Tata Consultancy Services (TCS) announced its Q3 FY25 financial results today, reporting a revenue of ₹63,973 crore, up 5.6% year-on-year (YoY). The company’s net profit for the quarter stood at ₹12,380 crore, marking a 5.5% YoY increase. Operating margins improved sequentially by 40 basis points to 24.5%, while net margins were at 19.4%.
The total contract value (TCV) for the quarter was $10.2 billion, indicating strong deal momentum across geographies and industries. TCS also announced a third interim dividend of ₹10 per share and a special dividend of ₹66 per share, with a record date of January 17, 2025, and payment date on February 3, 2025.
Management Commentary
K Krithivasan, Chief Executive Officer and Managing Director, expressed optimism about the company’s performance, stating, “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 performance 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 set us up to capture the promising opportunities ahead.”
Samir Seksaria, Chief Financial Officer, highlighted the company’s resilience amidst cross-currency volatility, saying, “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.”
Milind Lakkad, Chief HR Officer, added, “We promoted over 25,000 associates this quarter, bringing 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.”
Key Highlights of Q3 FY25
- Revenue: ₹63,973 crore (+5.6% YoY, +4.5% in constant currency)
- Net Profit: ₹12,380 crore (+5.5% YoY)
- Operating Margin: 24.5% (a decline of 50 bps YoY, sequential improvement of 40 bps)
- Net Cash from Operations: ₹13,032 crore (105.3% of net income)
- Workforce Strength: 607,354 employees; attrition rate at 13% LTM
- Dividend: ₹76 per share, including a ₹66 special dividend
Growth Insights
TCS recorded strong growth in regional markets, with India growing 70.2% YoY. Other notable growth regions include the Middle East and Africa (+15%) and Latin America (+7%). Segment-wise, the Consumer Business Group (+1.1%) and Energy, Resources, and Utilities (+3.4%) were the top-performing verticals.
