TCS announces a dividend and reports a Q2 FY25 net profit of Rs 11,909 crore, below projections.

Results for Tata Consultancy Services' Q2 of FY25: Analysts had anticipated that the IT behemoth owned by the Tata group would see strong deal execution support net profit and that the ramp-up of important deals, notably its ongoing relationship with BSNL, would fuel Q2 revenue. For the second quarter that ended in September, Tata Consultancy Services (TCS) reported a 1.1 percent quarter-over-quarter (QoQ) decline in net profit to Rs 11,909 crore, falling short of Street estimates. According to the stock exchange filing, the largest IT service provider in India saw an increase in operational revenue to Rs 64,259 crore in Q2 FY24. TCS generated revenue of Rs 63,938 crore and a net profit of Rs 12,420 crore during July to September. Additionally, TCS announced the payment of a Rs. 10 interim dividend per share. The record date to ascertain if stockholders are eligible for the corporate action is set for Friday, October 18, 2024, by the IT bellwether. Previously, on July 19, 2024, the business distributed an interim dividend of Rs 10. The company said in a statement that the Energy, Resources, and Utilities sectors drove revenue growth. "This quarter, like in the previous several, we observed the cautious patterns holding true. In the midst of an unpredictable geopolitical environment, BFSI, our largest vertical, began to rebound. TCS CEO and Managing Director K Krithivasan stated, "We also observed a significant result in our Growth Markets. The operating margin for the big IT company in the second quarter decreased to 24.1 percent from 24.7 percent in the previous quarter. There was an 18.5 percent net margin. During the quarter, TCS added a net 5,726 employees. Following a year of decreased recruiting, TCS added about 11,000 colleagues as of H1FY25. Analysts had predicted that the ramp-up of significant acquisitions, especially its ongoing relationship with BSNL, would drive the IT giant Tata Group's Q2 revenue. They also predicted that strong deal execution and the company's expansion in North America, BFSI, and retail would support the net profit. While continental Europe increased by 1.8 percent and the UK grew by 4.6 percent YoY in CC terms, North America continued to slow down by 2.1 percent YoY. TCS's total order book was $8.6 billion, representing a 23.2% YoY decrease and a 3.61% sequential gain. TCS closed a number of retail deals this quarter, including, to mention a few, Primark, McDonald's, and Croma. There are presently 600 AI/Gen AI projects being worked on by the business. TCS's share price decreased by 0.6 percent today to close at Rs 4227.9 on the NSE ahead of the results.