Tata Consultancy Services Ltd's Q3FY25 Quarter Results
- 1d ago
Result Summary
- Tata Consultancy Services Ltd reported a 0.4% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 6.1%.
- Its expenses for the quarter were down by 0.8% QoQ and up 6.3% YoY.
- The net profit increased 4.0% QoQ and increased 12.0% YoY.
- The earnings per share (EPS) of Tata Consultancy Services Ltd stood at 34.2 during Q3FY25.
Financial Statments for Q2FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 65216.00 | 64988.00 | 61445.00 | 0.4% | 6.1% |
Total Expenses | 48550.00 | 48956.00 | 45658.00 | -0.8% | 6.3% |
Profit Before Tax | 16666.00 | 16032.00 | 15787.00 | 4.0% | 5.6% |
Tax | 4222.00 | 4077.00 | 3732.00 | 3.6% | 13.1% |
Profit After Tax | 12380.00 | 11909.00 | 11058.00 | 4.0% | 12.0% |
Earnings Per Share | 34.20 | 32.90 | 30.30 | 4.0% | 12.9% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Tata Consultancy Services Limited (TCS) is a leading global IT services, consulting, and business solutions organization. As part of the Tata Group, one of India's largest industrial conglomerates, TCS has over four decades of experience in managing the systems and workings of global enterprises. The company offers a range of IT services, outsourcing, and business solutions. There have been no major developments or changes at TCS that would significantly impact the analysis of this quarter's financial performance.
Revenue
The total income for Tata Consultancy Services Ltd in Q3FY25 was ₹65216.00 crores, which represents a quarter-over-quarter (QoQ) growth of 0.4% from Q2FY25 where the total income was ₹ 64988.00 crores. On a year-over-year (YoY) basis, the total income for Q3FY25 shows an increase of 6.1% when compared to the same quarter of the previous year Q3FY24 where the total income was ₹61445.00 crores. This indicates a consistent growth in the company's revenue both on a quarterly as well as annual basis.
Profitability
The profitability of TCS is captured by examining the company's profit before and after tax. In Q3FY25, the profit before tax was ₹16666.00 crores, which is a QoQ increase of 4.0% from Q2FY25 where the profit before tax was ₹16032.00 crores. On a YoY basis, the profit before tax for Q3FY25 shows an increase of 5.6% when compared to Q3FY24 where the profit before tax was ₹15787.00 crores.
The profit after tax for Q3FY25 was ₹12380.00 crores, a QoQ increase of 4.0% from Q2FY25 where it was ₹11909.00 crores. Comparing YoY, the profit after tax for Q3FY25 shows an increase of 12.0% from Q3FY24 where it was ₹11058.00 crores. This demonstrates a steady, positive profitability trend for TCS.
Operating Metrics
In terms of operating metrics, the total expenses for Q3FY25 were ₹48550.00 crores, which represents a QoQ decrease of -0.8% from Q2FY25 where the total expenses were ₹48956.00 crores. On a YoY basis, the total expenses for Q3FY25 shows an increase of 6.3% when compared to Q3FY24 where the total expenses were ₹45658.00 crores.
The Earnings Per Share (EPS) is another crucial operating metric. In Q3FY25, the EPS was ₹34.20, indicating a QoQ increase of 4.0% from Q2FY25 where it was ₹32.90. On a YoY basis, the EPS for Q3FY25 grew by 12.9% from Q3FY24 where it was ₹30.30.
Margins
The tax expenses for Q3FY25 were ₹4222.00 crores, which represents a QoQ increase of 3.6% from Q2FY25 where the tax was ₹4077.00 crores. On a YoY basis, the tax for Q3FY25 shows an increase of 13.1% when compared to Q3FY24 where the tax was ₹3732.00 crores. This indicates a consistent growth in the company's tax expenses both on a quarterly as well as annual basis. It's important to consider these figures when assessing the company's net profit margins.
