TCS Remains Optimistic For FY25 Despite Headwinds, Says CEO K Krithivasan
Geographical diversification is yielding results as the low revenue growth in major markets due to seasonality was covered by the new growth markets, Krithivasan says.
Tata Consultancy Services Ltd. continues to be optimistic about fiscal 2025 on the back of stable pricing and improved overall realisation, according to Chief Executive Officer K Krithivasan.
The IT company reported better-than-expected Q3 results on Thursday, despite global uncertainty and weak deal wins.
The dollar revenue growth by the end of this fiscal is expected to be around 3-4% on constant currency terms, Krithivasan told NDTV Profit.
TCS Q3 Results: Key Highlights (QoQ)
Revenue up 1.49% at Rs 60,583 crore (Estimate: Rs 60,109 crore).
EBIT up 4.6% at Rs 15,155 crore (Estimate: Rs 14,787 crore).
EBIT margin at 25.01% (Estimate: 25.39%).
Net profit down 2.5% to Rs 11,097 crore (Estimate: Rs 11,498 crore).
According to him, "demand is not the issue," as the company is signing new deals. The order book has been robust over the previous three quarters, but as older projects are not getting passed or reprioritised, it has caused a dip in overall revenue, he said.
If the economists or the U.S. Fed relayed a strong message that there would be no recession or a soft landing, then it would reassure the clients and aid growth, Krithivasan said.
The company will continue to develop projects it started in the last one year and "better overall economic macro sentiment" will drive further growth, he said.
Geographical diversification is yielding results for TCS as the low revenue growth in major markets due to seasonality was covered by the new growth markets, Krithivasan said. He expects the North American market to start contributing to the company's growth soon.
The company hires a "decent number of freshers" every year and then trains them and that policy has not changed, he said. TCS is looking forward to campus placements and will look into laterals only if the demand surges, Krithivasan said.
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