The impact of the BSNL deal will gradually wane over the next few quarters, which will help Tata Consultancy Services (TCS) improve profit margins. This is what Sameer Seksaria, Chief Financial Officer (CFO) of the IT company, has to say. According to news agency PTI, Sameer Seksaria said that the country’s largest software exporter company has recently acquired a land in Bengaluru. The company plans to set up a new center here with a capacity of more than 25,000 seats in the long term.
TCS shares saw a spectacular rise of 5.67 percent last Friday and the stock closed at Rs 4265.55 on BSE. Seksaria said that as BSNL projects scale up at the portfolio level, the company will see improvement in its profit margins. He made this comment to explain the impact of the BSNL deal on margins. However, he declined to give any numbers on the positive impact on operating profit.
What is TCS plan?
The company’s operating profit margin stood at 24.5 percent in the December quarter. The company clarified that its aim is to increase it further. Seksaria said that the impact of the BSNL deal will reduce till the September quarter of financial year 2025-26.
The deal worth over Rs 15,000 crore with BSNL has significantly contributed to TCS’s revenue growth in the last few quarters. Under this deal, TCS is helping BSNL in setting up 4G network across the country. Seksaria said the company will supplement BSNL’s declining revenues from other sources in all its markets.
TCS CFO Sameer Seksaria said that as part of the recent announcement of purchasing land from a Tata Group company for Rs 1625 crore, capacity expansion is being planned in the prime Whitefield area of ​​Bengaluru. The company already has around 70,000 employees across multiple offices in Bengaluru.
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