TCS reports Q4 net profit of Rs 8,049 crore, misses estimates

The management of TCS on Thursday said the Covid-19 pandemic had hurt the software major’s business, but was hopeful it would be back where it had been before the outbreak by Q3FY21. MD and CEORajesh Gopinathan said clients were stressed and were looking to restructure and re-price contracts altogether, reversing the positive momentum seen in the first halfof the March quarter.“We are in the midst of a storm and the storm is going to get a lot worse before it gets better,” Gopinathan said.

TCS will not offer increments but will not retrench employees either, despite the problems on the demand side, the management confirmed. The IT giant said it would continue to give promotions and those recuited in FY20 would be taken on board. Gopinathan said TCS had closed out some big deals during the quarter and although it was difficult to predict the path, the firm’s profitability model was secure.