TCS Q1FY25 Results: Net Profit, Market Growth, Key Deals & Employee Retention Highlights

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Tata Consultancy Services (TCS), one of the leading global IT services companies, reported a strong financial performance for the first quarter of FY25. On July 11, 2024, TCS announced a 9% year-on-year (YoY) rise in its net profit, marking a healthy start to the new financial year. This report delves into the key highlights of TCS’s Q1FY25 earnings, including significant financial metrics, growth in various domains and markets, notable deals, and human resources updates.

TCS Q1FY25 Results

Key Numbers

Consolidated Net Profit

TCS reported a consolidated net profit of ₹12,040 crore for Q1FY25, marking an 8.72% YoY increase from ₹11,074 crore in Q1FY24. However, this represented a 3.2% decline from ₹12,434 crore in Q4FY24.

Revenue from Operations

The company’s revenue from operations for the quarter stood at ₹62,613 crore, a 5.4% YoY increase from ₹59,381 crore in Q1FY24. Sequentially, revenue rose by 2.2%. In constant currency (CC) terms, TCS registered a 4.4% YoY growth in revenue.

Operating Margin

TCS’s operating margin expanded by 1.5% YoY to 24.7%. This performance was achieved despite the impact of annual wage increments during the quarter.

Growth in Key Domains

Regional Markets and Others

This domain saw the highest YoY growth at 37.7% in CC terms, demonstrating strong performance across various geographies.


The manufacturing sector experienced a 9.4% YoY growth in CC terms, driven by increased demand for IT services and digital transformation initiatives.

Energy, Resources, and Utilities

This domain grew by 5.7% YoY, reflecting the ongoing digitalization and modernization efforts within the sector.

Life Sciences and Healthcare

The life sciences and healthcare segment reported a 4% YoY growth in CC terms, benefiting from advancements in digital health and patient care technologies.

Communication and Media

Contrarily, the communication and media domain contracted by 7.4% YoY, indicating challenges within the sector.

Technology and Services

This sector saw a 3.9% YoY decline, highlighting some market-specific challenges.

BFSI (Banking, Financial Services, and Insurance)

The BFSI sector experienced a marginal decline of 0.9% YoY, reflecting a cautious approach by financial institutions.

Consumer Business

The consumer business segment saw a slight contraction of 0.3% YoY, indicating stable yet subdued growth.

Performance of Key Markets


India led the growth with a remarkable 61.8% YoY increase, driven by strong demand for IT services and digital solutions.

Middle East and Africa (MEA)

The MEA region grew by 8.5% YoY, benefiting from increased digital transformation initiatives.

Asia Pacific

The Asia Pacific market reported a 7.6% YoY growth, reflecting robust demand across the region.

Latin America

Latin America saw a 6.3% YoY growth, supported by TCS’s expanding presence and client base.

United Kingdom

The UK market grew by 6% YoY, driven by steady demand for IT services.

North America

Contrarily, the North American market experienced a 1.1% YoY decline in CC terms, indicating some market-specific challenges.

Key Deals

Xerox Partnership

TCS expanded its partnership with Xerox to develop a new agile, cloud-first operating model, accelerating the company’s transition to a services-led, software-enabled organization.

Collaboration with IIT-Bombay

TCS collaborated with IIT-Bombay to develop India’s first Quantum Diamond Microchip Imager, marking a significant advancement in quantum technology.

Higher Educational Services in the US

TCS was selected by a leading American provider of higher educational services for Infrastructure Managed Services, enhancing the client’s operational efficiency.

Burgan Bank Partnership

TCS partnered with Burgan Bank, a leading commercial bank in Kuwait, to create a modern core banking solution, strengthening the bank’s market position.

Global AI Center of Excellence in Paris

TCS established a Global Artificial Intelligence (AI) Center of Excellence in Paris, focusing on brain-machine interfaces, cultivating empathy in machines, and unlocking AI innovation.

Strategic Partnership with American Home Improvement Retailer

TCS entered into a strategic partnership with a leading American home improvement retailer to establish a next-generation technology and data architecture landscape, transforming the client into an AI-ready enterprise.

Human Resources

Workforce Size

As of June 30, 2024, TCS’s workforce stood at 606,998 employees, reflecting the company’s ongoing expansion.

Attrition Rate

The IT services’ attrition rate for the last twelve months stood at 12.1%, a slight improvement from 12.5% in the previous quarter. This demonstrates TCS’s successful efforts in employee engagement and retention.

Employee Development

“Our persistent emphasis on enhancing employee engagement and fostering growth has resulted in exceptional staff retention and outstanding business achievements,” remarked Milind Lakkad, Chief HR Officer of TCS. He expressed profound satisfaction with the minimal increase in workforce numbers. TCS’s Q1FY25 outcomes underscore its strong financial performance, strategic expansion in critical sectors and markets, and notable collaborations and advancements.


TCS’s Q1FY25 results highlight the company’s robust financial performance, strategic growth in key domains and markets, and significant partnerships and innovations. With a strong start to the fiscal year, TCS continues to invest in emerging technologies, expand its client relationships, and enhance its operational excellence, positioning itself for sustained growth and long-term value creation for stakeholders.

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