Client discretionary spend volatility
Management highlighted that clients continue to pause or defer discretionary projects with unclear ROI, creating headwinds to near-term revenue.
TCS / Q4-FY24 / risks
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Material risks this quarter
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Margin headwinds from wage hikes in Q1
Annual wage increments effective April 1 will pressure margins in Q1 FY25, though management expects recovery through the year.
Unpredictable client decision-making on deal ramp-downs
NGS noted that clients sometimes defer or slow down signed deals, creating volatility that is hard to predict, as seen in BFSI.
Subcontractor cost lever may have bottomed out
CFO indicated that the subcontractor cost optimization that helped margins in FY24 may have limited further scope, reducing a key margin lever.