Ayisha siddiqui📊 Financial Performance
1. FY25 Revenue Milestone : TCS surpassed $30 billion in FY25 revenue, a 3.8% year-over-year increase, marking a noteworthy milestone. The business had a net margin of 19.0% and an operating margin of 24.3%.
2. Q4 FY25 Results: TCS reported a 5.3% growth in revenue to ₹644.79 billion ($7.49 billion) in the fourth quarter. However, net profit fell short of expert projections, dropping 1.69% to ₹122.24 billion.
🌍 Market Dynamics
1. North America Challenges : In Q4 FY25, TCS experienced a year-over-year decline of over 2% in constant currency revenue from its North American operations. Additionally, its market share in the region dropped from 50% to 48.2%. The company attributed this downturn to uncertainty surrounding U.S. tariffs, which led to reduced client spending.
2. Growth in Emerging Markets: In contrast to North America, TCS experienced strong growth in regional markets, increasing by 37.2% year over year, underscoring the company's growing global presence.
🧠 Leadership and Strategic Outlook
1. Leadership Changes: Effective May 1, Aarthi Subramanian will return to TCS as President and Chief Operating Officer. She brings over three decades of experience within the Tata Group, including her recent role as Group Chief Digital Officer at Tata Sons.
2. Future Revenue Goals: Emphasising TCS's emphasis on artificial intelligence and digital innovation as main growth engines, CEO K. Krithivasan said he was confident in reaching the company's lofty goal of $50 billion in income by 2030.
