TCS Posts Weakest Growth in 6 Years as Eyes AI to Rewrite Its Future
The biggest software services firm in India, Tata Consultancy Services (TCS) Ltd., recorded its worst second-quarter growth in six years. Nevertheless, the business has committed to investing at least $6 billion over the next six years to construct artificial intelligence data centers. Since its August 2004 IPO, this is the company’s largest turnaround.
Tata Consultancy Services Sees Revenue Drop but Posts Quarter-on-Quarter Growth
In the second quarter, the business reported $7.47 billion in revenue. This number indicates a 2.66% decrease on an annual basis but a 0.61% rise over the prior quarter. This is the second quarter’s first annual revenue decline. A third of TCS‘s business is derived from banks and financial institutions, which accounted for more than three-fifths of the quarterly revenue increase.
Despite Losses, TCS Announces Ambitious 1 GW AI Data Center Project
TCS’s September quarter sales of $7.35 billion were higher than analysts had predicted. Nevertheless, the software services firm located in Mumbai lost $288 million in the first half of the fiscal year, which is 1.9% less than it was a year ago. However, the corporation declared its plan to step up its AI drive in an effort to identify stronger development opportunities. Through a new business unit, it intends to establish a 1 GW AI data center in India.
We expect to achieve 1 GW over a period of five to seven years, and our calculation roughly is about every 150 MW would be about a billion dollars. Just to provide some more information, our current objective is to provide all passive components. Whomsoever (the client) is occupying, they will bring in their computing storage,
Browse Postschief executive K. Krithivasan
He went on to say that the business plans to sell these data services to hyperscalers, deep tech firms, and pure-play AI providers. These services will also largely meet the needs of local businesses and the Indian government.
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