IT services major Tata Consultancy Services (TCS) on April 10 reported its consolidated net profit for Q4 FY25 fell nearly 2 percent year-on-year to Rs 12,224 crore, amid the ongoing macroeconomic headwinds for the IT sector. India’s largest IT services company had reported a consolidated net profit of Rs 12,434 crore in the corresponding quarter previous year.
TCS’ consolidated revenue from operations rose 5.3 percent year-on-year to Rs 64,479 crore in quarter ending March, as against Rs 61,237 crore in the same quarter a year ago.
The IT behemoth’s earnings missed expectations. A Moneycontrol poll of four brokerages pegged TCS’ January-March net profit at Rs 12,554 crore, and revenue at Rs 64,840 crore.
On a sequential basis, the IT major's net profit declined 1.3%. For the full year of FY25, revenue grew by 6 percent YoY to Rs 2,55,324 crore. Net profit for the year was at Rs 48,553 crore.
The company declared a final dividend of Rs 30 per equity share of Re 1 each. This adds to the Rs 96 in three interim dividends and one special dividend that TCS has already declared for the fiscal year 2024-25.
Operating margins too came below expectations, declining 30 basis points sequentially to 24.2%.
K Krithivasan, Chief Executive Officer and Managing Director, said “We are pleased to cross the $30 Billion in annual revenues and achieve a strong order book for the second consecutive quarter."
"Our expertise in AI and Digital Innovation, coupled with the unmatched knowledge of customer context and global scale makes us the pillar of support for our customers in this environment of macroeconomic uncertainty. We remain committed to staying close to our customers and helping them achieve their core priorities,” he added.
The company's full year order book stood at $39.4 billion, while in Q4 it clocked $12.2 billion in deal wins. Q4 deal wins were higher than the Street estimates.
Samir Seksaria, Chief Financial Officer, said “In FY25, our disciplined execution and operational rigor stood out again, as we defended our industry-leading margins while continuing with our investments in talent and capability building. We delivered robust profitability and cash flows this quarter in a very challenging environment without compromising on the right investments in our people, innovation and infrastructure for long-term value creation.”
Fourth quarter growth was led by regional markets which grew by 22.5% YoY in constant currency, BFSI segment grew 2.5% YoY in CC.
Ahead of the results, TCS shares on NSE fell nearly 1.64% on April 9 to end at Rs 3,239 apiece.
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