Tata Consultancy Services (TCS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached INR 63,973 crore (5.6% YoY growth), with USD revenue at $7,539 million (3.6% YoY growth) and constant currency growth at 4.5%.

• Operating margin was 24.5% and net margin ranged from 18.5% to 19.4%; net profit stood at INR 12,444 crore.

• Total contract value (TCV) reached $10.2 billion, with North America contributing $5.9 billion and broad-based wins across markets.

• Workforce at 607,354 with 13% LTM attrition; over 25,000 promotions in Q3 and campus hiring progressing as planned.

• The Board declared a total dividend of ₹76 per share, including a ₹66 special dividend.

Financial highlights

• Free cash flow at $1.45 billion (INR 123,060 Mn); net cash from operations at $1.4 billion (105.3% of net income).

• EPS for Q3 FY25 was INR 34.21, up from INR 30.29 in Q3 FY24.

• Total cash and investments increased to INR 623,490 Mn.

• Operating cash flow to sales improved to 20.4%.

• Dividend payout for Q3 FY25 totaled ₹76 per share, including interim and special dividends.

Outlook and guidance

• Client IT budgets expected to remain flat with a positive bias in FY25; early signs of revival in discretionary spend, especially in BFSI and retail.

• Margin aspiration remains at 26-28%, with efforts to exit Q4 at 26%.

• Confident in managing BSNL revenue tapering through new deal wins and capabilities.

• Growth in large clients: $100M+ clients up by 3 YoY.

• The Board approved the results and dividends on January 9, 2025, with continued focus on shareholder returns.