TCS fine with margins, sees cloud a long-term opportunity

MUMBAI: Tata Consultancy Services Ltd expects some tra vel and d iscretionary spends to rise , b ut is comf ortable with pr ofitability, larg ely due to its ability to be r esilient with operating margins.

The softwar e services provider had c locked in consolidated operating margins of 26.6% in the December quarter.

While the softwar e giant does not ha ve a guidance for pr ofitability, it has an aspirational range of 26-28%.

The compan y is also of the opinion that large deals need not necessaril y be margin diluti ve, its senior management said at Kotak

Institutional Equities' 'Chasing Gr owth' conference.

TCS sees the mo ve to cloud as a thr ee-five y ear process, w hich in volves first mo ving da ta, a pplications and infrastr ucture to cloud.

This is generally followed by using ca pabilities of cloud to dri ve dif ferentiation.

The thir d ste p is to collaborate with enter prises and ne w b usiness models , the company said.