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Informist, Thursday, Jul. 10, 2025

 

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--TCS Apr-Jun consol net profit INR 127.60 bln 
--Analysts saw TCS Apr-Jun consol net profit INR 121.79 bln 
--TCS Apr-Jun consol net profit INR 127.60 bln vs INR 122.24 bln qtr ago 
--TCS Apr-Jun consol revenue INR 634.37 bln vs INR 644.79 bln qtr ago 
--TCS to pay INR 11 per share interim dividend 
--TCS interim dividend record date is Jul 16 
--TCS Apr-Jun consol BFSI ops revenue INR 247.4 bln vs INR 242.6 bln qtr ago 
--TCS Apr-Jun consol employee expense INR 377.2 bln vs INR 367.6 bln qtr ago 
--TCS Apr-Jun consol mfg ops revenue INR 64.01 bln vs INR 63.95 bln qtr ago 
--TCS Apr-Jun consol consumer sales INR 101.6 bln vs INR 101.5 bln qtr ago 
--TCS Apr-Jun consol comm, media sales INR 94.4 bln vs INR 110.2 bln qtr ago 
--TCS Apr-Jun BFSI segment revenue up 1% on yr in constant currency 
--TCS Apr-Jun consol revenue down 3.1% on year in constant currency
--TCS Apr-Jun consumer ops segment sales down 3.1% YoY in constant currency 
--TCS Apr-Jun life sciences, health sales down 9.6% YoY in constant currency 
--TCS Apr-Jun manufacturing sales down 4% YoY in constant currency 
--TCS Apr-Jun consol operating margin 24.5% vs 24.2% qtr ago 
--TCS Apr-Jun tech, svcs ops sales up 1.8% YoY in constant currency 
--TCS Apr-Jun total contract value $9.40 bln vs $12.20 bln qtr ago 
--TCS Apr-Jun comm, media sales down 9.6% on year in constant currency 
--TCS Apr-Jun IT services trailing 12-mo attrition 13.8% vs 13.3% qtr ago 
--TCS Apr-Jun revenue from consumer segment 15.6% of sales vs 15.4% yr ago 
--TCS Apr-Jun revenue from BFSI segment 32% of sales vs 30.9% year ago 
--TCS total employee count 613,069 as on Jun 30 vs 607,979 on Mar 31 
--TCS Apr-Jun regional mkts, others sales down 8.6% YoY in constant currency 
--TCS Apr-Jun North America sales down 2.7% on year in constant currency 
--TCS Apr-Jun UK revenue down 1.3% on year in constant currency 
--TCS: Global macro, geopolitical uncertainties caused demand contraction 
--TCS Apr-Jun revenue from India down 21.7% on year in constant currency 
--TCS Apr-Jun revenue from North America 48.7% of sales vs 49.5% year ago 
--TCS Apr-Jun revenue from UK 18% of sales vs 16.9% year ago 
--TCS Apr-Jun revenue from India 5.8% of sales vs 7.5% year ago

 

By Anshul Choudhary

 

MUMBAI – The weakness in discretionary demand for information technology services was more pronounced in the June quarter results of Tata Consultancy Services Ltd., which reported its worst quarter-on-quarter fall in revenue in five years. The company's consolidated revenue fell 1.6% in Apr-Jun, the biggest decline since the June quarter of the financial year 2020-21 (Apr-Mar).

 

The company's consolidated revenue for the quarter fell to INR 634.37 billion, a decline of 3.1% on year in constant currency terms. The revenue figure also missed the average of estimates by 14 brokerages of INR 646.50 billion. "The continued global macroeconomic and geopolitical uncertainties caused a demand contraction," K. Krithivasan, managing director and chief executive officer, said in a press release.

 

However, the consolidated net profit of Tata Consultancy rose over 4% on quarter on the back of a slightly higher operating margin. The net profit for the June quarter came in at INR 127.60 billion, beating expectations of INR 121.79 billion. The company's consolidated operating margin expanded 30 basis points on quarter to 24.5%.

 

Owing to weak demand, the company's total contract value dipped nearly 23% on quarter to $9.4 billion--a decline of $2.80 billion. A big part of this fall seems to be on account of the hit to demand in North America, where the total contract value fell $2.40 billion as compared to the March quarter. However, the deal wins of $9.4 billion in the June quarter were still better than $8.3 billion in the same quarter last year.

 

Despite the weak quarter, the company net added 5,090 employees in Apr-Jun, taking its total headcount to 613,069. This is the highest headcount for the company in at least six quarters. Among other employee-related parameters, the 12-month attrition rate rose to 13.8% from 13.3% a quarter ago. Its total employee cost rose nearly 3% on quarter to INR 377.20 billion.

 

REVENUE DECLINE

The company's consolidated revenue fell over 3% on year in constant currency terms largely on account of the fall in sales in North America and Europe. Sales from North America fell 2.7% on year in constant currency terms and declined 3.1% and 1.3% in continential Europe and the UK, respectively. Its sales from India slumped nearly 22% in constant currency terms.

 

The fall in North America sales also led to the region's contribution to overall sales coming down to 48.7% from 49.5% a year ago. The sales contribution of the UK came down to 18.0% from 16.9% a year ago and that of India fell to 5.8% from 7.5%.

 

In terms of verticals, the fall in revenue was led by consumer business, lifesciences & healthcare, manufacturing, and regional markets. Revenue in these verticals declined 3.1-9.6% on year in constant currency terms. The consolidated sales growth was also impacted as the company's largest vertical of banking, financial services, and insurance grew only 1.0% on year in constant currency terms. This vertical's contribution to overall sales rose to 32.0% from nearly 31% a year ago.

 

Among others, the lifesciences & healthcare vertical's sales fell 9.6% on year in constant currency and its share in the consolidated revenue came down to 10.2% from 11.0% a year ago. The consumer business, which is the company's second largest vertical, reported a 3.1?ll in revenue in constant currency. However, its share in overall sales rose slightly to 15.6% from 15.4% as other verticals saw a much bigger fall. 

Apart from earnings, the company announced an interim dividend of INR 11.00 per share. Its record date was decided as Jul. 16. Thursday, shares of the company closed marginally lower at INR 3,382 per share on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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