Results     11-Oct-24
Analysis
Tata Consultancy Services
Revenue up 7.65% YoY to Rs 64259 crore in Q2FY2025
On consolidated basis

Quarter ended September 2024 compared with Quarter ended June 2024.

Net sales (including other operating income) of Tata Consultancy Services has increased 2.63% to Rs 64259 crore.  

Operating profit margin has declined from 26.61% to 26.04%, leading to 0.41% rise in operating profit to Rs 16,731.00 crore.  Employee cost decreased from 58.16% to 57.04%.   Other expenses rose from 15.23% to 16.92%.   Software technology development services cost rose from 3.44% to 5.03%.   

Other income fell 24.22% to Rs 729 crore.  PBIDT fell 0.93% to Rs 17460 crore.  Provision for interest fell 6.36% to Rs 162 crore.  Loan funds remained nil.  

PBDT fell 0.88% to Rs 17298 crore.  Provision for depreciation rose 3.77% to Rs 1266 crore.  

Profit before tax down 1.23% to Rs 16,032.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 4077 crore, compared to Rs 4126 crore.  Effective tax rate was 25.43% compared to 25.42%.

Minority interest decreased 29.23% to Rs 46.00 crore.  Net profit attributable to owners of the company decreased 1.09% to Rs 11,909.00 crore.  

Promoters’ stake was 71.77% as of 30 September 2024 ,compared to 71.77% as of 30 June 2024 .  Promoters pledged stake was 0.28% as of 30 September 2024 ,compared to 0.28% as of 30 June 2024 .  


Quarter ended September 2024 compared with Quarter ended September 2023.

Net sales (including other operating income) of Tata Consultancy Services has increased 7.65% to Rs 64259 crore.  Sales of Banking Finance Insurance segment has gone up 4.14% to Rs 23,785.00 crore (accounting for 37.01% of total sales).  Sales of Manufacturing segment has gone up 9.04% to Rs 6,310.00 crore (accounting for 9.82% of total sales).  Sales of Communication, Media and Technology segment has gone up 26.28% to Rs 12,088.00 crore (accounting for 18.81% of total sales).  Sales of Others segment has gone up 6.40% to Rs 5,421.00 crore (accounting for 8.44% of total sales).  Sales of Retail and Consumer Packing Goods segment has gone up 2.58% to Rs 10,025.00 crore (accounting for 15.60% of total sales).  Sales of Life Sciences and Healthcare segment has gone up 0.08% to Rs 6,630.00 crore (accounting for 10.32% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 6.26% to Rs 16,731.00 crore.  PBIT of Banking Finance Insurance segment rose 8.26% to Rs 6,345.00 crore (accounting for 37.92% of total PBIT).  PBIT of Manufacturing segment rose 22.80% to Rs 2,063.00 crore (accounting for 12.33% of total PBIT).  PBIT of Communication, Media and Technology segment fell 13.95% to Rs 2,357.00 crore (accounting for 14.09% of total PBIT).  PBIT of Others segment rose 24.08% to Rs 1,422.00 crore (accounting for 8.50% of total PBIT).  PBIT of Retail and Consumer Packing Goods segment rose 8.54% to Rs 2,695.00 crore (accounting for 16.11% of total PBIT).  PBIT of Life Sciences and Healthcare segment rose 0.65% to Rs 1,849.00 crore (accounting for 11.05% of total PBIT).  

PBIT margin of Banking Finance Insurance segment rose from 25.66% to 26.68%.  PBIT margin of Manufacturing segment rose from 29.03% to 32.69%.  PBIT margin of Communication, Media and Technology segment fell from 28.61% to 19.50%.  PBIT margin of Others segment rose from 22.49% to 26.23%.  PBIT margin of Retail and Consumer Packing Goods segment rose from 25.41% to 26.88%.  PBIT margin of Life Sciences and Healthcare segment rose from 27.73% to 27.89%.  Overall PBIT margin fell from 26.38% to 26.04%.  

Operating profit margin has declined from 26.38% to 26.04%, leading to 6.26% rise in operating profit to Rs 16,731.00 crore.  Employee cost decreased from 58.84% to 57.04%.   Other expenses rose from 14.78% to 16.92%.   Software technology development services cost rose from 0.77% to 5.03%.   

