From N Chandrasekaran to R Gopinathan: TCS growth story in numbers
Gopinathan had taken the reins of TCS from N Chandrasekaran in February 2017. In October 2021, TCS gave a second five-year term to Gopinathan as CEO. Last month, Tata Sons announced that it has reappointed N Chandrasekaran as chairman.
The rejig at the top helm of the IT giant Tata Consultancy Services (TCS) comes at a time when Indian IT companies have been struggling against higher employee costs eating into their margins despite robust demand for technology. The company announced yesterday (16 March) that CEO Rajesh Gopinathan has quit the company and K Krithivasan has taken over his role.
Gopinathan had taken the reins of TCS from N Chandrasekaran in February 2017. In October 2021, TCS gave a second five-year term to Gopinathan as CEO.
Last month, Tata Sons announced that it has reappointed N Chandrasekaran as chairman. He joined TCS in 1987 and has taken on many challenges, banking on prospects for future growth while consulting Ratan Tata on major company objectives and significant policy issues.
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Under his guidance, TCS achieved $16.5 billion in revenues in 2015–16, solidifying its status as India's largest private employment and most valuable firm. The company also managed to make a consolidated profit of Rs 64,267 crore in 2022 from Rs 36,728 crore in 2017.
Under Gopinathan's leadership, TCS' brand value increased by 212 per cent to $45.5 billion in the past two years, as per the Kantar BrandZ India rankings.
Let's take a look at the company's financial growth during the tenure of these two leaders:
N Chandrasekaran: When Chandrasekaran was appointed as CEO of TCS, the company's consolidated revenue was Rs 27,813 crore and its net profit was Rs 5,256 crore in 2008-09. After five years of that, during his leadership, TCS reported a growth of 194.14 per cent in its consolidate revenue to Rs 81,809 crore and a 264.6 per cent increase in its net profit to Rs 19,164 in FY 2013-14.
TCS consolidated revenue in FY 2017 was Rs 117,966 crore, revenue growth of 8.6 per cent from FY16. It means the company's revenue has grown 324 per cent since Chandra took over as CEO and handed over to Gopinathan in 2017. However, the net profit increased by 400 per cent during his tenure.
R Gopinathan: During Gopinathan's five-year-long tenure, TCS' consolidated revenue grew to $25.7 billion (Rs 2.1 lakh crore at $1 = Rs 82.68) in the fiscal year ended March 31, 2022, an 80 per cent increase from FY 2017. However, the company's net profit increased by around 36 per cent from Rs 26,289 crore in FY 17 to Rs 35,806 crore average net profit in FY 22.