Bengaluru: India's leading IT services provider, Tata Consultancy Services (TCS), reported a net profit of Rs 12,380 crore for Q3 FY25, marking an 11.9% increase from Rs 11,058 crore in the same period last fiscal.
Revenue for the quarter grew by 5.6% year-on-year to Rs 63,973 crore, though it declined by 0.4% sequentially.
The total contract value (TCV) of orders was robust, reaching $10.2 billion in Q3 FY25, compared to $8.3 billion in Q1 and $8.6 billion in Q2 of the same fiscal year.
Growth in Q3 was driven by emerging markets, as major markets like the US and Europe remained subdued.
India recorded a 70.2% year-on-year growth, though slower than the 95.2% surge in Q2, largely attributed to the BSNL deal.
Other regions showed steady growth, with the Middle East & Africa growing by 15%, Asia-Pacific by 5.8%, and Latin America by 7%.
Conversely, North America declined by 2.3% Y-o-Y, while within Europe, the UK grew 4.1%, but continental Europe contracted by 1.5%.
Vertical-wise, Energy, Resources & Utilities grew 3.4%, Consumer Business rose by 1.1%, and BFSI, the largest vertical, reported modest growth of 0.9%, slightly improving from the 0.1% increase in Q2.
The company’s headcount decreased by 5,370 employees during the quarter, in contrast to the addition of 5,762 in Q2, bringing the total workforce to 607,354 as of December 31, 2024. Attrition rates rose sequentially, standing at 12.3% in Q2.
K Krithivasan, chief executive officer and managing director, said: “We are pleased with the excellent TCV performance in Q3, which was well-rounded across industries, geographies, and service lines, lending good visibility to long-term growth. BFSI and CBG returning to growth, continued stellar run of regional markets, and early signs of revival in discretionary spend in some verticals give us confidence for the future. Our continuing investments in upskilling, AI/Gen AI innovations, and partnerships set us up to capture the promising opportunities ahead.”
Samir Seksaria, Chief Financial Officer, said: “In a quarter that saw significant cross-currency volatility, TCS’s strong execution, cost management and deft currency risk management helped deliver healthy margin improvement and free cash flows. Disciplined investments in talent and infrastructure should lend good support to long-term business growth.”
Milind Lakkad, Chief HR Officer, said: “We promoted over 25,000 associates this quarter which brought the total promotions this financial year to more than 110,000. We continue to invest in employee upskilling and overall well-being. Our campus hiring for the year is going according to plan and preparations are afoot to onboard a higher number of campus hires next year”.
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