Other income fell 27.53% to Rs 729 crore.  PBIDT rose 4.23% to Rs 17460 crore.  Provision for interest rose 1.89% to Rs 162 crore.  Loan funds rose to Rs 9,046.00 crore as of 30 September 2024 from Rs 7,764.00 crore as of 30 September 2023.  Inventories rose to Rs 29.00 crore as of 30 September 2024 from Rs 28.00 crore as of 30 September 2023.  Sundry debtors were higher at Rs 49,532.00 crore as of 30 September 2024 compared to Rs 42,296.00 crore as of 30 September 2023.  Cash and bank balance rose to Rs 16,733.00 crore as of 30 September 2024 from Rs 13,373.00 crore as of 30 September 2023.  Investments declined from Rs 44,083.00 crore as of 30 September 2023 to Rs 36,081.00 crore as of 30 September 2024.  

PBDT rose 4.25% to Rs 17298 crore.  Provision for depreciation rose 0.24% to Rs 1266 crore.  Fixed assets increased to Rs 19,915.00 crore as of 30 September 2024 from Rs 18,507.00 crore as of 30 September 2023.  Intangible assets declined from Rs 2,469.00 crore to Rs 2,314.00 crore.  

Profit before tax grew 4.58% to Rs 16,032.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 4077 crore, compared to Rs 3950 crore.  Effective tax rate was 25.43% compared to 25.77%.

Minority interest increased 21.05% to Rs 46.00 crore.  Net profit attributable to owners of the company increased 5% to Rs 11,909.00 crore.  

Equity capital decreased from Rs 366.00 crore as of 30 September 2023 to Rs 362.00 crore as of 30 September 2024 .  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 71.77% as of 30 September 2024 ,compared to 72.30% as of 30 September 2023 .  Promoters pledged stake was 0.28% as of 30 September 2024 ,compared to 0.48% as of 30 September 2023 .  

Year-to-date (YTD) results analysis.

Net sales (including other operating income) of Tata Consultancy Services has increased 6.55% to Rs 126872 crore.  Sales of Banking Finance Insurance segment has gone up 2.98% to Rs 46,859.00 crore (accounting for 36.93% of total sales).  Sales of Manufacturing segment has gone up 10.14% to Rs 12,581.00 crore (accounting for 9.92% of total sales).  Sales of Communication, Media and Technology segment has gone up 19.38% to Rs 22,882.00 crore (accounting for 18.04% of total sales).  Sales of Others segment has gone up 9.19% to Rs 10,995.00 crore (accounting for 8.67% of total sales).  Sales of Retail and Consumer Packing Goods segment has gone up 1.87% to Rs 20,016.00 crore (accounting for 15.78% of total sales).  Sales of Life Sciences and Healthcare segment has gone up 2.10% to Rs 13,539.00 crore (accounting for 10.67% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 8.62% to Rs 33,393.00 crore.  PBIT of Banking Finance Insurance segment rose 9.17% to Rs 12,356.00 crore (accounting for 37.00% of total PBIT).  PBIT of Manufacturing segment rose 25.89% to Rs 4,153.00 crore (accounting for 12.44% of total PBIT).  PBIT of Communication, Media and Technology segment fell 11.08% to Rs 4,816.00 crore (accounting for 14.42% of total PBIT).  PBIT of Others segment rose 30.89% to Rs 2,805.00 crore (accounting for 8.40% of total PBIT).  PBIT of Retail and Consumer Packing Goods segment rose 7.52% to Rs 5,322.00 crore (accounting for 15.94% of total PBIT).  PBIT of Life Sciences and Healthcare segment rose 8.93% to Rs 3,941.00 crore (accounting for 11.80% of total PBIT).  

PBIT margin of Banking Finance Insurance segment rose from 24.87% to 26.37%.  PBIT margin of Manufacturing segment rose from 28.88% to 33.01%.  PBIT margin of Communication, Media and Technology segment fell from 28.26% to 21.05%.  PBIT margin of Others segment rose from 21.28% to 25.51%.  PBIT margin of Retail and Consumer Packing Goods segment rose from 25.19% to 26.59%.  PBIT margin of Life Sciences and Healthcare segment rose from 27.28% to 29.11%.  Overall PBIT margin rose from 25.82% to 26.32%.  

Operating profit margin has jumped from 25.82% to 26.32%, leading to 8.62% rise in operating profit to Rs 33,393.00 crore.  Employee cost decreased from 59.02% to 57.59%.   Other expenses rose from 15.17% to 16.09%.   Software technology development services cost rose from 0.81% to 4.24%.   

