BUSINESS

TCS Profit Drops Nearly 14% in Q1 Earnings

TCS reported a 13.8% drop in the net profit of first-fiscal quarter, April-June period against the quarter profit from a year earlier.
Tata Consultancy Services has declared a net profit Rs 7,008 crore in the June quarter on Thursday, as compared to Rs 8,131 crore in the quarter ended March 31, 2020. Rajesh Gopinathan, Managing Director and CEO of TCS said, “The deal pipeline is strong amid market share gains and the recovery trajectory will be faster than what was seen during the global financial crisis”.
Revenue declined 6.3 per cent on a year-on-year basis to Rs 38,322 crore, in constant currency terms. TCS has reported its strongest ever quarterly order book at $ 8.9 billion in the preceding 3 months and winning deals worth of $ 6.9 billion in the June quarter which includes deals in digital infrastructure and in security infrastructure space. Operating margin for the June quarter narrowed to 23.6 per cent from 24.6 per cent, whereas its net margin stood at 18.3 per cent.
In constant currency terms, Europe and Latin America grew by 2.7 0per cent and 0.2 per cent respectively and growth declined in the markets of North America at 6.1 per cent, UK at 8.5 per cent, the Asia Pacific at 3.2 per cent and the Middle East and Africa at 11.7 per cent, apart from this Indian markets at 27.6 per cent.
In terms of business segments, only life sciences and healthcare continued to grow strongly at 13.8 per cent and other all verticals have reported declines. Including Banking, financial services and insurance sector (-4.9 per cent); retail and consumer packaged goods (-12.9 per cent); communications and media (-3.6 per cent); manufacturing (-7.1 per cent); and technology and services (-4 per cent). June 30, the number of employees at TCS is 4,43,676 declined by 4,788.

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