Mumbai: Tata Consultancy Services (TCS), India’s largest software exporter on Thursday reported 13.8 per cent YoY drop in net profit to Rs.7008 crore in the first quarter. Its consolidated revenue remained flat at Rs.38322 Crore, while the revenue growth in constant currency terms has declined by 6.3 per cent YoY. The company board has announced interim Dividend of Rs.5 per share.
The company has said that the COVID-19 pandemic has affected all verticals and demand has contracted across all geographies. The demand growth has contracted most in the Indian market which has dropped by 27.6 percent followed by the Middle East by 11.7 per cent, UK by 8.5 per cent and North America by 6.1 per cent.
“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” Rajesh Gopinathan, Chief Executive Officer and Managing Director, said.
“After an initial period of disruption, customers have now stabilized their operations and are now embarking on new beginnings to adapt and thrive in a post-pandemic world. We are seeing many customers focus on front-end transformation, resulting in significant traction for our products and services. The other big investment themes are around driving operational resilience, adaptability and optimization. We signed several large core transformation programs encompassing operations, applications, cloud and cybersecurity. Our Machine First™ approach, delivered using the Secure Borderless Workspaces™ model is helping us win such opportunities. Very encouragingly, we saw customers launch new business transformation programs or restart deferred programs during the quarter. This is indicative of business confidence returning in pockets” he added.