NSE Symbol: | BSE Code: | ISIN: | Sector:
- Add to Portfolio
- Add to Watchlist
- Add to Alert
LETTER FROM CEO
Your Company consolidated and strengthened its position in the global IT services industry in financial year 2012–13. Your Company's strategy of being relevant to the customer and providing holistic technology solutions continued to resonate with customers. It delivered tangible results for their business in the areas of optimisation, transformation and growth.
This is reflected in the strong, well rounded performance for FY13. On a consolidated basis, your Company achieved revenue of Rs. 62,989 crore, a growth of 28.8% over the previous year, driven by a strong volume growth of 16.8%. I am also happy to report that your Company sustained its profitability and posted a net profit of Rs. 13,917 crore, a growth of 33.6% over the previous year.The earnings per share of the Company increased to Rs. 70.99 in FY13 from Rs.53.07 in FY12.
We continued to reward our shareholders with regular dividend. This year our total dividend payout is Rs. 22 per share including Rs. 13 proposed as final dividend. Your Company's ability to deliver growth and sustain business momentum is attributable to its ability to (i) remain relevant to its customers' changing business needs (ii) extensive global presence across 44 countries and (iii) balanced end–to–end portfolio of services for many industries. Despite uncertain market and macro economic conditions in FY13, your Company was able to drive growth in all markets and industry segments in which it operates, growing at double digits during the year.
Our ability to co–create industry–leading solutions with customers and help them leverage new digital technologies is gaining traction across all customer segments. This momentum is reflected in strong metrics. During FY13, your Company added 80 (net) new customers across the globe to take its active customer base to 1,156. The movement of customers to higher revenue bands continued; while customers in band $1 million increased by 34 to 556, customers in $50 million band increased by five to 48 and those with over $100 million increased by two to 16. Innovation through strong research and development continues to be a major area of focus for your Company. This is resulting in more Intellectual Property Rights (IPR) being created by your Company. As of March 31,2013, the Company has applied for 1,280 patents out of which 81 patents have been granted till date.
Your Company's approach to human resource management is being globally recognised for excellence in effective employee engagement and well structured careers. During the year, I am pleased to report that your Company not only added, trained and integrated almost 70,000 professionals but also launched an ambitious programme to build a truly connected organisation. During the year, new social platforms and a suite of mobile applications were adopted by TCSers as productivity increased through new forms of collaboration and social interaction. As TCSers feel more empowered and engaged, this is being reflected in all time high employee retention rates of more than 90% in the core IT business.
Your Company's continued success is due to the dedication, commitment and performance of 2,76,196 energetic professionals, who remain its biggest asset. Programme for employee development through training in new technologies, domains and processes continue to enhance their skills and expertise. Your Company also continues to place strong emphasis on the importance of value and ethics in the organisation. The Tata code of conduct and value system is being re–iterated to all employees to ensure that there is a strong culture of transparency and good governance across the enterprise as it grows.
Your Company continues to focus on other aspects that are extremely important for the development and wellbeing of all its employees. These include initiatives in the areas of wellness, personal safety and security. In the community, your Company continues to work with partners in the non–profit sector as well as schools and colleges in areas like education, affirmative action, healthcare and the environment. From Kashmir, India to Ohio, USA, your Company and its employees are engaged in community initiatives.
The leadership team of your Company remains confident that 2013–14 will bring better opportunities as technology plays an increasing role in the re–imagination and transformation of many industries globally. As the trusted partner to many top global corporations, we believe our success will lie in being able to identify new growth engines. This will help us to sustain our momentum. However, we must continue to ensure cost discipline at an operational level while supporting diversified business growth.
At a time when technology is fast evolving and playing a bigger role to "grow the business", I believe we have the opportunity to shape the future by investing ahead of the curve in building the right skills and developing intellectual property in the right areas. Your Company is ready to anticipate and leverage the next big opportunity by identifying trends that impact business and society and shape them.
Your Company was recognised by industry, customers and the media for excellence and leadership along many dimensions including overall financial performance, human resources, sustainability and individual leadership and received over a hundred awards during the year.
Looking ahead to 2013–14, there are challenges in some markets with regard to regulatory changes. These include restrictions in the movement of highly skilled professionals between countries. Your Company remains conscious of these changes and will be taking steps to ensure total compliance and also mitigate any risks arising from such changes.
On behalf of the entire Company and its leadership team, I want to thank each shareholder for their support and commitment to the Company. It is the support of shareholders that has helped makeTCS among the most valuable companies in India. 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