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

Executive summary

• Q1 FY25 revenue reached ₹626,130 Mn ($7.51 billion), up 5.4% YoY in INR and 3.9% YoY in USD, with broad-based sequential growth across most markets and verticals except CMI.

• Operating margin was 24.7%, net margin at 19.2%, and net income rose 8.7% YoY to $1.44 billion.

• Order book TCV for Q1 was $8.3 billion, with North America contributing $4.6 billion and BFSI at $2.7 billion.

• Workforce reached 606,998 with net addition of 5,452; LTM IT services attrition at 12.1%.

• India led geographic growth at 61.8% YoY; manufacturing, energy, and healthcare verticals showed strong performance.

Financial highlights

• Q1 revenue: ₹626,130 Mn ($7.51 billion), up 5.4% YoY in INR and 3.9% YoY in USD; operating income: $1.85 billion (+10.6% YoY); net income: $1.44 billion (+8.7% YoY).

• Operating margin: 24.7%, net margin: 19.2%, EPS grew 10% YoY to $0.40.

• Net cash from operations: $1.34 billion (92.8% of net income); free cash flow: $1.223 billion.

• Interim dividend of ₹10 per share declared.

• Total cash and investments stood at ₹466,470 Mn ($919 million) at quarter end.

Outlook and guidance

• Management expects FY25 to be better than FY24, citing broad-based sequential growth and a strong pipeline, though uncertainty persists.

• No formal revenue or earnings guidance provided; cautious on sustained growth due to volatile client spending and macroeconomic factors.

• Focus on operational excellence, R&D, talent, and expanding AI, IoT, and digital engineering capabilities.

• Continued expansion of delivery centers and AI-focused labs in multiple geographies.