IT bellwether Tata Consultancy Services reported a net profit of Rs 12,224 crore in Q4 FY25, a drop of 1.6% year-on-year, compared to Rs 12,434 crore in Q4 FY24, missing street consensus. TCS CEO K Krithivasan stated that the IT company’s order book might have been stronger if global uncertainties—stemming from tariffs imposed by US President Donald Trump—had not continued. He emphasized that North America remains a key market for the company.
The company’s revenue rose 5.3% to Rs 64,479 crore in the fourth quarter of FY25 as against Rs 61,237 crore in the same quarter of the last financial year. The revenue growth was led by a strong total contract value (TCV) in the quarter. Its TCV deals for the quarter stood at $12.2 billion and $39.4 billion in FY25.
However, the company’s net profit in FY25 grew by 5.76% to Rs 48,553 crore from Rs 45,908 in FY24.
TCS’ chief financial offices Samir Seksaria said, “We delivered robust profitability and cash flows this quarter in a very challenging environment without compromising on the right investments in our people, innovation and infrastructure for long-term value creation.”
Talking about its operating profit, the company’s EBIT (earnings before interest tax) stood at Rs 15,601 crore.
“In FY25, our disciplined execution and operational rigour stood out again, as we defended our industry-leading margins while continuing with our investments in talent and capability building,” added Seksaria.
TCS Q4 FY25: Regional markets led the growth
The business growth was led by regional markets (22.5%), ERU (4.6%), and BFSI (2.5%). According to the tech giant, the growth was led by three segments: Internet of Things & Digital Engineering, Enterprise Solutions, and AI.Cloud.
TCS’s attrition rate in Q4 FY25
Tata Consultancy Services’ attrition rate stands at 13.3% for the last twelve months in Q4 FY25. However, the IT giant’s headcount has risen by 6,433 in Q4 FY25 standing at 607,979. In Q4 FY24, the company’s total headcount stood at 601,546. It added 625 people compared to a quarter ago at 607,354.
TCS announces dividend of Rs 30
Also, the company has announced a final dividend of Rs 30 per equity share for a face value of Rs 1 each. It will be paid out on the fifth day from the conclusion of the annual general meeting. “Further, we would like to inform you that at the Board Meeting held today, the Directors have recommended a Final Dividend of INR 30 per Equity Share of INR 1 each of the Company which shall be paid/dispatched on the fifth day from the conclusion of the 30th Annual General Meeting, subject to the approval of the shareholders of the Company,” said TCS in an exchange release.
TCS Change in management
The company has appointed Aarthi Subramanian as the President and Chief Operating Officer. She will become Executive Director on the Board of TCS with effect from May 01, 2025. She is the Group Chief Digital Officer at Tata Sons and has been on the TCS Board as a Non-Executive Member.
Also, the company has appointed Mangesh Sathe as Chief Strategy Officer. He was the Chief Executive Officer of Tata Strategic Management Group (TSMG) at Tata Sons. Mangesh will also head the Global Consulting Practice and oversee the M&A functions at TCS.