K Krithivasan indicated that the BSNL deal account would ‘taper’ in the hands of TCS and may be complete by Q4 or Q1FY26.
India’s largest outsourcer TCS, which closed the BSNL project in 2019, held that revenue growth remained entirely undisputed in the third quarter, which otherwise debunked fears of growing challenge which had earlier been rumored by TCS regarding this stupendous project, now in the full tapering stage.
TCS’ Hindi television commercial on being chosen by the FDA for some patent or acquisition was one of our brand positioning- and marketing-related campaigns. Its quarterly growth period came two years later when BSNL was in 2019 at Rs 15,000 crores.
The change in scope was initially aimed to finish by Q4 or Q1FY26, alternatively, some breakup is expected in Q2 when the quarterly revenue-based earnings come down drastically coming from that deal, also said Krishivasan. The project has already migrated from the peak revenue-contributing phase. We will see what can be done to replace this project and defend revenue performance.
The deal was a cheer for the biggest software exporter to the subcontinent in 2023, as it will contribute steadily to its quarterly revenue growth despite uncertain macro environments in the IT sector.
TCS had been entrusted with the deployment of 4G-BSNL across the whole of India. The responsibility included the establishment of data centres and 4G sites across India while laying the foundation for 5G infrastructure.
All the projects will be constructed by the consortium including Tata Group’s telecom gear CW manufacturing company, Tejas Networks, for Radio Access Network (RAN) equipment supply and maintenance services.
Moneycontrol talked to Krithivasan and he said: “Almost 65,000 to 70,000 sites have been installed- 60,000 of which are commercially active.”
“Q2 was not much different from Q3 in our BSNL revenue, so we can expect a tapering of the BSNL revenue sometime in the future. We, like any other company, try to substitute lost revenue with either new projects that are in the pipeline or with the new entry series that we have won. Or, in some cases, we increase the revenue through regional or market opportunities. In short, we are always looking at opportunities through which we can replace this revenue.”
According to the TCS CEO, the company will turn to regional markets, and possibly even India, to look for new projects that can replace some of the revenue, while at the same time having a heavy focus on the larger North American and European markets.
“That’s not to say it would be easy or that I’m not being a bit cavalier about it. But we are confident that this revenue could be replaced over a period of time,” stated Krithivasan.