Fri Jan 10 12:00:24 UTC 2025: **TCS Beats Profit Estimates Despite Revenue Miss; Declares Dividend**

**Mumbai, India** – Tata Consultancy Services (TCS), India’s largest IT firm, reported a consolidated net profit of Rs 12,380 crore (approximately $1.5 billion USD) for the quarter ending December 31, 2024, exceeding analyst expectations. However, revenue growth fell slightly short of projections, coming in at Rs 63,973 crore (approximately $7.7 billion USD), a 6% year-on-year increase. This represents a marginal miss compared to analyst estimates of Rs 64,218 crore.

The company’s operating margin improved to 24.5%, up 40 basis points sequentially, boosted by favorable currency exchange rates. TCS also announced a third interim dividend of Rs 10 and a special dividend of Rs 66 per share.

Despite the revenue shortfall, which analysts attributed to the seasonally weak third quarter and holiday season slowdown, CEO and MD K Krithivasan expressed confidence in future growth, citing strong performance across various sectors and geographies, and significant investments in AI and upskilling initiatives. The company’s total order book reached a record high of $10.2 billion, a 26% year-on-year increase.

CFO Samir Seksaria highlighted TCS’s strong execution and cost management as key factors in delivering healthy margins and free cash flow. The company also promoted over 25,000 employees during the quarter.

TCS shares fell slightly ahead of the results announcement, closing at Rs 4,046 apiece on the BSE. The company’s results mark the start of the Indian IT sector’s Q3 earnings season, with peers HCLTech, Wipro, and Infosys expected to report their results next week.

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