TCS Q3 Net Up 11.95%, But Headcount Shrinks
Revenues up 5.6% to Rs 63,973 cr as against Rs 60,583 cr a year earlier; However, it was down from Rs 64,259 cr in Sept qtr
TCS Q3 Net Up 11.95%, But Headcount Shrinks
Our continuing investments in upskilling, AI/GenAIinnovations and partnerships sets us up to capture the promising opportunities ahead - K Krithivasan, CEO, TCS
Bengaluru: India’s largest IT services company, Tata Consultancy Services on Thursday kicked off the earnings season for domestic IT industry with better than expected third quarter performance in a seasonally weak quarter.
Strong deal wins, improvement in the key BFSI vertical and green shoots seen in the discretionary spend space raise hopes of better times ahead in 2025.
In the third quarter ended December, TCS posted a consolidated net profit of Rs 12,380 crore, a rise of nearly 12 per cent over the same period last year. Its consolidated revenue from operations rose 6 per cent to Rs 63,973 crore in Q3FY25 from Rs 60,583 crore reported a year ago.
“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/GenAI Innovations and partnerships sets us up to capture the promising opportunities ahead.” CEO of TCS, K Krithivasan said.
In a seasonally weak quarter, the Tata Group company’s order book stood at $10.2 billion compared with $8.6 billion in the previous quarter and $8.1 billion in the year-ago period.
Despite the cross-currency headwinds, the company posted an operating margin of 24.5 per cent, which was an increase of 40 basis points over the previous quarter.
“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,” Samir Seksaria, Chief Financial Officer of TCS said.
Regional markets continued to drive growth for TCS as it posted 40.9 per cent YoY growth, while the BFSI vertical clocked 0.9 per cent rise in its revenue growth. Consumer business(CBG) posted a growth of 1.1 per cent, while energy & utilities segment saw a growth of 3.4 per cent during the third quarter.
Among geographies, North America saw a decline of 2.3 per cent YoY basis, while UK reported a growth of 4.1 per cent during Q3 of FY25.
