Tata Consultancy Services Ltd. (TCS), India’s largest information technology company, reported a 1.68% decline in net profit to ₹12,224 crore for the fourth quarter ended March 31, 2025, compared with ₹12,434 crore in the year-earlier period due to higher investments.
Revenue grew 5.29% to ₹64,479 crore from ₹61,237 crore in the same period last year. The operating margin for the quarter was 24.2%, while net margin was 19%.
The growth was led by regional markets (22.5%), Energy, Resources and Utilities (ERU) segment (4.6%) and BFSI (2.5%). The board proposed a final dividend of ₹30 per equity share.
For the full year, the company reported 6% YoY growth in net profit at ₹48,553 crore, while revenue also grew 6% YoY to ₹2,55,324 crore. The shareholder payout during year was ₹44,962 crore and the total employee headcount was at 607,979. IT services attrition was 13.3%.
During the year, the company onboarded 42,000 trainees and similar number is expected to be hired in the current financial year.
“Due to the [trade war ] uncertainties we are observing delays in decision making and projects starting with respect to discretionary investments. Despite this, all our major geographies exhibited growth on a sequential basis,” said K. Krithivasan, Chief Executive Officer and Managing Director.
“On a sequential basis, North America and U.K. grew by 0.2% and Europe by 1.2%. The new North markets of Asia-Pacific and Middle East and Africa also grew positively this quarter,” he said.
“After many consecutive quarters of strong growth, India experienced a deep growth of 13.2% in this quarter. Among the verticals, on a sequential basis, PFC grew by 1.3% and energy resources and utilities grew by 1.1%,” he said.
“Our communications and media and tech services business also experienced marginal growth. However, our consumer business de-grew by 0.7% and life sciences and healthcare de-grew by 0.8%. Manufacturing de-grew marginally by 0.1%. Banks and products and platforms continued their growth,” he said, adding that FY26 would be better than FY25.
“In FY25, our disciplined execution and operational rigor stood out again, as we defended our industry-leading margins while continuing with our investments in talent and capability building,” said Chief Financial Officer Samir Seksaria.
“We delivered robust profitability and cash flows this quarter in a very challenging environment without compromising on the right investments in our people, innovation and infrastructure for long-term value creation,” he said.
The company announced the appointment of Aarthi Subramanian as President and Chief Operating Officer. She had till recently functioned as Group Chief Digital Officer at Tata Sons and has been on the TCS Board as a non-executive member. Her appointment will be effective May 1, 2025. Post that she will become an executive director on the board.
Ms. Subramanian started her career with TCS in 1989 and has been with the company till 2016, except for a brief period. While at TCS she was the Global Head of Delivery amongst other responsibilities.
The company also announced the appointment of Mangesh Sathe as Chief Strategy Officer from May 1. 2025. Currently he is the Chief Executive Officer of Tata Strategic Management Group (TSMG), and supports the Group Chairman’s Office and CEOs of Group companies in strategy and transformation initiatives.
He has experience across sectors such as Automotive and Industrial, Consumer, and Technology. He has interest in corporate strategy, technology led platforms, R&D and product development, inorganic growth, and operations transformation, the company said..
Published – April 10, 2025 08:49 pm IST
