Tata Consultancy Services (TCS) reported a net profit of ₹11,909 crore for the second quarter of the financial year 2024-25, up 5 per cent compared to ₹11,342 crore in the same quarter of FY24. Net profit declining by 1.1 per cent quarter-on-quarter compared to ₹12,040 crore in the first quarter.
Revenue for the company grew 7.6 per cent to ₹64,259 crore for Q2 FY25. Sequentially, the firm’s revenue grew 2.62 per cent.
K Krithivasan, Chief Executive Officer and Managing Director, TCS, said: “We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI showed signs of recovery. We also saw a strong performance in our growth markets. We stay focused on sharpening our value proposition to our clients, employees and other stakeholders”.
The company’s operating margin at 24.1 per cent was down 0.2 per cent year-on-year. During the quarter, the company added 5,762 people. For the first half of the financial year, TCS has onboarded 11,000 employees. Attrition for the quarter marginally rose to 12.3 percent, from the previous quarter’s 12.1 percent
On Campus hiring
Milind Lakkad, Chief Human Resources Officer, TCS, said: “We welcomed 11,000 associates in the first half of the year, and we remain on track for trainee onboarding as planned. We have also commenced the campus hiring process for FY26. Our strong talent base and increased learning intensity prepares us well for the complex technology transformations that customers entrust us with”.
The order book total contract value (TCV) was marginally up at $8.6 billion in Q2 FY25. In Q1, the TCV was $8.3 billion. Samir Seksaria, Chief Financial Officer, said: “We made strategic investments this quarter in talent and infrastructure to ensure sustainable growth. Our disciplined execution resulted in superior cash conversion. Our longer-term cost structures remain unchanged, and we remain confident in our ability to continue delivering industry leading profitable growth”.
Analysts were disappointed with the performance. Sanjeev Hota, Head of Research, Sharekhan by BNP Paribas, said, “TCS reported weak set of numbers with miss on both revenues and margins, though revenues miss was tad below our estimates, margins performance surprised us negatively.”
TCS has announced an interim dividend of ₹10 per share