Tata Consultancy Services Ltd. Results

Q3FY25 Quarterly Result Announced for Tata Consultancy Services Ltd.

IT Consulting & Software company Tata Consultancy Services announced Q3FY25 results Revenue at Rs 63,973 crore, +5.6% YoY, +4.5% YoY in Constant Currency. Operating Margin at 24.5%; a decline of 50 bps YoY, sequential improvement of 40 bps. Net Income at Rs 12,380 crore, +5.5% YoY | Net Margin at 19.4%. Net Cash from Operations at Rs 13,032 crore i.e. 105.3% of Net Income. Workforce strength: 6,07,354 | LTM IT Services attrition rate at 13.0%. Diverse and inclusive workplace: Women in the workforce: 35.3% |152 Nationalities. Dividend per share: Rs 76.00 including Rs 66.00 as special dividend. Growth led by Consumer Business Group (+1.1%), Energy, Resources and Utilities (+3.4%) and Regional Markets (+40.9%). Growth Markets continue to lead: India (+70.2%), Middle East & Africa (+15.0%), Latin America (+7.0%), Asia Pacific (+5.8%) Strong TCV at USD 10.2 billion, Book to Bill ratio of 1.4. K Krithivasan, Chief Executive Officer and Managing Director, said: “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. Our continuing investments in upskilling, AI/Gen AI Innovations and partnerships sets us up to capture the promising opportunities ahead.” Samir Seksaria, Chief Financial Officer, said: “In a quarter that saw significant cross-currency volatility, TCS’s strong execution, cost management and deft currency risk management helped deliver healthy margin improvement and free cash flows. Disciplined investments in talent and infrastructure should lend good support to long-term business growth.” 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”.

Q2FY25 Quarterly Result Announced for Tata Consultancy Services Ltd.

IT Consulting & Software company Tata Consultancy Services announced Q2FY25 results Financial Highlights: Revenue at Rs 64,259 crore, +7.6% YoY, +5.5% YoY in constant currency. Operating Margin at 24.1%; a decline of 0.2% YoY. Net Income at Rs 11,909 crore, +5.0% YoY | Net Margin at 18.5%. Net Cash from Operations at Rs 11,932 crore ie 100.2% of Net Income. Workforce strength: 612,724 | Net Headcount addition of 5,726. Diverse and inclusive workplace: Women in the workforce: 35.5% |150 Nationalities. LTM IT Services attrition rate at 12.3%. Dividend per share: Rs 10 | Record date 18/10/2024 | Payment date 05/11/2024. Other Highllights: Growth led by Energy, Resources and Utilities (+7.0%), Manufacturing (+5.3%). All the Growth Markets march above company average: India (+95.2%), Middle East & Africa (+7.9%), Asia Pacific (+7.5%), Latin America (+6.8%). Operating Margin at 24.1%; Net Margin at 18.5%. H1FY25 Net Headcount Addition of more than 11,000 employees. K Krithivasan, Chief Executive Officer and Managing Director, said: “We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI showed signs of recovery. We also saw a strong performance in our Growth Markets. We stay focused on sharpening our value proposition to our clients, employees and other stakeholders”. Samir Seksaria, Chief Financial Officer, said: “We made strategic investments this quarter in talent and infrastructure to ensure sustainable growth. Our disciplined execution resulted in superior cash conversion. Our longer-term cost structures remain unchanged, and we remain confident in our ability to continue delivering industry leading profitable growth”. Milind Lakkad, Chief HR Officer, said: “We welcomed 11,000 associates in the first half of the year, and we remain on track for trainee onboarding as planned. We have also commenced the campus hiring process for FY26. Our strong talent base and increased learning intensity prepares us well for the complex technology transformations that customers entrust us with”.

Q1FY25 Quarterly Result Announced for Tata Consultancy Services Ltd.

