Consolidated profit before tax stood at Rs 9504 crore in Q1FY21, declining nearly 10% from Rs 10,512 crore in Q4FY20. Total tax expense rose 1.5% to Rs 2455 crore in Q1FY21 over Q4FY20.
TCS said that constant currency revenue for Q1FY21 fell by 6.3% year on year. The IT major's operating margin stood at 23.6% in Q1FY21 from 25.1% in Q4FY20. The deal wins stood at $6.9 billion in Q1FY21, against $8.9 billion in Q4FY20.
The company highlighted that life sciences & healthcare segment continued to grow strongly at 13.8% YoY. Other than that, all other industry verticals showed declines of varying degrees: BFSI (-4.9%), retail & CPG (-12.9%), communications & media (-3.6%), manufacturing (-7.1%) and technology & services (-4%).
Demand contraction was broad-based by geography. Other than Europe (+2.7%) and Latin America (+0.2%), growth declined in all other markets: North America (-6.1%), UK (-8.5%), India (-27.6%), Asia Pacific (-3.2%), and MEA (-11.7%).
Commenting on the Q1 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: "The revenue impact of the pandemic played out broadly along the lines we had anticipated at the start of the quarter. 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. After an initial period of disruption, customers have now stabilized their operations and are now embarking on new beginnings to adapt and thrive in a post-pandemic world. We are seeing many customers focus on front-end transformation, resulting in significant traction for our products and services. 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."
The company's consolidated headcount stood at 443,676 as of 30 June 2020. IT services attrition rate (last twelve months) stood at 11.1%.
Meanwhile, the company has declared an interim dividend of 5 per equity share while setting 17 July as the record date for payment of dividend. TCS is an IT services, consulting and business solutions organization.