TCS, India’s biggest software exporter, is expecting to earn more money in the coming months as a big deal with BSNL starts to slow down. Samir Seksaria, the Chief Financial Officer, told the press that this change will help TCS increase its profit margins.
TCS plans to create more workspaces for over 25,000 employees in Bengaluru because they bought a piece of land there recently. The BSNL deal, worth over ₹15,000 crore, has helped TCS earn a lot of money while helping BSNL set up a nationwide 4G network. Seksaria said that even though this BSNL project will gradually decrease until September FY26, TCS has plans to make up for this loss by finding new ways to earn money in different markets.
In the last quarter, TCS reported a profit margin of 24.5%, and they want to make it even higher. When asked if they would reach a profit margin of 26-28% by FY26, Seksaria didn’t give a direct answer but hinted that they have strategies to increase it.
Despite recent wage hikes for employees, TCS was still able to increase its profit margins slightly and keep it stable compared to last year. The ongoing drop in the rupee’s value against the dollar is also helping TCS earn more money, although recent changes in other currencies haven’t had much effect.
In addition, Seksaria talked about a recent deal where TCS bought land for ₹1,625 crore from a Tata group company. They plan to develop this area in Whitefield, a popular part of Bengaluru for IT jobs. Currently, TCS has about 70,000 employees working in various offices across Bengaluru. They mix leasing and building their facilities, and the focus on Bengaluru is part of their building strategy. The most recent center they opened is in Coimbatore
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