Tata Consultancy Services (TCS), India’s largest IT services company, on Thursday reported a 5 per cent rise year-on-year in its consolidated net profit to Rs 11,909 crore for the second quarter of the financial year 2024-25 ended September 30 (Q2 FY25). The Q2 FY25 results are below market estimates. The company’s revenue from operations during July-September 2024 increased 7.6 per cent year-on-year to Rs 64,259 crore.
On a sequential basis, TCS’s net profit fell by 1.1 per cent during July-September 2024, according to a BSE filing.
TCS on Thursday also declared an interim dividend of Rs 10 per share.
“We would like to inform you that at the Board Meeting held today, the Directors have declared second interim dividend of Rs 10 per Equity Share of Rs 1 each of the Company,” TCS said in a BSE filing.
The second interim dividend shall be paid on Tuesday, November 5, 2024, to the equity shareholders of the company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Friday, October 18, 2024, which is the Record Date fixed for the purpose, it added.
TCS’s IT services attrition rate on a last-twelve-month (LTM) basis stood at 12.3%, and the company added a total headcount of 5,726. As of September 30, 2024, TCS had a total workforce of 6,12,734 employees. The company’s operating margin was 24.1%, marking a 0.2% year-on-year drop.
Region-wise, North American saw a decline of 2.1 per cent, while Latin America grew by 6.8 per cent. The UK and the continental Europe saw growth of 4.6 per cent and 1.8 per cent. The Middle Ease and Africa rose 7.9 per cent, while Asia Pacific and India markets rose 95.2 per cent and 7.9 per cent.
Industry-wise, Communication & Media and Technology & Services saw declines of 10.3 per cent and 1.9 per cent. BFSI, consumer business, and Life Sciences & Healthcare grew just 0.1 per cent each. Manufacturing rose 5.3 per cent for TCS.
K Krithivasan, chief executive officer and managing director of TCS, 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 of TCS, 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 of TCS, 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.”
TCS Post Earnings Press Conference Cancelled
TCS has cancelled its Q2 earnings press conference and interviews scheduled later this evening on Ratan Tata’s demise.
Tata, who led the salt-to-software empire for over two decades, took his last breath at Breach Candy Hospital in south Mumbai at 11:30 pm on Wednesday.
A recipient of the Padma Vibhushan, Tata had been in the hospital’s intensive care unit since Monday.
