IT major Tata Consultancy Services Ltd on January 9 reported consolidated net profit of Rs 12,380 crore in the quarter ended December 31, 2024, a rise of 12% when compared to Rs 11,058 crore in the year-ago period, thus beating estimates marginally.
The company's consolidated revenue from operations rose 6% to Rs 63,973 crore in Q3FY25 from Rs 60,583 crore in Q3FY24, thus missing estimates. On a sequential basis, the IT major's net profit rose 4%.
A Moneycontrol poll of seven brokerages pegged TCS’ October-December net profit at Rs 12,308 crore, and revenue at Rs 64,218 crore.
The company declared a third interim dividend of Rs 10 and a special dividend of Rs 66 per equity share of Re 1 each of the company. The record date for the dividend is January 17 and payment date is February 3, said TCS in a stock exchange filing.
The company's operating margins for Q3 stood at 24.5 percent, an increase of 40 bps sequentially.
Ahead of the results, TCS shares on BSE fell nearly 1.5% today to end at Rs 4,046 apiece.
K Krithivasan, Chief Executive Officer and Managing Director, said: “We are pleased with the excellent TCV performance in Q3 which was well-rounded across industries, geographies and service lines lending good visibility to long-term growth. BFSI and CBG returning to growth, continued stellar run of Regional Markets and early signs of revival in discretionary spend in some verticals give us confidence for the future. Our continuing investments in upskilling, AI/Gen AI Innovations and partnerships sets us up to capture the promising opportunities ahead.”
ALSO READ: TCS Q3 order book grows 26% YoY to $10.2 billion, highest in past five fiscal years
Samir Seksaria, Chief Financial Officer, said: “In a quarter that saw significant cross-currency volatility, TCS’s strong execution, cost management and deft currency risk management helped deliver healthy margin improvement and free cash flows. Disciplined investments in talent and infrastructure should lend good support to long-term business growth.”
The company's total order book stood at $10.2 billion during the quarter, compared with $8.6 billion in the previous quarter and $8.1 billion in the year-ago period.
The Tata Group firm is the first major Indian IT firm to report numbers in the current earnings cycle. Its peers HCLTech, Wipro and Infosys will report Q3 numbers next week.
Milind Lakkad, Chief HR Officer, said: “We promoted over 25,000 associates this quarter which brought the total promotions this financial year to more than 110,000. We continue to invest in employee upskilling and overall well-being. Our campus hiring for the year is going according to plan and preparations are afoot to onboard a higher number of campus hires next year."
"Revenue growth was below expectations but the third quarter is a seasonally weak one as most clients ramp down operations due to the holiday season," Piyush Pandey, analyst at Centrum Broking told Reuters.
Pandey, however, termed the deal wins and operating margin improvement as "positives" that may aid a turnaround in the United States in the coming quarters following the regime change.
It reported an operating margin of 24.5%, up 40 basis points sequentially for the quarter helped by favourable currency rates.
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