Q2 2025 Tata Consultancy Services Ltd Earnings Call Transcript
Key Points
- Tata Consultancy Services Ltd (BOM:532540) reported a year-on-year revenue growth of 7.6% in INR terms for Q2 FY25.
- The company's operating margin for the quarter was 24.1%, with a net margin of 18.5%.
- The BFSI vertical showed signs of recovery, contributing positively to the company's performance.
- TCS's Ignio cognitive automation software suite saw 34 new deals and four go-lives, indicating strong demand for AI and automation solutions.
- The company reported a strong order book with a total contract value (TCV) of $8.6 billion for the quarter.
- North America experienced a revenue decline of 2.1%, impacting overall growth.
- The technology and services segment saw a decline of 1.9%, while communication and media declined by 10.3%.
- The operating margin declined sequentially by 60 basis points due to higher third-party expenses and investments in talent and infrastructure.
- The company faced client-specific challenges in the life sciences and healthcare sectors, impacting revenue.
- The demand environment remains cautious, with discretionary spending and deal closures experiencing delays.
(Operator Instructions) Thank you. The conference will begin shortly. Please continue to hold. Ladies and gentlemen, thank you for holding for the TCS earnings conference call. (Operator Instructions) Ladies and gentlemen, good day and welcome to the TCS earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Nehal Shah from the Investor Relations team at TCS. Thank you and over to you.
Thank you operator. Good evening and welcome to TCS's earnings call for Q2 FY25. This call is being webcast through our website and an archive including the transcript will be available on the site for the duration of this quarter. The financial statements, quarterly fact sheet and press releases are also available on our website.
Our leadership team is present on this call to discuss our results. We have with us today, Mr. K. Krithivasan, Chief Executive Officer and Managing Director.
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