Moneycontrol Bureau
Tata Sons today ended months of suspense after it announced that Tata Consultancy Services CEO N Chandrasekaran would take over as the group parent firm’s Chairman.
Separately, TCS announced that CFO Rajesh Gopinathan would take over as CEO while NG Subramaniam will act as COO.
Chandrasekaran, or Chandra as he is fondly called in industry circles, took over as CEO of TCS in October 2009 from TCS veteran S Ramadorai.
The legendary but reclusive Ramadorai had built TCS into India’s largest software-services company, bigger than its more glamorous peer Infosys – and it fell to Chandrasekaran to not just meet the challenges of the global financial crisis but also carry on the company’s legacy of high growth.
That is something that he did admirably. Chandrasekaran’s stint saw TCS go from strength to strength. In the little over seven years he was CEO, the company’s revenues trebled from USD 6.3 billion (Rs 30,300 crore) in fiscal year 2009-10 to USD 15.6 billion (Rs 111,700 crore) in fiscal year 2015-16.
Profits at the firm surged over three times during Chandra’s stint: from Rs 7,000 crore to Rs 24,375 crore.
In annualized terms, the company’s revenues and profits both grew at about 23-24 percent, blasting past the industry average growth rates.
In fact, so phenomenal was TCS’ performance on the CEO’s watch that today, the company accounts for 60 percent of the group’s USD 116 billion market cap.
Not surprisingly, TCS shares have mirrored the robustness of the company’s superb financials. In October 2009, the stock was trading at an adjusted about Rs 600 levels. On Thursday, it was quoting at Rs 2,343 per share.
The TCS stock also comfortably beat returns of the broader IT index, whose performance is driven by other IT biggies such as Infosys, Wipro and HCL, besides itself.
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