Tata Consultancy Services Ltd (TCS), the biggest provider of IT services, announced on Thursday that its consolidated net profit for the December quarter is Rs 12,380 crore, up 11.95 per cent year over year (YoY) from Rs 11,058 crore in the same quarter last year.
From Rs 60,583 crore to Rs 63,973 crore during the same period last year, net sales increased by 5.59 per cent. When expressed in constant currency (CC), sales increased 4.5 per cent year over year.
Operating margins
The quarter’s operating margin, which was in line with street estimates, was 24.5 per cent, down 50 basis points year over year but up 40 basis points sequentially. In contrast to the USD 7 to USD 9 billion deal wins that analysts had previously predicted, the IT major reported a total contract value of USD 10.2 billion. The book-to-bill ratio was 1.4.
Operating Revenue
According to TCS, its net cash from operations was Rs 13,032 crore, amounting to 105.3 per cent of its net income. According to the IT major, the company’s trailing 12-month IT services attrition rate was 13 per cent. There were 6,07,354 TCS employees as of the most recent count.
Dividend in Q3 FY25
A special dividend of Rs 66 and a dividend of Rs 10 per share were announced by the TCS board. Dividends of Rs 20 per share for FY25 and Rs 10 per share in Q1 and Q2 were previously announced by the software exporter.
Those equity shareholders whose names are listed on the company’s member register or in the depositories’ records as beneficial owners of the shares as of Friday, January 17, 2025, the Record Date set for the purpose, will receive the third interim dividend and the special dividend on Monday, February 3, 2025.
Total dividend in FY24
TCS announced a final dividend of Rs 28 for FY24 in April 2024, along with the Q4 results from the previous fiscal year. In response to its third-quarter results, TCS announced an interim dividend of Rs 9 per share and a special dividend of Rs 18 per share.
Additionally, interim dividends of Rs 9 each were announced in the first and second quarters. Furthermore, TCS carried out a share buyback program in FY24 worth Rs 17,000 crore. CS gave shareholders a total of Rs 46,223 crore in FY24.
Top contributing factors in Q3 FY25 growth
Regional Markets (up 40.9 per cent), Energy, Resources, and Utilities (up 3.4 per cent), and Consumer Business Group (up 1.1 per cent), led the Q3 growth.
The leaders in growth markets are still Asia Pacific (up 5.8 per cent), Latin America (up 7 per cent), Middle East & Africa (15.0 per cent), and India (up 70.2 per cent). North America’s composition decreased by 1.5 per cent year over year.
