Organic focus cause of concern for TCS; positive on niche acquisitions

TCS' digital revenues on a smaller base grew almost 9%

Tata Consultancy Services (TCS) beat Street estimates with a 16 per cent revenue jump and 21 per cent profit growth over the year in the June quarter, much in line with the positive numbers that global rival Accenture announced a week before.

However, analyst have noted the big difference in digital revenues. While Accenture reported 60 per cent of its total revenue came from this segment ($6.8 billion), aided by their strong focus on acquisitions over the past three years, TCS has remained equally stubborn on an organic growth path, yielding 25 per cent of its overall revenues from digital.