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

Executive summary

• Q1 FY25 revenue reached ₹626,130 Mn ($7.51B), 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 $1.44B.

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

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

• AI and GenAI engagements doubled, with a pipeline of $1.5B and over 270 projects in progress.

Financial highlights

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

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

• Net cash from operations: $1.34B (92.8% of net income); free cash flow: $1.223B; invested funds: $5.59B.

• Interim dividend of ₹10 per share declared.

• Capital expenditure increased to ₹8,750 Mn from ₹3,610 Mn YoY.

Outlook and guidance

• Fiscal 2025 expected to be better than 2024, driven by broad-based growth and strong pipeline.

• Management remains cautious due to ongoing client project reevaluations, macroeconomic uncertainty, and legal/tax risks.

• No formal revenue or earnings guidance provided; company will consider feedback on providing more operating metrics.

• Continued investments in R&D, talent, and expansion of AI, IoT, and digital engineering capabilities.