Fri Jan 10 05:44:46 UTC 2025: ## TCS Shares Surge After Strong Q3 Earnings, Despite Margin Dip

**Mumbai, January 10, 2025** – Tata Consultancy Services (TCS) saw its share price jump over 4% in early trading today following the release of its strong Q3 earnings report and dividend announcement. The IT giant reported a 12% year-on-year increase in consolidated net profit, reaching ₹12,380 crore, compared to ₹11,058 crore in the same period last year. Consolidated revenue climbed 5.6% year-on-year to ₹63,973 crore (4.5% in constant currency).

While the operating margin dipped slightly to 24.5% (down 50 basis points year-on-year), it showed a 40 basis point quarter-on-quarter improvement. This slightly missed analyst expectations, though analysts at Jefferies India noted the results were largely in line with their estimates. They expressed optimism about early signs of a rebound in discretionary spending, particularly in North America’s BFSI sector, and a healthy order book. The potential for improved margins following the wind-down of the BSNL deal was also highlighted.

Jefferies maintained its earnings estimates, projecting 9% earnings per share growth (CAGR) over FY25-27, and deemed the current valuation attractive despite near-term headwinds.

Sagar Shetty of StoxBox noted that while the results showed a decent year-on-year increase, they marginally missed market expectations. The company’s aspirational margin range of 26-28% also remains elusive. However, a significant total contract value (TCV) of $10.2 billion (up 26% year-on-year) indicates strong future revenue visibility.

Positive sentiment was also echoed by other analysts. Anshul Jain of Lakshmishree Investment and Securities highlighted TCS’s focus on attrition and margin optimization, indicating sustained long-term growth. Mahesh M Ojha of Hensex Securities suggested a strong technical outlook, advising shareholders to hold, with short-term targets of ₹4,150 and ₹4,250, and recommending a buy for new investors with a stop-loss at ₹3,980.

TCS declared a total dividend of ₹76 per share, comprising a third interim dividend of ₹10 and a special dividend of ₹66. The record date is January 17, 2025, with payment on February 3, 2025.

**Disclaimer:** This article summarizes analyst opinions and does not constitute financial advice. Consult a financial professional before making investment decisions.

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