TCS Q1 Results: Starting the new financial year on a healthy note, Indian IT bellwether Tata Consultancy Services (TCS) on Thursday, July 11, reported a healthy 9 per cent year-on-year (YoY) rise in Q1FY25 net profit, which was broadly in line with market expectations.
On some parameters, the company exceeded market expectations. For example, it said all major markets and almost all verticals returned to sequential growth during the quarter.
The company’s chief executive officer (CEO) and managing director (MD), K Krithivasan, said: “I am pleased to report a strong start to the new fiscal year with all-round growth across industries and markets. We are continuing to expand our client relationships, create new capabilities in emerging technologies and invest in innovation, including a new AI-focused TCS PacePort™ in France, IoT lab in the US and expanding our delivery centres in Latin America, Canada and Europe.”
The company’s board of directors announced an interim dividend of ₹10 per equity share. The record date for dividend payment is July 20, 2024, and dividends will be paid out on 5 August 2024.
Let’s take a look at five key highlights of TCS’ Q1FY25 scorecard:
1. Key numbers
The company reported an 8.72 per cent YoY rise in its consolidated net profit to ₹12,040 crore for the April-June quarter of fiscal 2025. In the same quarter last year, the company’s profit was ₹11,074 crore.
However, sequentially, or on a quarter-on-quarter (QoQ) basis, the company’s profit declined 3.2 per cent from ₹12,434 crore in Q4FY24.
Overall revenue from operations for the quarter stood at ₹62,613 crore, rising 5.4 per cent YoY from ₹59,381 crore in Q1FY24. Sequentially, the company’s revenue rose 2.2 per cent. In constant currency (CC) terms, the company registered a 4.4 per cent YoY growth in revenue.
Operating margin expanded 1.5 per cent YoY to come at 24.7 per cent.