<p>Bengaluru: India’s largest IT services provider Tata Consultancy Services (TCS) on Thursday posted a 5.3% uptick in its revenue for the March quarter at Rs 64,479 crore, missing analyst estimates due to a soft demand environment and a degrowth in its primary market - North America (a 1.6% year-on-year decline). Analysts, on average, were expecting the revenue for the quarter to be Rs 64,758 crore, as per data compiled by LSEG. </p><p>Its consolidated net profit too fell 1.7% on a year-on-year basis to Rs 12,224 crore. It had reported a consolidated net profit of Rs 12,434 crore in the same quarter last year. </p><p>The Mumbai-headquartered company, which had planned to roll out salary hikes by April has now deferred it. "Considering the uncertain business environment, we'll decide during the year when it (salary hikes) will happen,” said Chief Human Resources Officer (CHRO) Milind Lakkad. </p>.TCS UK arm's redundancy plan targeted older, non-Indian nationals: Report.<p>The $254-billion Indian IT industry had pinned its hopes on US President Donald Trump’s supportive policies consequently leading to a pick up in client budgets, the situation has soured now. “We had spoken about improved market sentiment and early signs of discretionary spending revival in January but it did not sustain due to discussions on tariff. We are observing delays in decision making and projects with respect to discretionary spending,” said Chief Executive Officer and Managing Director K Kirthivasan during the earnings conference. </p><p>While there have been short-term uncertainties, TCS believes that it should settle in over a few months and expects the ongoing fiscal year to be better than FY25. “Given the macroeconomic challenges, Indian IT providers were expected to achieve only modest revenue gains,” said Biswajit Maity, Senior Principal Analyst, Gartner. </p><p>The IT services bellwether added 625 employees during the fourth quarter, taking the total employee count to 6,07,979. It maintained its stance of hiring from campus, stating that hiring in the ongoing fiscal year (FY26) could be slightly higher than the last year (42,000). </p><p>The attrition for the quarter also rose to 13.3% as against 13% in the third quarter of FY25. However, Lakkad remained confident on this score, as the quarterly annualised attrition rate has come down by 130 basis points (bps). </p><p>TCS also posted a robust total contract value (TCV) at $12.2 billion for the fourth quarter and $39.4 billion for the fiscal year 2025. Meanwhile, its operating margins declined 30 bps to 24.2%.</p><p>The company also announced the appointment of Aarthi Subramanian as the Executive Director - President and Chief Operating Officer (COO) for five years starting May 1, 2025. This is subject to the approval of shareholders of the company, it said in a BSE filing. </p><p>TCS has also proposed a dividend of Rs 30 per share.</p>
<p>Bengaluru: India’s largest IT services provider Tata Consultancy Services (TCS) on Thursday posted a 5.3% uptick in its revenue for the March quarter at Rs 64,479 crore, missing analyst estimates due to a soft demand environment and a degrowth in its primary market - North America (a 1.6% year-on-year decline). Analysts, on average, were expecting the revenue for the quarter to be Rs 64,758 crore, as per data compiled by LSEG. </p><p>Its consolidated net profit too fell 1.7% on a year-on-year basis to Rs 12,224 crore. It had reported a consolidated net profit of Rs 12,434 crore in the same quarter last year. </p><p>The Mumbai-headquartered company, which had planned to roll out salary hikes by April has now deferred it. "Considering the uncertain business environment, we'll decide during the year when it (salary hikes) will happen,” said Chief Human Resources Officer (CHRO) Milind Lakkad. </p>.TCS UK arm's redundancy plan targeted older, non-Indian nationals: Report.<p>The $254-billion Indian IT industry had pinned its hopes on US President Donald Trump’s supportive policies consequently leading to a pick up in client budgets, the situation has soured now. “We had spoken about improved market sentiment and early signs of discretionary spending revival in January but it did not sustain due to discussions on tariff. We are observing delays in decision making and projects with respect to discretionary spending,” said Chief Executive Officer and Managing Director K Kirthivasan during the earnings conference. </p><p>While there have been short-term uncertainties, TCS believes that it should settle in over a few months and expects the ongoing fiscal year to be better than FY25. “Given the macroeconomic challenges, Indian IT providers were expected to achieve only modest revenue gains,” said Biswajit Maity, Senior Principal Analyst, Gartner. </p><p>The IT services bellwether added 625 employees during the fourth quarter, taking the total employee count to 6,07,979. It maintained its stance of hiring from campus, stating that hiring in the ongoing fiscal year (FY26) could be slightly higher than the last year (42,000). </p><p>The attrition for the quarter also rose to 13.3% as against 13% in the third quarter of FY25. However, Lakkad remained confident on this score, as the quarterly annualised attrition rate has come down by 130 basis points (bps). </p><p>TCS also posted a robust total contract value (TCV) at $12.2 billion for the fourth quarter and $39.4 billion for the fiscal year 2025. Meanwhile, its operating margins declined 30 bps to 24.2%.</p><p>The company also announced the appointment of Aarthi Subramanian as the Executive Director - President and Chief Operating Officer (COO) for five years starting May 1, 2025. This is subject to the approval of shareholders of the company, it said in a BSE filing. </p><p>TCS has also proposed a dividend of Rs 30 per share.</p>