Results for the Tata Group’s largest company are out. India’s largest IT company Tata Consultancy Services (TCS) has not performed well in the second quarter of fiscal year 2024-25. TCS’s net profit was Rs 11,909 crore, up 5% from Rs 11,342 crore in the same quarter of the previous fiscal year. If we look at it month-on-month, the company’s profit dropped slightly by 1.08%.
Talking about the company’s revenue, TCS’s revenue increased by 7.6% year-on-year to Rs 64,259 crore and increased by 2.62% quarter-on-quarter. Net profit increased by 3.8% year-on-year. While the country’s largest IT company’s revenue beat Bloomberg’s estimate of 64,177 crore rupees, its net profit missed estimates of 12,547 crore rupees.
The total contract value (TCV) of new deals completed in the September quarter increased slightly to $8.6 billion, compared with $8.3 billion in the first quarter. However, this represents a year-over-year decline of 23% compared to $11.2 billion in the second quarter of fiscal 2024.
Some key points related to the performance of IT giants
- Operating profit margin was 24.1%, a slight decrease of 0.2% from the same period last year.
- The IT company’s net profit margin is 18.5%.
- This quarter, the company’s operating net cash was 11,932 billion rupees, accounting for 100.2% of net profit.
- During the period, the company’s total headcount stood at 6,12,724, with 5,726 new employees added in the second quarter.
- Female employees account for 35.5% of the company’s total employees.
- LTM IT service churn rate is 12.3%.
The company will also pay dividends
The company also declared a dividend per share. At the same time as the results were announced, the company’s board of directors also approved the payment of dividends. The country’s largest IT company will pay a dividend of Rs 10 per share. The equity registration date has also been announced, which is October 18, 2024. The dividend will be paid on November 5, 2024.
What does the company’s CEO say?
CEO & Managing Director, TCS. Kritivasan said caution in previous quarters had weighed on demand. All growth markets are growing, but the demand environment remains cautious, he said.
As a result, it was suspended on Thursday
Results for the second quarter of fiscal 2025 were released yesterday, after the market opened on Thursday. Earlier in the day, TCS had canceled press conferences and interviews related to its Q2 FY25 earnings following the death of Ratan Tata. Ratan Tata has died at the age of 86 after a brief illness.
Target comes stock
30 out of 47 experts at TCS have maintained a buy rating on the stock. Among them, 10 people recommended “hold” and 7 people recommended “sell”. JPMorgan maintained its target price at Rs 5,100 per share and gave it an “overweight” rating. Motilal Oswal Brokerage has given a target price of Rs 5,400 per share and a buy rating. On Friday, TCS shares were trading at Rs 4,119, down 2.56%.
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