Tata Consultancy Services (TCS), India’s leading IT services company, announced its first-quarter financial results on Thursday, surpassing revenue expectations driven by robust execution of large deals and growth in the manufacturing sector.
For the June quarter, TCS reported a consolidated revenue of 626.13 billion rupees ($7.50 billion), marking a 5.4% increase year-over-year. Analysts had anticipated revenue to reach 622.07 billion rupees, according to LSEG data. Meanwhile, net profit for the quarter rose 8.7% to 120.40 billion rupees, slightly above the 119.78 billion rupees forecast by analysts.
The company secured deals totaling $8.3 billion during the quarter, building on the momentum of record deal wins in previous quarters. Notably, TCS had bagged $13.2 billion in deals in the preceding quarter and $10.2 billion in the first quarter of fiscal 2024.
Key contributors to revenue growth included significant contracts like Bharat Sanchar Nigam (BSNL) and insurer Aviva. Despite economic uncertainties impacting tech spending, TCS managed to sustain momentum with substantial revenue contributions from sectors like manufacturing, which saw a 9.4% year-over-year increase.
Sanjeev Hota, head of research at Sharekhan by BNP Paribas, characterized the quarter as “solid” with robust revenue growth. He expressed optimism for an overall demand recovery in the second half of FY25, citing a favorable economic backdrop and potential recovery in FY26.
TCS’ shares closed marginally higher ahead of the earnings announcement, reflecting positive investor sentiment following the strong quarterly performance.
