Tata Consultancy Services (TCS), India’s largest IT services company, has delivered a solid performance in the December quarter of FY25. The company reported a 12% rise in its consolidated net profit, touching ₹12,380 crore, compared to ₹11,058 crore in the same quarter last year.
Revenue for the quarter climbed 5.6% year-on-year to ₹63,973 crore, up from ₹60,583 crore a year ago. The results met market expectations, with analysts projecting a net profit close to ₹12,490 crore. Despite global economic challenges, TCS has shown resilience by maintaining steady growth.
Special Dividend Delight
TCS announced a special dividend of ₹66 per share, along with an interim dividend of ₹10 per share. This move is expected to excite shareholders, as it adds to the festive cheer for investors. Over the years, TCS has consistently rewarded its stakeholders, and this quarter is no different.
What Drove the Growth?
The company attributed its growth to strong deal closures and efficient cost management. Total Contract Value (TCV) during the quarter was robust, with large deals across key markets. The North American market, which contributes significantly to TCS’s revenue, showed signs of stability. Additionally, the European region also performed well despite geopolitical uncertainties.
TCS highlighted its focus on digital transformation projects, which remain a key revenue driver. Clients across industries are continuing to invest in cloud computing, automation, and AI solutions. These areas have helped the company not only retain existing clients but also attract new ones.
Challenges in the Quarter
Even with the positive numbers, TCS had to navigate a challenging environment. The global economy remains uncertain, with slowdowns in some markets impacting discretionary IT spending. The company, however, managed to counter this with its diversified portfolio and operational efficiency.
CEO Speaks
K Krithivasan, the CEO of TCS, said, “Our performance reflects the trust clients have placed in us to deliver value in a complex environment. We continue to invest in innovation and build capabilities to drive sustainable growth.”
What’s Next?
Looking ahead, TCS remains optimistic about the future. The management hinted at more large deal closures in the coming quarters, which could further strengthen its revenue pipeline. The company is also focusing on upskilling its workforce to meet the demand for emerging technologies.
Stock Performance
Following the announcement, TCS shares saw a slight uptick in after-market trading. Analysts believe the stable performance and the hefty special dividend make the stock attractive for long-term investors.
Key Takeaways
- TCS posted a 12% jump in Q3 net profit to ₹12,380 crore.
- Revenue grew 5.6% YoY, reaching ₹63,973 crore.
- The company announced a special dividend of ₹66 per share and an interim dividend of ₹10 per share.
- Growth was driven by strong deal wins, operational efficiency, and demand for digital services.
TCS continues to prove why it is considered a bellwether of the Indian IT industry. With its steady performance and investor-friendly policies, it remains a favorite among shareholders. All eyes will now be on its next quarter to see if it can maintain this momentum.
