TCS cautious on India despite business growth

The company that registered revenues of over $3.6 bn in April-June 2014 quarter, saw its India business grow at 5%

Despite rising revenue from India, information technology (IT) services major Tata Consultancy Services (TCS) remains cautious on the country.

The Mumbai-based firm, which registered revenue of $3.6 billion in the April-June quarter, saw its India business grow five per cent.

“We had a growth in India last quarter and this quarter. However, we want to keep it on a watch mode because we are still waiting for more broad-based confidence to come back,” Chief Financial Officer Rajesh Gopinathan told analysts.

He added that the company was witnessing some momentum but it was “early days yet” to call it a big turnaround.“However, it will grow and we expect it to grow better than average this quarter,” he said.

According to their annual report for 2013-14, India accounted for 6.7 per cent of the company’s revenue (Rs 5,488 crore) compared to Rs 4,890 crore (7.8 per cent) of the total revenues in financial year 2013.

North America, which is the company’s largest market, accounted for 53.03 per cent, followed by the UK (17.4 per cent), Europe (11.2 per cent) and Asia Pacific (7.2 per cent).

Asked if the growth in India is coming from couple of clients or is more broad-based, Gopinathan said growth is coming across both government as well as private sector.

"Is it broad based? Technically, yes. But, does it give us confidence on it? Not yet," he added.

TCS is scheduled to announce financial results for the July-September quarter on October 16, 2014.