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 of 4.5%.

• Operating margin stood at 24.5% and net margin at 19.4%; net profit was ₹12,444 crore.

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

• Workforce at 607,354, with 13% LTM attrition and over 110,000 promotions in FY25.

• Interim and special dividends declared, totaling ₹76 per share.

Financial highlights

• Net income margin at 19.4%; EPS grew to ₹34.21, up from ₹30.29 YoY.

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

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

• Operating expenses for Q3 FY25 were ₹48,550 crore.

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

Outlook and guidance

• Expectation of stable client IT budgets in FY25 with a positive bias and robust demand pipeline.

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

• BSNL contract tapering expected to be offset by new deal wins and opportunities.

• Continued focus on shareholder returns, with Board approval of results and dividends on January 9, 2025.

• Growth in large clients: $100M+ clients up by 3 YoY, totaling 64.