TCS

update : 11 April 2025

Q4 Financial Performance Tata Consultancy Services Ltd (TCS), India's largest IT exporter, reported a 1.68% year-on-year (YoY) drop in net profit at Rs 12,224 crore for the March quarter. The company's consolidated sales rose 5.29% YoY to Rs 64,479 crore. Operating Margin came in at 24.3%, while net margin stood at 19%. TCS proposed a final dividend of Rs 30 per share. Order Book and Deal Wins

won orders worth $12.20 billion in the March quarter, with a book-to-bill ratio of 1.6 times. For the full year, deal wins stood at $39.40 billion. The Q4 growth was led by the Energy, Resources and Utilities (up 5.1%) and Manufacturing (up 2.9%) segments. Dividend History and Shareholder Payout With the fresh dividend, TCS' FY25 shareholder payout stood at Rs 44,962 crore. The company had earlier declared Rs 10 each dividends in Q1 and Q2, and a dividend of Rs 10 per share and a special dividend of Rs 66 in the December quarter. The total dividend for FY24 was Rs 73 per share, amounting to Rs 16,290 crore. Macroeconomic Factors and Industry Outlook The prevailing tariff war is likely to impact the US economic growth, which could affect the CPG, Retail, Manufacturing, and Logistics verticals of Indian IT companies. BNP Paribas analyst Kumar Rakesh said a 1.5 percentage points slowdown in US real GDP growth would impact Indian IT services revenue growth by 5.1 percentage points. However, the analyst noted that Indian IT services industry revenue has never grown at a pace lower than the US real GDP growth and has never seen a YoY decline since 1992.