The largest IT services provider in the nation, TCS, has stated that it will keep investing at the same rate in R&D, office space, and technology infrastructure even as it navigates near-term volatility.
As per company's chief financial officer Samir Seksaria, the operational profit margins would be reduced by another 1.70 to 1.75% in the June quarter as a result of the company's commitment to continuing with the usual pay increases. However, the important figure will stabilise as we go into the new fiscal year, he added.
He also said, the business currently invests 1,200–1,500 crores in research and development and 3,500–4,000 crores in the capital expenditures for the back-end technology required to supply work and office spaces. He predicted that this trend should continue in the future.
"...we continue to invest, we continue to invest in talent, we continue to invest in research, into innovation, into branding and into IT. And we don't believe there should be any reason for that to be any different from what we have always done," Seksaria told.
The business experienced losses in its main market, North America, and its major sector vertical, banking, financial services, and insurance (BFSI), as a result of deteriorating sentiment brought on by layoffs in the technology industry and the collapse of Silicon Valley Bank.
As a result, it reported sequential constant currency growth of 0.6%, which Seksaria deemed uncommon for the fourth quarter.
Seksaria described the total 13.7% increase in revenues in FY23 on top of the over 15% increase in FY22 as a respectable growth and stated that the company is hopeful that things would improve with the start of the new year and did not anticipate significant layoffs during holidays, adding that the SVB collapse simply made matters worse.
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