TCS reports 28.5% rise in Q1 net profit at Rs 9,008 crore

NEW DELHI: The country's largest software exporter Tata Consultancy Services (TCS) on Thursday posted a 28.5 per cent rise in its consolidated net profit for the first quarter (Q1) ended June 2021, powered by higher demand from businesses ramping up digital services during the Covid-19 crisis.
TCS reported a net profit of Rs 9,008 crore in the period under consideration as against a profit of Rs 7,008 crore in Q1 of last fiscal.
In terms of quarter-on-quarter basis, the IT major's profit fell by 2.5 per cent from Rs 9,246 crore posted in the March quarter.
The IT major's board also declared an interim dividend of Rs 7 per share.
Commenting on the results, chief executive officer of TCS Rajesh Gopinathan said: "Our business in North America, BFSI and retail all showed an appreciable growth which underlines the resilience of our operating model, relevance of our offerings and above all, the passion and dedication of our associates."
The upbeat results from TCS, the country's top software exporter, mark the start of what is expected to be another strong earnings season for India's IT firms thanks to larger contracts in fields ranging from cloud-computing to digital payment infrastructure.
"Growth in the quarter was led by cloud platform services, cyber security, analytics and insights and enterprise application services," the company said in a statement.
The company's consolidated revenue from operations also jumped 18.5 per cent to Rs 45,411 crore as compared to Rs 38,322 crore in the corresponding quarter of 2020-21.
Further, the company's workforce crossed the 5 lakh-mark at 5,09,058 with the highest-ever quarterly net addition of 20,409 people.
The IT services giant also informed that it managed to maintain its attrition rate under check and has posted a rate of 8.6 per cent, which is lowest in the industry.
"We crossed the $6 billion milestone in quarterly revenue this quarter. In addition to our annual salary increase and promotions, we undertook one of the largest vaccination drives in the private sector," TCS chief financial officer Samir Seksaria said.
"Despite this and headwinds in regional markets, we expanded our Q1 operating margin year on year, reflecting the inherent resilience of our business model," he added.
Shares of TCS closed 0.56 per cent lower at Rs 3,257.1 on the BSE, while it settled 0.67 per cent lower at Rs 3,253 on the NSE.