Tata Consultancy Services Ltd.'s outlook on client spending for the next six to nine months is cautious, according to Chief Executive Officer K Krithivasan. But the company is not driving blind and remains closely connected with its customers, he said.
By understanding their needs and preferences, the company directs its investments towards areas that interest its customers. This approach helps TCS optimise its costs effectively, said Krithivasan.
As a result, the company has seen improvements in its margin, reflecting its customer-focused strategies, he told BQ Prime's Sajeet Manghat. "We are fully informed of what is happening, and we are staying agile and making decisions based on the needs of the customers."
When discussing client spending, the CEO mentioned that in the past two years, it hasn't been very useful to predict that the annual budget will increase by a fixed percentage.
The business landscape has been rapidly changing, and budget allocations have become more responsive to each quarter's needs and performance, he said. "So, we have to stay close to a customer and be willing to customise your solution to the needs of their individual situation."
Krithi Krithivasan (Photo: BQPrime)
Results
India's largest IT services firm reported revenue growth of 0.52% over the previous three months to Rs 59,692 crore in the September quarter, according to an exchange filing on Wednesday. That compares with the Rs 60,641-crore consensus estimate of analysts tracked by Bloomberg.
TCS Q2 FY24 Earnings Highlights (QoQ)
Revenue up 0.52% at Rs 59,692 crore (Bloomberg estimate: Rs 60,641 crore)
EBIT up 5.02% at Rs 14,483 crore (Bloomberg estimate: Rs 14,420 crore)
EBIT margin at 24.26% vs 23.2% (Bloomberg estimate: 23.78%)
Net profit up 2.42% at Rs 11,342 crore (Bloomberg estimate: Rs 11,372 crore)
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