TCS Q2 FY25 results: Tata group’s IT giant kicks off earnings season, beating street expectations with 2.6% revenue growth.
TCS Q2 FY25 Results: Mumbai-headquartered Tata Consultancy Services (TCS)—the country’s largest IT company—on Thursday reported a consolidated profit of Rs 11,909 crore for the quarter ended September 30, marking a 1.1 percent decline compared to the previous three months. The Tata IT group’s registered revenue was Rs 64,259 crore in the second quarter of FY25, compared to Rs 62,613 crore in the April-June period. TCS said its stable showing for the quarter “reflects the strength of its diversified portfolio” while its emerging markets performed better than the company’s average, India at 95.2 percent, Middle East and Africa at 7.9 percent, Asia Pacific at 7.5 percent , and Latin America. by 6.8 percent.
The software exporter’s revenue exceeded analysts’ expectations, however, its net profit failed to meet the mark.
According to a Zee Business survey, TCS is estimated to register a net profit of Rs 12,475 crore on revenue of Rs 63,920 crore in the July-September period.
“We have seen the precautionary measures of the past few quarters continue to play out in this quarter as well. Amidst the uncertain state of the country, our major position, BFSI has shown signs of recovery,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS.
“We have also seen strong performance in our growth markets. We remain focused on sharpening our value proposition to our customers, employees and other stakeholders,” said Krithivasan.
The IT bellwether’s operating margin fell by 60 basis points (bps) sequentially to 24.1 percent, TCS said in a press release.
Zee Business analysts estimated the IT company’s quarterly margin at 24.7 percent.
“We have invested strategies this quarter in talent and infrastructure to ensure sustainable growth. Our systematic approach has resulted in high conversion rates. Our long-term cost structures remain unchanged, and we remain confident in our ability to continue to deliver profitable growth for the industry,” said Samir Seksaria, Chief Financial Officer, TCS.
Attrition of IT services at the company, on a trailing 12-month basis, stood at 12.3 percent in Q2, higher than 12.1 percent in Q1. TCS registered a net addition of 5,726 to its workforce during the quarter, taking its total strength to 6,12,724, as of September 30.
TCS declared a dividend of Rs 10 per share with payment dates of October 18 and November 5, respectively.
Earlier on Thursday, shares of TCS ended 0.6 percent lower at Rs 4,228.4 apiece on the BSE. As of October 9, TCS shares are up 17 percent over the past year, underperforming by 28 percent and around 32 percent in the Nifty50 and Nifty IT indices.
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