Other income fell 29.63% to Rs 1691 crore.  PBIDT rose 5.84% to Rs 35084 crore.  Provision for interest rose 4.04% to Rs 335 crore.  Loan funds rose to Rs 9,046.00 crore as of 30 September 2024 from Rs 7,764.00 crore as of 30 September 2023.  Inventories rose to Rs 29.00 crore as of 30 September 2024 from Rs 28.00 crore as of 30 September 2023.  Sundry debtors were higher at Rs 49,532.00 crore as of 30 September 2024 compared to Rs 42,296.00 crore as of 30 September 2023.  Cash and bank balance rose to Rs 16,733.00 crore as of 30 September 2024 from Rs 13,373.00 crore as of 30 September 2023.  Investments declined from Rs 44,083.00 crore as of 30 September 2023 to Rs 36,081.00 crore as of 30 September 2024.  

PBDT rose 5.86% to Rs 34749 crore.  Provision for depreciation fell 0.80% to Rs 2486 crore.  Fixed assets increased to Rs 19,915.00 crore as of 30 September 2024 from Rs 18,507.00 crore as of 30 September 2023.  Intangible assets declined from Rs 2,469.00 crore to Rs 2,314.00 crore.  

Profit before tax grew 6.41% to Rs 32,263.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 8203 crore, compared to Rs 7819 crore.  Effective tax rate was 25.43% compared to 25.79%.

Minority interest increased 32.14% to Rs 111.00 crore.  Net profit attributable to owners of the company increased 6.84% to Rs 23,949.00 crore.  

Equity capital decreased from Rs 366.00 crore as of 30 September 2023 to Rs 362.00 crore as of 30 September 2024 .  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 71.77% as of 30 September 2024 ,compared to 72.30% as of 30 September 2023 .  Promoters pledged stake was 0.28% as of 30 September 2024 ,compared to 0.48% as of 30 September 2023 .  

Cash flow from operating activities decreased to Rs 21,999.00 crore for YTD ended September 2024 from Rs 22,001.00 crore for YTD ended September 2023.  Cash flow used in acquiring fixed assets during the YTD ended September 2024 stood at Rs 1,690.00 crore, compared to Rs 832.00 crore during the YTD ended September 2023.  


Full year results analysis.

Net sales (including other operating income) of Tata Consultancy Services has increased 6.85% to Rs 240893 crore.  Sales of Banking Finance Insurance segment has gone up 5.57% to Rs 90,928.00 crore (accounting for 37.75% of total sales).  Sales of Manufacturing segment has gone up 10.62% to Rs 23,491.00 crore (accounting for 9.75% of total sales).  Sales of Communication, Media and Technology segment has gone up 4.62% to Rs 39,391.00 crore (accounting for 16.35% of total sales).  Sales of Others segment has gone up 14.46% to Rs 20,981.00 crore (accounting for 8.71% of total sales).  Sales of Retail and Consumer Packing Goods segment has gone up 4.94% to Rs 39,357.00 crore (accounting for 16.34% of total sales).  Sales of Life Sciences and Healthcare segment has gone up 8.70% to Rs 26,745.00 crore (accounting for 11.10% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 8.50% to Rs 64,296.00 crore.  PBIT of Banking Finance Insurance segment rose 5.50% to Rs 23,574.00 crore (accounting for 36.66% of total PBIT).  PBIT of Manufacturing segment rose 24.41% to Rs 7,268.00 crore (accounting for 11.30% of total PBIT).  PBIT of Communication, Media and Technology segment rose 2.35% to Rs 10,918.00 crore (accounting for 16.98% of total PBIT).  PBIT of Others segment rose 20.59% to Rs 4,673.00 crore (accounting for 7.27% of total PBIT).  PBIT of Retail and Consumer Packing Goods segment rose 6.39% to Rs 10,252.00 crore (accounting for 15.95% of total PBIT).  PBIT of Life Sciences and Healthcare segment rose 10.40% to Rs 7,611.00 crore (accounting for 11.84% of total PBIT).  

