TCS Q1 results: Profit slips 13.81% YoY to Rs 7,008 crore; misses Street estimates

New Delhi: Tata Consultancy Services, India’s biggest IT company, on Thursday reported 13.81 per cent year-on-year (YoY) fall in profit at Rs 7,008 crore for the first quarter ended June 30. Analysts in an ET NOW poll had projected the figure at Rs 7,680 crore.

Consolidated revenue of the company inched higher by 0.39 per cent on a yearly basis to Rs 38,322 crore.

Commenting on the TCS Q1 performance, CEO and MD Rajesh Gopinathan, said: “The revenue impact of the pandemic played out broadly along the lines we had anticipated at the start of the quarter. It affected all verticals, with the exception of Life Sciences and Healthcare, with varying levels of impact. We believe it has bottomed out, and we should now start tracing our path to growth.”

Revenue in constant currency terms witnessed a drop of 6.3 per cent YoY.

The board recommended a dividend of Rs 5 per share. “The interim dividend shall be paid on July 31 to the equity shareholders of the company, whose names appear on the register of members of the company or in the records of the depositories as beneficial owners of the shares as on July 17, which is the record date fixed for the purpose,” TCS said in a release.

TCS highlighted that the life sciences and healthcare segment continued to grow strongly at 13.8 per cent YoY. Other than that, all other industry verticals showed declines of varying degrees: BFSI (down 4.9 per cent), retail and CPG (down 12.9 per cent), communications and media (down 3.6 per cent), manufacturing (down 7.1 per cent) and technology and services (down 4 per cent).

“Demand contraction was broad-based by geography. Other than Europe (up 2.7 per cent) and Latin America (up 0.2 per cent), growth declined in all other markets: North America (down 6.1 per cent), UK (down 8.5 per cent), India (down 27.6 per cent), Asia Pacific (down 3.2 per cent) and MEA (down 11.7 per cent),” the IT major said in a release.

Consolidated headcount stood at 4,43,676 as of June 30, against 4,48,464 as of March 31.

Total deals won during the quarter stood at $6.9 billion in Q1FY21, against $8.9 billion in Q4FY20.

The company announced its results post market hours. Earlier, shares of TCS settled 0.60 per cent down at Rs 2,204. On the other hand, the benchmark BSE Sensex settled 1.12 per cent higher at 36,737.

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