Are TCS latest results good or bad?
TCS's latest results show a strong operating cash flow and profit after tax, indicating improved profitability, but a slight decline in net sales raises concerns about sustainability. Overall, the results reflect a mixed performance with positive trends in earnings and cash generation.
Tata Consultancy Services (TCS) has reported its financial results for the quarter ending June 2025, showcasing a mix of operational trends. The company achieved an operating cash flow of Rs 48,908 crore, marking a significant high over the past three years, which reflects TCS's capability to generate substantial cash from its operations. The profit after tax (PAT) for the quarter was Rs 12,760 crore, the highest in the last five quarters, indicating a favorable trend in profitability. Additionally, earnings per share (EPS) rose to Rs 35.25, suggesting enhanced earnings for shareholders.However, the company reported a quarterly non-operating income of Rs 1,660 crore, which is the highest in five quarters. This increase raises questions regarding the sustainability of such income from non-business activities.
In terms of net sales, TCS experienced a decline of 1.62% compared to the previous quarter, while consolidated net profit showed a growth of 4.38%. The operating profit margin, excluding other income, was slightly lower at 26.33%.
Overall, TCS saw an adjustment in its evaluation over the past three months, reflecting these operational trends.
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