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NEW DELHI: IT services major Tata Consultancy Services (TCS) on Thursday reported a 13.81 per cent fall in its consolidated net profit for the first quarter (Q1) ended June 30, 2020.
The company posted a net profit of Rs 7,008 crore for the period under consideration, as against a profit of Rs 8,131 crore posted in similar quarter last year.
In terms of quarter-on-quarter growth, TCS reported 12.93 per cent fall in its net profit for the first quarter, against a profit of Rs 8,049 crore posted in March quarter.
Commenting on the Q1 performance, Rajesh Gopinathan, chief executive officer and managing director, said: “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.”
“After an initial period of disruption, customers have now stabilized their operations and are now embarking on new beginnings to adapt and thrive in a post-pandemic world. We signed several large core transformation programs encompassing operations, applications, cloud and cybersecurity. Very encouragingly, we saw customers launch new business transformation programs or restart deferred programs during the quarter. This is indicative of business confidence returning in pockets,” he added.
Shares of TCS finished 13.30 points or 0.60 per cent lower at Rs 2,204 on the BSE. While, it closed 6.40 points or 0.29 per cent lower at Rs 2,212 on the NSE.
