TCS rewarded shareholders handsomely; investors earned 3,000% returns in 17 years, says Chairman

TCS rewarded shareholders handsomely; investors earned 3,000% returns in 17 years, says Chairman

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Tech giant Tata Consultancy Services (TCS) at its annual general meeting (AGM) on June 10 announced that it had disbursed Rs 33,873 crore to shareholders. The massive sum was paid via share buybacks and share dividends. TCS paid Rs 16,000 crore alone via a buyback.

TCS Chairman, N Chandrasekaran, said that the company’s total dividend payout was Rs 38 per share, including three interim dividends of Rs 23 per share.

Speaking about the meteoric rise in value of TCS shares over the past 2 decades, Chandrasekaran said, “Looking back, if you had invested in one TCS share at the issue price of Rs 850 in the IPO in 2004, the value of that investment today in a period of 17 years, would be around Rs 28,000, a return of over 3,000 percent on your investment.”

TCS returned 95 percent of its free-cash-flow to shareholders in FY21, even as the company saw 17.1 percent growth in total contract value for the same period.

CEO and MD Rajesh Gopinathan said that TCS signed more than $31.6 billion in new contracts in the financial year 2021.

Gopinathan talked about how TCS had clear avenues of growth in the digital landscape as the country starts to undergo a multi-year upgradation cycle.

He highlighted what he saw as clear avenues of growth for TCS — digital transformation of technology infrastructure, innovating the business models leveraging data and analytics, and cloud ecosystem.

“These initiatives together will result in a significant technological transformation across multiple industries which gives us long term visibility in overall demand environment and we are gearing up for that,” he added.



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