Strong TCV in a seasonally challenging Q3 positions TCS for Long-Term growth

• Revenue at ?63,973 crores | Growth of 5.6% YoY, +4.5% in CC
• Growth led by Consumer Business Group (+1.1%), Energy, Resources and Utilities (+3.4%) and Regional Markets (+40.9%)
• Growth Markets continue to lead: India (+70.2%), Middle East & Africa (+15.0%), Latin America (+7.0%), Asia Pacific (+5.8%)
• Operating Margin at 24.5%; Net Margin at 19.4%
• Strong TCV at US$10.2 Billion, Book to Bill ratio of 1.4

Mumbai, January 9, 2025: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending December 31, 2024.

Highlights of the Quarter Ended December 31, 2024

• Revenue at ?63,973 crore, +5.6% YoY, +4.5% YoY in Constant Currency
• Operating Margin at 24.5%; a decline of 50 bps YoY*, sequential improvement of 40 bps
• Net Income at ?12,380 crore, +5.5% YoY* | Net Margin at 19.4%
• Net Cash from Operations at ?13,032 crores i.e. 105.3% of Net Income
• Workforce strength: 607,354 | LTM IT Services attrition rate at 13.0%
• Diverse and inclusive workplace: Women in the workforce: 35.3% |152 Nationalities
• Dividend per share: ? 76.00 including ? 66.00 as special dividend | Record date 17/01/2025 | Payment date 03/02/2025

*excludes settlement of legal claim

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 sets 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”.

Q3 FY25 Segment Highlights