Is TCS Poised For Growth Next Quarter?: CEO Krithivasan Answers It All In Post Q1 Result Interview

Thank you.

I won't say that. See, if you remember towards the first week of April when we met, I did tell you that there is still a heightened amount of uncertainty and that has continued throughout the quarter. I think till all the trade discussions are concluded, that clarity will not emerge. In fact, the current uncertainty is primarily around trade discussions and to some extent around the big beautiful bill. At least the bill has been passed that has given some visibility on what is the impact on some of the sectors, particularly the healthcare. But the trade discussions will determine what happens in the consumer business and other sectors that are import-dependent.

See, if you first look at the headline numbers, the US grew a little bit, marginally on a Q1-Q basis. We had a negative growth, small negative growth in UK and a bigger negative growth coming in Europe. And of course everything is to some extent interrelated. Now, if you look at the demand contraction, while there is a moderation almost in all sectors, there are some sectors like particularly the consumer business which is more heavily impacted almost across the globe. But whereas banking, you see banking is slight growth we witnessed in North America as well as in UK, but Europe we had a bigger degrowth. So some sectors are universally impacted. If you take manufacturing, auto is impacted but industrial and aerospace we have done well. Tech sector we have done well, but telcos are not done well. So it varies. But it's very difficult to call out one sector that is doing better. Like I said, there's been a moderation in demand across all sectors.

Healthcare last quarter, the healthcare itself, essentially the payer segment had a small degrowth. The life sciences did better, medtech did better, but pharma didn't do well. So that's broadly the commentary.