TCS net up 12% to ₹12,380 cr. in Q3, to pay ₹76 as dividend

Tata Consultancy Services Ltd. (TCS) consolidated net profit for the third-quarter ended December 31, 2024, increased 12% to ₹12,380 crore, even as macro factors of the second quarter and headwinds continued during the quarter under review, said the firm’s CEO and MD K. Krithivasan.

Net margin was at 19.4% and total contract value (TCV) $10.2 billion. Revenue at ₹63,973 crore, grew 5.6% year-on-year (yoy) and 4.5% in constant currency. Operating margin at 24.5% declined 50 basis points. One basis point is 0.01%. The board has declared a dividend of ₹76 per share, including ₹66 as special dividend. The record date is January 17.

Briefing reporters, Mr. Krithivasan said, “Banking, financial services and insurance (BFSI) and consumer business group (CBG) [verticals] 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.”

Mr. Krithivasan said the change of guard in the U.S. Presidency is unlikely to impact the company.

Milind Lakkad, chief HR officer, said TCS promoted more than 25,000 associates during quarter taking the total promotions this year to over 1.10 lakh. The attrition rate of 13% was a matter of no concern, Mr. Lakkad added.

Samir Seksaria, Chief Financial Officer, TCS 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.”

According to Milind Lakkad, Chief HR Officer the company promoted over 25,000 associates during quarter which brought the total promotions this financial year to more than 1,10,000.

“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,” he said adding that the 13% attrition rate was matter of no concern.

The company’s growth was led by CBG which grew by 1.1%, Energy Resources & Utilities which grew by 3.4% and regional markets like India which outperformed and grew by 40.9% during the quarter.

India continued to lead the growth markets with a growth of 70.2%, Middle east & Africa which grew 15%, Latin America up 7% and Asia Pacific grew by 5.8%.

Published - January 09, 2025 09:04 pm IST