TCS Q3 Results: A Comprehensive Overview

Discover TCS Q3 results, featuring key financial insights, growth metrics, and expert analysis. Stay informed on the latest performance trends and forecasts.

Trending News Fox, News Desk Team, Kolkata

Edited by Saibal Bose

TCS Q3 Results Highlights

Tata Consultancy Services (TCS) is India’s largest IT services company. It has announced its financial results for the third quarter of fiscal year 2025. These results show steady growth. The company has maintained this growth amid global market challenges.

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Key Financial Highlights:

• Revenue Growth: TCS reported a consolidated revenue of ₹63,973 crore ($7.45 billion) for Q3 FY25, marking a 5.6% increase from ₹60,583 crore in the same quarter last year.
• Net Profit: The company’s net profit rose by 12% year-over-year to ₹12,380 crore, compared to ₹11,058 crore in Q3 FY24.
• Operating Margin: TCS achieved an operating margin of 24.5% for the quarter, an improvement of 40 basis points sequentially, supported by favorable currency rates.
• Order Book: The total contract value (TCV) of deals signed during the quarter stood at $10.2 billion, indicating robust demand for TCS’s services.

Regional Performance:

Despite the overall growth, TCS faced challenges in its key North American market. It under performed for the fifth consecutive quarter. This under performance contributed to the revenue figures falling slightly below analyst expectations of ₹64,452 crore.

Dividend Announcement:

The company declared an interim dividend of ₹10 per share, rewarding shareholders with a part of the profits.

Operational Highlights:

• Employee Base: TCS’s workforce stood at 607,354 employees at the end of the quarter. There was a net reduction of over 5,000 employees.
• Attrition Rate: The company reported a slight increase in attrition during the quarter.

Management Commentary:

CEO K. Krithivasan highlighted the company’s resilience and adaptability in navigating market challenges, expressing optimism for improved performance in the upcoming quarters. He also noted that artificial intelligence is creating more job opportunities within the industry.

Market Reaction:

After the earnings announcement, TCS shares closed 1.7% lower, reflecting investor concerns over the North American market performance.

Outlook:

The North American market presents ongoing challenges. Yet, TCS has a strong deal pipeline and improved operating margins. These factors position the company for sustained growth. Analysts stay cautiously optimistic, anticipating that pro-business policies in the U.S. help Indian IT firms soon.

For a more detailed analysis of TCS’s Q3 FY25 results, you can watch the next video:

TCS Q3 Results Live Updates

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