Tata Consultancy Services (TCS) on Thursday reported a modest set of numbers with revenues for the three months to December at Rs 29,735 crore, growing 1.5% sequentially. Revenues in constant currency terms grew 2%.
The software major posted an EBIT (earnings before interest and tax) margin of 26%, similar to that earned in the September quarter. Net profit came in at Rs 6778 crore, up 2.9% sequentially.
Natarajan Chandrasekaran, CEO and MD, observed at a press conference that the company was well-prepared to meet the challenges following regulatory changes relating to visas in the US. Chandrasekaran said TCS had been readying itself to proactively address changes relating to both the increase in visa costs as also a lower number of visas being allotted by the US. “We had decided a year back that we need to work in a more constrained regime and have applied for visas accordingly,” the MD said.
Speaking on the digital space, the MD said every company was on the journey to adopt digital in a big way and the transformation to digital required them to follow some processes. “Companies are talking to us and there are opportunities in this area. Our investments in digital have positioned us well to capture them, “he said.
“The problem of currency fluctuation has been just too much for us to cope. This quarter, constant currency to rupee has been a dip and constant currency to US dollar has also been a dip”
“I really feel that the transformation to digital is real. Every company is on the journey to adopt digital in the midway. The problem is not in terms of production technology whether it is analytics, cloud or any of the other technologies. The transformation to digital in a holistic way requires companies to transform themselves to the agile and diverse constant integration paradigm”
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“As we churn our portfolio more and more to digital, we will see strong support in terms of pricing”
“Our strengths in digital, platforms and cloud as well as our deep knowledge of the customers’ domain are driving our ability to play a strategic role and make a holistic impact on the business.”