Tata Consultancy Services (TCS) remains confident that 2014-15 will bring better opportunities for growth across multiple industries and markets, according to Cyrus Mistry, Chairman, TCS, and the Tata Group.
Addressing shareholders at the company’s annual general meeting (AGM) here on Friday, Mr. Mistry said TCS grew 16 per cent in dollar terms in 2013-14 and 30 per cent in rupee terms while the Indian IT industry had grown 8.8 per cent. “The company remains focussed on disciplined execution of its strategy,” he said.
Mr. Mistry informed shareholders that TCS board recommended a final dividend of Rs.20 per share taking the total dividend for 2013-14 to Rs.32 per share (Rs.22 last year).
He said the digital five forces of new technology, including mobility, big data, social media, cloud computing and robotics would rapidly change the world and its impact would be of greater magnitude. “The ongoing investment of the company in these recent trends will enable us to play an impactful role in the technology revolution. The company’s full services capabilities continue to be leveraged by customers with new service lines led by consulting, assurance services, infrastructure services and engineering industrial solutions.”
The TCS chairman acknowledged the contribution of S. Ramadorai, vice-chairman, TCS, to the company. Mr. Ramadorai, who earlier served as CEO and Managing Director of the company, will retire in October 2014 as per the retirement age policy of the group.
In 2015, TCS will complete its 10-year journey since its initial public offering (IPO) in 2004.
“The performance over the decade brings out the story of TCS’ high standards.”
The valuation of the company now stands at $13.4 billion. He said the TCS One campaign saw it become the largest employer in the Indian private sector with 300,000 employees covering 118 nationalities.
“Over the decade, the earnings per share (EPS), after adjusting for two 1:1 bonus issues, have gone up eight-fold from Rs.11.84 in 2003-04 to Rs.97.67 in 2013-14.
Since the IPO, the return on investment has multiplied 10 times at a CAGR (compounded annual growth rate) of 27 per cent,” he said.
TCS now has 714 customers contributing revenues of more than $1 million (?) and 24 customers contributing more than $100 million annually. TCS remained the highest recruiter in the Indian IT industry, Mr. Mistry said.
