TCS management said at Citi India Investor Conference that it expects big positive for the quarter on account of the rupee slide. In fact the company is now changing its hedging strategy, which earlier used to cap its gain.
The company’s management re-iterated that demand remains unchanged since the last earning call given by the company.
However, they said that growth in the BFSI (Banking, Financial Services and Insurance) is moderating though there is positive momentum in Europe, except France.
TCS says that it is the Telecom sector which continues to be challenging, though the company has gained market share in the space. Other sectors are performing well, which should help the company grow at a faster rate than the industry.
Commenting on Europe, the company management said that apart from France, there is positive momentum in the continent. TCS is benefiting from its investment in Germany, which is garnering client interest. In the Asia-Pac region, Australia is driving growth.
The company said its margin will be impacted on account of wage hikes especially since pricing has been flattish.
On the visa issue, TCS said there is not much of an impact.
The company believes that changes in Capital Market Regulations could be a big driver for growth over a long time.
