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NEW DELHI: IT services major Tata Consultancy Services (TCS) on Thursday reported a 13.81 per cent fall in its consolidated net profit for the first quarter (Q1) ended June 30, 2020.
The company posted a net profit of Rs 7,008 crore for the period under consideration, as against a profit of Rs 8,131 crore posted in similar quarter last year.
In terms of quarter-on-quarter growth, TCS reported 12.93 per cent fall in its net profit for the first quarter, against a profit of Rs 8,049 crore posted in March quarter.
Commenting on the Q1 performance, Rajesh Gopinathan, chief executive officer and managing director of TCS, 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.”
“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 signed several large core transformation programs encompassing operations, applications, cloud and cybersecurity. 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.
The company’s revenue from operations for Q1 came in at Rs 38,322 crore, 0.39 per cent from Rs 38,172 crore posted in similar quarter last year.
The Board of Directors of the company have declared an interim dividend of Rs 5 per equity share of Rs 1 each of the company.
N Ganapathy Subramaniam, chief operating officer and executive director of TCS said: “The resilience and adaptability that we have shown in supporting all our customers over the last three months bodes well for our relative competitiveness going forward. Despite the continued uncertainty and weakness in all major economies, we have had very healthy deal closures and a strong pipeline. We will stay focused on helping our customers overcome the current challenges and prepare for the growth ahead.”
At the beginning of the first quarter, TCS had said it expects recovery from the third quarter of FY21.
Shares of TCS finished 13.30 points or 0.60 per cent lower at Rs 2,204 on the BSE. While, it closed 6.40 points or 0.29 per cent lower at Rs 2,212 on the NSE.