Latest news with #SamirSeksaria
Time of India
a day ago
- Business
- Time of India
Delay in receipt of PO, shipments of BSNL 4G sites dent Tejas Networks' Q1FY26 financials
Mumbai: After Tata Consultancy Services (TCS) reported a slump in its revenue due to ramp down in state-run Bharat Sanchar Nigam Ltd's 4G project, the IT services leader's equipment supplier Tejas Networks also reported a sharp impact, pulling its stock down 10% intraday on Tuesday. The top management of Tejas Networks, a Tata Group company, said on an earnings call late Monday that while an add-on purchase order was signed with BSNL for an additional 18,000 4G sites, the purchase order didn't come through in the April-June quarter, dragging its revenue down 89% quarter-on-quarter and widening its net loss to ₹194 crore. 'One of the key reasons for the shortfall of revenue in Q1 was the delayed receipt of PO and shipment of 18,000 sites of BSNL 4G network, which we were expecting to do in Q1 but has got delayed a bit,' Arnob Roy, chief operating officer of Tejas Networks, said during the call. "For few other customers, we also had delays in getting shipment clearances and also arrival of inventory,' he added. A senior executive close to BSNL, however, claimed that there had been no delay from the telco's end. Tejas Networks' revenue fell to ₹202 crore in April-June from ₹1,907 crore in the preceding quarter. Its losses expanded to ₹194 crore from ₹72 crore during this period. The company's shares closed 6.6% lower at ₹653.25 apiece on the BSE on Tuesday, after touching an intraday low of ₹629.65. Both Tata Group companies have been heavily reliant on the ₹19,000 crore mega deal which was awarded by BSNL in May 2023 – one of the largest ever contracts for TCS. Of this, TCS had awarded a ₹7,492 crore order to Tejas Networks for equipment supply. The 24-month contract for setting up 100,000 4G sites had boosted revenues of both companies. TCS had been an outlier earlier, recording growth owing to the BSNL deal, even as its overseas revenue was declining in the face of macroeconomic headwinds. In the case of Tejas Networks, nearly 60%-80% of its revenue had been dependent on the BSNL contract , growing in triple digits quarter-on-quarter. However, after the project ended in May, BSNL awarded a ₹2,903 crore add-on purchase order to TCS for setting up additional 18,685 4G sites. Tejas Networks, in turn, was awarded ₹1,525.53 crore order for supplying Radio Access Network equipment . However, the delay in closing the BSNL order has led to extension of execution timelines. Consequently, TCS recorded a 3.1% sequential decline in revenue, 2.8 percentage points of which was attributable to BSNL alone. 'We just received an advance purchase order (PO). We are awaiting circle-wise POs. Once we get it, then the execution starts,' TCS' chief financial officer Samir Seksaria said during the company's earnings call last week.
Time of India
a day ago
- Business
- Time of India
TCS revenue slump affects Tejas Networks stock: Impact of delayed BSNL 4G project
After Tata Consultancy Services (TCS) reported a slump in its revenue due to ramp down in state-run Bharat Sanchar Nigam Ltd's 4G project, the IT services leader's equipment supplier Tejas Networks also reported a sharp impact, pulling its stock down 10% intraday on Tuesday. The top management of Tejas Networks, a Tata Group company, said on an earnings call late Monday that while an add-on purchase order was signed with BSNL for an additional 18,000 4G sites, the purchase order didn't come through in the April-June quarter, dragging its revenue down 89% quarter-on-quarter and widening its net loss to Rs 194 crore. 'One of the key reasons for the shortfall of revenue in Q1 was the delayed receipt of PO and shipment of 18,000 sites of BSNL 4G network, which we were expecting to do in Q1 but has got delayed a bit,' Arnob Roy, chief operating officer of Tejas Networks, said during the call. "For few other customers, we also had delays in getting shipment clearances and also arrival of inventory,' he added. A senior executive close to BSNL, however, claimed that there had been no delay from the telco's end. Live Events Tejas Networks' revenue fell to Rs 202 crore in April-June from Rs 1,907 crore in the preceding quarter. Its losses expanded to Rs 194 crore from Rs 72 crore during this period. The company's shares closed 6.6% lower