India’s largest IT services company, Tata Consultancy Services (TCS), reported a net profit of Rs 11,909 crore for the second quarter of the financial year 2024-25, reflecting a 5 per cent increase from Rs 11,342 crore in the same quarter of FY24. Revenue for the company rose by 7.6 per cent to Rs 64,259 crore for Q2 FY25, with a sequential revenue growth of 2.62 per cent, the firm said on Thursday.
The company's performance exceeded Bloomberg's estimates in terms of revenue but fell short of profit expectations. According to Bloomberg forecasts, TCS was anticipated to report a revenue of Rs 64,177 crore and net profits of Rs 12,547 crore. While the actual revenue of Rs 64,259 crore represented a positive surprise, the net profit of Rs 11,909 crore did not meet the expected figures.
The total contract value (TCV) of the order book slightly increased to $8.6 billion in Q2 FY25, up from $8.3 billion in Q1. Within this, the TCV for North America stood at $4.2 billion, the TCV for the Banking, Financial Services, and Insurance (BFSI) sector reached $2.9 billion, and the Consumer Business TCV amounted to $1.2 billion.
Commenting on the numbers, K Krithivasan, chief executive officer and managing director, said, “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. We stay focused on sharpening our value proposition to our clients, employees, and other stakeholders.”
“We welcomed 11,000 associates in the first half of the year, and we remain on track for trainee onboarding as planned. We have also commenced the campus hiring process for FY26. Our strong talent base and increased learning intensity prepares us well for the complex technology transformations that customers entrust us with,” said Milind Lakkad, chief human resources officer.
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