TCS CEO K Krithivasan Upbeat About FY25 Prospects Despite Industry Challenges

TCS, an IT leader, remains bullish about its prospects for fiscal year 2025, guided by the confident outlook of CEO K Krithivasan. In the wake of their latest quarterly report, which exceeded market expectations, the company has demonstrated resilience amidst global economic uncertainties and less robust deal acquisition. TCS's revenue trajectory indicates a forecasted uptick of 3% to 4% by the fiscal year-end, adhering to constant currency benchmarks.

Quarterly Performance Indicators

The recent quarter's performance showcased notable financial achievements, with revenue experiencing an upswing of 1.49% to reach Rs 60,583 crore, surpassing the projected Rs 60,109 crore. TCS's EBIT also surged by 4.6%, hitting Rs 15,155 crore, slightly outperforming the Rs 14,787 crore estimate. However, net profit encountered a minor decline of 2.5%, settling at Rs 11,097 crore, which was in line with the anticipated Rs 11,498 crore figure.

Optimistic Viewpoints

CEO Krithivasan emphasizes that demand isn't the hurdle; the firm is actively securing fresh contracts. He attributes the latest drop in revenue to the delay in project approvals and re-prioritization affecting ongoing projects. He believes that a clear signal from economists or the U.S. Federal Reserve dismissing recession fears or hinting at a soft economic landing could instill confidence in clients, thereby boosting growth.

The company is committed to fostering projects initiated over the past year, buoyed by a more favorable economic climate globally. Moreover, geographical diversification tactics seem to be compensating for the sluggish revenue growth in major markets, striking a balance with newly emerging markets showing promise. North America, in particular, is anticipated to become a growth driver for TCS soon.

Despite these headwinds, TCS's hiring strategy remains steady, with the company consistently inducting fresh talent and investing in training. The focus on campus recruitments persists, and lateral hiring will be considered only if there is a surge in demand.

TCS, Optimism, Forecast