TCS Q1 results: From net profit to dividend record date - 5 key highlights from TCS earnings

Tata Consultancy Services (TCS) reported a 9% year-on-year (YoY) rise in net profit for Q1FY25 on Thursday, July 11. This performance aligns with market expectations and marks a strong start to the new fiscal year.

Key Numbers

Net Profit: TCS's consolidated net profit rose 8.72% YoY to ₹12,040 crore for Q1FY25, compared to ₹11,074 crore in the same quarter last year. Sequentially, profit decreased by 3.2% from ₹12,434 crore in Q4FY24.

Revenue: Revenue from operations increased by 5.4% YoY to ₹62,613 crore, up from ₹59,381 crore in Q1FY24. Sequentially, revenue grew by 2.2%. In constant currency (CC) terms, revenue saw a 4.4% YoY growth.

Operating Margin: Expanded by 1.5% YoY to 24.7%.

Growth in Key Domains

Regional Markets and Others: Showed a 37.7% YoY growth in CC terms.

Manufacturing: Grew by 9.4% YoY in CC terms.

Energy, Resources, and Utilities: Increased by 5.7% YoY.

Life Sciences and Healthcare: Rose by 4% YoY.

Communication and Media: Declined by 7.4% YoY.

Technology and Services: Fell by 3.9% YoY.

BFSI: Decreased by 0.9% YoY.

Consumer Business: Dropped by 0.3% YoY.

Performance of Key Markets

India: Led the growth with a 61.8% YoY increase.

MEA (Middle East and Africa): Grew by 8.5% YoY.

Asia Pacific: Increased by 7.6% YoY.

Latin America: Rose by 6.3% YoY.

UK: Grew by 6% YoY.

North America: Saw a decline of 1.1% YoY in CC terms.

Key Deals

Xerox: Partnership to develop a new agile, cloud-first operating model.

IIT-Bombay: Collaboration to develop India's first Quantum Diamond Microchip Imager.

American Educational Services Provider: Selected TCS for Infrastructure Managed Services.

Burgan Bank: Chosen to create a modern core banking solution.

Global AI Center of Excellence in Paris: Focusing on brain-machine interface and developing empathy in machines.

American Home Improvement Retailer: Partnership to establish a next-generation technology and data architecture landscape.

Human Resources

Workforce: Stood at 606,998 as of June 30, 2024.

Attrition Rate: IT services attrition was 12.1% over the last twelve months, slightly improving from 12.5% in Q4FY24.

Dividend

Interim Dividend: Announced an interim dividend of ₹10 per equity share.

Record Date: July 20, 2024.

Dividend Payment Date: August 5, 2024.

TCS's CEO and MD, K Krithivasan, highlighted the all-round growth across industries and markets, and the company's focus on expanding client relationships and investing in innovation, such as the new AI-focused TCS PacePort™ in France and an IoT lab in the US.