Tata Consultancy Services’ (TCS) famed execution capabilities came to fore on Wednesday, with profits exceeding street expectations and a larger-than-expected order haul, when India’s biggest IT services company reported first quarter earnings for the fiscal.
However, for those who might have harboured any lingering hopes of a quick turnaround in the $245-billion sector’s prospects, it also became clear that it is definitely facing its own version of a funding winter.
CEO K Krithivasan summed it up in simple terms: “We have not grown this quarter,” he told reporters in a conference in Mumbai, after revenues missed some analysts’ expectations. The “global demand softness” that muffled Q1 sales is expected to continue into the foreseeable future, Krithivasan and his top leaders said.