TCS Likely To Stop Sharing Volume Growth Data

According to media reports, Tata Consultancy Services (TCS) is mulling not to share its volume growth data. It is likely to come up with a new process in FY2015-16 to review the growth parameters.

“I think it’s time we got away from volume and pricing growth numbers. Current metrics were put in place long ago when TCS was a much simpler company. Now, given the mix of business we have, probably the volume growth number is resulting in more noise than any meaningful data interpretation. Probably in April 2015, while sharing the March quarter numbers, we’ll do some refresh on the metrics and take a full look at what is it that we have to disclose,” said Rajesh Gopinathan, chief financial officer and vice-president, TCS.

It is pertinent to mention here that only two major IT companies – TCS and Infosys – reveal their volume growth data. In October-December quarter of FY2014-15, TCS had registered volume growth of just 0.4%, which was the lowest in the history of India’s largest information technology (IT) firm.

According to analysts, financial revenue growth data is enough to give an indication about a company is performing. Shashi Bhushan, IT analyst at Prabhudas Lilladher, says, “In the past few years, there has been a massive change in the way industry operates and is being perceived. Change in reporting metrics is definitely inevitable. I do not think the Street will react negatively if TCS discontinues with the volume growth number.”

Other major IT companies like Wipro and HCL Technologies have already stopped giving out these data.