TCS Q3 results showed a 12% increase in net profit to Rs 12,380 crore, and a 5.6% increase in revenue.

India’s largest IT services player Tata Consultancy Services (TCS) saw its net profit for the third quarter of the fiscal year 2024-25 at Rs 12,380 crore, up 11.9 per cent compared to Rs 11,058 crore in the same quarter of FY24.

Revenue for the company grew 5.6 per cent to Rs 63,973 crore in Q3 FY25. Sequentially, the firm’s revenue declined by 0.4 per cent.

The company’s performance fell short of Bloomberg estimates. According to these estimates, revenue was expected to be Rs 64,748 crore, and net profit Rs 12,534 crore.

The order book total contract value (TCV) came in strong at $10.2 billion in Q3 FY25. In Q1 and Q2, the TCV stood at $8.3 billion and $8.6 billion, respectively.

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.”

The company’s Q3 performance was similar to the second quarter, where growth was driven by growth markets. Major markets such as the US and Europe continued to be soft. India grew by 70.2 per cent. In Q2, India grew by a whopping 95.2 per cent year-on-year, primarily due to the BSNL deal.

Middle East & Africa, Asia-Pacific, and Latin America also grew by 15 per cent, 5.8 per cent, and 7 per cent, respectively.

Meanwhile, North America was down 2.3 per cent Y-o-Y. Within Europe, the UK grew by 4.1 per cent, while continental Europe declined by 1.5 per cent.

Among the verticals, growth was driven by Energy, Resources and Utilities (3.4 per cent) and Consumer Business (1.1 per cent). The company’s largest vertical, BFSI, grew 0.9 per cent, slightly better than the 0.1 per cent growth reported in Q2.

During the quarter, the company’s headcount decreased by 5,370. In Q2, the company had added 5,762 people. The total headcount stood at 607,354 as of December 31, 2024. Attrition has gone up sequentially. In Q2 it was 12.3 per cent.

Milind Lakkad, chief human resources officer, said: “We promoted over 25,000 associates this quarter, bringing 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.”

Operating margins for the quarter stood at 24.5 per cent, a decline of 50 basis points. 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.”

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