Tata Consultancy Services (TCS) announced its Q2FY25 results for the quarter ending in September earlier today. Below are key takeaways:
Revenue and Profit Performance
Tata Consultancy Services (TCS), India’s largest IT services provider, posted a net profit of ₹11,909 crore for the second quarter of FY 2024-25, reflecting a 5% increase from ₹11,342 crore in the same period last year.
The company’s revenue rose by 7.6% to ₹64,259 crore in Q2 FY25, with a sequential growth of 2.62%.
TCS reported an operating margin of 24.1% for Q2 FY24, down from 24.7% in the previous quarter. Net margins also narrowed to 18.5%.
CEO and Managing Director K Krithivasan noted that geopolitical uncertainties contributed to the cautious environment, though recovery in BFSI and strong growth in emerging markets provided some support.
Key Sector and Geographical Growth
The company’s revenue growth was primarily led by the Energy, Resources, and Utilities sectors. TCS noted that while cautious trends persisted, there was a recovery in its largest vertical, Banking, Financial Services, and Insurance (BFSI).
Growth in international markets was varied, with North America declining by 2.1% in constant currency (CC) terms, while the UK saw a 4.6% YoY increase, and continental Europe posted 1.8% YoY growth.
India was a standout, growing by 95.2% YoY in CC terms, largely due to the execution of a significant Rs 15,000 crore deal with BSNL.
Order Book and Strategic Deals
TCS order bookings for the quarter stood at $8.6 billion, marking a 23.2% decline YoY but a 3.61% sequential increase.
The company is heavily involved in 600 artificial intelligence (AI) and generative AI projects and has secured several key deals in the retail sector, including partnerships with Primark, McDonald’s, and Croma.
The company’s ongoing partnership with BSNL, which involves setting up data centers and 4G sites across India while preparing for 5G, contributed significantly to its domestic growth.
Headcount Growth and Attrition
TCS added a net of 5,726 employees in Q2, bringing its total workforce to 612,724. This marks a total headcount increase of approximately 11,000 for the first half of FY25. The attrition rate rises to 12.3% from 12.1% in the previous quarter.
The company’s focus on strategic hiring continues amidst growth in AI-driven projects and new deal executions.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
