TCS Q3 Results 2025: 12% Profit Growth, ₹66 Special Dividend Declared

TCS Q3 Results 2025: 12% Profit Growth, ₹66 Special Dividend Declared

TCS Q3 Results 2025: Solid Growth Amid Challenges

India’s IT giant Tata Consultancy Services (TCS) has posted a strong performance for Q3FY25, ending December 31, 2024. Despite the typical challenges of the third quarter, TCS managed to deliver 12% profit growth and announced a ₹66 special dividend per share. Here’s a detailed look at the results:

Key Highlights of TCS Q3FY25 Results

1. Financial Performance

  • Revenue Growth: Consolidated revenue from operations rose 5.6% YoY to ₹63,973 crore, compared to ₹60,583 crore in the same quarter last year.
    • Revenue in constant currency (CC) terms increased by 4.5%.
  • Profit Growth: Net profit surged 12% YoY to ₹12,380 crore, up from ₹11,058 crore in Q3FY24.
  • Operating Margin: Operating margin stood at 24.5%, down 50 basis points YoY, but strengthened 40 basis points QoQ.

2. Performance Across Domains

  • BFSI: Witnessed a moderate improvement with 0.9% YoY growth in CC terms.
  • Consumer Business: Up by 1.1% YoY in CC terms.
  • Communication and Media: Declined 10.6% YoY.
  • Life Sciences and Healthcare: Dropped 4.3% YoY.

3. Geographic Growth

  • India: A standout performer with a 70.2% YoY growth.
  • MEA Region: Advanced 15% YoY.
  • North America: Declined by 2.3% YoY in CC terms.
  • Continental Europe: Declined by 1.5% YoY in CC terms.

4. Deal Wins

TCS achieved a total contract value (TCV) of $10.2 billion for Q3FY25, with a book-to-bill ratio of 1.4. Key deal wins included:

  • Telenor Denmark: Extended partnership.
  • Air France-KLM: Multi-year deal.
  • Ireland’s Department of Social Protection: 15-year contract.
  • WSIB (Canada): Partner for restructuring enterprise quality assurance.
  • US Telecom Major: 5-year strategic business partnership for managed services.

5. Workforce and HR Updates

  • Total Workforce: TCS employed 607,354 individuals as of December 31, 2024.
    • Women constituted 35.3% of the workforce.
    • Represented 152 nationalities.
  • Attrition Rate: IT services attrition rate was 13% for the last twelve months.
  • Campus Recruitment: TCS plans to expand campus hiring next year to meet growing demand.

6. Dividend Announcement

  • Interim Dividend: ₹10 per share.
  • Special Dividend: ₹66 per share of ₹1 face value.
  • Payout Date: Both dividends will be paid on February 3, 2025.
  • Record Date: January 17, 2025.

Management Commentary

K Krithivasan, CEO and MD, TCS, highlighted the company’s strategic visibility for sustained growth:

  • Strong recovery in BFSI and CBG domains.
  • Optimism driven by early signs of recovery in discretionary spending.
  • Focus on AI/Gen AI development, hiring, and training initiatives.

Milind Lakkad, Chief HR Officer, emphasized the company’s continued investment in employee welfare and competency enhancement.

Conclusion

TCS has once again demonstrated its resilience and strategic agility by delivering solid results in a challenging quarter. With robust deal wins, strong growth in Indian markets, and a significant dividend payout, TCS remains a leading player in the IT sector.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. Investors are advised to conduct their own research or consult a financial advisor.