The country’s largest software services firm Tata Consultancy Services on Thursday reported a marginal drop in consolidated net profit to Rs. 8,049 crore for March 2020 quarter.
This is against a net profit of Rs. 8,126 crore in the year-ago period, TCS said in a regulatory filing.
Revenue of the city-based firm grew 5.1 per cent in the quarter under review to Rs. 39,946 crore from Rs. 38,010 crore in the corresponding period last fiscal, it added.
For the full year (2019-20), net profit was higher by 2.7 per cent at Rs. 32,340 crore, while revenue increased 7.1 per cent to Rs. 1,56,949 crore.
“The pandemic completely reversed the positive momentum that we had started seeing in some of our biggest verticals in the first half of the quarter,” Rajesh Gopinathan, chief executive officer and managing director at TCS, said. On the positive side, TCS had very strong deal closures during the quarter, he said, adding that its order book this quarter is the largest ever since the company started reporting the metric.
TCS Board has proposed a final dividend of Rs. 6 per equity share.
“Covid 19 presented us an operational challenge of scale, speed and complexity…It also required recalibrating the project management methodology and the security posture. The outcome was our Secure Borderless Workspaces framework, which has now enabled close to 90 per cent of our employees to work remotely and securely,” N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said.
He added that the company managed to not only maintain off essential services for its customers, but also continued the journey in their growth and transformation programs.
TCS CFO V Ramakrishnan said: “As we enter a difficult and uncertain period, our strong balance sheet, best-in-class profitability and the inherent resilience of our business model position us well to navigate the challenges ahead and gain share”.
TCS results were announced after trading hours. Shares of TCS closed at Rs. 1,715.6 apiece, down 1 per cent over the previous close on the BSE.
Its results come a day after Wipro reported 6 per cent drop in net profit for March quarter and said it was suspending its practice of revenue growth guidance due to uncertainty in the external environment amid coronvirus pandemic.
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