June 11, 2021 12:47 PM
Rs 850 Invested in TCS IPO in 2004 is worth Rs 28,000 Today: Horizon two will involve innovating the business models by leveraging the power of data and analytics and finally horizon three which we believe cloud will enable the creation of purpose lead ecosystem: TCS
Tata Consultancy Services (TCS) has navigated the Covid pandemic successfully, earned tremendous goodwill of customers and the company is well-positioned to benefit from the multiyear technology cycle ahead said, N Chandrasekaran, Company’s chairman at the 26th Annual General Meeting (AGM) on Thursday.
He said, if an investor had invested in TCS IPO investor’s wealth would have increased by 3000% in 17 years. One share of TCS at a price of Rs 850 during the IPO in 2004 would be worth Rs 28000 today, giving shareholders a 3000% return on their investment.
Chandrasekaran said, TCS has consistently re-invented in new services and offerings required for the future and the company has delivered an industry-leading operating margin of 25.9% in FY21 with a total dividend payout of Rs 38 per share, completed Rs 16000 cr share buyback in FY21, and returned 95% of free cash flow to customers.
Speaking about the demand environment Rajesh Gopinathan, CEO and MD, TCS said, “We are at the start of a multiyear technology upcycle”. Customers leveraged technology across the entire value chain in order to achieve operational resilience and shifted significantly to digital channels and the cloud. Expect significant technological transformation across multiple industries which gives long-term visibility in the overall demand environment.
Rs 850 Invested in TCS IPO in 2004 is worth Rs 28,000 Today: TCS ‘consistent investments in building on growth and transformation capability has started showing good results as the company recorded a 17.1% growth in total contracts and signed $31.6 billion in new contracts in FY21.
Gopinathan said “As customers execute the transformation agenda across multiple horizons starting with building a digital core which touches both their applications infrastructure and technology infrastructure as well as business and operation transformation initiatives.
Horizon two will involve innovating the business models by leveraging the power of data and analytics and finally horizon three which we believe the cloud will enable the creation of purpose lead ecosystem where enterprises will collaborate with other adjacent enterprises to create offerings which benefit to create customer’s purpose.
These initiatives together will result in a significant technological transformation across multiple industries which gives us long-term visibility in overall demand environment and we are gearing up for that.”