TCS vs HCL: A Look at the Latest Financial Results for Q3 FY 2025

In the competitive world of IT services, Tata Consultancy Services (TCS) and HCL Technologies (HCLTech) have emerged as two major players. As they continue to expand their global footprint, these companies have shown resilience and growth despite a challenging macroeconomic environment. In this article, let’s look into the financial results for Q3 FY2025.

TCS: Q3 FY 2025 Highlights

The company has reported strong financial performance for the quarter ended December 31, 2024. The company achieved a revenue of ₹63,973 crore, reflecting a 5.6% year-on-year (YoY) growth and a 4.5% increase in constant currency terms. Operating margin stood at 24.5%, with a slight decline of 50 basis points YoY but a sequential improvement of 40 basis points. Net income reached ₹12,380 crore, marking a 5.5% YoY increase, with a net margin of 19.4%.

TCS reported net cash from operations at ₹13,032 crore, representing 105.3% of net income. The company maintained a workforce of 6,07,354 employees, with a low attrition rate of 13.0% in its IT services segment. TCS also remains committed to diversity, with women comprising 35.3% of its workforce.

Notably, the company declared a dividend of ₹76.00 including a special dividend of ₹66 per share, with a record date of January 17, 2025.

Deals and Partnerships

TCS partnered with Landis+Gyr to integrate its TCS Clever Energy™ with smart metering solutions for enhanced energy management. The company extended its partnership with Telenor Denmark for IT infrastructure services, improving operational costs. TCS was selected by the Bank of Bhutan to modernise its digital core using the TCS BaNCS™ Global Banking Platform. Additionally, TCS signed a multi-year deal with Air France-KLM to become the most data-centric airline group globally. Apart from these, there were several other developments at the company during the quarter.

On January 15, 2025, TCS share price opened at ₹4,218.00, touching the day’s low at ₹4,207.45, as of 11:59 AM on the NSE. The market cap of the company stood at ₹15,29,148.51 crore.

HCL Technologies: Q3 FY 2025 Highlights

HCL Technologies has reported robust financial results for the quarter ended December 31, 2024. The company achieved INR revenue of ₹29,890 crore, marking a 3.6% sequential growth and a 5.1% year-on-year (YoY) increase. EBIT stood at ₹5,821 crore, which is 19.5% of revenue, reflecting a growth of 8.6% QoQ and 3.7% YoY. Net income (NI) reached ₹4,591 crore, or 15.4% of revenue, up 8.4% QoQ and 5.5% YoY.

In celebration of its 25 years of public listing, HCL declared a 4th interim dividend of ₹18 per equity share, which includes a special dividend of ₹6 per share. The record date for the payment of the interim dividend is January 17, 2025, and the payment date is January 24, 2025.

The company’s workforce grew to 2,20,755 with a net addition of 2,134 employees. For FY25, HCL expects revenue growth of 4.5%-5.0% YoY in constant currency (CC) and EBIT margin between 18.0%-19.0%.

Deals and Partnerships

HCLTech expanded its strategic partnership with a US-based tech company for AI-driven contact centre transformation. It was selected by a Europe-based biopharma major to establish a digital hub with GenAI capabilities. A leading US financial services firm chose HCLTech to accelerate cloud migration, while a global EV charging leader selected HCLTech for enhancing customer applications and engineering functions. Additionally, a Japan-based conglomerate appointed HCLTech for a digital transformation and asset management platform. Similarly, there were several other business developments at the company.

On January 15, 2025, HCLTech share price opened at ₹1,836.00, touching the day’s high at ₹1,843.55, as of 12:52 PM on the NSE. The market cap of the company stood at ₹4,94,579.03 crore.

TCS vs HCL

Both TCS and HCL Technologies reported strong financial performances in Q3 FY 2025, showcasing consistent growth and strategic expansion. While TCS led with higher revenue and net income, HCL demonstrated impressive sequential and YoY growth, with strong profit margins. Each company continues to strengthen its market position through significant partnerships and innovative solutions, marking a competitive landscape in the tech sector.

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