at Rs 653.25 apiece on the BSE on Tuesday, after touching an intraday low of Rs 629.65. Both Tata Group companies have been heavily reliant on the Rs 19,000 crore mega deal which was awarded by BSNL in May 2023 – one of the largest ever contracts for TCS. Of this, TCS had awarded a Rs 7,492 crore order to Tejas Networks for equipment supply. The 24-month contract for setting up 100,000 4G sites had boosted revenues of both companies. TCS had been an outlier earlier, recording growth owing to the BSNL deal, even as its overseas revenue was declining in the face of macroeconomic headwinds. In the case of Tejas Networks, nearly 60%-80% of its revenue had been dependent on the BSNL contract , growing in triple digits quarter-on-quarter. However, after the project ended in May, BSNL awarded a Rs 2,903 crore add-on purchase order to TCS for setting up additional 18,685 4G sites. Tejas Networks, in turn, was awarded Rs 1,525.53 crore order for supplying Radio Access Network equipment . However, the delay in closing the BSNL order has led to extension of execution timelines. Consequently, TCS recorded a 3.1% sequential decline in revenue, 2.8 percentage points of which was attributable to BSNL alone. 'We just received an advance purchase order (PO). We are awaiting circle-wise POs. Once we get it, then the execution starts,' TCS' chief financial officer Samir Seksaria said during the company's earnings call last week. Economic Times WhatsApp channel )
Economic Times
4 days ago
- Business
- Economic Times
Wage hikes a priority for TCS; focus on growth with profitability: CFO
Agencies Delivering wage hikes for its over 6 lakh employees is a "priority" for TCS, the country's largest IT services company's Chief Financial Officer (CFO) Samir Seksaria has said. Speaking to PTI, after the release of the June quarter results, where the business witnessed headwinds on growth and margins, Seksaria made it clear that TCS will focus on growth with profitability. The company showed a 6 per cent increase in net on non-core income as demand got impacted due to macroeconomic and geopolitical troubles, and deferred its annual wage hikes that typically set in from April. Stating that TCS has rarely resorted to deferring wage hikes unlike peers, Seksaria said, "My priority is getting back to the wage hike." He, however, did not specify when the hikes will be delivered. Typically, the annual wage hikes crimp the operating profit margin by over 1.50 per cent, Seksaria said. It reported a 0.20 per cent narrowing in the number at 24.5 per cent for the June quarter, but Seksaria stressed that the intent is to push the margins up into the 26-28 per cent aspirational range. Seksaria explained that investments in upfront hiring to capture demand as it comes in hurt the margins, as lack of demand pulled down utilisation levels. As the company looks to widen the margins, it is grappling with a set of controllable and uncontrollable factors, Seksaria said, pointing out that upping the utilisation and other organisational tweaks are the controllables, while demand is the uncontrollable. "...demand recovery plus optimisation, we have to focus on both. If demand recovery is prolonged, we will double down on optimisation," he said. "Our focus will be growth with profitability. Only profitability without growth doesn't help," he said, adding that this should not be taken as the company giving up on demand. With attrition reaching some bit of concerning levels at 13.8 per cent, Seksaria said the focus will be to retain top talent as it is difficult to build by fresh hiring, and added that some bit of attrition is healthy and it may not take so many measures to retain some part of the talent. Given the fact that the company has capacity now, it may go slow on lateral hiring and restart once demand spurs up. The company does not plan to cut investments but there could be some realignment like building only a part of a structure on a plot, Seksaria said. TCS will not do acquisitions just for expanding the topline, but it will be capabilities that will drive such inorganic moves, Seksaria said, adding that it keeps looking at opportunities in the market. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Markets need to see more than profits from Oyo As GenAI puts traditional BPO on life support, survival demands a makeover Is gold always the best bet? Think again Why this one from 'Dirty Dozen', now in Vedanta fold, is again in a mess Can Indian IT protect its high valuation as AI takes centre stage? F&O Radar| Deploy Bull Call Spread in Nifty for gains from volatility amid uptrend Aggressive? Yes, but better for investors with a risk appetite: 6 small private bank stocks with upside potential up to 36% in 1 year In mid-caps, 'just hold' often creates wealth: 10 mid-cap stocks from different sectors with upside potential up to 44%
