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Informist, Thursday, Apr. 10, 2025

 

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--TCS Jan-Mar consol net profit INR 122.24 bln 
--Analysts saw TCS Jan-Mar consol net profit INR 125.63 bln 
--TCS Jan-Mar consol net profit INR 122.24 bln vs INR 123.80 bln qtr ago 
--TCS Jan-Mar consol revenue INR 644.79 bln vs INR 639.73 bln qtr ago 
--TCS to pay INR 30 per share final dividend 
--TCS FY25 consol net profit INR 485.53 bln vs INR 459.08 bln year ago 
--TCS FY25 consol revenue INR 2.55 tln vs INR 2.41 tln year ago 
--TCS Jan-Mar consol BFSI revenue INR 242.57 bln vs INR 234.81 bln qtr ago 
--TCS Jan-Mar consol mfg revenue INR 63.95 bln vs INR 61.94 bln qtr ago 
--TCS Jan-Mar consol consumer sales INR 101.46 bln vs INR 100.35 bln qtr ago 
--TCS Jan-Mar consol comm sales INR 110.22 bln vs INR 119.89 bln qtr ago 
--TCS Jan-Mar consol sales up 2.5% on year in constant currency 
--TCS Jan-Mar consol operating margin 24.2% vs 24.5% qtr ago 
--TCS Jan-Mar order book total contract value $12.2 bln 
--TCS Jan-Mar BFSI segment revenue up 2.5% on yr in constant currency 
--TCS Jan-Mar consumer segment sales down 0.2% on yr in constant currency 
--TCS Jan-Mar manufacturing sales down 2.9% on year in constant currency 
--TCS Jan-Mar life sciences, health sales dn 5.6% YoY in constant currency 
--TCS Jan-Mar comm, media sales down 9.8% on year in constant currency 
--TCS Jan-Mar regional mkts, others sales up 22.5% YoY in constant currency 
--TCS Jan-Mar North America sales down 1.9% on year in constant currency 
--TCS Jan-Mar UK revenue up 1.2% on year in constant currency 
--TCS Jan-Mar revenue from India up 33% on year in constant currency 
--TCS total employee count at 607,979 as on Mar 31 
--TCS total employee count at 607,979 as on Mar 31 vs 607,354 on Dec 31 
--TCS Jan-Mar IT services trailing 12-mo attrition 13.3% vs 13.0% in Oct-Dec 
--TCS Jan-Mar consol employee expenses INR 367.62 bln vs INR 359.56 bln qtr ago
 

 

By Arya S. Biju

 

MUMBAI – Information technology major Tata Consultancy Services Ltd.'s bottom line fell sequentially again in the March quarter after showing hopes of recovery in the previous quarter, when the net profit had risen after two straight quarters of decline. The company's top line for the March quarter grew marginally on quarter after a fall in Oct-Dec.

 

The company's consolidated revenue from operations rose marginally on quarter to INR 644.79 billion, but fell short of analysts' expectation of INR 647.57 billion. Analysts had expected the earnings growth for the quarter to be poor due to fall in the company's revenue from the company's key telecom client Bharat Sanchar Nigam Ltd., no changes in client budgets, and furloughs.

 

The consolidated net profit, or profit attributable to shareholders, for the March quarter was INR 122.24 billion, down 1.3% on quarter and below analysts' expectation of INR 125.72 billion.

 

On a year-on-year basis, the company's top line for the quarter grew 5.3% while its bottom line fell 1.7%. For the financial year ended Mar. 31, the company's consolidated revenue and net profit both rose nearly 6% to INR 2.55 trillion and INR 485.53 billion, respectively. The company announced a final dividend of INR 30 per share for 2024-25 (Apr-Mar).

 

The company's operating margin for the March quarter declined by 30 basis points from the previous quarter and 180 bps from the year-ago quarter to 24.2%. Similarly, its operating margin for FY25 fell to 24.3% from 24.6% a year ago. Analysts had expected the company's earnings before interest and tax margin to be 24.1-24.9%, according to estimates from 15 broking firms. In the December quarter, the metric had increased by 40 bps sequentially to 24.5%.

  

Barring the communication, media and technology vertical, all other segments saw a sequential growth in revenue in the range of 1.0-5.5% for the March quarter. Revenue from the company's biggest vertical--banking, financial services and insurance--rose over 3% to INR 242.57 billion. Revenue from its consumer business rose marginally on quarter to INR 101.46 billion and revenue from its manufacturing segment rose over 3% to INR 63.95 billion. Revenue from its communication, media and technology vertical fell 8% on quarter to INR 110.22 billion.  

 

In constant currency terms, the company's revenue grew 2.5% on year, led by a 2.5% on-year growth in revenue from the BFSI vertical and a 22.5% on-year growth in revenue from its 'regional markets and others' segment. However, revenue in constant currency terms from its consumer, life sciences and healthcare; manufacturing; and communication and media segments saw an on-year decline ranging from 0.2% to 9.8%, with revenue from the communication and media segment falling the most.

 

In terms of geography, revenue from North America, which constitutes close to 50% of the company's revenue, fell close to 2% on year in constant currency terms, while revenue from India rose 33% on year. Revenue contribution from India to the company's overall sales improved to 8.4% in the quarter from 6.7% a year ago. Further, revenue from the UK, the second-largest contributor to the company's total revenue, rose 1.2% on year.

 

In dollar terms, the company reported a revenue of $7.47 billion for the quarter ended March, up 1.4% on year. The company's total contract value of deals for the quarter was $12.2 billion.

 

As of Mar. 31, the company's workforce strength was 607,979, up from 607,354 as on Dec. 31. Its IT services trailing 12-month attrition rose to 13.3% from 13.0% in the previous quarter. The company's consolidated employee benefit expenses for the quarter were INR 367.62 billion, up 2% on quarter.

 

On Wednesday, shares of TCS closed 1.4% lower at INR 3,246.60 on the National Stock Exchange. On Monday, the stock had hit an over six-month low of INR 3,056.05 due to fears of a trade war, global economic slowdown, and a potential recession in the US on account of the tariff measures announced by US President Donald Trump.  End

 

US$1 = INR 86.69

 

Edited by Ashish Shirke

 

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