PBIT margin of Banking Finance Insurance segment fell from 25.94% to 25.93%.  PBIT margin of Manufacturing segment rose from 27.51% to 30.94%.  PBIT margin of Communication, Media and Technology segment fell from 28.33% to 27.72%.  PBIT margin of Others segment rose from 21.14% to 22.27%.  PBIT margin of Retail and Consumer Packing Goods segment rose from 25.69% to 26.05%.  PBIT margin of Life Sciences and Healthcare segment rose from 28.02% to 28.46%.  Overall PBIT margin rose from 26.28% to 26.69%.  

Operating profit margin has jumped from 26.28% to 26.69%, leading to 8.50% rise in operating profit to Rs 64,296.00 crore.  Employee cost increased from 56.56% to 58.17%.   Other expenses fell from 17.15% to 15.14%.   Software technology development services cost rose from 0.83% to 1.54%.   

Other income rose 28.21% to Rs 4422 crore.  PBIDT rose 9.58% to Rs 68718 crore.  Provision for interest fell 0.13% to Rs 778 crore.  Loan funds rose to Rs 8,021.00 crore as of 31 March 2024 from Rs 7,688.00 crore as of 31 March 2023.  Inventories stood at Rs 28.00 crore as of 31 March 2024 to Rs 28.00 crore as of 31 March 2023.  Sundry debtors were higher at Rs 44,434.00 crore as of 31 March 2024 compared to Rs 41,049.00 crore as of 31 March 2023.  Cash and bank balance rose to Rs 13,286.00 crore as of 31 March 2024 from Rs 11,032.00 crore as of 31 March 2023.  Investments declined from Rs 37,163.00 crore as of 31 March 2023 to Rs 31,762.00 crore as of 31 March 2024.  

PBDT rose 9.71% to Rs 67940 crore.  Provision for depreciation fell 0.74% to Rs 4985 crore.  Fixed assets declined from Rs 19,891.00 crore as of 31 March 2023 to Rs 19,336.00 crore as of 31 March 2024.  Intangible assets declined from Rs 1,858.00 crore to Rs 1,832.00 crore.  

Profit before tax grew 10.63% to Rs 62,955.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 15898 crore, compared to Rs 14604 crore.  Effective tax rate was 25.64% compared to 25.66%.

Minority interest increased 22.44% to Rs 191.00 crore.  Net profit attributable to owners of the company increased 8.92% to Rs 45,908.00 crore.  

Equity capital decreased from Rs 366.00 crore as of 31 March 2023 to Rs 362.00 crore as of 31 March 2024 .  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 71.77% as of 31 March 2024 ,compared to 72.30% as of 31 March 2023 .  Promoters pledged stake was 0.28% as of 31 March 2024 ,compared to 0.48% as of 31 March 2023 .  

Cash flow from operating activities increased to Rs 44,338.00 crore for year ended March 2024 from Rs 41,965.00 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 2,674.00 crore, compared to Rs 3,100.00 crore during the year ended March 2023.  

 

Dividend: The board has declared dividend of Rs 10 per equity share.

TCV(Total Contract Value) : The Company recorded order book of TCV (total Contract Value) of US $ 8.6 billion  in Q2FY2025.

Management Commentary:

K Krithivasan, Chief Executive Officer and Managing Director, said: “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. We stay focused on sharpening our value proposition to our clients, employees and other stakeholders”.   

Samir Seksaria, Chief Financial Officer, said: “We made strategic investments this quarter in talent and infrastructure to ensure sustainable growth. Our disciplined execution resulted in superior cash conversion. Our longer-term cost structures remain unchanged, and we remain confident in our ability to continue delivering industry leading profitable growth”.

”Milind Lakkad, Chief HR Officer, said: “We welcomed 11,000 associates in the first half of the year, and we remain on track for trainee onboarding as planned. We have also commenced the campus hiring process for FY26. Our strong talent base and increased learning intensity prepares us well for the complex technology transformations that customers entrust us with”.

