TCS Q4 results: Net profit drops 1.67% despite rise in revenue as expenses mount

The massive provider of IT services, Tata Consultancy Services (TCS), announced its fourth-quarter financial year 2024–2025 earnings on Thursday. In the fourth quarter of last year, the company's consolidated net profit decreased by 1.67 percent to ₹12,293 crore from ₹12,502 crore. This represented a ₹209 crore drop. Even while operating revenue increased 5.29 percent to ₹64,479 crore from ₹61,237 crore in the same quarter of the previous year, a difference of ₹3,242 crore, the net profit decreased. 

Increased expenses were the primary cause of the decline in net profit. The total costs increased by a whopping 7.81 percent to ₹49,105 crore from ₹45,545 crore previously, a discrepancy of ₹3,560 crore. Along with rising employee benefit costs, a sizable amount of these costs were attributable to rising equipment and software license costs.

The cost of software licenses and equipment increased by up to 76% over the preceding period, reaching ₹2,748 crore from ₹1,561 crore. The discrepancy was ₹1,187 crore.