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TCS rides to the top on the back of an effective growth plan, a trustworthy leadership, woman friendly policies, CSR and a healthy work culture
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Rank 1- TCS
Rajesh Gopinathan, CEO & MD
Overall Avg. Score: 3.08
Revenue: Rs 1,67,311 crore
Tata Consultancy Services (TCS) is shining bright sitting at the top of the list of Most Respected Companies (MRC) for FY21, a perception-based study conducted by knowledge partner TechSci Research. In the last MRC rankings published in early 2020 (for FY19 period), TCS was ranked second. It gained the top spot riding on high scores across categories like 'effective growth plan', 'financial return', 'trustworthy leadership', 'embracing latest technology', 'woman friendly policies', 'CSR' and 'work culture'.
Of course, the period under review was pandemic-stricken which brought its own set of challenges for TCS like every other company. “Despite a sharp fall in revenues in the first quarter, progressively strengthening demand for our services helped us stage a swift recovery during the rest of the year, helping clock full-year revenues of Rs 1,64,177 crore in FY2021, growing 4.6 per cent over the prior year in reported terms, and degrowing 0.8 per cent in constant currency terms,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS. He explained: “In the early months of the pandemic, when the worldwide lockdown disrupted economic activity across virtually all sectors, your company responded with speed and agility, embracing a new operating model, Secure Borderless Workspaces (SBWS™). Working remotely, our teams helped customers maintain business continuity during peak disruption, and thereafter, to accelerate their growth and transformation (G&T).”
“The dedication shown by TCSers, our agility and our innovation, won us much appreciation from our customers, and incremental business,” said Gopinathan in his letter to the shareholders. In FY21, TCS said its Life Sciences and Healthcare business grew 17.1 per cent. The other two verticals were Banking, Financial Services and Insurance which grew 2.4 per cent and Technology and Services which grew 0.2 per cent. The operating margin for TCS continued to be industry-leading at 25.9 per cent, an expansion of 1.3 per cent over the previous year. Net profit stood Rs 33,388 crore, a net margin of 20.3 per cent, it said. “Our cash conversion continued to be very strong, with a cash conversion ratio of 116.2 per cent and free cash flow of Rs 35,663 crore, growing 21.8 per cent over the prior year,” said Gopinathan.
TCS had two large deal wins in FY21—with Deutsche Bank and Prudential Financial Inc. It helped strengthen the company’s Germany presence and establish a strong local presence in Ireland. The order book signed every quarter was higher than that in the previous year, the company said. The full year order book was USD 31.6 billion, the highest ever for TCS, representing a growth of 17.1 per cent over the previous year. TCS is a part of the Tata group, India’s largest multinational business group. TCS has over 488,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of USD 22.2 billion in the fiscal year ended March 31, 2021.
Highlights of FY21 TCS was adjudicated ‘Leader of the Year’ in application services and in life sciences, and ‘Star Performer’ of the year in healthcare. The company launched the TCS Covid-19 testing and vaccine management suite of modular, easy-to-deploy solutions that leverage AI, robotics, blockchain and the Internet of Things (IoT) to streamline every stage of the end-to-end testing and vaccination journeys, enabling more individuals to get tested and vaccinated faster and return to normal life experiences.
The company also completed the third successful share buyback in four years, to the tune of Rs 16,000 crore at Rs 3,000 per share, through the tender offer route, extinguishing 5.3 crore equity shares, representing about 1.42 per cent of the total equity.