TCS revenue dips by 6.3% ⁠— CEO says nearly all verticals were hit by COVID-19 crisis

• Tata Consultancy Services (TCS) reported a 6.3% dip in revenue in constant currency terms.
• Its profit has also taken a hit of over 13%.
• Most of the company’s growth was led by its life-sciences vertical.

India’s biggest IT services company, Tata Consultancy Services (TCS) has kicked off the financial year with a 6.3% dip in constant currency revenue growth. Its profit has also taken a hit of 13.8%.

Most of the growth came from its life-sciences vertical which saw 6.3% increase year-on-year (YoY). “It affected all verticals, with the exception of Life Sciences and Healthcare, with varying levels of impact. We believe it has bottomed out, and we should now start tracing our path to growth," said Rajesh Gopinathan, CEO and MD of TCS in a statement.

"Our largest vertical, banking, financial services, and insurance (BFSI) has had 4.9% decline in YoY revenue. Within that, insurance continues to do better."

“The other big investment themes are around driving operational resilience, adaptability and optimization. We signed several large core transformation programs encompassing operations, applications, cloud and cybersecurity,” he added.

Since the lockdown was announced on March 25, TCS’ share price has recovered by 29.5%. On July 7, the closing price was ₹2269.95 — just 1.4% shy of its 52-week high of ₹2,301.85. The company has announced a dividend of ₹5 per equity share of ₹1 for its shareholders.

Business in UK hit the hardest
Across the geographies where TCS operates, UK has been hit the hardest. "UK has been the most unfortunate in terms of bearing the twin impact of BREXIT and COVID-19 come together in this period, and that is showing through in our overall numbers," said Gopinathan adding that TCS is still the second-largest technology services provider in the country.

SEE ALSO:
TCS earnings, COVID-19 cases, foreign investment flows – here’s what will move Sensex and Nifty 50 this week

TCS and Infosys to face least impact — Indian IT companies likely to report sharp decline in revenue during first quarter

TCS shares are hot again as investors hope for a quarterly surprise