The IT services giant reported a profit of Rs 9,008 crore in the first quarter of FY22, up 28.5% year-on-year. This is also because its profit in Q1FY21 had fallen to Rs 7,008 crore when business was disrupted due to the lockdown in the quarter last year. This is also slightly below analyst expectations.
Consolidated revenue from operations increased by 18.5% year-on-year (3.9% sequentially) to Rs 45,411 crore compared to Rs 38,322 crore in the corresponding quarter of 2020-21. In terms of the company’s discretionary spends, which fell due to the pandemic, Chief Financial Officer Samir Seksaria said that discretionary spends are seeing an uptick, and are expected to return to pre-pandemic levels by end of FY22.
Its workforce was up 17.3% year-on-year, and its headcount came in at 5,09,058. TCS said this was its highest-ever quarterly net headcount addition of 20,409. Women make up 36.2% of the workforce. Attrition for the quarter came in at 8.6%. Attrition, CEO Rajesh Gopinathan said, was picking up in response to the overall demand environment.
In response to a question, Chief HR Officer Milind Lakkad said that the attrition at 8.6% is artificial in a way, as the company generally operates at 11-12%. He added that in high demand environments it has gone up to 13-14%, and it is part of the company’s operating model.
In terms of industries, TCS said that Life Sciences and Healthcare led growth, up by 7.3% sequentially and 25.4% year-on-year. “Retail and CPG also bounced back to double digit growth, growing 4.4% QoQ and 21.7% YoY. BFSI (+3.1% QoQ, +19.3% YoY), Manufacturing (+4.8% QoQ, +18.3% YoY), Technology & Services (+5% QoQ, +12.3% YoY) and Communications & Media (+1.7% QoQ, +6.9% YoY) also saw significantly improved performance,” TCS said in a statement. In terms of growth in markets, the pandemic’s second wave led to a degrowth of 14.1% sequentially due to the second wave of the pandemic.
News Source : Business Today