TCS 26th AGM 2021 | IT bellwether lists company's highlights in pandemic-hit FY21. Read full text

TCS is one of the largest employers of women in the world. (File image)

Tata Consultancy Services (TCS), one of the global leaders in IT sector, conducted its 26th annual general meeting (AGM) on June 10 virtually due to the ongoing COVID-19 pandemic. The company presented key highlights of its performance in the pandemic-hit financial year 2020-21.

The Mumbai-headquartered firm presented a brief statistics about the revenue it drew during the fiscal, along with the return to shareholders which has been recommended by the Board of Directors. The Tata Group  subsidiary also pointed out the efforts it has taken for employees amidst the onset of COVID-19 crisis.

Here is the full speech by Tata Sons Chairman N Chandrasekaran at the company's 26th AGM -

Good Afternoon Shareholders! I would like to welcome all of you to the 26th Annual General Meeting of the Company.

As the requisite quorum is present, I now call the meeting to order.

I thank all the Members for joining this meeting.  I hope the Members are safe and in good health. Due to the coronavirus concerns, lockdown and social distancing norms, we are holding this Annual General Meeting through video conference. This is in compliance with the directions of the Ministry of Corporate Affairs. A live streaming of this meeting is also being webcast on NSDL’s website. The Company has taken the requisite steps to enable Members to participate and vote on the items being considered at this AGM.

The Registers as required under the Companies Act, 2013 are open for inspection.

Since the Notice is already circulated duly to the Members, I take the Notice convening the meeting as read.

On November 26, 2020, we lost Padma Bhushan Shri. F. C. Kohli, who was founder and the first CEO of TCS and led the Company for 27 years, navigating multiple technology waves by investing continuously in people and in research and innovation. Shri. Kohli is a true legend who laid the very foundations for India’s spectacular IT revolution and set the stage for the dynamic modern economy. I express a deep gratitude to his indefatigable, influential spirit for shaping TCS and the fabric of TCS culture.

With an unprecedented global crisis created by Covid -19 pandemic, our Company has weathered pandemic very well and has emerged stronger with the agility, resilience and adaptability of our delivery model. This has earned us tremendous goodwill from customers and enhanced our standing in the market. 

The need for transformational initiatives to support operational resilience, shift to digital channels, and preference for contactless interactions has resulted in enterprises embarking on various technology initiatives.  The Company is very well positioned to benefit from this multi-year technology upgradation cycle, and help customers translate their transformative visions into reality. To articulate the aforesaid mission and aspiration, the Company has adopted a new brand statement “Building on Belief”. The new brand statement reflects that the Company has been guided by a set of strong beliefs, right from the time it was founded. Belief in our core values, belief in putting the customer above all, belief in investing in people and empowering them, belief in constantly trying out new ideas and models, and belief in doing right by all the stakeholder communities we work with.

In terms of performance, the Company swiftly recovered to deliver a sharp  growth trajectory over the next nine months after the initial lockdown related disruptions, and exited the year on a very strong note, with an expanded market share, industry-leading profitability and an all-time high order book.

In FY 2021, the Company’s consolidated revenue grew by 4.6% in rupee terms to Rs 1,64,177 crore. The operating margin continued to be industry leading at 25.9% and net profit was Rs 33,388 crore.

In line with the practice of returning 80 to 100 percent free cash flow to shareholders and based on the Company’s performance, the Directors have recommended a final dividend of Rs 15 per equity share taking the total dividend payout for FY 2021 to Rs 38 per equity share, including 3 interim dividends of  total Rs 23 per equity share. The Company completed Rs 16,000 crore share buyback at Rs 3,000 per equity share, representing 1.42 percent of the total equity capital. This translates to an aggregate outflow of Rs 33,873 crore in dividend and buyback, resulting in a payout of 95 percent of the free cash flow.  Looking at TCS history of buyback, 3 buybacks were completed amounting to Rs 48,000 crore.

Looking back, if you had invested in one TCS share at the issue price of Rs 850 in the IPO in 2004, the value of that investment today in a period of 17 years, would be around Rs 28,000, a return of over 3,000 percent on your investment.

The Company continues to focus on the health and wellbeing of its associates through multiple measures like:

·        Setting up of first line Covid Care Centres at TCS premises, hospital admission assistance, home healthcare services, availability of Occupational Hazard Category doctors round the clock, tele medicine.

·        Repatriation of onsite associates and families through the Vande Bharat Mission.

·        Virtual HR days, daily check-in calls to associates, increased connect sessions with leaders, counselling services and other initiatives focused on improving the employees’ resilience.

The Company had a net addition of 40,185, taking its total associate count to 4,88,649.

The Company is one of the largest employers of women in the world. Sustained efforts to improve gender diversity, through focused hiring, mentoring and coaching women employees, have resulted in women currently accounting for 36.5 percent of the workforce.

TCS’ CSR commitment stems from the 152-year-old legacy of the Tata Group. The Company has continued to empower communities globally through its strategic programs by prioritizing education, skilling, employment and entrepreneurship with a focus to bridge the opportunity gap. In FY 2021, the global community initiatives of TCS reached more than 1.8 million beneficiaries.

As the unprecedented impact of the pandemic hit communities across the globe, TCS focused on building resilience. While the safety and well-being of our employees and ensuring support to our customers were key, it was equally important to continue the mission critical services we are performing around the world to help people transition into this new beginning.

• A contribution of Rs 273 crore was made towards COVID-19 Relief Efforts.
• We also built capacity for 200 doctors across 22 hospitals, in collaboration with Tata Trusts and CMC Vellore Hospital and Care Institute of Health Sciences.
• We provided testing kits, set up modular treatment facilities for at-risk population. TCS’ ensured the activation of contact-less patient care coordination services, virtual consultation and location independent review of patient data during lockdowns supporting over 250,000 patient consultations.
• We trained health workers and spread awareness among rural population ensuring wellness of over 450,000 people.
• 2.5 million meals were distributed to doctors and medical professionals.
• Entrepreneurs of our BridgeIT program provided emergency ambulance services for those in rural regions and distributed protective equipment to over 200,000 households.
• TCS ensured education needs of over 650,000 students are met, through programs offering at-home uninterrupted learning.

Being in second and third waves of the pandemic in India and many other parts of the world, we regret the loss of life due to COVID-19 pandemic and are deeply grateful and have immense respect for every person who risked their life and safety to fight this pandemic.

We will eventually get this pandemic situation under control, but until then, I urge you to stay safe, follow covid discipline, get vaccinated if you are eligible and keep your spirits up.