Your Company posted another stellar performance in 2013-14 and
continued to maintain its growth momentum to record consolidated
revenue of Rs. 81,809 crore (up 29.9%), while the disciplined approach
to operations helped your Company post net profit of X 19,164 crore (up
37.7%) and realise a strong margin of 23.4% (up 134 bps).
Your Company has continued the practice of consistently rewarding its
shareholders, with dividends. This year, the total dividend is X 32 per
share, including X 20 per share proposed as final dividend. Earnings
per share increased from X 70.99 in the previous financial year to Rs.
This strong performance would not have been possible without the energy
and commitment of over 300,000 TCSers, whose passion for technology and
dedication to the customer, is unparalleled in this industry.
Your Companys services portfolio continued to grow, with an increase
in customer base across all revenue bands. For instance, in 2013-14,
the number of customers in US$ 1 million plus band increased to 714
(addition of 76 new customers) and in the US$ 100 million plus band to
24 (addition of 7 new customers).
I take this opportunity to describe the recent key technology trends
and their tremendous transformative impact on society, business and
communities. It is my belief that the clutch of new technologies -
Big Data, Social Media, Cloud Computing and Robotics - what we refer to
as the Digital Five Forces, is rapidly changing the world around us.
It is shaping how we interact, respond and connect with one another as
individuals or as companies and even as governments.
At a macro level, global IT spending continues to grow year-on-year and
it is my firm belief that the Digital Five Forces are going to
accelerate this trend, as IT usage increases across industries. The
on-going investment of your Company, in these recent trends, will
enable it to play an impactful role, in this technology revolution.
From an industry perspective, the impact of the Digital Five Forces on
the world around us, will be of a higher magnitude than the technology
cycles, like e-business and enterprise systems that have driven
business in previous decades. Those technologies helped digitally
enabled global corporations to connect their supply chains and promoted
efficiency through better information flow across organisations. What
the Digital Five Forces are doing, is to complete the entire
transaction loop, by bringing in the most important element of
business, namely, the individual consumer.
To illustrate this impact and demonstrate the transformation, I would
like to use Healthcare as an example. Healthcare will no longer remain
a reactive exercise, as it is today. For long, we have been used to
seeing a doctor, only when we fall ill. Health is our most precious
asset, and sometimes we notice the problem only once it impacts our
lifestyle. This scenario is changing fast.
Looking after our health will become an on-going planned activity.
Wearable devices, that collect information from the human body and
monitor health 24/7, are becoming accessible to consumers in a form
that can be easily adopted. This data will be collected and
transmitted through smart phones; stored in the cloud; analysed and
compared with other patients using big data techniques and smart
analytics. If something of concern crops up in these continuous
diagnostics, the family doctor or a clinic will be notified. They will
be able to access the patients data online and make the diagnosis
while viewing all the relevant patient information, including family
medical history, in just a few clicks. The doctor will then send a
direct message to the patient, through private channel on social media
platform or SMS, suggesting immediate corrective action, or even a
personal visit. And thats not all. Patients will be able to define
their peer set of friends, acquaintances and family to emulate and see
the relative fitness of this group. Hence, the healing can start before
the onset of harm.
This is how the Digital Five is helping us re-imagine healthcare.
Similar transformations are simultaneously being witnessed in multiple
industries. Your Company is playing a pivotal role in this
re-imagination journey, with many of its customers across markets and
industries. By investing early, your Company has built up significant
scale in capabilities across the Digital Five Forces. We continue to
build our Intellectual Property in these areas as well.
I believe, the capabilities built in this area will ensure that your
Company continues to remain relevant to the customers. I expect our
strengths in these areas to be a major driver of revenue and
profitability in the future.
Your Company is also investing in the Digital Five Forces to create the
next- generation social organisation, which engages all employees,
regardless of location, while making them more productive and
With a fast expanding organisation that has inducted and integrated
over 50,000 new professionals in the past 12 months, your Company
continues to be recognised as a benchmark brand for IT professionals.
At around 90%, it has the highest retention rate in the industry,
globally. Your Company continues to invest in capabilities of TCSers,
through training in new technologies, engaged collaboration on social
platforms and a well appreciated reward and recognition programme.
Rigorous R&D in your Company is leading to innovation in tools,
products and platforms, resulting in more Intellectual Property Rights
(IPR) being created. We have increased our patent filings
significantly; so far 1,746 patent applications have been filed, of
which, 114 have been granted.
Your Company continues to invest in green and intelligent world-class
infrastructure and campuses in Tier I as well as Tier II cities in
India and also across the world.
In 2013-14, your Company set up a unique initiative in Saudi Arabia by
launching the worlds first all-women Business Process Services unit.
Your Company is investing on an on-going basis, to build its brand in
key markets. I am delighted to inform you that your Company has become
the Title Sponsor of the TCS New York City Marathon, which is one of
the worlds largest and most famous long- distance races.
I am also happy to report, that your Company was recognised world
wide, for its leadership and excellence, across various dimensions, by
influencers, customers and media.
On behalf of the entire Company and its leadership team, I want to
thank all shareholders for their co-operation and commitment. I look
forward to your continued support, as your Company embarks on the next
phase of its growth journey.
Chief Executive Officer and Managing Director
May 21, 2014