TCS Q3 Results: Profit rises 12% to Rs 12,380 crore; special dividend announced

TCS Q3 results: TCS's revenue for the quarter stood at Rs 63,973 crore, marking a 5.6% YoY increase (4.5% in constant currency). The operating margin was 24.5%, reflecting a YoY decline of 50 basis points but a sequential improvement of 40 basis points. The net margin for the quarter was 19.4%.

India’s largest IT services firm, Tata Consultancy Services (TCS), reported a 12% year-on-year rise in consolidated net profit for the December quarter, reaching Rs 12,380 crore, in line with market expectations. The company had posted a net profit of Rs 11,058 crore during the same period last year.

TCS’s revenue for the quarter stood at Rs 63,973 crore, marking a 5.6% YoY increase (4.5% in constant currency). The operating margin was 24.5%, reflecting a YoY decline of 50 basis points but a sequential improvement of 40 basis points. The net margin for the quarter was 19.4%.

K Krithivasan, CEO and MD, highlighted robust deal wins and growth across industries, adding that signs of revival in discretionary spending boost long-term confidence. CFO Samir Seksaria noted improved margins and strong cash flows, with net cash from operations at Rs 13,032 crore, amounting to 105.3% of net income.

The company’s workforce strength stood at 607,354, with an IT services attrition rate of 13% on a last-twelve-month basis. Women accounted for 35.3% of the workforce, representing 152 nationalities.

Additionally, TCS announced a dividend of Rs 76 per share, including a special dividend of Rs 66 per share. The record date for the dividend is January 17, 2025, and the payment date is February 3, 2025.