In This Article:
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Revenue: Surpassed $30 billion for FY25, with a growth of 4.2% in constant currency.
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Operating Margin: FY25 operating margin at 24.3%, a decline of 30 basis points from the previous year.
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Net Margin: FY25 net margin at 19%.
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EPS Growth: EPS grew 5.1% year on year.
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Dividend: Final dividend of INR30 per share, total dividend for the year INR126 per share.
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Q4 Revenue: Increased by 2.5% year on year in constant currency, reaching INR64,479 crore.
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Q4 Operating Margin: 24.2%, reflecting a sequential decline of 30 basis points.
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Net Cash from Operations: $1.78 billion, 125% of net income.
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Free Cash Flow: $1.48 billion.
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Investment Funds: $5.53 billion at the end of the period.
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Client Metrics: 64 clients in the $100 million-plus revenue band, an increase of 2 over the previous year.
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Workforce: 607,979 employees at the end of FY25.
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LTM Attrition: Stable at 13.3%.
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Geographical Performance: India grew 33%, Middle East and Africa 13.2%, Lat Am 4.3%, Asia Pacific 6.4%, Europe 1.4%, UK 1.2%, North America declined 1.9%.
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Segmental Performance: BFSI grew 2.5%, consumer business group declined 0.2%, life sciences and healthcare declined 5.6%, manufacturing declined 2.9%, technology and services grew 1.1%, communication and media declined 9.8%, ERU grew 4.6%, regional markets grew 22.5%.
Release Date: April 10, 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) surpassed the $30 billion revenue milestone for FY25, demonstrating strong growth.
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The company maintained industry-leading operating margins at 24.3% and net margins at 19% for the year.
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TCS achieved a record Q4 Total Contract Value (TCV) of $12.2 billion, indicating strong market share gains.
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The company reported significant growth in regional markets, with India growing by 33% and Middle East and Africa by 13.2%.
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TCS's AI and digital innovation initiatives are gaining traction, with a strong pipeline of AI, Gen AI engagements and 43 leadership positions in analyst surveys across AI, data, and cloud.
Negative Points
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Operating margins declined by 30 basis points year-over-year due to wage increases and investments in infrastructure.
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There was a 1.9% decline in North American revenue, reflecting challenges in a key market.
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The company faced headwinds from tactical interventions and strategic marketing initiatives, impacting quarterly margins.
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Certain sectors, such as life sciences and healthcare, experienced declines, with life sciences down 5.6% and healthcare facing longer deal closure times.
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The global macroeconomic environment remains challenging, with instances of delayed decision-making and heightened scrutiny on discretionary spending.