TCS Must Carefully Focus On Its Employee Turnover

TCS showed decent performance and kept its deal pipeline stable

Biswajit Maity, Sr Principal Analyst at Gartner

FinTech BizNews Service

MUMBAI, April 11, 2025: Tata Consultancy Services (BSE: 532540, NSE: TCS) has reported its consolidated financial results according to Ind AS and IFRS, for the quarter and full year ending March 31, 2025. 

As per Q4 FY 2025: Quarterly Highlights: 

• Revenue at $7.47 Bn, +1.4% YoY (CC: 2.5%)
• Growth led by Regional Markets (+22.5%), ERU (4.6%), and BFSI (+2.5%) YoY
• Operating Margin: 24.2%
• Net Margin: 19.0%
• Strong Cash conversion: Operating Cash Flow 125.1% of Net Income
• Record Q4 TCV at $12.2 billion, Book-to-bill ratio of 1.6  
• According to Biswajit Maity, Sr Principal Analyst at Gartner:
  “In Q4, TCS achieved a 6% YoY revenue growth, mainly fuelled by growth in the Energy, Resources and Utilities, Manufacturing, Consumer Business Industry sectors, and Regional Markets. While revenue from NA dropped by 1.6%, overall global growth stayed at 4.0% when measured in CC. Despite all global economic challenges, federal government budget cuts, and lower discretionary spending, TCS showed decent performance and kept its deal pipeline stable. Overall, TCS managed its fiscal situation well and positioned itself as a strategic provider across nearly every industry. Gartner believes TCS will remain a valuable partner for clients, with its strategy well-aligned with market demands and clients’ digital transformation goals. TCS reported an average attrition rate of 13.3%, which is slightly higher than the previous quarter. TCS must carefully focus on its employee turnover, as a high workload can occasionally negatively impact the overall performance quality, particularly when attrition is gradually rising QoQ. With strategic positioning across various sectors, TCS has solidified its role as a trusted partner. It is also important to highlight that we are observing delays in decision-making and the start of new projects, as CIOs adopt a cautious stance on discretionary spending, retaining their budgets unless they see evident value. However, there is optimism for 2025, with the industry hopeful for a return to double-digit growth, fueled by ongoing digital transformation initiatives and the increasing impact of Generative AI, which can certainly help Indian IT providers regain their growth momentum in the upcoming months.”