TCS Q4 Results: US Tariff Impact, Profit Dip & Record Order Wins
TCS Q4FY25 results show a 1.7% YoY dip in net profit to Rs 12,293 crore despite a record $12.2 billion order book. Explore the impact of US tariffs, sectoral performance, dividends and growth projections.
Stocks in News | Tata Consultancy Services (TCS), India's largest IT services provider, released its Q4FY25 results on April 10, revealing mixed signals that investors need to digest carefully. Here's what you need to know about the earnings and how they impact your investment decisions.
TCS Q4 Result Highlights
- Consolidated Net Profit: Rs 12,293 crore, down 1.7% YoY
- Operating Revenue: Rs 64,479 crore, up 5.3% YoY
- Sequential Performance: Revenue up 0.8%, Profit down 1.2% QoQ
- Operating Margin: 24.2%
- Net Margin: 19.0%
Although revenue showed steady growth, profits took a slight hit mainly due to external pressures like the US tariffs impacting client deals.
More details here.
Tariff Troubles: How US Tariffs Hurt TCS
The US tariff issue significantly affected TCS, leading to softer-than-expected profit figures. These tariffs impacted deal closures and profit margins, causing clients to delay or reconsider projects.
Investor Insight: While short-term pressures from tariffs may persist, we remain bullish on TCS from a long-term perspective, supported by a strong deal pipeline and solid growth visibility.
Key Highlights Investors Should Note
- Record Deal Wins: TCS secured contracts worth $12.2 billion this quarter, with a healthy Book-to-Bill ratio of 1.6
- Revenue Milestone: Crossed the $30 billion annual revenue mark in FY25
- Regional Strength: Exceptional growth in Regional Markets at 37.2% YoY
- Sector Performance: Led by Energy, Resources and Utilities (+5.1%) and Manufacturing (+2.9%)
TCS Dividend Announcement
The TCS Board recommended a final dividend of Rs 30 per share, although the record and payment dates are yet to be announced.
Final Thoughts for Investors
While TCS has seen a minor dip in profits, its long-term growth narrative remains strong, supported by a healthy contract pipeline. That said, it’s important to stay alert for updates on tariff developments and pay close attention to management’s forward-looking guidance.
The Big Question: Buy, Sell, or Hold TCS?
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