Blog

Mumbai: Despite short-term volatilities such as higher turnover, Tata Consultancy Services will continue to invest in line with business needs and not be careful about protecting profit margins, a senior official said. However, the company continues to focus on the area of ​​operating profit margin of 26-28% and has aligned its structures to achieve the targeted area, emphasized its CFO Samir Seksaria.

“(As we see) short-term volatility, it’s not that we’re going to do things just to protect margins. Whatever the investment is required, whatever the right thing is, we’re going to keep investing. In the short term, we will not on … the short-term focus will be to meet the company’s needs as much as possible, “Seksaria told PTI.

In the September quarter, the largest software exporter reported margins of 25.6%, citing the possibility of short-term volatilities on that front, such as supply-side constraints as fluctuation increases, currency headwinds, and the possibility that demand will be impacted by future waves of the pandemic.

The company, which employs over 5 lakh people, also reported an 11.9% increase in staff turnover.

“Right now, short-term volatility in terms of supply-side challenges is mainly due to increased turnover,” Seksaria said, adding that it also faced headwinds from the currency during the quarter, “he said.

was able to do better than competitors on the supply or personnel side due to its upfront investments, even when demand had shown difficulties in the early days of the pandemic, he added.

ALSO READ TECH NEWSLETTER OF THE DAY

Dream11 ceased operations after the Bengaluru Police registered an FIR against its founders. It still claims that it is not in violation of the Karnataka Ban on Gambling.

Read now

The same goes for the 75,000 new hires last year or over 43,000 new hires in the first half of fiscal year 22, he said.

The CFO said the company has learned from its experience of the 2008 global financial crisis and expects demand to recover in a V shape.

However, despite strong hires, staff costs were reduced 0.20% to 56.3% as tactics were changed to hire more inexpensive freshmen, he said, making it clear that the company will continue to balance freshmen and lateral entrants Forward.

“Our future investments will be in more skill building, research and innovation, and intellectual property,” he said.

Seksaria said the company had realigned investments according to business needs between the three and total investments remained at the same level.

He said there had been no significant cost impact due to the pandemic, although there had been some changes on some points.

From a deal flow perspective, the company remains positive, adding that new deal signing has always been between $ 7-9 billion.

The company invested Rs 1,250 billion in physical infrastructure in the first half of fiscal year and will continue similar activities, he said, adding that it invested Rs 3,000 billion in FY21.