TCS Q4 Results: Net profit falls 1.6% YoY to ₹12,224 crore; 5 key takeaways from March quarter earnings

The Tata Group company’s net profit in Q4FY25 declined 1.6% year-on-year, while the revenue from operations grew 5.2% YoY. Here is a look at the major financial metrics of TCS Q4 results.

TCS Q4 net profit and revenue

The IT services company reported a consolidated net profit of ₹12,224 crore for Q4FY25 (profit to shareholders), down 1.6% on a yearly basis from ₹12,502 crore in Q4FY24. Sequentially, the net profit is down 1.2% from ₹12,444 crore.

Compared to street estimates TCS has reported mixed Q4 earnings, with revenue growth beating the expectations, while net profit is lower-than-expectations.

The consolidated revenue from operations in Q4FY25 stood at ₹64,479 crore, up 5.2% YoY compared to ₹61,237 crore in Q3FY24. Meanwhile, on a quarter-on-quarter basis, the revenue is up 0.7% from ₹63,973 in Q3FY25. The revenue was also in line with street estimates. TCS’ operating margin in Q4FY25 stood at 24.2%, while net margin stood at 19%. TCS revenue for entire FY25 stood at ₹255,324 crore, up 6% YoY.

During the March quarter, revenue from its Indian markets grew 33% year-on-year, followed by the Middle East & Africa (MEA) region at 13.2%. Latin America and Asia Pacific regions contributed 4.3% and 6.4% revenue growth in cc terms, respectively. Among key industries, Energy, Resources and Utilities (+4.6% YoY) and BFSI (+2.5) supported the business growth.

Final dividend announced

The company's board of directors approved a final dividend of ₹30 per equity share of ₹1 face value for FY25. Record date for the final dividend is yet to be announced. As per the company, dividend will be paid to eligible shareholders on the fifth day from the conclusion of the 30th annual general meeting.

Major deal wins

TCS reported record new deal wins during the March quarter. Its total contract value (TCV) stood at $12.2 billion in deal wins, with book-to-bill ratio of 1.6. Book-to-bill ratio in the IT industry compares new orders (bookings) to billings (revenue recognised), a value above 1 indicates strong demand. TCS full year order book stood at $39.4 billion for FY25, while Q4 deal wins are above market estimates.

Some of the major deal wins: Contract to modernise the depository system of Muscat Clearing and Depository (MCD), deal to upgrade The Cumberland Building Society’s core banking ecosystem, contract to drive end-to-end IT transformation for UPM, Extended partnership with DNB Bank ASA, signed a five-year partnership with Air New Zealand to modernise its digital infrastructure.

Attrition rate

The company informed in its stock exchange filing that its total employee headcount stood at 607,979 at the end of Q4FY25. As much as 35.2% of the employees were women. In Q3, the total number headcount at TCS stood at 6,07,354

The attrition rate in the IT services segment stood at 13.3% in the period under review, up from 13% in the last quarter. According to the stock exchange filing, TCS has employees from 152 nationalities.

Management commentary

Speaking about the Q4 results, TCS CEO and Managing Director K Krithivasan said the company surpassed $30 billion in annual revenue, driven by AI, digital innovation, and strong customer support amid global economic uncertainty

“We are pleased to cross the $30 Billion in annual revenues and achieve a strong order book for the second consecutive quarter. Our expertise in AI and Digital Innovation, coupled with the unmatched knowledge of customer context and global scale makes us the pillar of support for our customers in this environment of macroeconomic uncertainty. We remain committed to staying close to our customers and helping them achieve their core priorities.”