TCS to bag big deals without compromising margins

Our Corporate Bureau
17 October 2006

Tata Consultancy Services has come out with Q2 numbers that have beat Street expectations. The company's net profit was up 14.95 per cent from Rs 862.6 crore to Rs 991.5 crore, quarter-on-quarter, QoQ.

In response to these figures put out, the management of TCS discusses the company's future outlook and guidance going forward. S Ramadorai, managing director and chief executive officer, TCS, says that there are a number of deals in the pipeline, which will be closed soon.

The company's CFO, S Mahalingam says that TCS will continue to look at a revenue shift for higher margins.

The management also says that it has managed to grow more clients across portfolios, and that it is confident of bagging big deals without compromising margins.

An important factor that S Ramadorai, focused on the growth momentum. "Growth with profitability is very fundamental to us so we will focus again on operating efficiency, offshore leveraging and growth. There are number of deals in the pipeline that we plan to close."

N Chandrasekaran, head, sales and operations, says that the deal pipeline is quite strong across geographies. Out of the $50 million plus deals, he says that they are currently negotiating five deals. "Also, we have a healthy pipeline of a few $100 million deals and five to10 $50 million deals on top of that. So I think the environment on the demand side is pretty robust," he adds.