Rupee volatility may hit TCS net

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March 29: Tata Consultancy Services (TCS), India’s largest IT services firm, expects the rupee volatility to affect the company’s profitability in financial year 2011 even as it predicts a good time for the industry in the next fiscal. “Currency fluctuation is always a challenge because it has been fluctuating all through the last several quarters. In some quarters, we have the rupee appreciating very strongly, and in some quarters it has been volatile. It’s something that we take into account. Since many quarters it has been a headwind for growth and margins,” Mr N. Chandrasekaran, the TCS chief executive officer and managing director, told reporters here on Tuesday.

The TCS CEO was in Hyderabad to attend the 20th International WorldWide Web conference and to inaugurate the company’s new training centre, which would have a seating capacity of 6,000 people. The company has nine training centres across the world. In India, the centres are located at Guwahati, Ahemedabad, Hyderabad, Bhubaneshwar, Chennai and Thiruvananthanpuram. Speaking about the industry scenario, Mr Chandrasekaran said, “Overall, the IT industry is doing well and the market environment has been continuously getting better for the last few quarters. We are seeing a good pipeline across markets and across industries. I think generally the FY12 is going to be a good year for the industry.” He said that the Mumbai-based IT major would expand its operations in Europe in sectors like healthcare.