BENGALURU:
TCS
‘s year-on-year revenue grew by 4.4% in constant currency in the June
quarter
compared to the year-ago period. Quarter-on-quarter, it grew 2.2% in constant currency.
But even as India’s largest IT firm achieved all-round growth, it is treading cautiously in determining whether it’s too early to declare sustained
growth momentum
as market conditions haven’t significantly changed since the previous quarter.
“We are quite happy with the overall growth across all verticals and markets. It’s too early to call whether the growth momentum is sustainable because market conditions continue to remain the same as they were in the last quarter. So, there is nothing new to add in terms of market sentiments. But we believe
FY25
will be better than FY24,” TCS
CEO
K Krithivasan said in the earnings call on Thursday.
The UK recorded robust growth of 6%, while continental Europe saw a modest increase of 0.9%. In contrast, North America faced a decline of 1.1%. Emerging markets, including India, Asia-Pacific, the Middle East & Africa, and Latin America, maintained their growth trajectory, reinforcing the company’s diversification strategy. Among these, India has emerged as the bright spot, with revenue surging by an impressive 61.8% compared to the previous year, led by the mammoth Rs 15,000-crore BSNL deal it won last year for deploying 4G networks across India.
Among the verticals, manufacturing, energy, and utilities continued to have strong growth. But its mainstay businesses – banking, financial services, consumer tech, and communication – continued to have negative growth on a year-on-year basis.
Krithivasan said TCS is currently executing about 270 GenAI projects and its AI & GenAI pipeline has doubled to $1.5 billion in the June quarter. TCS’s operating margin dropped 130 basis points quarter-on-quarter to 24.7% on account of a wage hike but compared to the year-ago period, it expanded 1.5%.
