TCS Celebrates 20 Years of Public Listing
India’s largest IT giant, Tata Consultancy Services (TCS), recently marked a significant milestone by celebrating 20 years since its public listing on the Indian stock exchanges. The company’s chief executive officer, K Krithivasan, expressed gratitude to colleagues, clients, and partners for their support over the years. With a strong focus on building a brighter future, TCS has achieved remarkable growth and success since its IPO in 2004.
The Journey of TCS
Since its public listing in August 2004, TCS has experienced substantial growth and expansion, becoming one of the leading IT companies in India. Over the years, the company has set several milestones and achieved significant accomplishments:
- TCS shares were listed at a premium of over 26.6% in 2004, and the stock has experienced a substantial increase since then.
- The company has returned 77.5% of cash generated back to shareholders, issued bonus shares thrice, and conducted five buybacks.
- TCS’s shareholder payout in FY24 was the largest to date, totaling Rs 47,445 crore.
- The company’s net profit has grown by over 15 times in 20 years, with revenue increasing at a CAGR of 15.8% in dollar terms.
- TCS’s global footprint has expanded to 55 countries, with over 300 offices and more than 200 delivery centers.
TCS’s Financial Success and Growth
With a history of five CEOs in its 56-year journey, TCS has demonstrated significant financial success and growth:
- The company’s annual revenues have grown almost 20-fold, reaching $29.1 billion, with industry-leading operating margins and profitability.
- TCS’s current market capitalization stands at $200 billion, making it one of India’s most valuable companies.
- In the first quarter earnings ending June this year, TCS reported a 3.1% sequential drop but an 8.7% year-on-year growth in profit.
- Revenue increased by 5.4% from the previous year and 2.2% sequentially across all verticals, excluding telecom.
- The company ended June with a net hiring at a seven-quarter high, indicating positive signs for future growth.
Reflections on the IPO
Reflecting on the groundbreaking IPO in 2004, TCS’s chief financial officer, Samir Seksaria, highlighted the company’s strength and investor confidence:
- The IPO was oversubscribed several times over on the very first day, signaling robust investor confidence in TCS and India’s future as a technology powerhouse.
- Just before the IPO in 2003, TCS revenues crossed the $1 billion mark, becoming the first Indian IT services organization to achieve this milestone.
Hot Take: TCS’s Continued Success
In conclusion, TCS has come a long way since its public listing 20 years ago, achieving significant growth and financial success along the way. With a strong focus on innovation, client satisfaction, and long-term value creation, TCS continues to lead the way in the IT industry and set new benchmarks for success.
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