Krithivasan, CEO of the TCS

Copyright © HT Digital Streams Limit all rights reserved. Companies Jas Bardia 5 min Read 09 Apr 2025, 11:28 am Ist for the CEO of TCS, K. ​​Krithivasan, more about what Genai now incorporates, is the challenge of overcoming macro economic uncertainty. (PTI) Summary at TCS, generative AI is crucial, but macro -economic uncertainties are greater challenges. The company had a 20.6% decrease in equity, slow revenue growth and faced the client’s driveway, which complicated the rental plans and influenced by Genai’s automation capabilities. At Tata Consultancy Services Ltd’s annual strategy meeting in Dubai in February, the chairman, Natarajan Chandrasekaran, emphasized the importance of generative AI (Genai) and the need to include the new technology in everything the business does. However, for the country’s largest information technology services company, it is the challenge to overcome macro -economic uncertainty. On April 2, US President Donald Trump imposed a variety of rates on imports from different countries, causing concerns about a global tariff war. Analysts are concerned that the world is at the point of a recession. Any recession is bad news for IT services, because when Fortune 500 businesses hold back their spending, the income of Indian IT contracts takes a hit. The impact had shareholders on their heels. Shares of TCS, which fell 13.4% from 1 January to 1 April, fell 7.23% from April 2 to April 8. This means a 20.6% decline since the beginning of the year. Kunchitham Krithivasan, the fifth CEO of TCS in his 57 years, faces his biggest test – running more than 600,000 employees in a time of macro -economic uncertainty. A side of Genai that holds an existential dilemma for the country’s IT industry of $ 283 billion, in addition to an already complete macro economic uncertainty, is a meal that the TCS veteran will find difficult to digest. Read also | The Outlook of TCS provides ease, but a risk quil FY26 income prospects that the Mumbai business in Mumbai in the form of a third related challenge can be in the form of the ramp of the recent fiscal form. It will not be easy for Krithivasan to send a behemoth like TCS, which gets almost $ 30 billion a year, or about $ 82 million a day. In this background, Mint puts the spotlight on five important things to note in TCS’s earnings in the fourth quarter scheduled on April 10. 1. Question prospects The first macro -economic environment is the first and most important concern for the country’s largest IT -auto. Although rates and counter-rates are not expected to keep them directly, customers, including the largest businesses in the world, are expected to take back their technical spending, which can lead to low demand for IT services and in turn low income for TCs. More than 90% of the income of the business comes from customers abroad. Such conditions could lead to a subdued demand prospects by Krithivasan on Thursday. Although TCS does not lead revenue, its prospects for the global demand for technical services pave the way for other IT autsourcers, which will announce their full year earnings later this month. 2. Revenue growth TCs, which ended FY24 by $ 29.1 billion in revenue, stands before the slowdown blues. The turnover grew by 4.1% year-on-year, the slowest rate in three years. Revenue in the first nine months of FY25 (April-December 2024) grew by 4.6%. The pressure of internal challenges such as the client’s exit does not give much reason to rejoice. “In FY2025E, TCS had a series of challenges due to planned ramps and unexpected changes in acquiring strategy by clients,” said Kotak Institutional Equity analysts Kawaljeet Saluja, Sathishkumar s and Vamshi Krishna, in a note of March 27. This year, TCS is expected to lose $ 440 million in the business of at least three customers – Postbank Systems AG, media rating firm Nielseniq, and life insurance company Transamerica Life Insurance Co. Peer Wipro Ltd recently reached a major agreement from the Phoenix Group, one of TCS’s big accounts. As a result, analysts question the execution of the transaction of TCS. Read also | TCS, Infosys hop on Adobe’s new platform to sell AI services to customers. “It is known that TCS defends its wallet share well, but a large contestant who gets a foothold in a strategic account can lead to a view of a dip in execution skills and will focus in the upcoming results,” the Kotak analysts said. As TCS does not lead income, analysts will look at clues that may indicate the prospects of the company. 3. Profitability TCS operating margins will be an important metric, as the company can postpone or reduce salary increases if the demand for business is low and less money flows into the trunks of the business. TCs always follow a well -organized cycle where profitability peaks at the end of the financial year. This is because TCS is the only important IT -Outsourcer that gives at the beginning of the fiscal salary increases. Most of the impact of the salary increases is recorded in the first six months of fiscal – from April to September. TCS’s 24.5%operating margins are highest among its peers, including Infosys Ltd, HCl Technologies Ltd, and Wipro, which ended the three months to December 2024 with 21.3%, 19.5%and 17.5%respectively. 4. The rental plans lower demand for IT services lead to a reduced need for employees, whether from campuses or lateral. Add genai-led automation to the mixture and it can be a double whammy for the plans’ plans to add half. A forecast on the fresh rental plans for the year can be given by the company’s top buyer during the revenue announcement. TCS added 5.808 employees in the first nine months of 2024, most among the top five of the country to the second largest Infosys, which added 6.189 employees. Read also | Which states that TCs, Wipro, Infosys, Techm to Nvidia current, the company’s rental requirements exceed that of its peers, taking into account its scope in terms of employees. The Tech Services business set out a plan to employ 40,000 Freshers by March 2025. Genai Genai threatens to eat in the work of IT -ATSOURCERS, as the new technology can automate human tasks, reducing the dependence on people for certain types of work. TCS does not mention revenue by the new technology, but Chairman Chandrasekaran has asked its generals to have a genai component in all its offers. Analysts and Doomsayers said Genai is taking up work related to customer service, application development and maintenance, businesses that make up about 40% of the company’s revenue. This implies that $ 11.6 billion of TCS’s business is threatened by Genai, as customers will search for lower renewal renewal rates, as fewer people will be paid due to benefits obtained by automation. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #it Companies #tcs #Ennings Mint Specials