TCS Q1 Net Up 28.5% At Rs 9,008 Cr, Employee Headcount Surges Past 5 Lakh Mark In First Quarter

The workforce continues to be very diverse, comprising 155 nationalities and with women making up 36.2% of the workforce said the company.

(Representative Image/Getty)

India’s largest software exporter, Tata Consultancy Services (TCS) on Thursday reported a 28.5% growth in its first-quarter revenues to Rs 9008 crore. The growth in profits was reported on 18.5% growth in revenues to Rs 45,411 crore.

Commenting on the results, Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS said: “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. Given the variants of the virus and fears of a potential third wave, we are watchful of the emerging situation and remain optimistic about the opportunities in our core markets and verticals. We are well-positioned and operating diligently to participate in them aggressively.”

Among the segments, the growth continued to be led by Life Sciences and Healthcare, which grew at 25.4%. Retail and CPG also bounced back to double-digit growth, growing 21.7% YoY. BFSI (+19.3% YoY), Manufacturing (+18.3% YoY), Technology & Services (+12.3% YoY) and Communications & Media (+6.9% YoY) also saw significantly improved performance, said the company.

N Ganapathy Subramaniam, Chief Operating Officer & Executive 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.”

Among the markets, growth was led by North America (+15.8% YoY), UK (+16.3% YoY), Continental Europe (+19.7% YoY), Latin America (+16.1% YoY) and Middle East & Africa (+25.3% YoY) and Asia Pacific (+9.3% YoY). The pandemic’s second wave impacted sequential growth in India (-14.1% QoQ, +25.3% YoY)

Samir Seksaria, Chief Financial Officer, said: “We crossed the $6 billion milestone in quarterly revenue this quarter. In addition to our annual salary increase and promotions, we undertook one of the largest vaccination drives in the private sector. Despite this and headwinds in regional markets, we expanded our Q1 operating margin year on year, reflecting the inherent resilience of our business model.”

TCS’ employee headcount crossed the 500,000 mark in Q1, with 509,058 employees as of June 30, a net addition of 20,409 its highest quarterly net addition ever. The workforce continues to be very diverse, comprising 155 nationalities and with women making up 36.2% of the workforce said the company.

"During the months of April and May, the second wave of pandemic has been quite demanding for the TCS Family. Our thoughts are with the families who suffered personal loss despite our best efforts. I want to acknowledge the temperament and personality of our associates who stood by each other in these stressful times. We continued to place a premium on associate health and wellbeing and have taken vaccination as a priority for all our associates, dependents and contract staff. In less than two months, over half a million associates and family members and over 70 percent of our associates have been vaccinated, and we are on track to vaccinate all TCSers and families by September," said Milind Lakkad, Chief HR Officer.

The company’s board also approved an interim dividend of Rs. 7 per share. Ahead of the results, TCS shares closed down 0.56% at Rs 3527.1 in a weak Mumbai market on Thursday, valuing the firm at Rs 12,04,818 crore.