Mumbai, Jan 11 : Indian IT major Tata Consultancy Services (TCS) is betting on Europe to lead the growth and become its second largest market after the US, said Chief Executive Rajesh Gopinathan on Thursday.
"Europe is on a very strong trajectory.
If it continues on this trajectory, we expect Europe to become, in the course of next year, our second largest market after the US," he told reporters here after the global software major declared its financial results for the third quarter of 2017-18.
Expressing optimism on Europe leading the growth, Gopinathan said the company had 2.7 per cent sequential growth in Continental Europe - excluding Britain - during the quarter (Q3).
Of the (Dollar) 4,787 million revenue in Q3, Continental Europe contributed (Dollar) 650 million, with 22.3 per cent year-on-year growth in constant currency, Britain (Dollar) 680 million with 8.2 per cent growth, Asia (Dollar) 450 million, with 6.2 per cent growth and the US (Dollar) 2.49 billion, with 2.8 per cent growth.
"The US delivered a growth which is marginally better than the average.
From a vertical industry perspective, retail has started a rebound. We have delivered 6.4 per cent sequential growth in the retail sector in constant currency," he said.
The company has also posted 25 per cent YoY growth in other verticals like energy, utilities, travel and hospitality.
"As energy resources and utilities have close to (Dollar) 1 billion run rate as an industry, we are not referring to them as small," pointed out Gopinathan.
Stating that digital accounted for 22 per cent of the revenue in Q3, he said with a (Dollar) 4 billion annual run rate, the vertical represented over 39 per cent YoY growth.
"We are encouraged by this ability to retrain and rescale and capture the opportunities in the digital space," he asserted.
With the integration of digital and products' knowledge increasing its confidence in the platform business, he said the company was optimistic in the platform business.
"We look forward to a strong performance in the new year," Gopinathan added.
The IT major had Rs 40,500 crore as cash at the end of Q3 even after distributing Rs 25,300 crore to shareholders through buyback and dividends.