Tata Consultancy Services (TCS), India’s leading software services company, has reported a 13.8% fall in its net profit at 70.08 billion rupees (US$ 931 million) for its April-June quarter, as against 81.31 billion rupees ($1.08 billion) in the year-ago period. On a sequential basis, the net profit slipped 13%.

It may be noted that during this period the country had gone into a two-month lockdown, beginning on March 25, to control the Covid-19 pandemic. Net sales/revenue was 383.22 billion rupees ($5 billion), up 0.4% year-on-year. It added new deals worth $6.9 billion during the quarter.

While announcing the results after market hours on Thursday, CEO and MD Rajesh Gopinathan said the pandemic had impacted revenues of all verticals, except life sciences and healthcare. “We believe it has bottomed out, and we should now start tracing our path to growth,” he added.

When the pandemic gripped the rest of the world, software firms also lost business as their clients tried to prune spending. The company witnessed demand contraction in all markets, except Europe and Latin America, where it rose 2.7% and 0.2% respectively. Growth in North America declined 6.1%, the UK (-8.5%), Asia Pacific (-3.2%), the Middle East and Africa (-11.7%). In the Indian market the fall was much steeper at 27.6%.

In terms of business segments, banking, financial services and insurance declined 4.9%, retail and consumer packaged goods fell 12.9%, communications and media fell 3.6%, manufacturing dipped 7.1% and technology and services fell 4%.

Chief financial officer V Ramakrishnan said despite a sharp decline in revenue, the company took a supportive approach towards its employees and vendors, and used “other efficiency levers” to minimize the impact.

The company said its consolidated headcount at the end of the quarter stood at 443,676 and women constituted 36.2% of the workforce. Tata Consultancy Services is the largest private sector employer in the country. It recently unveiled its 25×25 model – the company plans to have only 25% of its staff working in its offices by 2025; the remaining 75% will work from home.

TCS is the first large-cap company to announce its financial performance for this period. Its competitor Infosys will declare its first-quarter results on July 15.