TCS

Q4 FY25 Result – Summary & Analysis

Q4 FY25 Result – Summary & Analysis Financial Performance:- -Revenue: ₹64,479 crore, up 5.3% YoY, but below expectations of analysts. - Net Profit: ₹12,224 crore, down 1.7% YoY. - Margins: *Operating Margin: 24.2% *Net Margin: 19.0% - Free Cash Flow: ₹46,449 crore for FY25. Operational Highlights:- -Full-Year Revenue (FY25): ₹2,55,324 crore, 6% YoY growth. - In constant currency, growth was 4.2%. - Strong Order Book: *Q4 TCV: $12.2 billion (record high), book-to-bill ratio: 1.6. - FY25 TCV: $39.4 billion. - Operating Cash Flow: 125.1% of net income – indicating strong cash efficiency. - Attrition: 13.3% (LTM) – significantly moderated, a positive sign. Geographical Insights:- - North America: 48.2% of Q4 revenue, down 1.9% YoY – indicates mild weakness in core markets. - UK: Grew 1.2%, contributes 16.8%. - India: Grew 33% YoY, now 8.4% of total revenue – robust domestic momentum. - Regional Markets: Growth of 37.2% YoY, key driver for FY25. Innovation & IP:- - Patent Portfolio (as of March 2025): *Applied: 8,816 (267 in Q4) *Granted*: 4,820 (235 in Q4) Company Continued emphasis on AI, digital transformation, and innovation-led solutions**. ---Analysis & Outlook--- - Strong TCV and cash generation. - Lower attrition, improved efficiency. - Robust performance in India and emerging markets. - High dividend payout reflects confidence. ---Outlook--- TCS remains fundamentally strong with long-term digital transformation tailwinds, but **near-term growth may stay moderate** due to global macro pressures. Its strong order book, innovation focus, and cash generation keep it attractive for long-term investors.