Business Standard
6 days ago
- Business
- Business Standard
TCS slips as TCV slumps 23% QoQ to $9.4 bln in Q1, attrition hits two-year high
Tata Consultancy Services (TCS) declined 2.07% to Rs 3,312.25 following a drop in total contract value (TCV), elevated attrition rate and cautious management commentary in Q1 FY26. The companys total contract value (TCV) dropped to $9.4 billion in Q1 June 2025, down 22.95% compared with $12.2 billion in Q4 March 2025. Additionally, the attrition rate was at 13.8% for the last twelve months (LTM), the highest in nearly two years. Further, K Krithivasan, chief executive officer and managing director, said, The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter." The IT major reported a 4.38% jump in consolidated net profit to Rs 12,760 crore despite 1.62% decline in revenue from operations to Rs 63,437 crore in Q1 June 2025 over Q4 March 2025. On a year-on-year basis, the companys consolidated net profit jumped 5.98% while revenue from operations increased 1.32% in Q1 June 2025. The companys YoY performance was driven by a 2.8% increase in Energy, Resource and Utilities, alongside steady gains in BFSI (up 1%) and Technology & Services (up 1.8%) segments in Q1 FY26. Constant currency revenue declined 3.1% YoY in the Q1 FY26. Operating and net margins stood at 24.5% and 20.1% respectively during the quarter, with a robust cash conversion ratio of 100.3% of net income. Profit before tax (PBT) stood at Rs 16,979 crore in Q1 FY26, up 3.52% QoQ and up 4.61% YoY. On the talent front, the workforce stood at 613,069 as on 30th June 2025. Meanwhile, the companys board declared an interim dividend of Rs 11 per equity share of Rs 1 each. The record date for the same is Wednesday, 16 July 2025 and the dividend will be paid on Monday, August 4, 2025. Samir Seksaria, chief financial officer, said, "We continued our investments in long term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry leading profitability alongside robust cash conversion, positions us well to make strategic investments for the future. Tata Consultancy Services (TCS) is a digital transformation and technology partner of choice for industry-leading organizations worldwide.
India.com
7 days ago
- Business
- India.com
This Ratan Tata's company's net profit rises to Rs 127600000000, revenue increased by…, what is name of company?
Tata Consultancy Services (TCS), the country's largest IT services firm, reported a 6% year-on-year increase in net profit for the June quarter, reaching Rs 12,760 crore. In the same period last year, the company had posted a net profit of Rs 12,040 crore. TCS Q1FY26 Results The company's revenue inched up by 1.3 per cent to Rs 63,437 crore from Rs 62,613 crore in the year-ago period, but was down 3 per cent on a constant currency perspective. Its operating profit margin expanded 0.30 per cent on-quarter to 24.5 per cent in the April-June period, as per a company statement. 'The continued global macro-economic and geopolitical uncertainties caused a demand contraction,' its managing director and chief executive K Krithivasan said. TCS New Deals It reported new deal signings of USD 9.4 billion during the quarter, while the overall headcount was at 6,13,069 at the end of the quarter, up by over 6,000 on-year. The company scrip had closed 0.06 per cent down at Rs 3,382.30 apiece on the BSE, as against a 0.41 per cent correction on the benchmark. TCS Management On Quarterly Results K Krithivasan, Chief Executive Officer and Managing Director, said: 'The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter.' The company's Total Contract Value (TCV) for the quarter stood at $9.4 billion, down from $12.2 billion clocked in Q4. This was more than the Street estimates of $8-9 billion. Samir Seksaria, Chief Financial Officer, said: ''We continued our investments in long term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins.' (With Inputs From PTI)
