TATA CONSULTANCY SERVICES (TCS), the country's largest IT services firm, on Thursday missed estimates on both revenue and profit fronts, underlining continued caution among global clients amidst a challenging macroeconomic environment. The IT company's consolidated net profit rose 4% sequentially to ₹12,380 crore, missing Bloomberg's estimate of ₹12,534 crore. Revenue declined by 0.4% sequentially to ₹63,973 crore, falling short of the estimate of ₹64,748 crore.
Operating margins stood at 26.6% against 26% in Q2, driven by cost management and favourable currency movements. Total contract value (TCV) of new deals came in strong at $10.2 billion, a significant jump from $8.6 billion in Q2FY25.
TCS announced a third interim dividend of ₹10 per share and a special dividend of ₹66 per share, with a record date of January 17 and payment date set for February 3.
The decline in revenue was largely attributed to the seasonal weakness in Q3, when client operations typically slow down due to holidays.
While major markets such as North America and continental Europe remained under pressure, growth markets like India (up 70.2%) and West Asia & Africa (up 15%) showed resilience. However, North America declined 2.3% and continental Europe saw a contraction of 1.5%.
This story is from the January 10, 2025 edition of Financial Express Mumbai.
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This story is from the January 10, 2025 edition of Financial Express Mumbai.
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