TCS Order Pipeline Robust But Demand Woes Persist, Says CEO K Krithivasan

Tata Consultancy Services Ltd.'s order pipeline has stayed robust even as the demand scenario remains uncertain amid US trade policy issues, said Chief Executive Officer and Managing Director K Krithivasan.

"(Economic) uncertainty has continued throughout the quarter," he told NDTV Profit after the release of the first quarter results. "Till trade discussions are concluded, it will persist. This will weigh on consumer businesses."

In the US—the IT major's main market—the passing of President Donald Trump's budget, named 'One Big Beautiful Bill', has given some visibility on the impact in areas like healthcare, the CEO said.

The frequent changes in the US tariff policies have impacted consumer businesses in the US the most, he noted. On the other hand, some segments such as banking have shown positive growth in North America and the UK.

Krithivasan highlighted the mixed nature of demand growth for the company, where auto and telecom segments are muted and industrial and tech spending have remained steady. "Healthcare had degrowth, life sciences and medtech did better, but pharma did not," he said.

The company's overall order pipeline remains strong and in the June quarter it was the highest in recent periods, Krithivasan said.

"The late-stage pipeline is also strong. The orders are spread out across sectors. We are seeing momentum in banking," he said.

The company's total contract value for June quarter stood at $9.4 billion, down from $12.2 billion in the previous quarter, but higher than $8.3 billion in the year-ago period.

TCS management said the $7–9 billion TCV range is sustainable, and the company replenished all deals closed in the quarter.