Tata Consultancy Services (TCS), India’s largest IT services company, reported a robust 12% year-on-year increase in net profit for the October-December quarter of the fiscal year 2024-25. The net profit rose to ₹12,380 crore, while consolidated revenue grew by 5.6% to ₹63,973 crore during the same period.
Key Highlights
- Dividend Announcement: TCS declared a dividend of ₹76 per share, including a special dividend of ₹66 per share. The record date is set for January 17, 2025, with payment scheduled for February 3, 2025.
- Order Book Performance: The total order book stood at $10.2 billion, significantly higher than $8.6 billion in the previous quarter and $8.1 billion in the same period last year.
- Operating Margins: The operating margin for the quarter was 24.5%, reflecting a 50 basis points (bps) year-on-year decline but a 40 bps sequential improvement over the prior quarter.
Sectoral and Regional Growth
Growth during the quarter was driven by:
- Consumer Business Group (CBG): +1.1%
- Energy, Resources, and Utilities: +3.4%
- Regional Markets: +40.9%
Workforce and Inclusivity
- Employee Strength: TCS’s workforce reached 607,354, with an attrition rate of 13.0%.
- Diversity: Women comprised 35.3% of the total workforce, representing 152 nationalities, reinforcing the company’s commitment to inclusivity.
Leadership Commentary
K. Krithivasan, CEO and MD of TCS, highlighted the strong order book and broad-based growth across industries and regions as positive indicators for long-term growth.
“BFSI and CBG returning to growth, coupled with a stellar performance in Regional Markets and early signs of revival in discretionary spending, position us well for future opportunities. Our investments in upskilling and AI innovations will help us capture emerging opportunities,” Krithivasan said.
Chief Financial Officer Samir Seksaria emphasized TCS’s resilience amid currency volatility.
“Our strong execution, cost management, and strategic currency risk mitigation enabled healthy margin improvements and free cash flow generation. Disciplined investments in talent and infrastructure will support sustainable growth,” Seksaria stated.
TCS’s solid performance and strategic focus on growth areas such as AI innovations, discretionary spending revival, and regional markets reflect its strong positioning to navigate future challenges and opportunities.