Fri Oct 11 16:06:48 UTC 2024: ## TCS Reports Mixed Q2 Results: BFSI Shows Signs of Recovery, But Concerns Remain

**Mumbai, India – October 10, 2024:** Tata Consultancy Services (TCS), India’s largest IT services company, reported mixed results for the second quarter of fiscal year 2025, with revenue in line with expectations but other key metrics lagging behind.

While the company witnessed a 2.2% growth in dollar revenue, reaching $7,670 million, net profit dipped by 1.1% to ₹11,909 crore compared to the previous quarter. EBIT margin also took a hit, declining to 24.1% from 24.7% in the preceding quarter.

Analysts attribute the weaker performance to a shift in revenue mix towards the lower-margin BSNL contract, which contributed to the decline in profitability.

However, TCS management expressed optimism about a potential bottoming out of the slowdown in the IT sector, citing signs of recovery in the Banking, Financial Services and Insurance (BFSI) vertical, particularly in North America. They highlighted the strong performance in growth markets and a positive surprise in BFSI recovery.

Despite the positive developments in BFSI, the demand outlook remains cautious. The company is yet to see significant wins in large transformation deals in this vertical and the management cautioned against premature celebrations.

TCS CEO K Krithivasan emphasized the company’s focus on sharpening its value proposition to clients, employees, and other stakeholders amidst an uncertain geopolitical landscape.

The company announced a second interim dividend of ₹10 per equity share, payable on November 5, 2024, to shareholders whose names appear on the register as of October 18, 2024.

Despite the mixed performance, TCS remains confident in its ability to deliver industry-leading profitable growth. The company continues to invest in talent and infrastructure to ensure sustainable growth and has commenced campus hiring for FY26.

Analysts remain optimistic about the future, anticipating a better performance in FY25 compared to FY24, although concerns remain about the sustainability of growth momentum.

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