TCS Q3 Results Highlights: Net profit rises 11.95% YoY to ₹12,380 crore, dividend announced

• Revenue at ₹63,973 crore, a growth of 5.59% YoY, decline of 0.4% QoQ
• Net profit at ₹12,380 crore, a growth of 11.95% YoY and 3.95% QoQ
• Dividend per share of ₹76, including ₹66 as special dividend. The record date is January 17. The payment date is February 3.
• Net cash from operations at ₹13,032 crore i.e. 105.3% of net income
• Workforce strength of 607,354 | LTM IT Services attrition rate at 13%

As on December 31, 2024, the company had applied for 8,549 patents, including 195 applied during the quarter and been granted 4,585 patents including 216 during the quarter.

• Partnered with Landis+Gyr to integrate our award-winning enterprise-level energy and emission management system TCS Clever EnergyTM with their advanced smart metering and grid management technologies, creating a comprehensive energy management solution for utilities.
• Extended partnership with Telenor Denmark (TnDK), the second largest mobile operator in the Danish market, to provide ITIS managed services, handling TnDK’s IT infrastructure from its delivery centre in Europe over the next five years, to deliver significant operational cost reductions and improved IT infrastructure.
• Selected by Bank of Bhutan to modernise the bank’s digital core for enhanced customer service.
• Signed a multi-year deal to help Air France-KLM, to become the most data-centric airline group in the world.
• Extended contract with SPARSH, to continue to streamline and enhance pension services for 30 Lakh Plus defence pensioners in India.
• Extended contract with SPARSH, to continue to streamline and enhance pension services for 30 Lakh Plus defence pensioners in India.
• Secured a 15-year contract with Ireland’s Department of Social Protection (DSP) to implement and support the country’s new Auto Enrolment Retirement Savings Scheme, known as the "My Future Fund."
• Selected by Canada’s largest worker compensation board, Workplace Safety and Insurance Board (WSIB), as a strategic partner to transform the enterprise quality assurance landscape.
• Selected by Postnord Group AB, postal and logistics services company in Nordics as their strategic partner to transform their operating model.
• Entered a multi-year deal with a leading US life and annuities provider to transform their business operations with TCS’ AI-powered solutions and industry-proven operational efficiency levers.
• Selected by global appliances manufacturer for end-to-end managed services for Applications, Infrastructure, and Cyber Security services globally.
• Chorley Building Society has partnered with TCS to transform its core banking and front-end digital platform.
• TCS has been chosen by a leading Malaysian telecommunications provider to transform their wireline Enterprise and Wholesale Business Support Systems (BSS) to support their strategic business growth objectives.
• A US-based telecom major has entered a 5-year strategic relationship with TCS to provide managed services for specific solutions.
• Selected by a large UK-based investment platform provider to enhance and manage their digital platform for advisors and customers.
• A leading provider of hospitality services has entrusted TCS to manage their entire business applications portfolio across all operating countries.
• Selected by a leading American grocery retailer to transform their Demand Planning & Replenishment operations.
• Selected as the exclusive strategic growth & transformation partner to help a leading Canadian retail corporation and subsidiary of a U.S. based multinational retail conglomerate on their growth and transformation journey.
• TCS extended the strategic partnership with a leading global industrial manufacturing and technology company to provide Enterprise Application Support services.
• Selected by global leader in flavors, fragrances, food ingredients company to work on a oneof-its-kind initiative to determine the Protein Yield and molecular discovery for fragrances and flavors using Nvidia’s BioNeMo framework.
• Selected by a leading European airline group, as their strategic innovation partner to deliver tailored AI solutions.

K Krithivasan, Chief Executive Officer and Managing Director, said, "We are pleased with the excellent TCV performance in Q3 which was well-rounded across industries, geographies and service lines lending good visibility to long-term growth. BFSI and CBG returning to growth, continued stellar run of Regional Markets and early signs of revival in discretionary spend in some verticals give us confidence for the future. Our continuing investments in upskilling, AI/Gen AI Innovations and partnerships sets us up to capture the promising opportunities ahead."

Samir Seksaria, Chief Financial Officer, said, "In a quarter that saw significant cross-currency volatility, TCS’s strong execution, cost management and deft currency risk management helped deliver healthy margin improvement and free cash flows. Disciplined investments in talent and infrastructure should lend good support to long-term business growth."

Milind Lakkad, Chief HR Officer, said, "We promoted over 25,000 associates this quarter which brought the total promotions this financial year to more than 110,000. We continue to invest in employee upskilling and overall well-being. Our campus hiring for the year is going according to plan and preparations are afoot to onboard a higher number of campus hires next year."

The entities are wholly owned subsidiaries of Tata Realty and Infrastructure Limited (TRIL) and TRIL being a wholly-owned subsidiary of the promoter company is a related party of the company.

The Board of Directors of TCS have declared a third interim dividend of ₹10 and a special dividend of ₹66 per equity share of ₹1 each of the company.

"The third interim dividend and the special dividend shall be paid on Monday, February 3, 2025, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Friday, January 17, 2025, which is the Record Date fixed for the purpose," TCS said in an exchange filing.

• Traded volume: 18.48 lakh
• Traded value: ₹754.33 crore
• Total market cap: ₹14,64,583.74 crore
• Free float m-cap: ₹4,13,013.96 crore

• Issue price: ₹4,055 (-1.30%)
• Previous close: ₹4,108.40
• Open: ₹4,101
• High: ₹4,137.75
• Low: ₹4,029.50

• Artificial intelligence
• Cybersecurity
• Cloud
• Network solutions and services
• Cognitive business operations
• Data and analytics
• IoT and digital engineering
• Enterprise solutions
• TCS Interactive
• Consulting
• Sustainability services

• Revenue growth and margins
• Deals pipeline
• Management commentary
• Attrition and hiring
• Client acquisitions

In the second quarter of FY24, TCS' revenue stood at ₹64,259 crore, reflecting a 7.6% growth year-on-year (YoY) and a 2.6% rise quarter-on-quarter (QoQ).

The net profit was reported at ₹11,909 crore, growing 4.9% YoY and declining 1% QoQ.

• Traded volume: 10.12 lakh
• Traded value: ₹415.37 crore
• Total market cap: ₹14,75,691.27 crore
• Free float m-cap: ₹4,16,428.02 crore

• Issue price: ₹4,082.2 (-0.62%)
• Previous close: ₹4,108.40
• Open: ₹4,101
• High: ₹4,137.75
• Low: ₹4,076.45

• N Chandrasekaran, Chairman (Non-Independent, Non-Executive)
• Aarthi Subramanian, Non-Executive Director
• Dr Pradeep Kumar Khosla, Director (Independent, Non-Executive)
• Al-Noor Ramji, Director (Independent, Non-Executive)
• Keki Mistry, Director (Independent, Non-Executive)
• Hanne Sorensen, Director (Independent, Non-Executive)
• K Krithivasan, Chief Executive Officer and Managing Director

In an exchange filing, the company said, "Tata Consultancy Services Limited has informed the Exchange about Board Meeting to be held on 09-Jan-2025 to consider and approve the quarterly audited financial results of the company for the period ended December 2024 and dividend."

TCS Q3 results preview

According to experts, the company's revenue is likely to be flat in the range of ₹64,150 to ₹64,250 crore. Revenue could take a hit because of higher furloughs during the year-ned - Christman and New Year, along with subdued momentum in new deal wins.

However, India's largest IT services provider may post a 3%- 4% jump in net profit sequentially between ₹12,280 and ₹12,350 crore.