Significant weakening of the euro and the British pound sterling will impact the revenue of India's top software exporter Tata Consultancy Services (TCS), Chief Executive Officer said on Friday.
“The euro and pound sterling are significantly weakening and the rupee is appreciating. That will definitely have an impact on our revenue line,” N. Chandrasekaran, CEO, TCS, told reporters. “This will affect operating margins also.” The company's business strategy would, however, not change, he added.
Speaking of the recovery of the global economy, Mr. Chandrasekaran said that “confidence in investment was back” although “Europe is likely to lag.” TCS had deals across sectors in the U.S. and in the emerging markets, he said. “We have learnt from the last financial crisis… and if we find ourselves in a similar bubble, we now know how to react.” The Indian market had been expanding only in the last few years, and while the opportunities were attractive, they were small compared to other markets, said Mr. Chandrasekaran. “We have a critical mass and are confident of a decent growth this fiscal by overcoming volatility. We are bullish about the Indian market.”
The company has identified cloud technology as a big opportunity to create a new business model, he said.