TCS prepares for big pivot to AI, data centres

At least $6 billion investment in 6 yrs; Q2 revenue beats expectations

- Jas Bardia

TCS's Q2 revenue stood at $7.47 bn, up 0.61% sequentially.

(MINT)

Tata Consultancy Services Ltd reported its weakest sequential second-quarter growth in six years even as India’s largest software services provider promised to set up Al data centres with at least $6 billion of investments in around six years, marking the biggest pivot since going public in August 2004.

The company reported $7.47 billion in revenue in the second quarter, up 0.61% sequentially but down 2.66% on a yearly basis-the first annual revenue decline in the second quarter. On a quarterly basis, more than three-fifths of its incremental revenue came from banks and financial institutions, which make up a third of TCS's business. TCS's performance exceeded analysts’ expectations of $7.35 billion in revenue in the September quarter. Still, the Mumbai-based software services company has lost $288 million in the first half of the fiscal year, down 19% from a year earlier.