TCS Q3 net profit grows 5.5% to ₹12,380 crore, board approves dividend of ₹76 per share

Tata Consultancy Services Ltd. (TCS) consolidated net profit for the third-quarter ended December 31 grew 5.5% to ₹12,380 crore as macro factors of the second quarter and headwinds continued during the quarter under review, chief executive officer and managing director K. Krithivasan said.

The company’s net margin was at 19.4%. Total contract value (TCV) stood at $10.2 billion.

Revenue for the period at ₹63,973 crore, grew 5.6% Year on Year (YoY), and 4.5% YoY in constant currency. Operating margin at 24.5% declined 50 bps YoY.

The company’s board has declared a dividend of ₹76 per share including ₹66 as special dividend and the record date has been fixed on January 17. Payment will be made on February 3. The total dividend payout is estimated at ₹27,493 crore. Tata Sons holds 71.9% in TCS.

Briefing reporters, Mr. Krithivasan said, “We are pleased with the excellent Total Contract Value (TCV) performance in Q3 which was well-rounded across industries, geographies and service lines lending good visibility to long-term growth.”

“Banking, Financial Services & Insurance (BFSI) and Consumer Business Group (CBG) [verticals] 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. We are confident of a better 2025,” he said.

He said the company’s continuing investments in upskilling, AI/Gen AI Innovations and partnerships will help to capture the promising opportunities ahead. The company has also developed solutions for responsible use of AI by its clients, Mr Krithivasan said adding that the change of guard at US Presidency will unlikely to have any impact on the company.

Samir Seksaria, Chief Financial Officer, TCS 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.”

According to Milind Lakkad, Chief HR Officer the company promoted over 25,000 associates during quarter which brought the total promotions this financial year to more than 1,10,000.

“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,” he said adding that the 13% attrition rate was matter of no concern.

The company’s growth was led by CBG which grew by 1.1%, Energy Resources & Utilities which grew by 3.4% and regional markets like India which outperformed and grew by 40.9% during the quarter.

India continued to lead the growth markets with a growth of 70.2%, Middle east & Africa which grew 15%, Latin America up 7% and Asia Pacific grew by 5.8%.