TCS revenue growth slows to 2.5% in Q4

Bengaluru: TCS CEO’s Krithivasan indicated a mixed precaution with optimism about the current demand environment, even the IT chief crossed the $ 30 billion stone in FY 25. For FY25, the revenue of TCS increased 4.2% in a continuous posture compared to 3.4% in the previous year.
However, for the March quarter, the growth was slowed by 3.6% and 5.5% to 2.5% respectively in two quarters, which were affected by discretionary expenses and postponed decision making.
“Overall, while we had a de-goth of 0.8% on a sequential basis, all major markets and most industries increased verticals. Depending on the order book declared by us and the deals signed by us, while some short -term uncertainty may be better than FY26 FY25. As of February, we were quite positive and very optimistic about the quarter. However, in March, we started looking at some uncertainty, resulting in some projects and decision making delays. We have not seen any major project canceled. There are some ramp-downs, but there is a delay in decision making. We believe in the next few months, this uncertainty should be resolved, and we must return to business, “Krithivasan said at an earning conference on Thursday.
The main North America market, which accounts for 50% of the overall business, fell 1.9% in the March quarter and 1.8% for the 2024–25 financial year. The TCS operating margin declined by 24.2% in the March quarter compared to 24.5% in the Dec quarter. CFO Sameer Sankaria said that the guide margin beacon is 26-28%.