Tata Consultancy Services, i.e., TCS, is not merely a company; it has now become a brand in the IT and consulting industry. It has played a crucial role in shaping the digital landscape. The company has consistently delivered innovative solutions and services to a wide range of clients, contributing to its financial standing. In this article, we will look at TCS net worth, its annual revenue and market valuation.
With a strong commitment to innovation and client satisfaction, TCS operates in various industries, providing solutions to complex business challenges. The company’s headquarters is in Mumbai, India, but it has a widespread global presence, serving clients in numerous countries. TCS is a part of the Tata Group, a renowned conglomerate with diversified business interests.
|Date of Establishment
|April 1, 1968
|Place of Establishment
|Jehangir Ratanji Dadabhoy Tata
|3.8 out of 5 (by Glassdoor)
TCS Net Worth
TCS Net Worth, Valuation, Revenue
Tata Consultancy Services (TCS) is a global leader in information technology services and consulting. Founded in 1968, it has grown to become one of the largest IT services companies in the world. TCS is known for its expertise in software development, consulting, and business process outsourcing.
|Tata Consultancy Services (TCS)
|Rs. 13,99,221 crores
Source: TCS Net Worth and Income
Tata Consultancy Services Limited (TCS) stands as a prominent Indian multinational IT services and consulting corporation headquartered in Mumbai. A vital member of the Tata Group, TCS has a widespread presence with operations in 150 locations across 46 countries. TCS stands as the leading IT service provider in the country, boasting a workforce of 174,417 employees. TCS holds the position of the second-largest Indian company by market capitalization, is recognized as one of the most valuable IT service brands internationally and holds the distinction of being the leading Big Tech company in India. Notably, in June 2023, it held the rank of the world’s second-largest user of U.S. H-1B visas.
In the business landscape, TCS secured the seventh position on the Fortune India 500 list in 2021. A noteworthy achievement occurred in September 2021 when TCS achieved a market capitalization of US$200 billion, marking it as the first Indian IT tech company to reach this milestone. The ownership structure reveals that in the fiscal year 2016–2017, Tata Sons, the parent company, held a substantial 72.05% stake in TCS. Notably, over 70% of Tata Sons’ dividends during that period were generated by TCS, underscoring its significance within the Tata Group.
TCS Net Worth
TCS, a multinational corporation, boasts an extensive market capitalization, net worth, and total assets. With a staggering net worth of $146 billion, the company stands among the largest globally. TCS possesses total assets amounting to $19 billion, and its market capitalization is equally impressive at $146 billion.
The market capitalization of TCS stock stands at Rs. 13,99,221 crores. Surging to the second position in the roster of the most highly valued companies by market capitalization, TCS has surpassed HDFC Bank. As of the trading session’s conclusion on July 31st, 2023, TCS boasted a market capitalization of Rs. 12,51,798.07 crores, surpassing HDFC Bank’s valuation on the BSE by Rs. 6,049.69 crores, totaling Rs. 12,45,748.38 crores.
Also Read: Reliance Net Worth, Share Price, Valuation
TCS Revenue and Turnover
As per the most recent financial reports from Tata Consultancy Services (TCS), the company’s current trailing twelve months (TTM) revenue stands at $28.66 billion. In the year 2022, TCS achieved a revenue of $27.18 billion, reflecting a growth compared to the $24.93 billion generated in 2021. In the quarter ending September 2023, there was an 8.7 percent year-on-year rise in net profit, reaching Rs. 11,342 crores. The company reported a 9.1 percent growth in operating profit, reaching Rs. 14,483 crores for the reporting quarter. Additionally, operating margins expanded by 25 basis points, reaching 24.3 percent, as announced by the company in a press conference held in the city.
TCS has maintained a steady pattern of double-digit revenue growth over recent years, experiencing a notable 17.5% increase in revenue during the fiscal year 2022–23. With the rapid expansion of the cloud computing market, TCS is poised to leverage this growth to its advantage. In the current global economic landscape, there is a swift shift towards digitization and automation. TCS stands in a favorable position to capitalize on these evolving trends, given its impressive history of providing clients with effective digital transformation solutions.
