TCS Q3 Results: Profit rises 12% YoY to Rs 12,380 crore, in-line with estimates
Tata Consultancy Services (TCS), India’s largest IT services firm, reported a 12% year-over-year increase in consolidated net profit for the third quarter of fiscal year 2024-25, reaching ₹12,380 crore.
Economic Times This aligns closely with market expectations, which had anticipated a net profit of approximately ₹12,490 crore.
The company’s revenue for the quarter stood at ₹63,973 crore, marking a 5.6% increase from ₹60,583 crore in the same period last year.
Economic Times However, this figure fell slightly short of the projected ₹64,750 crore.
TCS announced a third interim dividend of ₹10 per share and a special dividend of ₹66 per share.
Moneycontrol The record date for these dividends is set for January 17, with payment scheduled for February 3.
The company’s Total Contract Value (TCV) for the quarter was robust at $10.2 billion, up from $8.6 billion in the previous quarter and $8.1 billion in the same quarter last year.
Moneycontrol This growth was driven by sectors including Energy, Resources, and Utilities (up 3.4%), Consumer Business Group (up 1.1%), and regional markets (up 40.9%).
Despite these positive indicators, TCS faced challenges in its key North American market, which underperformed for the fifth consecutive quarter, contributing to revenue figures that were below analyst expectations.
Operating margins improved to 24.5%, a sequential increase of 40 basis points, aided by favorable currency rates.
In terms of human resources, TCS promoted over 25,000 associates during the quarter, bringing total promotions for the financial year to over 110,000.
Moneycontrol The company also reported a headcount reduction of 5,370 employees, with the total workforce standing at 607,354 as of December 31, 2024.
TCS is the first major Indian IT firm to report earnings this cycle, with peers such as Infosys, HCLTech, and Wipro expected to release their results in the coming week.
BY – KARTIK
