TCS revenue growth slows to 2.5% in Q4

BENGALURU: TCS CEO Okay Krithivasan indicated warning blended with optimism relating to the present demand surroundings even because the IT main crossed the $30-billion revenue milestone in FY25. For FY25, TCS’s revenue grew by 4.2% in fixed foreign money in contrast to 3.4% in the earlier 12 months.
However, for the March quarter, growth considerably slowed to 2.5% from 3.6% and 5.5% respectively in the previous two quarters, impacted by curtailed discretionary spending and deferred decision-making.
“Overall, while we had a de-growth of 0.8% on a sequential basis, all the major markets and most industry verticals grew. Based on the order book we’ve announced and the deals we’ve signed, while there could be some short-term uncertainty, FY26 will be a better year than FY25. Until Feb, we were quite positive and very optimistic about the quarter. However, in March, we started seeing some uncertainty creeping in, resulting in some project and decision-making delays. We have not seen any major project cancellations. There are some ramp-downs, but there are delays in decision-making. We believe in the next few months, this uncertainty should settle, and we should be back in business,” Krithivasan mentioned in an earnings convention on Thursday.
Growth in the mainstay North America market, which accounts for 50% of the general enterprise, dropped 1.9% in the March quarter and 1.8% for the 2024-25 monetary 12 months. TCS’s working margins declined to 24.2% in the March quarter in contrast to 24.5% in the Dec quarter. CFO Samir Seksaria mentioned the guiding margin beacon stays at 26-28%.