TCS Q3FY25 Results: Profit, Margins Meet Expectations
TCS Q3FY25 results reveal a 5.5% YoY profit growth to Rs 12,380 crore, and a record $10.2 billion order book. Explore regional and sectoral growth insights, dividends, and expert insights.
Stocks in News: Tata Consultancy Services (TCS), India’s largest IT player, has kicked off the third-quarter earnings season with results that largely met market expectations. On January 9, the company reported a 5.5% year-on-year (YoY) increase in net profit (excluding the settlement of a legal claim), reaching Rs 12,380 crore, compared to Rs 11,058 crore in the year-ago quarter.
Revenue and Profit Margins Show Positive Trends
TCS posted a 5.6% YoY increase in revenue, amounting to Rs 63,973 crore, compared to Rs 60,583 crore in the same quarter last year. Sequentially, revenue rose by 4%.
While operating margins declined by 50 basis points (bps) YoY to 24.5%, they improved 40 bps sequentially. The company’s net margin remained strong at 19.4%.
Geographical and Sectoral Growth Insights
TCS demonstrated growth across key sectors and regions during the quarter. Among sectors, the Consumer Business Group grew by 1.1%, while Energy, Resources, and Utilities recorded a 3.4% increase. The standout performer was the Regional Markets segment, which saw a remarkable 40.9% growth.
On the geographical front, India led the way with an impressive 70.2% growth, followed by the Middle East and Africa at 15.0%, Latin America at 7%, and the Asia Pacific region at 5.8%.
More details here.
Dividends & Record Date
TCS announced a mega dividend of Rs 76 per share, which includes a special dividend of Rs 66 per share. The record date for the dividend is January 17, 2025, and the disbursement is scheduled for February 3, 2025.
Order Book Position
The IT behemoth’s total order book reached $10.2 billion during the quarter, compared to $8.6 billion in the previous quarter and $8.1 billion in the year-ago period.
Management Commentary & Outlook
CEO and MD K. Krithivasan expressed optimism about the company’s growth prospects. He highlighted the strong TCV (total contract value) performance in the third quarter, driven by broad-based growth across industries, geographies, and service lines, which provides visibility for long-term expansion. Krithivasan also noted the return to growth in BFSI and Consumer Business Group segments, stellar performance in Regional Markets, and early signs of discretionary spending revival, supported by investments in upskilling, AI innovations, and partnerships.
CFO Samir Seksaria emphasized the company’s ability to manage cross-currency volatility through strong execution and cost management, leading to improved margins and free cash flows. He stated that disciplined investments in talent and infrastructure will support sustained long-term growth.
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