TCS Q3FY25 profit surges by 12% to ₹12,380 crore
What's the story
Leading Indian IT firm Tata Consultancy Services (TCS) has posted a 12% rise in its consolidated net profit for the December quarter.
The profit stood at ₹12,380 crore, up from ₹11,058 crore in the year-ago period. The number is in line with market estimates of ₹12,490 crore.
In addition to the financial update, TCS announced an interim dividend of ₹10/share and a special dividend of ₹66/share for its shareholders.
Dividend details
TCS announces dividend payment schedule
The record date for the dividend is January 17, while the payment date is February 3, according to a TCS stock exchange filing.
The company's revenue for Q3FY25 stood at ₹63,973 crore, a 5.6% rise from ₹60,583 crore in the same quarter of the last financial year.
However, the figure came in a tad lower than market estimates which had projected ₹64,750 crore.
Growth performance
TCS reports strong growth in total contract value
Despite the traditionally challenging Q3, TCS saw strong growth in Total Contract Value (TCV).
The company's CEO and MD K Krithivasan said he was excited over the "excellent TCV performance in Q3," which was well-rounded across industries, geographies and service lines lending good visibility to long-term growth.
He added "BFSI and CBG 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."
Growth contributors
TCV and growth drivers in Q3
The TCV for the quarter stood at $10.2 billion, with a book-to-bill ratio of 1.4.
Growth was mainly led by the Consumer Business Group (+1.1%), Energy, Resources, and Utilities (+3.4%), and regional markets (+40.9%).
Ahead of these results, TCS shares on BSE fell nearly 1.5% today to close at ₹4,046 apiece.
CFO remarks
TCS's CFO comments on company's performance
Commenting on the company's performance, TCS's CFO Samir Seksaria said, "In a quarter that saw significant cross-currency volatility, TCS' strong execution, cost management and deft currency risk management helped deliver healthy margin improvement and free cash flows."
He added, "Disciplined investments in talent and infrastructure should lend good support to long-term business growth."
HR updates
TCS's total order book and employee promotions
The company's total order book stood at $10.2 billion during the quarter, as opposed to $8.6 billion in the previous quarter and $8.1 billion in the year-ago period.
Milind Lakkad, Chief HR Officer at TCS, revealed, "We promoted over 25,000 associates this quarter which brought the total promotions this financial year to more than 110,000."
He added campus hiring for the year is on track and preparations are underway to onboard a higher number of campus hires next year.