on Jul 09, 2021)BENGALURU: ’s revenue in constant currency grew by 16.4% in the first quarter compared to the same quarter last, partly a reflection of the low base last year when revenue fell due to the first wave of Covid-19.
In dollar terms, revenue was up 21.6% to $6.1 billion, and net income was up 32% to $1.2 billion. “The quarter gone by was fairly balanced between health crisis and business opportunity. Our challenges in emerging markets, primarily led by India, results in overall reported growth (sequentially) of 2.5% in constant currency terms,” CEO and MD Rajesh Gopinathan said.
He, however, maintained that TCS will be able to achieve double-digit growth this year. “That trajectory is not compromised by a one-off in India. With a strong deal pipeline distributed across markets, it is safe,” he said.
Growth was across industries and geographies. Sequentially, North America grew 4.1%, UK 3.6%, and continental Europe 1.5%. After several quarters of high growth in Europe, the geography is seen to be entering into a consolidation phase and slower growth.
The dent this time was the India business, which contributes a little less than 5% to the top line. The market was badly impacted by the second wave of the pandemic, dragging down growth by 14%. “Platform iON (cloud platform) bore the brunt of the Covid crisis and impacted public sector business like Passport Seva Kendra and other private businesses. That led to a loss of Rs 350 crore in business. However, there has been some recovery from the end of June,” Gopinathan added.
BFSI, retail, life sciences and manufacturing all reported positive growth, with BFSI up 3.1%. “Significant adoption of public hyper scalers is driving growth in the BFSI space,” Gopinathan said.
