India's largest software service exporter Tata Consultancy Services (TCS) on Tuesday posted a 34% year-on-year rise in net profit to Rs. 4,702 crore in July-September. CEO N Chandrasekaran spoke to HT about the company's growth drivers.
TCS seems to be cruising along when others are struggling? Is your diverse portfolio the key?
If you look at our deal wins over the last several quarters, you would find it has been distributed across markets, industry and service lines. There is also a good mix of annuity business and transformation deals along with partnership with clients. So, yes, focus on the customer and a diversified portfolio has driven growth for us.
Why did you caution against a not-so-good October-December quarter?
What I said about the third quarter was particularly due to the seasonality, wherein over the last couple of years we have seen that furloughs do take effect. That was what I referred to (as an aberration) but otherwise the market looks good, demand is robust and we feel that we have a good opportunity.
Going ahead, do you see a volume-driven growth or a return of high-margin growth?
The growth ahead will be volume-driven because price increase in this environment is not going to happen.
Tell us about your business in Latin America?
We are growing across Latin America in Mexico, Colombia, Brazil, Peru and Ecuador.
And the Indian market?
The domestic market continues to be volatile. But then, we are looking at the domestic market as well.