In a letter to shareholders, TCS Chairman N Chandrasekaran said that the IT company has thrived despite global uncertainty that surrounded the IT industry over the past few months. “The company has done well in a volatile global environment in the year gone by. In FY 2023, TCS delivered revenue of Rs 225,458 crore, a growth of 17.6 per cent. This growth has come at an industry-leading operating margin of 24.1 per cent,” he said.
He also reiterated that TCS delivered healthy client metrics enabled by new customer additions and deep client relationships. “The order book continues to be strong, indicating demand for the company’s services. We closed the year with an order book of $34.1 billion. This along with the strong pipeline replenishment gives us good visibility for the medium term,” said N Chandrasekaran. From a talent perspective, the employee strength at TCS grew to over 614,000 associates with 35.7 per cent women associates.
Talking about the geopolitical factors, TCS Chairman said that while the global environment is going through considerable changes, “geopolitical factors such as the conflict between Russia and Ukraine, rising inflation and volatile commodity prices have caused slowing down of global growth and created stress in the overall economic environment”. Not only this, he added, the world is also navigating several transitions which require significant investments in technology and innovation, and offer a huge growth opportunity for the IT industry. In line with this, N Chandrasekaran also emphasized on TCS’ focus on investing in artificial intelligence (AI) capabilities which include products and platforms that are AI-powered.
Towards a sustainable future
TCS Chairman further talked about the global energy transition and focus of businesses towards making clear commitments towards a sustainable future. “There are many innovations across products, services, manufacturing, and delivery. New business models are also emerging. This requires investments in technology and innovation including electric mobility, renewable power, hydrogen and sustainable fuel,” he said.
Transition in global supply chain ecosystem
Further, highlighting the other big change, he talked about the transition in the global supply chain. He said that while the businesses are rebalancing their supply chains for resilience and efficiency, a new global supply chain ecosystem is being created with “India playing an important role”. “Tis is being led by significant capital investments in technology to set-up ‘digital-first’ manufacturing and supply chain operations as well as to build ecosystem integration with partners,” he added.