News Mania Desk/Agnibeena Ghosh/13th July 2024
Tata Consultancy Services (TCS), India’s leading IT services provider, has commenced the fiscal year 2024-25 on a robust note, announcing its April-June quarter results with impressive figures. The company reported a consolidated net profit of ₹12,040 crore, marking an 8.7% increase from ₹11,074 crore in the same period last year. This surpasses market expectations, reflecting strong operational performance.
Revenue for the quarter stood at ₹62,613 crore, up 5.4% from ₹59,381 crore year-on-year, with a 2.2% quarter-on-quarter growth attributed largely to its India business segment.
TCS CEO and MD, K Krithivasan, expressed optimism about the fiscal year ahead, foreseeing improved business performance driven by investments in emerging technologies. Notably, TCS is expanding its capabilities in artificial intelligence (AI) with initiatives like the TCS PacePort in France and an IoT lab in the US.
While the company saw a decline in revenue from North America by 1.1%, its India revenue surged by 61.8% due to significant contributions from projects like the 4G network rollout with BSNL. The company’s total new deal wins for the quarter amounted to $8.3 billion, with substantial contributions from North America and the BFSI sector.
TCS also reported a net addition of 5,452 employees, reversing previous trends of downsizing, and declared an interim dividend of ₹10 per equity share.
Financial analysts have reacted positively to TCS’s performance, with expectations of a demand recovery in the IT sector for the second half of FY25. Despite challenges such as macroeconomic headwinds, analysts foresee a gradual improvement in revenue growth and operating margins.
However, potential investors are urged to exercise caution, considering the volatility in stock markets and the inherent risks associated with investing in equities. Analyst recommendations and technical analyses suggest potential bullish sentiment towards TCS stock, but fluctuations in stock prices are influenced by various market factors.
The TCS stock closed marginally higher ahead of the Q1 results, reflecting investor confidence. Technical indicators point towards a positive trend, with resistance levels projected at ₹4,030.00 and ₹4,050.00. Traders are advised to maintain strict stop-loss strategies and consider potential targets amidst market uncertainties.
In conclusion, while TCS’s strong Q1 FY25 results indicate resilience and growth prospects in the IT sector, prospective investors should conduct thorough research and seek professional financial advice before making investment decisions.
