TCS March Quarter Profit Declines Marginally To Rs 8,049 Crore

Tata Consultancy Services' profit declined 0.85 per cent to Rs 8,049 crore during the January-March quarter, the Mumbai-based company said in an exchange filing after market hours on Thursday. TCS earned profit of Rs 8,118 crore during the previous quarter.

Revenue of the country's largest information technology company rose to Rs 39,946 crore from Rs 39,854 crore in the previous quarter, registering a marginal rise 0.2 per cent, according to its stock exchange filing. On constant currency terms, TCS revenue rose 3 per cent.

Revenue growth was led by life sciences & healthcare with a growth of 16.2 per cent, communications & media sector grew 9.3 per cent and manufacturing rose 7 per cent, retail & CPG segment grew 4.2 per cent and technology & services advanced 3.5 per cent. While, BFSI revenue declined 1.3 per cent, TCS said in an earnings release.

For financial year 2019-20, TCS net profit rose 2.8 per cent to Rs 32,340 crore.

Rajesh Gopinathan, chief executive officer and managing director, said: "Amidst the tumult of the last few weeks, our priority has been to safeguard the health and well-being of our employees while continuing to support our customers' mission critical activities globally. The agility, resilience and adaptability of our operating model were put to the test, and it has emerged stronger and more proven than ever before. This has further strengthened our customers' confidence in TCS."

"The pandemic completely reversed the positive momentum that we had started seeing in some of our biggest verticals in the first half of the quarter. On the positive side, we had very strong deal closures during the quarter. In fact, our order book this quarter is the largest ever, from the time we started reporting the metric."

Meanwhile, the company announced final dividend of Rs 6 per share.

TCS shares ended 1.09 per cent lower at Rs 1,715.60 apiece on the BSE, underperforming the S&P BSE Sensex index which finished a choppy session with a gain of 0.73 per cent, ahead of the earnings announcement by the company.