JOIN USRe volatility: Mistry bats for short-term hedges by TCS
Tata Consultancy Services (TCS) chairman Cyrus Mistry said that the company has a hedging policy to protect profits of its core business with regular risk management reviews.
"We will take short-term hedges, going forward and over all, TCS expect the rupee deprecation to be positive for it, although we will wait for the full year impact," said Mistry as the new Tata group chairman, at the annual general meeting of TCS here.
In his first address to TCS shareholders, he conceded that the company is facing challenges of slowing growth and rupee volatility and said: “TCS has done well, despite a challenging environment in fiscal 2013. This is because of our focus on being relevant to the government, enterprises and society. We are also very proud of our repeat business.”
He expressed confidence of increased traction and stability in fiscal 2014.
Further, Mistry said TCS has signed large transformational deals and forged strategic partnerships with clients, and will continue to invest in digital technology of the future, as well as products, platforms and IP-based solutions. “TCS spent Rs 718 crore on R&D in the last fiscal, and earned returns of 1.4 per cent on it, an increase from last year. TCS is also working on e-governance projects, with Rs 300 crore investment in Passport Seva project. We are also working on a scholarship with the UK government to address concerns of cyber security,” he said.
On the e-Serve merger, Mistry said all paperwork was complete, but final deal closure was awaited. The company, he added, would also invest more and more in non-English speaking countries in Asia, Africa and Latin America as part of its expansion in key emerging markets.
Mistry said TCS had the lowest attrition in the industry at 10.6 percent and attrition was higher in international locations due to contract-based hiring.
On the H1B visa pressure, Mistry said TCS was beefing up the selection process for its candidates, and is now conducting more intensive pre-visa interview briefing, as well as post interview de-briefing.
Meanwhile TCS CEO N Chandrsekaran who also spoke at the AGM dwelt on the US Immigration Bill saying:“We are carefully observing the Bill’s progress and will wait for the final version before swinging into action.