IT services giant Tata Consultancy Services (TCS) on Thursday, released its fourth quarter earnings for the financial year 2024-25, which said the company saw its consolidated net profit drop by 1.67 per cent to ₹ 12,293 crore from ₹ 12,502 crore during the fourth quarter of the previous year. The above was a drop of ₹ 209 crore.
The drop in net profit came despite a rise in revenue from operations, which was up 5.29 per cent to ₹ 64,479 crore from ₹ 61,237 crore during the same quarter of the previous year, which is a difference of ₹ 3,242 crore. Also Read: Volkswagen's profits fall 40% over US tariffs, missing EU carbon emission targets Its full year order book was $39.
4 billion, while the Q4 order book stood at $12.2 billion. “We are pleased to cross the $30 billion in annual revenues and achieve a strong order book for the second consecutive quarter," TCS CEO and MD K Krithivasan said.
"Our expertise in AI and Digital Innovation, coupled with the unmatched knowledge of customer context and global scale makes us the pillar of support for our customers in this environment of macroeconomic uncertainty.? The main reason for the drop in net profit was due to increased expenses. Total expenses were up as much as 7.
81 per cent to ₹ 49,105 crore from ₹ 45,545 crore earlier, which is a difference of ₹ 3,560 crore. A significant portion of these expenses came due to increased cost of equipment and software licenses, along with higher employee benefit expenses. The cost of equipment and software licenses was up by as much as 76% from the previous time, hitting ₹ 2,748 crore as compared to ₹ 1,561 crore earlier.
This was a difference of ₹ 1,187 crore. Employee benefit expenses, meanwhile, grew by 4.62 per cent to ₹ 36,762 crore from ₹ 35,138 crore earlier.
This was a rise of ₹ 1,624 crore. Also Read: Byju's subsidiary sues Byju Raveendran, other executives for alleged theft of $533 million How was TCS' annual earnings like? The annual financial results of TCS was more positive, with both revenue and net profit rising. Annual consolidated revenue from operations for the financial year 2024-25 was up by 4.
08 per cent, reaching ₹ 2.55 lakh crore from ₹ 2.45 lakh crore in 2023-24.
This was a rise of ₹ 10,009 crore. Meanwhile, annual net profit was up 6.35 per cent, reaching ₹ 1.
94 lakh crore, compared to ₹ 1.82 lakh crore earlier. This was a rise of ₹ 11,595 crore.
Total expenses were up by 5.85 per cent to ₹ 48,797 crore from ₹ 46,099 crore earlier. This is an increase of ₹ 2,698 crore.
Also Read: Forget markets, here are 8 other early indicators of a recession: Brothel index, lipstick index, and more How did TCS shares perform? The financial results came out on a market holiday due to the occasion of Mahavir Jayanti. The company's shares had previously closed at ₹ 3,246.10 on the Bombay Stock Exchange (BSE).
This was a drop of 1.44 per cent or ₹ 47.45 from the close previous to that.
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TCS Q4 results: Net profit drops 1.67% despite rise in revenue as expenses mount

However, the full year order book of TCS rose to $39.4 billion, while the Q4 order book stood at $12.2 billion.