Q4 revenue to be in line with last year's trend: TCS

Company's Chief Financial Officer said the company is witnessing volatility in currency, which could impact the revenues

Country's largest software services firm Tata Consultancy Services (TCS) today said it expects revenues in January-March 2015 quarter to be in line with trends in the same period last year even as currency continues to remain volatile.

"Q4 revenues is expected to be in line with the Q4 trends of last year's trends," TCS Chief Financial Officer Rajesh Gopinathan said on an investor concall.

The Mumbai-based firm had registered a year-on-year growth of 31.2% in revenues at Rs 21,551 crore in the fourth quarter of 2013-14, while on sequential basis, it was higher by 1.2%.

Gopinathan said the company is witnessing volatility in currency, which could impact the revenues.

"Currency, we are likely to see a lot of volatility. We are likely to see a currency impact of almost negative 275 basis points, (constant currency to rupee revenue) and negative 200 bps (constant currency to USD revenues)," he said.

Talking about geographies, he said the European region is expected to grow better than the other geographies.

"BFS (banking and financial services) are in line. Retail, manufacturing and hi-tech, we will see some amount of better growth as they are recovering from a muted Q3," he said.

Gopinathan said the company continues to see weakness in its Diligenta, insurance and energy verticals and that the telecom is likely to be weaker than expected in the fourth quarter.

"Telecom continues to be volatile unfortunately. This time around some amount of weakness is coming from emerging market side of it. So telecom is likely to be weaker than the company average in this quarter.