Won’t forego margins for growth: TCS CEO-designate K Krithivasan

Global macroeconomic headwinds roiling technology markets worldwide will not snowball into a full-blown crisis according to K Krithivasan, CEO-designate of Tata Consultancy Services. 

Terming it more as a short-term blip, he said TCS will not forego margins ( in search) of growth, setting a confident tone as he takes charge of India’s largest software exporter on June 1st. 

The 58-year old executive said the company is "comfortable" with its business model and not perturbed by smaller rival Infosys adding more net business over the last few quarters despite being almost half in size. 

Reacting to recent criticism about TCS's slower growth, he reiterated his company’s focus on maintaining strong margins.

After reporting margins of 24.5% in Q4 of the 2023 fiscal year, TCS has set a target of 26-28% in the long term while Infosys reported margins of 21% for the fourth quarter, at the lower end of its guided range.

He also said that the new operating structure may require a few tweaks, but won't be definetly overhauled to iron out a few rough edges.

A Tata group veteran who has spent 34 years in the company, Krithivasan will focus on strengthening relationships with large customers who form a bulk of TCS' revenues, he told ET’s Romita Majumdar & Surabhi Agarwal in a wide-ranging interview.