Friday, June 04, 2010

TCS cautious about weak euro

Following the weakening of euro and sterling, India’s biggest software exporter, Tata Consultancy Services (TCS), claims that the developments would have an impact on the profitability and business of the Company.

Commenting on the scenario, TCS CEO N. Chandrasekaran said, “Both the euro and sterling are significantly weakening and the rupee is appreciating and that will definitely have an impact on our revenue line. This will affect operating margins also. It’s a headwind which we will have to overcome”.

He also said that though some deals are being anticipated in Europe, however the pace of the deals was extremely slow.

Drawing lessons from the last financial crisis, he added that the confidence level in the industry was high and more opportunities had opened up.

Adopting a cautious approach, the CEO said that the Company would first analyze the situation carefully and then ponder over what effect it could have on the business of the Company.

Reports suggest that TCS has also bagged the Rs 1,000 crore deals from the Ministry of External Affairs, for implementing PSKs in the country.

The Ministry of External Affairs has signed a 6-year, outsourcing deal with TCS and the first roll out of the PSKs would be in Mangalore and Hubli. (from Stock Watch)

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