TCS Reports 12% Increase in Q3 Net Profit and Announces Special Dividend of ₹66 per Share

Mumbai, Jan 9 (NationPress) Tata Consultancy Services (TCS), India's leading IT software enterprise, disclosed a 12% growth in net profit, reaching ₹12,380 crore for the third quarter of 2024-25, in comparison to the corresponding quarter of the prior fiscal year.

The company's consolidated revenue for the quarter saw an increase of 5.6%, amounting to ₹63,973 crore.

TCS has announced a dividend per share of ₹76, which includes a special dividend of ₹66. The record date is set for January 17, 2025, with payments scheduled for February 3, 2025.

During the third quarter, TCS's total order book reached an impressive $10.2 billion, up from $8.6 billion in the previous quarter and $8.1 billion in the same quarter last year.

The company reported an operating margin of 24.5%, reflecting a 50 basis points decline year-on-year but showing a 40 basis points improvement sequentially.

Growth in business segments was primarily driven by the Consumer Business Group (+1.1%), Energy, Resources, and Utilities (+3.4%), and Regional Markets (+40.9%), as stated by TCS.

The workforce at TCS stands at 607,354, with an attrition rate of 13.0%. The company is proud of its diverse and inclusive environment, with women making up 35.3% of all employees, representing 152 nationalities.

K Krithivasan, the Chief Executive Officer and Managing Director of TCS, expressed satisfaction with the robust TCV performance in Q3, highlighting well-rounded growth across industries, regions, and service lines that provide strong visibility for long-term growth.

“The return to growth in BFSI and CBG, the continued success of Regional Markets, and early indications of recovery in discretionary spending within certain sectors bolster our optimism for the future. Our ongoing investments in upskilling, AI/Gen AI innovations, and partnerships position us favorably to seize upcoming opportunities,” he noted.

TCS's Chief Financial Officer, Samir Seksaria, stated: “In a quarter marked by significant cross-currency fluctuations, TCS's effective execution, cost management, and skilled currency risk management contributed to healthy margin enhancement and free cash flow. Consistent investments in talent and infrastructure will support long-term business expansion.”