TCS beats the pandemic with Rs9,008-cr net profit for Q1FY22
08 July 2021
Tata Consultancy Services (TCS), the leading global IT services, consulting and business solutions organisation, has reported its consolidated net profit of Rs9,008 crore for the fiscal first quarter ended 30 June 2021, showing a 28.5 per cent year-on-year growth
Profit for the quarter, however, was 2.6 per cent lower on a sequential basis as other income declined sharply by 22.6 per cent QoQ to Rs721 crore in Q1FY22.
TCS said the revenue from operations grew 3.9 per cent sequentially to Rs45,411 crore in the quarter ended June 2021, with an 18.5 per cent year-on-year growth.
In dollar terms as per Ind AS and IFRS, TCS reported a 32 per cent y-o-y increase in net Income at $1.22 billion, for the quarter ended 30 June 2021.
Revenue for the quarter increased 21.6 per cent y-o-y and 2.7 per cent sequentially to $6.15 billion. Revenues were up 16.4 per cent y-oy in constant currency terms.
Operating margin for the April-June 2021 quarter stood at 25.5 per cent, showing an increase of 1.9 per cent y-o-y. Net cash from operations for the quarter stood at $1.39 billion, forming 114.3 per cent of the company’s net income for the quarter.
TCS also reported the highest ever quarterly net headcount addition of 20,409, which took its total workforce strength to 509,058. TCS also claims to have grown into a more diverse and inclusive workplace with 155 nationalities and women constituting 36.2 per cent of the total.
IT services attrition rate in last twelve months at 8.6 per cent was the lowest in the industry, it added.
“...TCSers demonstrated phenomenal character in helping each other, be meaningful to the communities and delivered on our commitments to clients. 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...We are well positioned and operating diligently to participate in them aggressively.” Rajesh Gopinathan, chief executive officer and managing director, 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,” N Ganapathy Subramaniam, chief operating officer and executive director, said.
TCS said its North America business grew 4.1 per cent QoQ and 15.8 per cent YoY, and recorded a 3.6 per cent sequential growth and 16.3 per cent yearly growth in the UK. Continental Europe revenue rose 1.5 per cent QoQ and 19.7 per cent YoY, and Latin America revenue grew 4 per cent QoQ and 16.1 percent YoY, while Middle East & Africa revenues grew 4.2 per cent QoQ and 25.3 per cent YoY.
TCS India reported a 14.1 percent sequential decline and 25.3 per cent year-on-year increase, while Asia Pacific business grew 2.4 per cent QoQ and 9.3 per cent YoY.
TCS said a strengthening of demand across segments accelerated demand across multiple service lines. "Growth in the quarter was led by cloud platform services, cyber security, analytics and insights and enterprise application services."