In the fiscal year 2023, Tata Consultancy Services (TCS) recorded an impressive annual sales figure of approximately 2.25 trillion Indian rupees, equivalent to roughly 27 billion U.S. dollars. This signifies a remarkable growth trajectory for TCS, with its revenue more than doubling compared to the fiscal year 2013, highlighting a significant upward trend over the past eight years. TCS achieved a remarkable revenue of $27.9 billion in FY23, boasting a workforce of over 600,000 associates spread across 50 countries.
TCS Share Price and Market Share
As of 22nd December 2023, at 03:59 PM IST, the share price of TCS stood at Rs. 3,824, reflecting a 0.96% increase compared to the previous closing price of Rs 3,780.05. The recent trends in TCS share prices indicate an upward trajectory: over the last month, there has been an 8.32% increase; over the last three months, a 6.11% rise; over the last 12 months, a notable 17.31% gain, and over the last three years, an impressive surge of 33.12%.
The IT services industry on a global scale remains notably decentralized, with the most prominent players holding only a mid-single-digit market share. TCS stands out as one of the leading global IT services providers, commanding a 2.2% market share. It has consistently surpassed market growth, exhibiting substantial expansion over the past decade.
Net Worth of TCS Owner
Krithi Krithivasan currently serves as the Chief Executive Officer and Managing Director of Tata Consultancy Services. His educational background includes a bachelor’s degree in mechanical engineering from the University of Madras and a master’s degree in industrial and management engineering from IIT Kanpur. Beyond his professional achievements, he is known as an avid reader and a dedicated fitness enthusiast.
In his previous role, Krithi held the position of Global Head of the Banking, Financial Services, and Insurance (BFSI) Business Group. During this tenure, he played a pivotal role in cultivating strong customer relationships, establishing a significant market presence, and shaping the strategic direction of the business on a global scale. With a tenure exceeding three decades at TCS, Krithi has been instrumental in guiding clients through their growth and transformation journeys, offering valuable insights into technology strategies.
K. Krithivasan ranks among the top-earning IT executives in India, drawing a base salary of Rs 10 lakh per month, with additional benefits bringing his potential monthly earnings to Rs 16 lakh. In the fiscal year 2021-22, he commanded an annual package amounting to Rs 25.75 crores. K. Krithivasan has a net worth of approximately Rs. 50 crores, with earnings of Rs 4.3 crore during the fiscal year 2018-19.
Investments and Acquisitions done by TCS
TCS has traditionally followed a highly selective acquisition strategy, focusing on internal development of talent, intellectual property, and technology capabilities. The company typically waits several years before venturing into new activities. In its recent uptick in spending, TCS has adhered to a cautious approach, opting for low-risk and less resource-intensive acquisitions.
Examples include the 2018 acquisitions of consultancies BridgePoint and W12 Studios, both of which had fewer than 50 employees and annual revenues below $5 million. In mid-2019, TCS increased its stake in TCS Japan, a joint venture with Mitsubishi Corp. established in 2014, from 51% to 66%. This move was considered a secure bet, given the unit’s impressive double-digit constant currency growth in the preceding two years.
While TCS has generally favored smaller, strategic acquisitions, it did make a significant move during the peak of the 2007-2008 financial crisis. In the fourth quarter of 2008, TCS acquired Citigroup Global Services Limited for $512 million in cash, adding 12,000 employees based in India to provide Business Process Outsourcing (BPO) services in the banking, financial services, and insurance sectors. Although TBR anticipates TCS to continue its current strategy of tactical, smaller acquisitions, it is essential to remember that the company has demonstrated in the past the option and willingness to pursue large-scale mergers.
Also Read: TATA Group Net Worth, Revenue, Turnover
TCS has a significant stock of capital that reflects its financial strength. Its net worth is a key indicator of its overall success and stability in the market.