.png){kind=logo}
On January 9, 2025, Tata Consultancy Services (TCS) announced its financial results for the third quarter of fiscal year 2025 (Q3 FY25), showcasing a resilient performance despite a challenging market environment. The company reported a consolidated net profit of ₹12,380 crore, reflecting a 12% increase from ₹11,058 crore in the same quarter last year. However, revenue from operations was reported at ₹63,973 crore, which is a 0.4% decline sequentially but represents a 6% increase year-on-year.
Following the announcement, TCS shares experienced a notable uptick, rising approximately 4% on the Bombay Stock Exchange (BSE). Investors responded positively to the company's strong deal wins and optimistic outlook for future growth despite the mixed results in revenue.
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| Net Profit | ₹12,380 Cr | ₹11,058 Cr | +12% |
| Revenue | ₹63,973 Cr | ₹60,352 Cr | +6% |
| Operating Margin | 24.5% | 25.0% | -50 bps |
| Total Contract Value | $10.2 Bn | $7.8 Bn | +30.8% |
K Krithivasan, CEO and Managing Director of TCS, expressed optimism regarding the company's performance in Q3 FY25. He highlighted that the growth was well-rounded across industries and geographies. Additionally, he noted early signs of revival in discretionary spending in key markets like North America.
"Our strong performance in Q3 reflects the resilience of our business model and the dedication of our teams. We continue to see robust demand for our services, with significant deal wins across various sectors." - K Krithivasan, CEO and MD, TCS
Samir Seksaria, CFO of TCS, emphasized that disciplined investments in talent and infrastructure would support long-term business growth. He acknowledged the challenges posed by cross-currency volatility but credited effective cost management for sustaining healthy margins.
| Industry Vertical | YoY Growth | Contribution to Revenue |
|---|---|---|
| Banking, Financial Services and Insurance | +4.2% | 32.5% |
| Retail and Consumer Business | +7.3% | 16.8% |
| Communications and Media | +5.1% | 7.2% |
| Manufacturing | +9.5% | 10.6% |
| Technology and Services | +3.8% | 9.4% |
| Life Sciences and Healthcare | +8.7% | 11.5% |
As of December 31, 2024, TCS reported a total workforce of 612,724 employees, with a diverse representation from 153 nationalities. The company reported a women's participation rate of 35.8% in its global workforce. The attrition rate continued its declining trend, reaching 13.3% for the quarter, down from 14.9% in the same period last year.
TCS management expressed cautious optimism for the upcoming quarters, citing early signs of recovery in client spending and ongoing digital transformation initiatives across industries. The company plans to focus on the following strategic areas:
TCS's Q3 FY25 results illustrate its ability to navigate through market challenges while maintaining profitability and securing substantial new contracts. As the IT sector continues to evolve rapidly, TCS's strategic focus on innovation and operational efficiency positions it well for future growth amid fluctuating market conditions. Investors will be keenly watching how TCS adapts to ongoing changes in client demand and economic landscapes in the upcoming quarters.
What was TCS's net profit in Q3 FY25?
TCS reported a consolidated net profit of ₹12,380 crore, reflecting a 12% increase year-over-year.
How did TCS shares react to the Q3 results?
Following the announcement, TCS shares rose approximately 4% on the Bombay Stock Exchange (BSE).
What was the Total Contract Value (TCV) for TCS in Q3 FY25?
TCS secured new deals worth $10.2 billion during the quarter, showing a significant increase from previous periods.
What dividend did TCS declare for Q3 FY25?
The company declared an interim dividend of ₹10 per share along with a special dividend of ₹66 per share.
Which industry vertical showed the highest growth for TCS?
The Manufacturing vertical showed the highest growth at 9.5% year-over-year, followed by Life Sciences and Healthcare at 8.7%.
Your email address will not be published. Required fields are marked *
Loading questions...