 



Tata Consultancy Services : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202409202309Var.(%)202409202309Var.(%)202403202303Var.(%)
Net Sales (including other operating income)64,259.0059,692.007.65126,872.00119,073.006.55240,893.00225,458.006.85
OPM (%)26.0426.38-34 bps26.3225.8250 bps26.6926.2841 bps
OP16,731.0015,746.006.2633,393.0030,744.008.6264,296.0059,259.008.50
Other Inc.729.001,006.00-27.531,691.002,403.00-29.634,422.003,449.0028.21
PBIDT17,460.0016,752.004.2335,084.0033,147.005.8468,718.0062,708.009.58
Interest162.00159.001.89335.00322.004.04778.00779.00-0.13
PBDT17,298.0016,593.004.2534,749.0032,825.005.8667,940.0061,929.009.71
Depreciation126612630.2424862506-0.8049855022-0.74
PBT16,032.0015,330.004.5832263303196.41629555690710.63
Share of Profit/(Loss) from Associates00-00-00-
PBT before EO16032153304.5832263303196.41629555690710.63
EO Income00-00--9580-
PBT after EO16032153304.5832263303196.4161997569078.94
Taxation407739503.22820378194.9115898146048.86
PAT11955113805.0524060225006.9346099423038.97
Minority Interest (MI)463821.051118432.1419115622.44
Net profit11909113425.0023949224166.8445908421478.92
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations11909113425.0023949224166.8445908421478.92
EPS (Rs)*32.9231.355.0066.1961.966.84128.85116.4910.61
* EPS is on current equity of Rs 361.81 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Tata Consultancy Services : Consolidated Segment Results
td>-
 Quarter endedYear to DateYear ended
% of (Total)202409202309Var.(%)% of (Total)202409202309Var.(%)% of (Total)202403202303Var.(%)
Sales
Banking Finance Insurance37.0123,785.0022,840.004.1436.9346,859.0045,502.002.9837.7590,928.0086,127.005.57
Manufacturing9.826,310.005,787.009.049.9212,581.0011,423.0010.149.7523,491.0021,236.0010.62
Retail and Distribution0.000.000.00-
Communication, Media and Technology18.8112,088.009,572.0026.2818.0422,882.0019,168.0019.3816.3539,391.0037,653.004.62
Others8.445,421.005,095.006.408.6710,995.0010,070.009.198.7120,981.0018,331.0014.46
Retail and Consumer Packing Goods15.6010,025.009,773.002.5815.7820,016.0019,649.001.8716.3439,357.0037,506.004.94
Life Sciences and Healthcare10.326,630.006,625.000.0810.6713,539.0013,261.002.1011.1026,745.0024,605.008.70
Total Reported Sales100.0064,259.0059,692.007.65100.00126,872.00119,073.006.55100.00240,893.00225,458.006.85
Less: Inter segment revenues 0.000.00- 0.000.00 0.000.00-
Net Sales100.0064,259.0059,692.007.65100.00126,872.00119,073.006.55100.00240,893.00225,458.006.85
PBIT
Banking Finance Insurance37.926,345.005,861.008.2637.0012,356.0011,318.009.1736.6623,574.0022,345.005.50
Manufacturing12.332,063.001,680.0022.8012.444,153.003,299.0025.8911.307,268.005,842.0024.41
Retail and Distribution0.000.000.00-
Communication, Media and Technology14.092,357.002,739.00-13.9514.424,816.005,416.00-11.0816.9810,918.0010,667.002.35
Others8.501,422.001,146.0024.088.402,805.002,143.0030.897.274,673.003,875.0020.59
Retail and Consumer Packing Goods16.112,695.002,483.008.5415.945,322.004,950.007.5215.9510,252.009,636.006.39
Life Sciences and Healthcare11.051,849.001,837.000.6511.803,941.003,618.008.9311.847,611.006,894.0010.40
Total PBIT100.0016,731.0015,746.006.26100.0033,393.0030,744.008.62100.0064,296.0059,259.008.50
Less : Interest0.000.00-0.000.00-0.000.00-
Add: Other un-allcoable-699.00-416.00-68.03-1,130.00-425.00-165.88-2,299.00-2,352.002.25
PBIT Margin(%)
Banking Finance Insurance 26.6825.66101.54 26.3724.87149.48 25.9325.94-1.82
Manufacturing 32.6929.03366.36 33.0128.88412.98 30.9427.51342.96
Retail and Distribution 0.000.000.00
Communication, Media and Technology 19.5028.61-911.60 21.0528.26-720.83 27.7228.33-61.28
Others 26.2322.49373.87 25.5121.28423.06 22.2721.14113.35
Retail and Consumer Packing Goods 26.8825.41147.61 26.5925.19139.66 26.0525.6935.68
Life Sciences and Healthcare 27.8927.7316.01 29.1127.28182.55 28.4628.0243.90
PBT100.0016,032.0015,330.004.58100.0032,263.0030,319.006.41100.0061,997.0056,907.008.94
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