IT Consulting & Software company Tata Consultancy Services announced Q1FY25 results: Revenue at Rs 62,613 crore, +5.4% YoY, +4.4% YoY in Constant Currency Operating Margin at 24.7%; an expansion of 1.5% YoY Net Income at Rs 12,040 crore, +8.7% YoY | Net Margin at 19.2% Net Cash from Operations at Rs 11,168 crore i.e. 92.8% of Net Income Workforce strength: 606,998 | Net Headcount addition of 5,452 Diverse and inclusive workplace: Women in the workforce: 35.5% | 151 Nationalities LTM IT Services attrition rate at 12.1% Dividend per share: Rs 10.00 | Record date 20/07/2024 | Payment date 05/08/2024 K Krithivasan, Chief Executive Officer and Managing Director, said: “I am pleased to report a strong start to the new fiscal year with all-round growth across industries and markets. We are continuing to expand our client relationships, create new capabilities in emerging technologies and invest in innovation, including a new AI-focused TCS PacePort™ in France, IoT lab in the US and expanding our delivery centers in Latin America, Canada and Europe.” Samir Seksaria, Chief Financial Officer, said: “In spite of the usual impact of the annual wage increments in this quarter, we have delivered strong operating margin performance, validating our efforts towards operational excellence. We remain focused on making the right investments in R&I; and talent, strengthening our superior return ratios and creating long term value for our stakeholders.” Milind Lakkad, Chief HR Officer, said: “I am delighted to announce the successful completion of our annual increment process. Our continued focus on employee engagement and development led to industry-leading retention and strong business performance, with the net headcount addition being a matter of immense satisfaction.”

Q4FY24 Quarterly & FY24 Annual Result Announced for Tata Consultancy Services Ltd.

IT Consulting & Software company Tata Consultancy Services announced Q4FY24 & FY24 results: Financial Performance: - TCS reported a total revenue of Rs 2,40,893 crore in FY24, growing by 6.8% YoY (CC: 3.4%). - The operating margin in FY24 stood at 24.6%, while the net margin was reported at 19.3%. - Net income for FY24 was Rs 46,585 crore, registering a 10.5% increase YoY. - Q4FY24 saw a revenue of Rs 61,237 crore, marking a 3.5% YoY increase (CC: 2.2%). - Q4FY24 operating margin expanded to 26.0%, with a 150 bps improvement YoY. - Net margin for Q4FY24 increased by 100 bps YoY, leading to a net income of Rs 12,434 crore, up by 9.1% YoY. - Record deal wins in FY24 with Total Contract Value (TCV) at an all-time high of $42.7 billion, including a Q4FY24 TCV record of $13.2 billion. Client and Market Metrics: - The cumulative client base includes 62 in the $100 million+ category (+2 YoY) and 139 in the $50 million+ category (+6 YoY). - Major growth by markets: UK (+10.1%) and Regional Markets (+19.8%). - By verticals, in FY24, leading growth industries were Energy, Resources and Utilities (+12.6%), Manufacturing (+7.3%), and Life Sciences & Healthcare (+4.8%). Employee Metrics: - Total employee headcount stands at 6,01,546. - IT Services Attrition for FY24 stands at a reduced rate of 12.5%. - Gender diversity is at 35.6%, with the workforce comprising 152 nationalities. Cash Flow and Dividend: - Operating Cash Flow for Q4FY24 was robust at 100.4% of Net Income. - A proposed final dividend per share of 28. - Free Cash Flow at the end of FY24 reported was Rs 44,282 crore. - Shareholder payout for FY24 amounted to Rs 46,223 crore via dividends and buyback. Business Unit Highlights: - Al.Cloud, Enterprise Solutions, IoT & Digital Engineering, and Cyber Security observed prominent growth. - Strategic partnerships, expansions, and project developments with high-profile clients such as Aviva, Euroclear Finland, Central Bank, Nuuday, Enento Group, Toyota Motor North America, OTPP, easyJet, and AkzoNobel. Awards and Recognition: - TCS was honored with multiple industry awards and recognitions, including Global Top Employer 2024, FORTUNE's World's Most Admired Companies, and leadership positions in various service areas as assessed by industry analysts. K Krithivasan, Chief Executive Officer and Managing Director, said: “We are very pleased to close Q4 and FY24 on a strong note with the highest ever order book and a 26% operating margin, validating the robustness of our business model and execution excellence. In an environment of global macro uncertainty, we are staying close to our customers and helping them execute on their core priorities with TCS’ portfolio of offerings, innovation capabilities and thought leadership.” N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said: “Our Q4 performance is robust, with broad based deal wins across industries and geographies. Our products and platforms business sparkled with the mega deal win at Aviva and emerging markets had another stellar growth quarter demonstrating the power of TCS’ diversified portfolio.”