TCS Q2 Result: Profit up 5%, operating margin slips; 5 key highlights from TCS earnings

TCS Q2 result: India’s IT major, Tata Consultancy Services (TCS), on Thursday, October 10, reported a tepid 5 per cent year-on-year (YoY) rise in its net profit for the July-September (Q2) quarter as caution trends seen in the last few quarters continued. The company saw a decent rise of about 8 per cent in its revenue, while its operating margin contracted slightly on a YoY basis.  

“We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI, showed signs of recovery. We also saw a strong performance in our Growth Markets,” said K Krithivasan, Chief Executive Officer and Managing Director.

Let’s take a look at five key highlights of TCS’ Q2FY25 scorecard:

1. TCS Q2 key numbers

TCS reported a consolidated net profit of ₹11,909 crore for Q2FY25 against a profit of ₹11,342 crore in the same quarter last year. This marks a 5 per cent YoY growth in profit.

Revenue from operations for the quarter under review came at ₹64,259 crore, up 7.7 per cent YoY against the profit of ₹59,692 crore in Q2FY24. In constant currency (CC) terms, the company’s revenue grew 5.5 per cent.

The company said its operating margin for the quarter was 24.1 per cent, while its net margin was 18.5 per cent. Operating margin saw a 0.2 per cent YoY decline. 

(More to come)