INSUBCONTINENT EXCLUSIVE:
TCS reported a 4% sequential decline inrevenue from operations to Rs 38,322 croreTata Consultancy Services (TCS), the country's largest IT
services company, on Thursday reported a 13 per cent decline in net profit for the April-June period compared to the previous quarter,
missing analysts' estimates
Tata Consultancy Services' net profit came in at Rs 7,008 crore in the June quarter, as against Rs 8,049 crore in the quarter ended March
In a filing to stock exchanges after market hours, Mumbai-based TCS reported a 4 per cent sequential (quarter-on-quarter) decline in revenue
from operations to Rs 38,322 crore.Analysts had on an average expected the company to report a profit of Rs 7,705 crore, news agency Reuters
reported citing Refinitiv data.In constant currency terms, its revenue declined 6.3 per cent on a year-on-year basis, TCS said in a press
The company's operating margin came in at 23.6 per cent, whereas its net margin stood at 18.3 per cent."We have taken a supportive approach
to employees and vendors, and used other efficiency levers to limit the impact of the sharp revenue decline during the quarter, and still
delivered an industry-leading operating margin," said V Ramakrishnan, chief financial officer, TCS."Disciplined execution resulted in
superior cash conversion and a strong cash balance that positions us very well to weather the downturn," he said.During the quarter, the
company's life sciences and healthcare segment continued to grow strongly at 13.8 per cent (year-on-year).However, the company's all other
industry verticals showed declines of varying degrees:Banking, financial services and insurance segment (BFSI): -4.9% Retail and consumer
packaged goods (CPG): -12.9Communications and media: -3.6%Manufacturing: -7.1%Technology and services: -4%"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," said Rajesh Gopinathan, CEO and managing director,
TCS.TCS said its consolidated headcount stood at 4,43,676 as of June 30, 2020
The company said its workforce continues to be very diverse, comprising 146 nationalities and with women constituting 36.2 per cent of the
base.The IT major's board declared an interim dividend of Rs 5 per share.Shares in TCS had ended 0.60 per cent lower at Rs 2,204.35 apiece
on the BSE ahead of the earnings announcement, underperforming the benchmark Sensex index which climbed up 1.12 per cent to close at a
