Tata Consultancy Services (TCS), a leader in the IT sector, recently unveiled its financial results for the fourth quarter of the fiscal year 2025 (Q4FY25) on April 10. The company’s performance highlights a nuanced picture with a slight dip in profit, a notable rise in operational revenue, and the announcement of a final dividend for the previous financial year. TCS has proudly crossed the $30 billion revenue threshold, bolstered by a robust backlog of orders that signals its enduring strength in the evolving market landscape.
CEO’s Insights on TCS Performance
K. Krithivasan, the Chief Executive Officer and Managing Director of TCS, expressed enthusiasm about the company’s financial achievements, stating, “Reaching $30 billion in annual revenues is a significant milestone for us. Our solid order book for the second quarter in a row underscores our resilience.” He further emphasized TCS’s capabilities in artificial intelligence (AI) and digital transformation, which enable the company to support clients amidst global economic challenges.
Key Highlights from TCS’s Q4 FY25 Results
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Profit and Revenue Overview
TCS reported a consolidated profit after tax (PAT) of ₹12,224 crore for Q4FY25. This figure reflects a 1.7% decrease compared to ₹12,434 crore from the same quarter last year. The company’s consolidated revenue from operations reached ₹64,479 crore, marking a year-on-year increase of 5.3%. In constant currency terms, revenue grew by 2.5%. TCS’s operating margin for this quarter was 24.2%, and the net margin stood at 19%. For the entire fiscal year, TCS’s revenue surged by 6% YoY, amounting to ₹2,55,324 crore. -
Growth Across Segments
Among various segments, the ‘regional markets and others’ category led the growth with a 22.5% increase YoY in constant currency. The ‘energy, resources, and utilities’ segment followed with a 4.6% growth, while the BFSI (banking, financial services, and insurance) sector grew 2.5% YoY. However, the ‘communication and media’ segment saw a decline of 9.8%, along with the ‘life sciences and healthcare’ sector, which fell by 5.6%. -
Regional Market Performance
Geographically, TCS experienced growth in nearly all markets, with the exception of North America, which reported a 1.9% decrease. The Indian market saw remarkable growth of 33%, while the Middle East and Africa (MEA) region followed closely with a 13.2% increase. Other regions also showed positive results, with Asia Pacific growing by 6.4% and Latin America by 4.3%. -
Workforce Dynamics
As of March 31, TCS employed 607,979 individuals, with women constituting 35.2% of the workforce and representing 152 nationalities. The attrition rate for IT services was recorded at 13.3% over the past year. Milind Lakkad, Chief HR Officer, noted, “In FY25, we onboarded 42,000 trainees as planned, earning the Enterprise-Wide Top Employer Certification from the Top Employers Institute—an achievement that reflects our commitment to employee growth and engagement.” -
Dividend Declaration
The company announced a proposed final dividend of ₹30 per share, pending approval at the upcoming annual general meeting. - Contract Wins and Partnerships
TCS achieved a strong total contract value (TCV) of $39.4 billion for FY25, with $12.2 billion in Q4 alone. Noteworthy deals include a strategic alliance with Google Cloud to boost its AI offerings in the communications sector, and initiatives for modernizing the depository systems in Oman as well as the core banking ecosystem for The Cumberland Building Society in the UK.
TCS’s latest results not only highlight the company’s financial robustness but also showcase its strategic expansions and commitment to innovation in the technology landscape. This reinforces TCS’s position as a key player in the IT industry, ready to navigate future challenges effectively.
