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TCS Q1FY25 Results: Profit Rises by 9%, Revenue Up by 5.4% – Company Announces dividend of ₹10

11 July 20244 mins read by Angel One
TCS Q1 FY25 results show a 9% rise in net profit to Rs.12,040 crore and a 5.4% revenue increase to Rs.62,613 crore, with a 24.7% EBIT margin.
TCS Q1FY25 Results: Profit Rises by 9%, Revenue Up by 5.4% – Company Announces dividend of ₹10
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Tata Consultancy Services (TCS) has reported its first-quarter results for FY25, aligning closely with market expectations. The company recorded a consolidated net profit of Rs.12,040 crore, marking around 8.7% – 9% y-o-y increase from Rs.11,074 crore in Q1FY24. Revenue from operations grew by 5.4% to Rs.62,613 crore, compared to Rs.59,381 crore in Q1FY24 and 4.4% YoY growth in Constant Currency.

Performance and Projections of TCS – Q1

TCS’s Q1 results met projections by analysts, who had estimated a net profit of around  Rs.11,999 crore and revenue of Rs.62,190 crore based on an average of 10 brokerage estimates. Despite the positive growth in profit and revenue, the company’s margins were impacted by the wage hike cycle. The EBIT margin narrowed to 24.7%, down 130 basis points from 26% in the previous quarter.

Metric Q1FY25 Q1FY24 YoY Change
Net Profit Rs.12,040 crore Rs.11,074 crore +8.7%
Revenue from Operations Rs.62,613 crore Rs.59,381 crore +5.4%
EBIT Margin 24.7% 26% -130 bps

Dividend & Workforce Expansion of TCS

The company’s board approved an interim dividend of Rs.10 per share for the quarter, payable on August 5 to shareholders on record as of July 20. TCS also expanded its workforce by adding 5,452 employees in Q1, bringing the total headcount to 607,000.

Market and Sector Growth

TCS reported sequential growth across all major markets, with notable double-digit growth in Emerging Markets led by India, which saw a 61.8% y-o-y increase. Other sectors showing y-o-y growth included Manufacturing (up 9%), Energy, Resources & Utilities (up 5.7%), and Life Sciences & Healthcare (up 4%). The IT services attrition rate stood at 12.1%.

Investments and Innovations

CEO and Managing Director K Krithivasan highlighted the company’s ongoing investments in client relationships, technologies, and innovation. TCS is expanding its capabilities with the AI-focused TCS PacePort in France, an IoT lab in the US, and new delivery centers in Latin America, Canada, and Europe.

Conclusion: TCS’s Q1 FY25 results show an 8.7% rise in net profit to Rs.12,040 crore and a 5.4% revenue increase to Rs.62,613 crore. Despite a narrower EBIT margin of 24.7%, TCS expanded its workforce by 5,452 and declared an Rs.10 interim dividend, indicating strong growth and planned investments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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