Mumbai, January 25, 2025 – , India’s largest IT services company, reported a 12% year-on-year (YoY) increase in consolidated net profit for the third quarter of the financial year 2024-25 (Q3 FY25), reaching ₹12,380 crore, compared to ₹11,058 crore in the same quarter last year. The company’s revenue grew by 5% YoY, standing at ₹63,973 crore for the quarter ended December 31, 2024.
The TCS board also announced an interim dividend of ₹10 per share and a special dividend of ₹66 per share, with the record date set for January 17, 2025, and payment scheduled for February 3, 2025.
Financial Highlights (Q3 FY25)
- Net Profit: ₹12,380 crore, up 12% YoY.
- Revenue: ₹63,973 crore, up 5% YoY.
- Operating Margin: 24.5%, improving by 40 basis points (bps) sequentially.
- Net Cash from Operations: ₹13,032 crore, 105.3% of net income.
- BFSI Growth: 0.9% YoY in constant currency (CC) terms.
- Consumer Business Growth: 1.1% YoY in CC terms.
- Communication & Media Segment: Declined 10.6% YoY.
- Life Sciences & Healthcare Segment: Declined 4.3% YoY.
- Employee Strength: 607,354 employees, with 35.3% women representation.
- Attrition Rate: 13%, lowest in recent quarters.
- Patent Portfolio: 8,549 patents applied, 4,585 patents granted.
CEO’s Statement
Commenting on the company’s performance, K Krithivasan, Chief Executive Officer & Managing Director, TCS, said:
“We are pleased with our strong Q3 performance, which was well-balanced across industries, geographies, and service lines. The continued growth in BFSI and Consumer Business, along with early signs of recovery in discretionary spending, gives us confidence for the future. Our strategic investments in AI, upskilling, and global partnerships will further strengthen our market leadership.”
Sectoral Performance
The BFSI segment, which had posted 0.1% YoY growth in the previous quarter, improved to 0.9% YoY. The consumer business segment grew by 1.1% YoY, while the communication and media segment declined by 10.6% YoY, and life sciences & healthcare shrank by 4.3% YoY.
TCS also reported a steady increase in operational efficiency, with an EBIT margin improvement of 20 bps QoQ to 24.3%, supported by lower revenues from low-margin deals, talent development initiatives, and rupee depreciation against the US dollar.
Dividend Announcement
The third interim dividend of ₹10 per share and a special dividend of ₹66 per share were declared, with January 17, 2025, as the record date. The payout will be processed on February 3, 2025.
Stock Market Performance
Ahead of the Q3 earnings announcement, TCS shares closed 1.57% lower at ₹4,044 on Thursday. Analysts expect stock performance to be influenced by management commentary on deal pipelines, client budgets for CY25, and macroeconomic conditions impacting IT spending.
Future Outlook
Industry experts believe that TCS is well-positioned to capitalize on emerging opportunities in artificial intelligence, cloud computing, and digital transformation. While uncertainties remain around global IT demand, the company’s resilient business model and diversified portfolio are expected to drive long-term growth.
