TCS Q1 Results: Net Profit Surges 9% to Rs 12,040 Crore; Declares Rs 10 Dividend
Introduction
Tata Consultancy Services (TCS), India’s largest IT firm, announced its financial results for the first quarter of FY25, meeting market expectations. The company’s net profit saw a significant increase, and an interim dividend was declared, marking a strong start to the earnings season.
Financial Performance
In the April-June quarter, TCS reported a consolidated net profit of Rs 12,040 crore, reflecting a 9% year-on-year growth. The revenue from operations grew by 5.4% to Rs 62,613 crore. This performance aligns with market projections, which anticipated a profit of Rs 11,999 crore and revenue of Rs 62,190 crore.
Impact of Wage Hike
Despite the positive results, TCS’s operating margins were affected by the wage hike cycle. The EBIT margin decreased to 24.7% from the previous quarter’s 26%, consistent with market estimates.
Dividend and Workforce Expansion
The TCS board approved an interim dividend of Rs 10 per share for the quarter. Additionally, TCS expanded its workforce by adding 5,452 employees, bringing the total to 6.07 lakh.
Strategic Investments
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TCS continues to invest in emerging technologies and innovation. The company is expanding its client relationships and capabilities, including launching a new AI-focused TCS PacePort in France and an IoT lab in the US. Delivery centers are also being expanded in Latin America, Canada, and Europe.
CEO’s Statement
TCS CEO K Krithivasan stated, “We are continuing to expand our client relationships, create new capabilities in emerging technologies, and invest in innovation.”
Conclusion
TCS’s Q1 FY25 results highlight the company’s robust financial health and strategic investments, setting a positive tone for the rest of the fiscal year.
External Links
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