Expected to further increase operating profit margin to 28 percent: TCS CEO
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Mumbai . Tata Consultancy Services (TCS), the country’s largest information technology services company, is now preparing to take it to the level of 28 percent in the financial year 2023-24 after bringing its operating profit to the target. TCS Chief Executive Officer (CEO) and Managing Director K Krithivasan said, “We have just entered the target range. Therefore, we desire to remain at this level or at least go as close to 28 percent as possible. We believe we have some more room left to increase our margins.”
Krittivasan told PTI in an interview that the company has a lot of scope to increase this figure, including pricing. Asked about pricing, he said despite headwinds in several key markets, the company has not faced any issues on this front. It is noteworthy that the company’s Chief Financial Officer, during a talk on quarterly results data last Friday, had described pricing as a major factor in margin improvement.
Kritivasan said the company was successful in maintaining the value of deals at the previous level last year and even though it has not improved, it does not show any pressure. He acknowledged that competitive pressures are affecting pricing, but said he does not expect there to be serious pressure on pricing, as customers also know that deal prices have remained stable despite high inflation.
He said that due to the announcement of salary hike, the margin will decline in the first quarter of the current financial year, but this figure will increase in the subsequent quarters and the target is to take it to the range of 26-28 percent. When asked about the domestic revenue, Kritivasan said that it will increase to a great extent and this figure should also reflect the economic strength of India. On news like tensions in West Asia, he said such incidents have an indirect impact on his business, but there is no need for immediate concern.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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