TCS Q1 result: Net profit falls 2.6% to Rs 9,008 crore, growth across vertical helps boost revenue by 3.9%

Consolidated profit in March 2021 quarter was at Rs 9,246 crore and Rs 7,008 crore in June quarter last year.

As per Moneycontrol Updates:

7:44pm IST: IT services attrition rate in last twelve months at 8.6 percent was the lowest in the industry, said TCS, adding there was highest ever quarterly net headcount addition of 20,409, taking total workforce strength to 5,09,058 as of June 2021.The IT services firm announced an interim dividend of Rs 7 per share.


The stock price closed at Rs 3,257.10 on Thursday, down 0.56 percent on the BSE.

7:35 pm IST: Among markets, North American business grew by 4.1 percent QoQ and 15.8 percent YoY, and United Kingdom registered a 3.6 percent sequential growth and 16.3 percent yearly growth. Continental Europe revenue rose 1.5 percent QoQ and 19.7 percent YoY, and Latin America grew 4 percent QoQ and 16.1 percent YoY, while the Middle East & Africa registered a 4.2 percent QoQ and 25.3 percent YoY growth.

The pandemic’s second wave impacted sequential growth in India and the Asia Pacific said TCS. India registered a 14.1 percent sequential decline and 25.3 percent year-on-year increase, while Asia Pacific business grew 2.4 percent QoQ and 9.3 percent YoY.

The IT firm said strengthening demand across growth and transformation themes drove accelerated demand across multiple service lines. “Growth in the quarter was led by cloud platform services, cybersecurity, analytics & insights, and enterprise application services.”

At the operating level, too, numbers missed analysts’ expectations. Consolidated earnings before interest and tax (EBIT) fell 1.2 percent quarter-on-quarter to Rs 11,588 crore and margin declined 133 bps QoQ to 25.52 percent impacted by wage hikes, against CNBC-TV18 poll estimates of Rs 11,803 crore and 25.78 percent respectively.

7:15 pm IST: “Other segments also saw significantly improved performance – BFSI segment grew by 3.1 percent QoQ & 19.3 percent YoY; manufacturing rose by 4.8 percent QoQ and 18.3 percent YoY, and Technology & Services registered a 5 percent QoQ and 12.3 percent YoY growth, and Communications & Media vertical grew by 1.7 percent QoQ and 6.9 percent YoY.

6:50 pm IST: The country’s largest IT services provider Tata Consultancy Services on July 8 reported a consolidated profit of Rs 9,008 crore for the quarter ended June 2021.

Consolidated profit in March 2021 quarter was at Rs 9,246 crore and Rs 7,008 crore in June quarter last year.

Revenue from operations in Q1FY22 increased to Rs 45,411 crore, from Rs 43,705 crore in the previous quarter.

CEO Rajesh Gopinath said during the event, “Our business in North America, BFSI and Retail all showed an appreciable growth which underlines the resilience of our operating model, the relevance of offerings and above all, the passion and dedication of our associates.”

He further said, “Given the variants of the virus and fears of a potential third wave, we are watchful of the emerging situation and remain optimistic of the opportunities in our core markets and verticals.”

All verticals showed good sequential as well as YoY growth. “Growth continued to be led by Life Sciences and Healthcare that grew 7.3 percent QoQ and 25.4 percent YoY,” said TCS in its BSE filing.

The IT giant further said the Retail and Consumer Packaged Goods segment also bounced back to double-digit growth, growing 4.4 percent QoQ and 21.7 percent YoY.