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TCS reported revenue of ₹63,973 crore, which is a decline of 0.4% in comparison to the September quarter. A CNBC-TV18 poll had projected the revenue in rupee terms to grow by 0.2% to ₹64,333 crore.
In US Dollar terms, TCS reported revenue of $7,539 million, which is marginally below the CNBC-TV18 poll of $7,626 million. On a sequential basis, TCS’ US Dollar revenue fell 1.7%, while a CNBC-TV18 poll had projected a 0.6% drop.
In constant currency terms, TCS’s growth was flat on a sequential basis, which is lower than the June quarter, as well as the same quarter of last year due to furloughs and a lower contribution from the BSNL deal. A CNBC-TV18 poll had projected the growth in constant currency terms to be 0.2%.
The BSNL deal will begin ramping down from March 2025 and a significant revenue drawdown will be seen from the June 2025 quarter.
Net profit for the quarter increased by 4% from the September quarter to ₹12,380 crore. A CNBC-TV18 poll had pegged the figure at ₹12,362 crore.
For the December quarter, TCS reported EBIT of ₹15,477 crore, which is marginally below expectations of ₹15,759 crore.
EBIT margin for the quarter stood at 24.5%, compared to 24.1% in the last quarter. A CNBC-TV18 poll had pegged the figure at 24.5%.
“I am little positively surprised with the slight inch up in the attrition number because in this industry, if attrition goes below 11% then it also is a sign of lack of demand. So fortunately, that has gone up a little bit. While after 15-16% it starts hurting the margin, but at 13-14% it is also a sign of recovering demand. Secondly, the deal win numbers are good. I would say the street will not be disappointed with this,” Sandip Agarwal of Sowilo Investment Managers told CNBC-TV18.
TCS won deals worth $10.2 billion during the quarter, which was higher than the $8.6 billion in the September quarter and also higher than the $8.1 billion it won during the same quarter last year.
This is also the first instance in three quarters that the company has crossed $10 billion in total deal wins.
“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,” TCS CEO K Krithivasan said.
TCS announced a dividend of ₹76 per share for its shareholders. Out of this, ₹10 is the third interim dividend for financial year 2025, and ₹66 per share is a special dividend.
“My sense is we have to probably wait a little bit for the management commentary. I think basically the earnings have gone up led by margin. One thing which is positive is the two dividends. One is interim dividend, one is a special one. They did it last year as well. Last two years, they’ve been paying almost four to five times along with a buyback. So I think the price action could be very muted, considering what the numbers are, because the stock has fallen from ₹4,400-4,500 levels to ₹4,000. But considering it’s a seasonally weak quarter, I would say it’s neutral to maybe a mild miss,” Gurmeet Chadha of Complete Circle Capital said.
Shares of TCS ended 1.5% lower on Thursday at ₹4,044. The stock has been an underperformer compared to its peer Infosys over the last 12 months. In fact, TCS is now trading at a discount to Infosys in terms of price-to-earnings multiples.