Info-tech

TCS profit declines 14% in Q1

Our Bureau. MUMBAI | Updated on July 09, 2020 Published on July 09, 2020

IT services major Tata Consultancy Services reported a 14 per cent dip in its consolidated profit to ₹7,008 crore in the first quarter ended June 30, 2020 as it faced headwinds due to the Covid pandemic.

“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,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director.

Revenues rose marginally in the first quarter of the current fiscal to ₹38,322 crore from ₹38,172 crore in the same period last year.

The company also expressed short-term concerns over visa suspensions in the US. Terming the recent move by President Donald Trump as “unfair”, Milind Lakkad, Global Head, Human Resources, said that the proclamation is unfortunate, and it will have a short-term business impact.

“But with customers adopting the location-independent model, we will manage the situation. It has caused uncertainties amongst associates who run banks, telcos, who contribute to the local economies... but we will deal with it,” he added.

Gopinathan was bullish about the company’s prospects and pointed out that after an initial period of disruption, customers have now stabilised their operations and are now making new beginnings to adapt in a post-pandemic world.

In the first quarter, TCS deal wins remained robust at $6.9 billion for the June quarter 2020, when compared to $8.9 billion in the March quarter.

 

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Published on July 09, 2020
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