TCS projected to achieve single-digit growth in profit, revenue in Q1FY25 on business recovery

Tata Consultancy Services (TCS) is projected to achieve single-digit growth in revenue and profit during the April-June quarter of fiscal year 2024-25 (Q1FY25) compared to the same period last year. This growth is attributed to a recovery in the flow of business and clients’ willingness to resume discretionary spending. However, TCS may face margin pressure due to wage hikes.

The company is set to release its Q1 results on Thursday. According to brokerage estimates, TCS is expected to report a net profit ranging from ₹11,771 crore to ₹12,140 crore for the June quarter, representing a 6-9 per cent year-on-year (Y-o-Y) increase compared to Q1FY24’s net profit of ₹11,074 crore. Sequentially, there could be a slight dip of 3-5 per cent.