Can CEO Krithivasan put an end to the IT major’s misery?

The July-September period tested the country’s largest IT Services company on many fronts, one external and two of them are the difficulties it has created by itself.

From the outside, US President Donald Trump’s decision to increase the H-1B visa fee to $ 100,000 from next year shook India’s technology giants. Medium -sized companies say it will not harm them, but analysts unanimously agree that it will harm five major companies, including TCS.

Internal growth slowed down; In fact, a few analysts expect the first time the TCS to report a decrease in income all year long since the publicity of 2004. This is only half of the concern.

The emergency and larger war faced by Krithivasan and his team is how the company will motivate more than 600,000 troops, 2 %or 12,000 engineers at the background of the dismissal plan.

The company’s morale hit the bottom. For Crithivasan, it is a great task to revive the company after this point because growth seems difficult in a gloomy and uncertain environment. The rise of artificial technologies makes the water further blurred and poses an existential risk for companies like TCS.

Captain

Under the Crithivasan administration, the TCS has increased an increase of $ 1.19 billion with a much less figure than its predecessors. During this time, InfoS and HCltech added $ 873 million and $ 847 million respectively. The lack of large ticket agreements, smaller peers, business leaks, less billing automation tools and uncertain demand environment, but also some of the contributors who wonder what can lead to Crithivasan’s defective.

Investors are also out of patience. TCS’s shares decreased by 27.2 %since the beginning of the year, but BSE Sensex won 4.58 %in this period, although the country’s worst performance was the company’s worst performance.

In addition to the discomfort, TCS’s first chance to cancel the press briefing after the first usual earnings in its history is that the chance of searching for a response from Crithivasan is now very little. The company did not specify any reason. Now the only hope is that analysts receive a response from them when they contact the administration after explaining their earnings.

In the middle of this, Mint When the TCS announced its second quarter earnings on Thursday, it draws attention to five important points to be considered.

Growth orbit

The priority anxiety of TCS is to increase income. Although the company signed an agreement with the Scandinavian insurance company Tryg last month, there is a lot of work to be done. At least six intermediaries are waiting for the company to report 1 %consecutive growth.

“Decreases and stock losses in several accounts can lead to moderate growth,” Kotak Instituteal Equities analysts can lead to moderate growth.

The increasing uncertainty regarding the tariff and visa policies in the United States, its largest market, can overshadow the company’s income safe because it attracts technology expenditures to Indian IT source providers. Of course, TCS does not offer any income estimate, but its comments on growth and future demand appearance will be measured.

BSNL factor

In the last two years, TCS’s growth has been supported by BSNL, a single customer. In May 2023, IT Services Company signed a 4G network distribution agreement worth one billion dollars with BSNL. At least two intermediaries did not take into account BSNL’s contribution to the growth of the company in the second quarter; One of them was waiting for a decrease in income due to the completion of the BSNL agreement.

Nomura analysts Abhishek Bhandari and Karan Nain, in a note dated October 1, “Revenue in CC (fixed currency) in a quarter of a quarter of 0.5 %expect, this is mainly due to the falling contribution of the BSNL project,” he said. This means that the company’s backward -filling plans will be measured when the management interacts with analysts tomorrow.

H-1B gap

According to the US Citizenship and Immigration Services, TCS is the second largest user of H-1B visas and receives almost 5,505 of such visas, ie almost one-tenth of all existing H-1B visas. President Donald Trump, led by US deputies, raised the bar against H-1B visa users, claiming that large technology companies, including domestic IT source providers, abuse these visas.

On September 24, members of the Judicial Committee Charles E. Grassley and Richard J. Durbin wrote a letter to CEO Crithivasan about the company’s recruitment practices and said that TCS was under investigation on the allegation that the newly hired South Asian H-1B employees. At the beginning of the same month, Ohio Senator Bernie Moreno proposed the law of stopping the international displacement of employees to impose taxes to companies that use IT business outsourcing.

In this context, the company’s interpretation of the activity margin and the plans of US policy makers to eliminate the concerns will be investigated.

Dismissal and morale

The decision to dismiss 2 %of TCS’s employees was greeted with anger, uncertainty and fear among most of the 600,000 workforce. Many employees in the company’s level, TCS’nin planned to dismiss this and said that it was forced to be forced. Some cry due to re -assignments and skill incompatibility, while others are withdrawn from projects.

The management will be questioned not only about the planning of layoffs, but also about fighting reports between employees.

Artificial intelligence puzzle

TCS’s artificial intelligence strategy is in a change. TCS first founded the AI.Cloud business unit in August 2023, which provides artificial intelligence and cloud services collectively. In May of this year, TCS divided this unit into ‘artificial intelligence and data’ and ‘cloud’ units respectively. Siva Ganesan, who managed the first artificial intelligence unit, was responsible for artificial intelligence and data, while his assistant Krishna Mohan took over the responsibility of Bulut. However, last month, a third change took place with the establishment of the “Artificial Intelligence and Service Transformation Unit” to be chaired by Senior Ammit Kapur.

Since then, Ganesan has resigned and the company is expected to hire less artificial intelligence engineers than last year. Analysts will follow the comments on the AI ​​roadmap for a company that does not disclose the income and order reservations obtained from new technology at a time when a greater precedent does. Accenture, with an order of $ 5.9 billion in the last financial year, earned artificial intelligence income of $ 2.7 billion.