Tata Consultancy Services begins fiscal year 2025 with strong growth across all sectors

Tata Consultancy Services (TCS) has announced an impressive start to fiscal year 2025, marking significant financial and operational growth. The company reported revenue of USD 7.51 billion, reflecting a year-over-year increase of 3.9% and a 4.4% rise in constant currency terms. The operating margin reached 24.7%, expanding by 1.5% over the previous year, while net income rose to USD 1.44 billion, an increase of 8.7%, achieving a net margin of 19.2%. Cash flow from operations was notably efficient, amounting to USD 1.34 billion, which represents 92.8% of the net income.

The workforce at TCS has grown to 606,998 employees, bolstered by a net addition of 5,452 staff. The company has maintained a diverse and inclusive work environment, with women representing 35.5% of the workforce across 151 nationalities. The attrition rate has been reduced to 12.1% over the last twelve months. In line with its financial health, TCS declared a dividend of ₹10.00 per share, with a record date set for July 20, 2024, and payment due on August 5, 2024.

The company witnessed significant growth in various sectors, with manufacturing leading at a 9.4% year-over-year growth, followed by energy, resources, and utilities at 5.7%, and life sciences and healthcare at 4.0%. Emerging markets, especially India, showed very strong double-digit growth, with an impressive increase of 61.8% year-over-year.

K Krithivasan, the CEO and Managing Director, expressed his satisfaction with the all-round growth, noting the expansion of client relationships and the company’s investments in new capabilities in emerging technologies. TCS has made strategic investments including a new AI-focused TCS PacePort™ in France, an IoT lab in the US, and expanding delivery centers across Latin America, Canada, and Europe. Samir Seksaria, CFO, highlighted the strong operating margin performance despite the impact of annual wage increments, reflecting the company’s commitment to operational excellence. Milind Lakkad, Chief HR Officer, also remarked on the success of the company’s focus on employee engagement and development, which has led to industry-leading retention and strong business performance.

TCS’s robust start to FY2025 sets a positive tone for the year, underscoring its ability to adapt to dynamic market conditions and maintain its leadership in the global IT landscape. The company remains focused on delivering long-term value to its stakeholders through strategic investments in technology and global expansion.