IT services major Tata Consultancy Services’ (TCS) Q1FY23 results were a mixed bag, with revenue beating estimates and margins disappointing. But the larger concern is that macroeconomic pressure is already pulling Europe down, and the company said that the US would be the growth driver in FY23.
“We think that the Industry is at the start of a mega trend, which will likely keep demand strong unless we hit a severe recession. That said, the European market is clearly weaker than North America, and so a heavy concentration in Europe will somewhat slow growth relative to North America. All in all, we see the market slowing from its torrid growth but demand remaining strong if not as strong,” said Peter Bendor-Samuel, CEO at Everest Group.