India business hit by COVID second wave; company adds 20,409 to headcount
Tata Consultancy Services Ltd. (TCS) on Thursday said first-quarter consolidated net profit jumped 28.5% from a year earlier to ₹9,008 crore, helped by ‘robust’ growth in its core markets of North America and the U.K. Revenue in the three months ended June 30 rose 18.5% to ₹45,411 crore.
The board declared a dividend of ₹7 per share.
Significantly, the India business contracted 25.3%, impacted by the second wave of COVID-19, with TCS iON, the public sector Passport Seva business and business from the private sector all getting affected severely.
“Our business in North America, BFSI and retail all showed an appreciable growth which underlines the resilience of our operating model,” CEO and MD Rajesh Gopinathan said in a statement. In a media briefing, he pointed out that the adverse impact on the India operations had led to a revenue loss of ₹350 crore in the quarter. He added that the trend witnessed in India during June indicated a bounce-back in the current quarter.
“We once again had a superior quarter with a total contract value of $8.1 billion which is broad-based across markets and verticals,” said N. Ganapathy Subramaniam, COO and ED. Market growth was led by North America at 15.8%. The U.K. business expanded 16.3%.
TCS added a net of 20,409 employees to take headcount to 5,09,058. Growth in the verticals continued to be led by life sciences and healthcare at 25.4%; while retail and CPG grew 21.7%. Banking and financial services (BFSI) rose 19.3%.
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