TCS Q3 Results: Tata Consultancy Services (TCS) reported its Q3 FY25 earnings on January 9, showcasing a 12% year-over-year (YoY) rise in consolidated net profit to Rs 12,380 crore, surpassing market estimates of Rs 12,308 crore. However, the IT giant missed revenue projections, reporting consolidated revenues of Rs 63,973 crore, up 6% YoY but below the expected Rs 64,218 crore.
TCS Q3 Results
Key Financial Highlights
- Net Profit: Rs 12,380 crore, a 4% sequential increase.
- Revenue: Rs 63,973 crore, compared to Rs 60,583 crore in the year-ago quarter.
- Dividend: A special dividend of Rs 66 per share and a third interim dividend of Rs 10 per share were announced. The record date is January 17, with payment on February 3.
#TCSQ3 FY25 Earnings:
Q3 FY25 Revenue: Rs.63,973 crore; up 5.6% Y-o-Y
Q3 FY25 Revenue: In Constant Currency terms up 4.5% Y-o-Y
Q3 FY25 Revenue at $7,539 million; up 3.6 % Y-o-Y
Q3 FY25 Net Profit at Rs.12,380 crore; up 5.5% Y-o-Y— Tata Consultancy Services (@TCS) January 9, 2025
Market Performance and CEO Comments
TCS shares closed 1.5% lower at Rs 4,046 on the BSE ahead of the results. CEO and MD K Krithivasan expressed optimism about the company’s performance, citing strong Total Contract Value (TCV) across industries and geographies.
“We are pleased with the excellent TCV performance in Q3, which was well-rounded across industries, geographies, and service lines, lending good visibility to long-term growth,” said Krithivasan. He also highlighted the revival of discretionary spending in certain verticals and ongoing investments in AI and partnerships.
Geographical Insights
- India: Led growth with a massive 70.2% YoY increase in constant currency (CC) terms, driven by the Rs 15,000-crore BSNL deal. Analysts, however, anticipate a slowdown as the project passes its peak phase.
- Middle East and Africa (MEA): Grew 15% YoY.
- Asia Pacific: Recorded a 5.8% YoY growth.
- Latin America: Up by 7% YoY.
- Core Markets: North America declined 2.3% YoY in CC terms, the UK grew 4.1%, while Continental Europe fell 1.5%.
Outlook
Despite mixed geographic performance, TCS remains confident in its long-term growth trajectory, underpinned by a diverse client base and a focus on emerging technologies like AI and generative AI.
The company’s ability to adapt to shifting market dynamics and deliver value through its global network positions it favorably in the competitive IT services sector.
 reported its Q3 FY25 earnings on January 9, showcasing a 12% year-over-year (YoY) rise in consolidated net profit to Rs 12,380 crore.){kind=link}