Tata Consultancy Services (TCS) Q1 24/25 (Media) earnings summary

Executive summary

• Revenue reached INR 62,613 crore ($7.51 billion), up 5.4% YoY in INR, 3.9% YoY in USD, and 4.4% in constant currency; rupee revenue up 5.4% YoY.

• Operating margin improved to 24.7%, net profit margin at 19.2%, and net profit at INR 12,038 crore ($1.44 billion).

• EPS increased 9.9% YoY to INR 33.28 ($0.40); cash from operations at INR 11,168 crore ($1.34B), 92.8% of net profit.

• Order book TCV was $8.3 billion, with North America at $4.6 billion and BFSI at $2.7 billion.

• Headcount closed at 606,998, with attrition at 12.1% LTM and net addition of 5,452 employees.

Financial highlights

• Manufacturing revenue grew 9.4% YoY; energy/resources/utilities up 5.7%; life sciences up 4%.

• India revenue surged 61.8% YoY; UK up 6%, North America down 1.1%, Continental Europe down 0.9%.

• Operating income at INR 154,420 Mn ($1.85B); net income at INR 120,400 Mn ($1.44B); cash conversion at 92.8% of net profit.

• EPS: INR 33.28 ($0.40), up 9.9% YoY.

• Dividend declared: INR 10 per share.

Outlook and guidance

• Management expects FY25 to be better than FY24 but remains cautious due to persistent market uncertainty, competition, wage inflation, and currency fluctuations.

• Operating margin expected to inch up, with focus on productivity, utilization, and operational efficiency.

• Attrition expected to remain around current levels (12.1%) in the near term.

• Regional markets (India, Asia Pacific, MEA, LATAM) to become increasingly material for growth.

• Continued investment in AI, IoT, and digital engineering, with new labs and delivery centers.