TCS Q3 results: Profit grows 12% to ₹12,380 cr, declares special dividend of ₹66

IT bellwether Tata Consultancy Services (TCS) has reported better-than-expected earnings for the third quarter ended December 31, 2024, and also announced special dividend of ₹66 per equity share of ₹1 each. Ahead of Q3 numbers, shares of TCS closed 1.71% lower at ₹4,036.65, with a market capitalisation of ₹14.60 lakh crore on the BSE.

The Tata Group company reported consolidated net profit of ₹12,380 crore in Q3 FY25, a growth of 12% as compared to ₹11,058 crore in the year-ago period, it said in an exchange filing today.

The company's revenue rose 5.6% to ₹63,973 crore in Q3 FY25, driven by consumer business group (1.1%), energy, resources and utilities (3.4%), and regional markets (40.9%).

Region-wise, India market continues to lead with 70.2% growth, followed by Middle East & Africa (15.0%), Latin America (+7.0%), and Asia Pacific (+5.8%).

As of December 31, 2024, TCS’ workforce strength stood at 607,354, with 35.3% women and with 152 nationalities. The IT services attrition rate stood at 13%.

Milind Lakkad, Chief HR Officer, said the company 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.”

During the quarter under review, TCS signed $10.2 billion total contract values (TCVs), with book to bill ratio of 1.4.

“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,” says K Krithivasan, Chief Executive Officer and Managing Director.

“Our continuing investments in upskilling, AI/Gen AI Innovations and partnerships sets us up to capture the promising opportunities ahead,” Krithivasan adds.

The board of the company also declared a third interim dividend of ₹10 and a special dividend of ₹66 per equity share of ₹1 each. The third interim dividend and the special dividend shall be paid on February 3, 2025, while the record date for determining name of eligible shareholders is January 17, 2025.