Fri Jan 10 07:51:00 UTC 2025: ## TCS Q3 Results Exceed Expectations Despite Flat Revenue Growth

**MUMBAI** – Tata Consultancy Services (TCS) announced strong third-quarter results, exceeding expectations in several key areas despite flat sequential revenue growth. While revenue growth in constant currency terms was flat, falling short of analyst predictions, the company reported record deal wins of $10.2 billion, significantly higher than the anticipated $7-9 billion. This surge in deal wins, achieved without any mega-deals, indicates improved decision-making and shorter deal cycles, according to the company.

The robust deal wins partially offset concerns regarding weak Total Contract Value (TCV) in the previous two quarters. Management expressed optimism about a revival in discretionary spending, particularly in developed markets, forecasting higher growth in 2025 than in 2024. The company also declared an interim and special dividend of Rs 76 per share.

Margin expansion reached 40 basis points quarter-on-quarter, aligning with analyst estimates. Although the BSNL deal, currently 70% complete, poses a near-term risk, TCS expects to mitigate its revenue impact.

Despite the flat revenue numbers, analysts remain bullish, citing the impressive deal wins as a positive indicator of future growth. Several brokerage firms, including Nuvama Institutional Equities and Motilal Oswal Financial Services (MOFSL), maintained ‘Buy’ ratings on TCS stock, with target prices ranging from Rs 5,000 to Rs 5,200. They highlighted the potential for a recovery in discretionary client spending and the positive impact of a strong US economy. The broadening of tech spending recovery beyond the Banking, Financial Services, and Insurance (BFSI) sector to other verticals like Hi-tech and Retail was also seen as encouraging.

While some analysts noted that the revenue growth missed their modest estimates, the overall sentiment remains positive, fueled by the significant jump in deal wins and the optimistic outlook for 2025.

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