TCS Q1 FY25 Results: Tata group IT giant kicks off earnings season; PAT, revenue, margin in line with Street estimates

TCS Q1 FY25 Results: Tata Consultancy Services (TCS) - India's largest IT firm - kicked off a new earnings season for India Inc on Thursday as it reported a consolidated net profit of Rs 12,040 crore for the April-June period, in line with analysts' expectations. The Mumbai-headquartered Tata group IT giant's quarterly net profit was down 3.2 per cent sequentially. The IT major said that all its major markets returned to sequential growth, contributing to a strong start to the new financial year. 

The software exporter registered revenue of Rs 62,613 crore for the first quarter of the current financial year, translating to an increase of 2.2 per cent over the previous three months, according to a regulatory filing.

According to Zee Business research, TCS was estimated to log a net profit of Rs 12,050 crore and revenue of Rs 62,280 crore for the June quarter. 

“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," said K Krithivasan, CEO and MD, TCS. 

The IT major's June-quarter earnings before interest and taxes (EBIT) declined 3.0 per cent sequentially to Rs 15,442 crore while margin - a key measure of profitability - contracted by 130 basis points (bps) to 24.7 per cent. 

Zee Business analysts had pegged Tata Consultancy Services' first-quarter EBIT at Rs 15,280 crore and margin at 24.5 per cent.

“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," said TCS CFO Samir Seksaria. 

The IT major reported strong double-digit growth across emerging markets, led by 61.8 per cent year-on-year expansion in India.  

IT services attrition eased by 40 bps sequentially to 12.1 per cent at the Tata group IT company. TCS net added 5,452 employees during the quarter, taking its total workforce to 6,06,998 as of June 30.

TCS declared an interim dividend of Rs 10 per equity share with record and payment dates of July 20 and August 5, respectively. Read more on TCS dividend 

Earlier on Thursday, TCS shares inched up 0.3 per cent to settle at Rs 3,922.7 apiece on BSE. 

TCS stock historical performance 

As of July 11, TCS shares have rewarded investors with a return of 19.9 per cent over the past year, underperforming rallies of 25.1 per cent and 27.3 per cent in the Nifty50 and Nifty IT indices. 

TCS shares rose 0.6 per cent in the June quarter, a period in which the Nifty50 and Nifty IT gauges rose 7.5 per cent and 3.6 per cent, respectively. 

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