IT services, consulting and business solutions firm Tata Consultancy Services (TCS) recorded steady growth in the quarter that ended September 30, 2014.
TCS has also announced the approval of amalgamation with CMC, a company engaged in the design, development and implementation of software technologies and applications.
Revenue in Q2 was US $3.93billion, which represents 6.4% quarter-on-quarter and 17.7% year on year increase.
Net income was at $872 million, up 3.2% quarter-on-quarter and up 17.8% year on year. This quarter TCS recorded strong volume growth at 6.1% and crossed milestone of employing 100,000 women professionals.
"Driven by strong volumes and robust utilization rates, this has been a quarter of steady, consistent performance," said chief executive officer and managing director, N Chandrasekaran. "Our well-rounded showing has been highlighted by broad-based growth in our key markets, industries and services as we continued to deepen our engagement with customers."
Increase in share capital
The paid-up share capital of TCS will increase from US $ 31.9 million to US$ 32.1 million after the amalgamation.
Shareholders of CMC will receive 79 equity share of ' 1 each of TCS for 100 equity shares of ' 10 each of CMC, according to the terms of the Scheme of Amalgamation.
However, the Scheme is subject to, court, regulatory, shareholders and other necessary approvals.
TCS holds a 51.12% stake in CMC and this move will enable it to consolidate CMC's operations in a single company with rationalized structure, enhanced reach, and greater financial strength.
The new entity will also have more focused operational efforts, and achieve standardization and simplification of business processes as well as productivity improvements.
“We remain focused on supporting business growth by optimizing our operations and maintaining margins in our desired range,” said Rajesh Gopinathan, chief financial officer. “Our cash generation has been strong resulting in high cash conversion ratios and we continue to make investments for the business growth.”
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