TCS Q3 Results: Net Profit Rises 4%, In Line With Estimates
TCS' revenue from operations declined 0.4% over the previous three months to Rs 63,973 crore in the third quarter
Tata Consultancy Services Ltd.'s net profit rose 4.1% sequentially to Rs 12,444 crore in the quarter ended Dec. 31, 2024. This is in-line with the consensus estimate of Rs 12,537 crore shared by analysts tracked by Bloomberg.
The IT major's revenue from operations declined 0.4% over the previous three months to Rs 63,973 crore in the third quarter, according to an exchange filing on Thursday. That compares with the Rs 64,749 crore consensus estimate of analysts tracked by Bloomberg.
TCS Q3 Results: Key Highlights (QoQ)
Revenue down 0.4% to Rs 63,973 crore (Estimate: Rs 64,749 crore).
EBIT up 1% to Rs 15,657 crore versus Rs 15,465 crore (Estimate: Rs 15,986 crore).
Margin at 24.5% versus 24.1% (Estimate: Rs 64,749 crore).
Net profit rose 4% to Rs 12,444 crore (Estimate: Rs 12,537 crore).
Margins in the third quarter rose 40 basis points sequentially to 24.5%, from 24.1% last quarter. On a year-on-year basis, margins declined 50 basis points.
“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. BFSI and CBG returning to growth, continued stellar run of Regional Markets and early signs of revival in discretionary spend in some verticals give us confidence for the future," said Chief Executive Officer and Managing Director, K Krithivasan.
The banking, financial services and insurance vertical saw a 0.9% YoY growth, higher than 0.1% recorded last quarter. Consumer business hiked 1.1%, manufacturing rose a mere 0.4%, energy and resources and utilities vertical grew 3.4%. However, communication and media vertical dipped highest at 10.6% YoY. Life sciences and healthcare, and technology and services verticals dipped 4.3% and 0.4%, respectively.
In terms of geographies, India region recorded 70.2% YoY growth, lower than 95.2% recorded last quarter. North America dipped 2.3%, while Latin America rose 7%.
The company’s Total Contract Value stood at $10.2 billion, with a book to bill ratio of 1.4. This is higher than the TCV of $8.6 billion recorded last quarter.
Employee headcount decreased by 5,370 employees in the third quarter, bringing the total to 6,07,354. Attrition rate in the quarter inched up to 13% from 12.3% in last quarter.
Milind Lakkad, chief HR officer, said, “We promoted over 25,000 associates this quarter, which brought the total promotions this financial year to more than 110,000. We continue to invest in employee upskilling and overall well-being. Our campus hiring for the year is going according to plan and preparations are afoot to onboard a higher number of campus hires next year."
Shares of TCS on Thursday closed 1.72% lower at Rs 4,036.65 apiece on the BSE, compared to a 0.68% decline in the benchmark Sensex.
Follow the live updates of Q3 results here.
