Tata Consultancy Services Ltd (NSE:TCS)
₹ 4346.15 -159.5 (-3.54%) Market Cap: 15.72 Til Enterprise Value: 15.34 Til PE Ratio: 33.78 PB Ratio: 16.69 GF Score: 99/100
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Q1 2025 Tata Consultancy Services Ltd Earnings Call Transcript

Jul 11, 2024 / 01:30PM GMT
Release Date Price: ₹3923.7 (+0.37%)

Key Points

Positve
  • Revenue growth of 5.4% in rupee terms, 4.4% in constant currency terms, and 3.9% in dollar terms.
  • Operating margin for the quarter at 24.7% despite a 170-basis-point headwind from annual wage hikes.
  • Net income margin at 19.2% with EPS growing 10% year over year.
  • Strong deal momentum with a total contract value (TCV) of $8.3 billion for the quarter.
  • Significant progress in AI and GenAI initiatives, with over 278 engagements and a pipeline doubling to $1.5 billion.
Negative
  • Decline in BFSI vertical by 0.9% year over year.
  • Communications, Media, and Information Services (CMI) vertical declined by 7.4% year over year.
  • Technology and Services vertical declined by 3.9% year over year.
  • Accounts receivable DSO increased to 70 days, up five days year over year.
  • Uncertainty in client spending and project prioritization due to macroeconomic conditions.
Operator

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, ma'am.

Nehal Shah;K. Krithivasan
Tata Consultancy Services Ltd - Investor Relations;Tata Consultancy Services Ltd - Chief Executive Officer, Managing Director

Thank you, operator. Good evening and welcome, everyone. Thank you for joining us today to discuss TCS' financial results for the first quarter of FY 2025 that ended June 30, 2024. 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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