TCS net up 9% to Rs 12,040 cr
Revenues rose 5.4% to Rs62,613 cr in Q1; However, June qtr net profit, on sequentially, fell 3.1%; IT major declared interim dividend of Rs10/ share
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Large deals tend to be lumpy. Our pipeline remains healthy and that gives us the confidence. We are in the range of $7-9 bn TCV range per quarter, which is healthy - K Krithivasan, CEO & MD, TCS
Stable Growth:
- Order book at $8.3 bn as against record order book of $13.2 bn in Q4
- With $4.6 bn, North America contributing the most
- New orders from BFSI vertical
- Expanding its client relationships
- Creating new capabilities in emerging technologies
- Continues to invest in innovation
Bengaluru: IT major Tata Consultancy Services (TCS) on Thursday posted a good set of numbers for the first quarter of FY25 as its revenue and net profit numbers met street estimates. Increase in TCS’net headcount after consecutive quarters of fall, raised hopes of recovery in the demand environment going ahead.The board announced a dividend of Rs10 per share for its shareholders. The Mumbai-headquartered Tata Group company posted a net profit of Rs12,040 crore, an increase of 8.7 per cent over a period year ago.
For the quarter ended June, TCS’ revenue stood at Rs62,613 crore, which was an increase of 5.4 per cent year-on-year (YoY) basis. Revenue stood at $7.51 billion during the quarter, which was a rise of 4.4 per centYoY in constant currency (CC) term. Sequentially, revenue grew 2.2 per cent in CC term.
“We have seen all round growth in the first quarter. All the verticals have shown sequential growth. However, it is too early to call that out as full recovery. Because, things continue to remain same as the last quarter. But we have said that FY25 would be better than FY24,” K Krithivasan, CEO and MD of TCS, said in the post results press conference.
During the quarter, its order book stood at $8.3 billion with North America contributing the most at $4.6 billion. The new orders from BFSI vertical were the highest at $2.7 billion. In the previous quarter, TCS reported a record order book of $13.2 billion.
“Large deals tend to be lumpy. Nothing more should be read (from the fall in order book). Our pipeline remains healthy and that gives us the confidence. We are in the range of $7-9 billion TCV range (per quarter), which is healthy,”Krithivasan said.
Giving signs of a probable recovery in coming days, TCS said that all its major markets including the US returned to sequential growth withvery strong double-digit growth in emerging markets, led by India that posted 61.8 per cent YoY rise in Q1 of FY25.
The Tata Group company also said that almost all verticals returned to sequential growth. On year-on-year basis, while manufacturing grew 9.4 per cent, its energy, resources & utilities vertical grew 5.7 per cent and life sciences & healthcare posted a 4 per cent rise during this period.
