Tata Consultancy Services (TCS), India’s largest IT company, announced its financial results for the first quarter of FY25, aligning with market expectations. The company’s consolidated net profit rose by 9% year-on-year to Rs 12,040 crore for the April-June period. TCS’s revenue from operations also saw a year-on-year increase of 5.4%, reaching Rs 62,613 crore.
Market analysts had anticipated these results, with Moneycontrol projecting a profit of Rs 11,999 crore on revenues of Rs 62,190 crore based on an average of 10 brokerage estimates.
Despite the positive growth in revenue and profit, TCS’s operating margins were affected by the wage hike cycle during the quarter. The Earnings Before Interest and Taxes (EBIT) margin fell to 24.7%, a decrease of 130 basis points from the previous quarter’s 26%. This decline was in line with Moneycontrol’s estimate of 24.7%.
In addition to its financial performance, TCS’s board approved an interim dividend of Rs 10 per share for the quarter, providing further value to its shareholders.
TCS’s Q1 results set the tone for the earnings season, reflecting steady growth and profitability amidst challenging economic conditions.
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