Tata Consultancy Services, an IT services firm, last week reported revenue fell 6.3% on a constant currency basis in its fiscal first quarter ended June 30. Net income fell 20.8%.
The decline was led by India, where revenue was down 27.6%; the Middle East and Africa, down 11.7%; and the UK, down 8.5%.
In North America, revenue was down 6.1%.
On a brighter note, revenue was up 2.7% in Continental Europe and edged up 0.2% in Latin America.
| (US$ millions) | Q1 2021 | Q1 2020 | % change |
| Revenue | $5,059 | $5,485 | -7.8% |
| Gross margin | $1,994 | $2,220 | -10.2% |
| Gross margin percentage | 39.4% | 40.5% | |
| Net income | $925 | $1,168 | -20.8% |
“The revenue impact of the pandemic played out broadly along the lines we had anticipated at the start of the quarter,” said CEO and Managing Director Rajesh Gopinathan. “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 stabilized their operations and are now adapting to a post-pandemic world, according to Gopinathan.
“We are seeing many customers focus on front-end transformation, resulting in significant traction for our products and services,” he said. “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 total headcount fell by 4,788 in its first quarter but is up 19,401 year to date.
Share price and market cap
Shares in Tata Consultancy Services closed down 0.11% in India today to 2,220.00 rupees (US$29.56); the company had a market cap of 8.23 trillion rupees (US$109.58 billion), according to FT.com.