Double-digit growth for the year seems difficult,' says TCS COO N Ganapathi Subramaniam
Discussing the factors contributing to the current softness in demand, Subramaniam pointed to the banking crisis that unfolded in the previous quarter and the cautious approach of governments in the West.
- Jul 13, 2023,
- Updated Jul 13, 2023 7:03 PM IST
Tata Consultancy Services (TCS) announced its Q1 FY 2023-24 results on Wednesday. TCS COO N Ganapathi Subramaniam caught up with Business Today to share some insights on the results.
Subramaniam highlighted that the company has experienced a slow start due to macroeconomic trends.
“We have had one of the slowest starts in several years as Q1 but given the recessionary trends and the macroeconomic situation that everyone is talking about, we are pretty pleased with what we accomplished during the last 90 days. The order book of $10.2 billion, on top of the $10 billion we made in the previous quarter, shows that we stay relevant, and our offerings are well accepted in the market. The revenue came flat sequentially, while on a constant currency basis, we grew by 7 per cent year on year,” the COO said.
Despite the slowdown, Subramaniam noted that the company remains optimistic for the upcoming quarters.
He said, “The demand environment is a little cautious from some of our clients, but overall we're happy where we are and the kind of work that we do, the kind of projects that we have won. It's all standing good, and it couldn't have been in a better place given the current situation.”
Discussing the factors contributing to the current softness in demand, Subramaniam pointed to the banking crisis that unfolded in the previous quarter and the cautious approach of governments in the West.
He said, “The first is the banking crisis that happened in the previous quarter, but I think it has subsided now. Somewhere in the middle of the quarter, I think they all got a handle on what happened in a couple of institutions in North America and Europe, so that kind of eased out. But the recessionary trends are a bit difficult because while everybody is talking about recession, many governments are looking at slowing down the pace at which the economy and the indicators are growing.”
“At the same time, having an unemployment rate at an all-time low is quite unusual. We also have to consider the situation in Europe, which is uncertain due to the persisting wars and the recessionary trends. Overall, the customers are expecting us to be a little cautious from an economic and technology perspective,” Subramaniam explained.
The COO of the IT company noted that despite their optimism, they are not certain if they would be able to achieve double digit growth in the current fiscal year.
“Considering the growth we have seen in Q1, achieving double-digit growth for the whole year seems difficult. We have to wait and see how Q2 pans out, and if there is a momentum that picks up in Q2, Q3, Q4, maybe we'll have a reasonable shot at it. But achieving double-digit growth for the entire company across our portfolios seems challenging at this point in time,” Subramaniam said.
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Tata Consultancy Services (TCS) announced its Q1 FY 2023-24 results on Wednesday. TCS COO N Ganapathi Subramaniam caught up with Business Today to share some insights on the results.
Subramaniam highlighted that the company has experienced a slow start due to macroeconomic trends.
“We have had one of the slowest starts in several years as Q1 but given the recessionary trends and the macroeconomic situation that everyone is talking about, we are pretty pleased with what we accomplished during the last 90 days. The order book of $10.2 billion, on top of the $10 billion we made in the previous quarter, shows that we stay relevant, and our offerings are well accepted in the market. The revenue came flat sequentially, while on a constant currency basis, we grew by 7 per cent year on year,” the COO said.
Despite the slowdown, Subramaniam noted that the company remains optimistic for the upcoming quarters.
He said, “The demand environment is a little cautious from some of our clients, but overall we're happy where we are and the kind of work that we do, the kind of projects that we have won. It's all standing good, and it couldn't have been in a better place given the current situation.”
Discussing the factors contributing to the current softness in demand, Subramaniam pointed to the banking crisis that unfolded in the previous quarter and the cautious approach of governments in the West.
He said, “The first is the banking crisis that happened in the previous quarter, but I think it has subsided now. Somewhere in the middle of the quarter, I think they all got a handle on what happened in a couple of institutions in North America and Europe, so that kind of eased out. But the recessionary trends are a bit difficult because while everybody is talking about recession, many governments are looking at slowing down the pace at which the economy and the indicators are growing.”
“At the same time, having an unemployment rate at an all-time low is quite unusual. We also have to consider the situation in Europe, which is uncertain due to the persisting wars and the recessionary trends. Overall, the customers are expecting us to be a little cautious from an economic and technology perspective,” Subramaniam explained.
The COO of the IT company noted that despite their optimism, they are not certain if they would be able to achieve double digit growth in the current fiscal year.
“Considering the growth we have seen in Q1, achieving double-digit growth for the whole year seems difficult. We have to wait and see how Q2 pans out, and if there is a momentum that picks up in Q2, Q3, Q4, maybe we'll have a reasonable shot at it. But achieving double-digit growth for the entire company across our portfolios seems challenging at this point in time,” Subramaniam said.
Also Read: Layoffs at Meta India: Employees in marketing, admin, HR fired
Also Read: Amazon defers offer letters of campus hires from IITs/ NITs
Also Read: Layoffs at Amazon India: Employees in web services, HR teams handed pink slips