Tata Consultancy Services (TCS), a global leader in IT services, consulting, and business solutions, announced its consolidated financial results for the quarter ending June 30, 2024. The company reported a revenue of US$7.51 billion, marking a growth of 3.9% year-over-year (YoY) and 4.4% in constant currency terms.

Key Financial Indicators

– Operating Margin: TCS achieved an operating margin of 24.7%, an expansion of 1.5% YoY.

– Net Income: The net income stood at US$1.44 billion, an increase of 8.7% YoY, with a net margin of 19.2%.

– Cash Flow: Net cash from operations was US$1.34 billion, representing 92.8% of net income.

– Dividend: The company declared a dividend of ₹10.00 per share, with a record date of July 20, 2024, and a payment date of August 5, 2024.

Operational and Strategic Developments

Under the leadership of CEO K Krithivasan, TCS has continued to expand client relationships and invest in emerging technologies. New developments include:

– A new AI-focused TCS PacePort™ in France.

– An IoT lab in the US.

– Expansion of delivery centers across Latin America, Canada, and Europe.

Chief Financial Officer, Samir Seksaria, highlighted the company’s strong operating margin performance despite the impact of annual wage increments, underscoring TCS’s operational excellence and strategic investments in research and innovation.

HR and Community Engagement

Milind Lakkad, Chief HR Officer, noted the successful completion of the annual increment process, which contributed to industry-leading retention rates and strong business performance. The company reported a net headcount addition of 5,452, with the workforce strength reaching 606,998. Women make up 35.5% of the workforce, representing 151 nationalities.

Business and Service Highlights

TCS has seen significant growth in several key areas:

– AI.Cloud: Continued momentum with over 270 AI/GenAI engagements.

– Cyber Security: Expansion in services like network security and identity management.

– Enterprise Solutions: Ongoing investments in digital core ERP modernization and GenAI applications.

– IoT & Digital Engineering: Demand for IoT-led transformations and smart manufacturing solutions.

Awards and Recognitions

TCS’s innovative efforts have been recognized globally, receiving multiple awards from partners like Google and Microsoft at their flagship events. Additionally, the company’s interactive services ranked among the top in the industry, with significant recognition at the POSSIBLE and Cannes Lions events.

Community and Industry Contributions

TCS is committed to supporting the communities where it operates. This includes setting up a global AI Center of Excellence in Paris and engaging in partnerships that align with the Government of India’s National Quantum Mission.

Market and Industry Impact

With strong double-digit growth in emerging markets led by India (61.8% YoY), TCS continues to demonstrate robust performance across all major verticals, with notable growth in manufacturing, energy, resources, utilities, and life sciences & healthcare.

TCS starts the fiscal year 2025 on a strong note, showcasing broad-based growth and strategic investments that are poised to maintain its leadership position in the global IT landscape. The company remains focused on delivering long-term value to its stakeholders while adapting to dynamic market conditions and continuing to innovate in key technological domains.

  AI and IoT, Cyber Security Solutions, Enterprise Solutions, Financial Performance, Q1 FY2025, Tata Consultancy Services, TCS Earnings, technology innovation