In This Article:
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Revenue: INR63,973 crore, a year-over-year growth of 5.6%.
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Revenue in USD: USD7,539 million, a year-on-year growth of 3.6%.
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Operating Margin: 24.5%, a sequential improvement of 40 basis points.
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Net Margin: 19.4%.
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EPS Growth: 6.4% YoY.
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Net Cash from Operations: $1.4 billion, 105.3% of net income.
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Free Cash Flow: $1.45 billion.
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Total Contract Value (TCV): $10.2 billion.
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North America TCV: $5.9 billion.
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BFSI TCV: $3.2 billion.
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Consumer Business TCV: $1.3 billion.
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Dividend: INR76 per share, including an interim dividend of INR10 and a special dividend of INR66 per share.
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Accounts Receivable: 74 days DSO in dollar terms.
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Invested Funds: $7.28 billion at the end of the period.
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Geographical Performance: India growth of 70.2%, Middle East 15%, Latin America 7%, Asia Pacific 5.8%, UK 4.1%, North America decline of 2.3%, Europe decline of 1.5%.
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Segment Performance: BFSI grew 0.9%, Consumer Business grew 1.1%, Life Sciences Healthcare declined 4.3%, Manufacturing grew 0.4%, Technology and Services declined 0.4%, Communication and Media declined 10.6%, Energy Resources and Utilities grew 3.4%, Regional Markets grew 40.8%.
Release Date: January 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tata Consultancy Services Ltd (BOM:532540) reported a strong total contract value (TCV) of $10.2 billion for the quarter, with significant contributions from North America and BFSI sectors.
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The company achieved a year-over-year revenue growth of 4.5% in constant currency, demonstrating resilience despite seasonal challenges.
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Operating margin improved sequentially by 40 basis points to 24.5%, showcasing effective cost management and operational efficiency.
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The company announced a substantial dividend of INR76 per share, reflecting its commitment to returning capital to shareholders.
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Tata Consultancy Services Ltd (BOM:532540) observed early signs of revival in discretionary spending, particularly in BFSI and Retail sectors, indicating potential for future growth.
Negative Points
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Revenue growth in key markets such as North America and Europe declined by 2.3% and 1.5% respectively, indicating regional challenges.
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The Life Sciences Healthcare and Communication and Media segments experienced significant declines of 4.3% and 10.6% respectively, impacting overall performance.
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Headcount declined during the quarter, raising concerns about the company's ability to scale operations in line with growth expectations.
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The BSNL contract, a significant revenue contributor, is expected to taper off, posing a potential headwind for future revenue growth.
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Despite strong deal wins, the conversion of these deals into revenue has not met expectations, suggesting potential execution challenges.