The impact of global uncertainty and delay in decision making by customers is shown in the results of the country's major IT company. The net profit of Tata Consultancy Services (TCS) declined by 1.7 per cent to Rs 12,224 crore in the fourth quarter of FY 2025. In the fourth quarter of FY 2024, the company made a profit of Rs 12,434 crore.
TCS income increased by 5.2 per cent to Rs 64,479 crore in the fourth quarter of FY 2025. Compared to the third quarter, the company's income has increased to just 0.79 per cent. However, the company's results were inferior to Bloomberg's estimate. Bloomberg had estimated the income of TCS to be Rs 64,848 crore and a net profit of Rs 12,766 crore.
TCS's net profit increased by 5.8 per cent to Rs 48,553 crore in the entire financial year 2025, while the company's income increased by 6 per cent to Rs 2,55,342 crore. In the case of income, TCS crossed the record of $ 30 billion.
TCS CEO and MD's Kritivasan admitted that the US fee had affected the company. He said, 'We talked about the market perception and initial signs of improvement in non-essential expenditure in January, but it could not continue due to discussions about the fee. Non-essential investments and projects are being delayed.
The fee will affect the most consumer and vehicle segment, but the positive thing is that the BFSI segment has increased. The order book of TCS stood at $ 12.2 billion, the second largest in any quarter. The company's TCV was $ 10.2 billion in the third quarter of FY 2025.
Overall, the fourth quarter performed similar to the previous quarters. Most of the markets like America and Europe continued to soften. The company's growth in India also slowed down as the initial phase of the BSNL deal is scheduled to be completed in the first quarter of FY 2024. The company's growth in India was 33 per cent on an annual basis.
The TCS management expressed confidence that the financial year 2026 would be inferior as compared to the previous financial year. Kritivasan said, 'No region would like to continue such global uncertainty for a long time. I believe that some certainty will be revealed in the near time.
The company's income in West Asia and Africa has increased by 13.2 per cent while Asia Pacific has increased by 6.4 per cent and Latin America by 4.3 per cent. Income in North America has declined by 1.9 percent on an annual basis. Income in Europe and Britain has increased by 1.2 percent.
The BFSI section saw an increase of 2.5 per cent on an annual basis and 1.3 per cent on a quarterly basis. In the third quarter of FY 2025, the growth of the BFSI region was almost flat. TCS announced the final dividend of Rs 30 per share for the fourth quarter of FY 2025. The company has given a dividend of Rs 126 per share throughout the financial year. The company said that it showed a good demand for Artificial Intelligence (AI) and JenAI. In the fourth quarter of FY 2025, the company's margin declined 30 basis points to 24.3 per cent.
First Published – April 10, 2025 | 11:01 PM IST
