Stung by a 6.17% decline in quarterly profits, Tata Consultancy Services (TCS) on Tuesday said it will follow a ?cautious? outlook on the BFSI (banking, financial services & insurance) segment. A day before, while announcing the quarterly and full-year results on Monday, TCS had blamed the dip in fourth quarter revenues to project delays by specific financial clients in the US. TCS gets 43.8% of its revenues from the BFSI segment.
?As a measure, we will be more cautious now and account for a slow revenue growth from these specific clients,? N Chandrasekaran, COO and executive director, TCS, told FE. ?A major portion of our revenues for the short term will come from other verticals and other clients from the financial segment,? he said.
In an effort to post consistent growth in revenues for the next quarter, the company would look at verticals like manufacturing and retail, and scout for new clients in the BFSI segment from the US, UK and emerging markets.
The company bagged six contracts in the last quarter?two each in utilities and manufacturing, one each in insurance and retail. It is also pursuing about 25 deals above $50million, from North America, Europe and emerging markets.
When asked if the company would increase its pricing for new contracts, Chandrasekaran replied: ?The pricing for these new contracts is slightly high, about 3-5% more, compared to the previous ones. For renewal of contracts, prices will be stable or may increase by 1-3%.?
The TCS share took a hammering on the bourses on Tuesday, falling 10.63% on the Bombay Stock Exchange, to close at Rs 887.05. ?This is a short-term effect,? explained Chandrasekaran. ?One cannot always make decisions based on the stock market. I hope the market understands and will respond positively.?