BENGALURU: The country's largest IT services company Tata Consultancy Services (TCS) on Thursday reported a 12% increase in its net profit at Rs 12,380 crore for the third quarter ended December 2024 compared to Rs 11,058 crore in the same quarter last year.
However, excluding the settlement of the legal claim, its y-o-y net income growth stood at 5.5%. According to its filings with the BSE , the legal claim settlement stood at Rs 958 crore. The company's net margin for the third quarter was at 19.4%.
Its revenue for the quarter ended December 2024 was at Rs 63,973 crore, up 5.6% y-o-y. The company's operating margin was at 24.5%, a decline of 50 bps y-o-y excluding the settlement of the legal claim. The company also announced Rs 76 dividend per share (including Rs 66 as a special dividend). The record date for the dividend is January 7, and the payment date will be February 3.
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," he added.
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.”
Its total contract value (TCV) stood at USD 10.2 billion, Book to a Bill ratio of 1.4. During the third quarter, the company promoted over 25,000 employees and with this the total promotion this financial year stood at over 1,10,000.
Milind Lakkad, Chief HR Officer, said that the company continues 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 added.
As of December 31, 2024, the company's total employees stood at 6,07,354 and attrition rate at 13%.