TCS will continue to invest in R&D and technology: CFO

The country’s largest information technology (IT) services provider Tata Consultancy Services (TCS) will continue to invest in research and innovation, office space and technology infrastructure despite going through a turbulent phase in the near term. TCS Chief Financial Officer (CFO) Sameer Seksaria said the company’s promise to continue with normal salary hikes will have an additional impact of 1.70-1.75 per cent on operating profit margin in the June quarter. He said the headline figure will stabilize going forward in the new financial year.

He said the company typically spends Rs 1,200-1,500 crore in research and innovation and Rs 3,000-4,000 crore as capital expenditure on ‘back-end’ technology required for work and office space, and it Should be continued further. Seksaria told PTI, “…we will continue to invest in talent, research, innovation, image-improvement and information technology. I don’t think we should adopt any new process.”

The company has been hit hard by the banking, financial services and insurance (BFSI) sector in its biggest market, North America, due to job losses in the technology sector and weak sentiment following the failure of US-based Silicon Valley Bank (SVB). Is kept. Seksaria termed the 13.7 percent increase in revenue in FY 2022-23 as a good growth, whereas in the previous fiscal year (2021-22), the company had grown at the rate of about 15 percent. Saksariya said the company is hopeful of an improvement in the situation from the beginning of the new year. However, Seksaria did not reveal the company’s plan for revenue growth or profit margin in the current financial year 2023-24.

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