The company's consolidated net profit for Q1FY21 stood at Rs 7,008 crore, 13.8 percent lower than Rs 8,131 crore reported in the corresponding quarter of the previous financial year.
The IT behemoth Tata Consultancy Services (TCS) on July 9 reported a nearly 14 percent year-on-year fall in net profit for the June quarter of the financial year 2021 (Q1FY21).
The company's consolidated net profit for Q1FY21 stood at Rs 7,008 crore, 13.8 percent lower than Rs 8,131 crore reported in the corresponding quarter of the previous financial year.
It missed the estimates of the street also, as a CNBC-TV18 poll had estimated the number to the tune of Rs 7,690 crore.
Read more: TCS Q1 misses street estimates, profit falls 13% to Rs 7,008 crore
"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, TCS.
Here are the top 6 highlights of TCS' Q1 scorecard:
Life sciences, healthcare buck the trend
The company's life sciences and healthcare segment continued to grow strongly at 13.8 percent YoY. However, other industry verticals, including communications and technology showed declines: BFSI (-4.9 percent), Retail & CPG (-12.9 percent), Communications & Media (-3.6 percent), Manufacturing (-7.1 percent) and Technology & Services (-4 percent).
Demand contraction
Demand contraction was broad-based by geography, TCS said. Other than Europe (up 2.7 percent) and Latin America (up 0.2 percent), growth declined in all other markets: North America (-6.1 percent), the UK (-8.5 percent), India (-27.6 percent), Asia Pacific (-3.2 percent), and MEA (-11.7 percent).
Strong traction in services
The company said it saw strong traction in M&A and Location Independent Agile services. Finance and shared services transformation, as well as digital strategy and integration services, saw strong traction, TCS said.
The IT major witnessed strong demand for cloud and cybersecurity services during the quarter. The company said it positioned multiple focused offerings to help customers navigate the crisis, around the themes of business continuity and certainty, digital workplaces and remote working, customer experience and support services, agile supply chain, ecosystem modernisation, M&A, enterprise analytics, digital learning, and employee onboarding and wellness.
Deals
The company bagged a significant number of deals during the quarter. The company said it provided uninterrupted services to customers by switching over to the SBWS™ model.
"Won several large deals linked to the adoption of new operating models that enhance enterprise resilience, accelerate cloud adoption, improve customer experience in a virtual world and improve enterprise agility," TCS said.
The company said the Reserve Bank of India selected it for a programme to develop, implement and support the Public Credit Registry (PCR), a digital registry to capture and store the credit information of individual and corporate borrowers in India, to enable faster and transparent credit provisioning to a larger set of borrowers.
Aegon UK has selected TCS as the strategic partner to provide end-to-end digital solutions by leveraging new-age technologies and newer ways of working for an extended duration of three years.
Human resources
Consolidated headcount stood at 4,43,676 as of June 30, 2020, TCS said.
"The workforce continues to be very diverse, comprising 146 nationalities and with women constituting 36.2 percent of the base. TCS' continued investments in organic talent development and focus on upskilling have resulted in industry-leading outcomes. TCSers logged in 7.9m learning hours in Ql, a 28 percent increase over the prior quarter," the company said.
According to the company, over 3,53,000 employees have been trained in multiple new technologies, and over 4,17,000 have been trained in Agile methods.
TCS continues to be the global industry benchmark in talent retention, with the IT services attrition rate (LTM) at 11.1 percent, the company stated.
Dividend
The company has declared an interim dividend of Rs 5 per equity share of Rs 1 each of the company.
"The interim dividend shall be paid on Friday, July 31, 2020, 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 Friday, July 17, 2020, which is the record date fixed for the purpose," TCS said.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.