Tata Consultancy Services Share Price

Introduction

Tata Consultancy Services (TCS) is India's largest IT services company and part of the venerable Tata Group conglomerate. Founded in 1968 and headquartered in Mumbai, TCS is led by CEO K Krithivasan and Chairman N Chandrasekaran. TCS has over 601,000 employees serving clients across 46 countries. It is the second most valuable Indian company with a market cap of over $170 billion.

TCS offers a comprehensive portfolio of technology services and solutions including cloud, cybersecurity, consulting, artificial intelligence, IoT, digital platforms along with core industry-focused offerings. With deep domain expertise and global delivery model, TCS partners with leading global corporations for their digital transformation journeys.

Company history

Tata Consultancy Services (TCS) was founded in 1968 as Tata Computer Systems, a division of Tata Sons, to provide IT services to group companies. In 1975, TCS developed its first software product SECOM and started international expansion. It went public in 2004 and has been listed in India since then. TCS crossed $10 billion annual revenue milestone in 2012 and recently crossed $25 billion.

Major milestones include establishment of first software R&D center in 1981, acquisition of CMC in 2001, partnership with Citigroup in 2008. TCS has grown both organically and through acquisitions of IT firms across geographies. It has evolved from an IT services provider to a global enterprise offering a broad range of technology solutions. TCS now operates in 149 locations with over 600,000 consultants serving global 2000 corporations.

Business profile

Its key service offerings include the below:

• Consulting & Service Integration - Business and technology consulting, systems integration, IT strategy, enterprise architecture, cloud advisory etc.
• Application Development & Maintenance - Custom application development, application modernization, software testing, packaged implementations like ERP, CRM etc.
• Infrastructure Services - Cloud solutions, workplace services, service desk, data center, network services, cybersecurity, etc.
• Assurance Services - Independent validation, quality engineering, managed QA services, IoT testing, etc.
• Engineering and Industrial Services - Product engineering, IoT, platform engineering, manufacturing ops.

TCS also offers BPM, infrastructure management and HR outsourcing services through its TCS BPS arm. Key industry/domain focus includes BFSI, Retail, CPG, Travel & Hospitality, Manufacturing, Telecom, Media & Technology. TCS serves leading corporations across banking, financial services, insurance, oil/gas, pharmaceuticals, aerospace, automotive, healthcare, public sector etc.

TCS has a global footprint with major presence across North America, UK, Europe, Asia Pacific and India. It has over 150 sales offices and 453 delivery centers globally including over 70 centers in India. Some of TCS' marquee clients include Walmart, Nordstrom, BMW, BP, Citi, Eli Lilly, Vodafone, AstraZeneca, among others. TCS has deep strategic partnerships with firms like Microsoft, Google, Amazon Web Services, Salesforce, Adobe, Siemens, JP Morgan Chase etc.

Leadership

TCS was founded in 1968 by the Tata Group under chairman JRD Tata. Influential early leaders include FC Kohli, considered the father of the Indian IT industry, who served as CEO from 1968-1996. Subramaniam Ramadorai led TCS as CEO from 1996-2009 overseeing much of its rapid growth. The current leadership is helmed by chairman N Chandrasekaran and CEO K Krithivasan. The executive leadership team includes veterans like COO NG Subramaniam, CFO Samir Seksaria, CHRO Milind Lakkad who have been instrumental in TCS' evolution into a leading global technology services firm.

Financial performance

TCS has shown consistent revenue growth over the past decade, with CAGR of 12% during FY2014-FY2024 period. Revenues have grown from Rs 97,000 crore in FY2014 to Rs 245,000 crore in FY2024. Profitability has also increased steadily, with net profit margin expanding from 22% to 19% during this period.

TCS maintains a strong balance sheet with zero debt and healthy cash reserves. Return on equity has averaged over 30% in last 5 years. TCS allocates capital efficiently between investments, dividends and buybacks.

Credit ratings for TCS stand at CRISIL AAA/Stable and ICRA AAA indicating highest safety. Key financial ratios include operating margin of 27%, return on capital employed of 43% and return on net worth of 34% in FY2024. TCS remains one of the most profitable and financially strong IT services companies globally.

Recent strategic developments

TCS has strengthened its industry cloud offerings with launches like TCS OmniStore retail platform, Quartz for blockchain-based solutions, and TwinX digital twin product. It has expanded partnerships with Microsoft, Google Cloud, Amazon Web Services, Salesforce, Adobe, Siemens, among others. Major recent contract wins include Postbank, Prudential Financial, Nokia, Rio Tinto, Marks & Spencer. TCS acquired Deutsche Bank's Postbank Systems and Pramerica Ireland to boost BFSI expertise. Partnerships include Guardant Health, University of Sydney for Quant Network technology center. Acquisitions include BridgePoint Group (2018) for BFS domain knowhow. Investments made in AI, digital ecosystems and TCS Pace Ports for contactless shopping. TCS adds capacity with new facilities in Arizona, Texas, Pittsburgh and Delhi-NCR, among others.

Awards and recognition

TCS has received numerous awards recognizing its business excellence, innovation and growth. Recent honors include Forbes World's Best Employers (2022), Microsoft AI Partner of the Year (2022), Everest Group Peak Matrix IT Service Provider of the Year (2022), Fortune India's Most Admired Companies (2021). On the ESG front, TCS has been part of the Dow Jones Sustainability Indices since 2017 and is the industry leader in the software sector. It has also been recognized for its community initiatives and CSR programs globally.