TCS Q1 results : 28.5% rise in net profits
Software services heavyweight Tata Consultancy Services ( TCS ) declared its results on Thursday. It reported 28.5% rise in consolidated net profit for June quarter at Rs 9,008 crore, powered by higher demand from businesses ramping up digital services during the Covid crisis. It was Rs 7,008 crore in the year-ago period. However, the company fell short of the estimates.
Analysts had estimated up to 36% YoY rise in net profit. The TCS results though good have missed estimates.
TCS results show a increase in consolidated revenue by 18% to Rs 45,411 crore from Rs 38,322 crore in June 2020.
The company also announced interim dividend of Rs 7 per share. The company’s workforce crossed the 500,000-mark at 509,058 with the highest-ever quarterly net addition of 20,409 people.
Message from the TCS Management about the results
“On that backdrop, 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.” – Chief Executive Officer and Managing Director Rajesh Gopinathan
“We crossed the USD 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. Despite this and headwinds in regional markets, we expanded our Q1 operating margin year on year, reflecting the inherent resilience of our business model,” – Chief Financial Officer Samir Seksaria said.
“We overcame the challenges posed by the second wave of Covid-19 in India taking some practical approaches and am satisfied that the delivery of all our client engagements was kept on track. We once again had a superior quarter with a TCV of $8.1 billion which is broad based across markets and verticals. Our G+T themes are seeing traction in the market place and we are delighted to sign our largest SaaS deal ever for the TCS BaNCS Global Banking Platform on the cloud during the quarter.” – COO, N Ganapathy Subramaniam