In a testament to its resilience, Tata Consultancy Services (TCS), India’s IT behemoth, has posted impressive numbers for the second quarter of FY 2024-25. The company reported a net profit of ₹11,909 crore, marking a solid 5% increase from the ₹11,342 crore recorded in the same quarter last year.
TCS’s revenue saw a robust growth of 7.6%, reaching ₹64,259 crore for Q2 FY25. This performance surpassed Bloomberg’s revenue estimates of ₹64,177 crore, although it fell short of the projected net profit of ₹12,547 crore.
The total contract value (TCV) for the quarter stood at $8.6 billion, showing a slight improvement from the previous quarter’s $8.3 billion. North America contributed $4.2 billion to the TCV, while the BFSI sector accounted for $2.9 billion.
K Krithivasan, CEO and MD of TCS, commented on the results: “We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI, showed signs of recovery. We also saw a strong performance in our Growth Markets.”
The company’s performance mirrored its Q1 results, with regional markets showing growth while major markets like the US and Europe remained soft. Notably, TCS’s operations in India saw an extraordinary year-on-year growth of 95.2%.
In terms of verticals, Energy, Resources and Utilities led the growth at 7.0%, followed by Manufacturing at 5.3%. The BFSI sector, TCS’s largest vertical, showed a marginal growth of 0.1%.
On the hiring front, TCS added 5,762 employees in Q2, bringing the total new hires for the first half of the financial year to 11,000. Milind Lakkad, Chief Human Resources Officer, stated, “We welcomed 11,000 associates in the first half of the year, and we remain on track for trainee onboarding as planned.”
The company maintained a healthy operating margin of 24.1% for the quarter. CFO Samir Seksaria expressed confidence in the company’s trajectory, saying, “We made strategic investments this quarter in talent and infrastructure to ensure sustainable growth. Our disciplined execution resulted in superior cash conversion.”
As TCS continues to navigate global uncertainties, its Q2 performance underscores its position as a leader in India’s IT sector and its ability to adapt to changing market dynamics.
