at 24%, contracting 1.6% year-on-year. The company said its order book for the quarter was at $8.1 billion. Net cash from operations came in at Rs 10,675 crore or 102.3% of net income.

“Demand for our services continues to be very strong,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS. “We registered strong, profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration, and outsourcing engagements.”

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TCS declared a dividend of Rs 8 per share. The record date for the same is October 18 and it will be paid on November 7.

Segment-wise, growth was led by Retail and CPG at 22.9%, Communications and Media grew at 18.7%, and Technology and Services grew at 15.9%. Manufacturing, Life Sciences & Healthcare verticals grew 14.5%, while BFSI grew 13.1%.

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Market-wise, North America led by 17.6% growth, Continental Europe grew 14.1% and the UK grew 14.8%. In emerging markets, India rose 16.7%, Latin America rose 19%, Middle East & Africa grew 8.2% and the Asia Pacific grew 7%.

TCS hired 9,840 new employees during the quarter, taking the total workforce strength to 6,16,171 as on September 30, 2022. The last twelve-month attrition rate was 21.5%. The workforce continues to be very diverse, comprising 157 nationalities and with women making up 35.7% of the base.

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“We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate,” said Milind Lakkad, Chief HR Officer, TCS.

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TCS shares settled nearly 2% higher at Rs 3,121 per share on the BSE ahead of its Q2 results. Investors are keenly watching TCS for signals on the demand outlook for the sector, which is starting with the possibility of a recession in the US and Europe from where they draw a bulk of their revenue.