Covid-19 weighs on TCS numbers in Q1; net profit falls 13.8% to Rs 7,008 cr

Despite being pounded by pandemic-related factors in the first quarter of FY21, Tata Consultancy Services (TCS) exuded confidence there would be a quick recovery, saying that the impact of Covid might have bottomed out.

The IT services major’s Q1 performance largely disappointed the street as the pandemic affected its revenues, profit, and operating margins harder than previously expected. Almost all the geographies and business verticals except life sciences and health care saw a decline in growth in the quarter. However, the company reported strong agreement wins, indicating a robust deal pipeline. The management maintained its previous commentary on coming back to the growth path from Q3 (October-December) stood as the Tata group company saw recovery in BFSI (banking, financial services, and insurance) and manufacturing from the current quarter onwards.