As India’s largest IT services company, Tata Consultancy Services (TCS), celebrated its 20th anniversary of being listed on the stock market, the company’s Managing Director and CEO K Krithivasan shared a message of continued growth and future-oriented strategy.
TCS
In 2004, TCS made headlines with India’s first $1 billion IPO by a private company. During this pivotal event, Tata Sons chose to dilute 14% of its equity shares.
In these two dynamic decades, we have helped our clients navigate many technology cycles, reshaped the global IT industry, built rewarding long-term careers for our colleagues, and created wealth for our investors.
Memorable Moments Over Two Decades
Over these 20 years, TCS has completed five buybacks and three bonus issues, distributing a remarkable 77.5% of its total cash back to shareholders. The company’s market capitalization has seen a staggering growth of over 3,300%.
Reflecting on their journey, TCS’s Chief Financial Officer, Samir Seksaria, who was instrumental in the 2004 IPO process, took to LinkedIn to share his thoughts. The journey to our IPO showcased the strength of TCS… The IPO was oversubscribed multiple times on the very first day, indicating strong investor confidence in TCS and in India’s potential as a technology leader.
Looking Ahead to a Digital Future
As we look to the future, I remain as optimistic as I was in 2004. The world is evolving rapidly, and TCS is well-positioned to lead in this new era of digital transformation.
Back when the IPO was launched, the price band was set between Rs 775 and Rs 900. Fast forward to today, and on Friday, August 23, TCS shares closed at Rs 4,464 per share.
Exponential Growth and Expansion
TCS’s journey has been nothing short of phenomenal. The company’s market cap reached $100 billion in 2018, just 13.5 years post-IPO. Even more impressive, it took merely another four years to double to $200 billion.
The growth isn’t confined to financials alone. TCS’s workforce expanded from 33,774 employees in FY04 to an astounding 606,998 as of June 30, 2024.
During its IPO, TCS had footprints in 32 countries, with delivery centres in just 10. Fast forward to today, the company operates in 55 countries, boasting over 300 offices and more than 200 delivery centres worldwide.
Reflecting on a Milestone
As TCS celebrated this 20-year milestone, it also looked ahead with optimism. The journey symbolizes not just a historical financial success but an enduring legacy defined by innovation, growth, and a forward-thinking approach that continues to drive the global IT industry.
TCS’s Remarkable Financial Milestones
TCS Market Cap Growth: A $100 Billion to $200 Billion Leap
TCS has consistently shattered financial records, making headlines in the global business community. In 2018, the company’s market cap reached an astounding $100 billion, a mere 13.5 years after its IPO. This achievement marked a significant milestone, but TCS didn’t stop there. In an even more impressive feat, the company doubled its market cap to $200 billion within just four years. This rapid financial growth underscores TCS’s dominance in the IT sector and its ability to deliver value to shareholders at an unprecedented pace.
Workforce Expansion: From Thousands to Hundreds of Thousands
Beyond financial metrics, TCS has seen exponential growth in its workforce. Starting with 33,774 employees in FY04, the company’s talent pool has expanded to a staggering 606,998 as of June 30, 2024. This massive growth in personnel reflects TCS’s commitment to scaling its operations and meeting the increasing demand for its services. The company’s ability to attract and retain such a vast and skilled workforce is a testament to its reputation as a top employer in the IT industry.
TCS’s Global Footprint: A Journey of Expansion
From 32 Countries to 55: TCS’s Global Reach
At the time of its IPO, TCS had a presence in 32 countries with delivery centres in just 10. Over the past two decades, the company has dramatically expanded its global footprint. Today, TCS operates in 55 countries, with more than 300 offices and over 200 delivery centres worldwide. This extensive network allows TCS to provide seamless services to clients across the globe, ensuring that it remains a leader in the international IT market.
The Strategic Importance of TCS’s Global Expansion
TCS’s expansion into new markets and regions has not only broadened its client base but also strengthened its position as a global IT powerhouse. By establishing offices and delivery centres in diverse geographies, TCS can cater to the specific needs of clients in different parts of the world. This strategic approach has been instrumental in the company’s sustained growth and its ability to stay competitive in a rapidly evolving industry.
TCS at 20: A Legacy of Innovation and Growth
Reflecting on Two Decades of Success
As TCS celebrates its 20-year milestone, it reflects on a journey marked by remarkable achievements and continuous growth. The company’s history is not just about hitting financial targets; it’s about building a legacy of innovation and industry leadership. TCS’s commitment to pioneering new technologies and expanding its global presence has positioned it as a key player in the IT sector.
Looking Forward: TCS’s Vision for the Future
TCS’s journey over the past two decades is a powerful indicator of its future trajectory. As the company looks ahead, it remains focused on driving innovation, expanding its service offerings, and maintaining its leadership position in the global IT market. With a strong foundation built on excellence and a clear vision for the future, TCS is well-equipped to navigate the challenges and opportunities that lie ahead.
