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TCS net profit in quarter 1 fall to Rs. 7,008 crore due to Covid

Tata consultancy services(TCS) were confident with the scope of recovery after facing a deep crisis due to the pandemic related factors in the first quarter of financial year 21. It said that the recovery would be quick because the impact of COVID might have bottomed out.
However, the quarter 1 result came out to be a big disappointment as the pandemic has undoubtedly taken a toll on its revenues, operating margins, and profits in numbers that rise way above expectations. a decline in growth in the above-mentioned quarter was witnessed in all geographies and business verticals except life sciences and healthcare.
Despite poor results, the company witnessed hard agreement wins. This indicated a huge deal pipeline. Tata Consultancy Services(TCS) reported profit before tax of rupees 9,504 crore in the quarter ending in June. This is 9.6 % less than the numbers in the previous quarter and 10.65% lower when compared to the same period last year. Net profit saw a steep fall of 13.81% year on year reporting at rupees 7,008 crore going down by 12.9% sequentially.  The drop in the revenue was greater than the expectations of market analysts in constant currency terms even when the revenues rose in rupee terms.
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TCS: Consolidated revenues in the first quarter rose by 0.39 % year on year basis at rupees 38,332 crore. At the same time, they fell 4.1 % if we look at the quarter on quarter basis. The revenue in dollars was dollar 5.09 billion with a drop of 7.8 % as against the same period last year.

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TCS: Tata Consultancy Services, the IT major reported in a release that “Demand contraction was broad-based by geography. Other than Europe (jumps up 2.7 per cent) and Latin America (zoomed up by 0.2 per cent), growth declined in all other markets: North America (plunged by 6.1 per cent), United Kingdom (decreased 8.5 per cent), India (reduced 27.6 per cent), Asia Pacific (plummeted 3.2 per cent) and MEA (plunged 11.7 per cent).”