Global software major Tata Consultancy Services (TCS) on Thursday appointed its CFO Rajesh Gopinathan as its new CEO and NG Subramaniam as COO.
TCS announced the appointment of new CEO and COO following the elevation of Natarajan Chandrasekaran, its CEO, as the new chairman of Tata Sons.
ALSO READ: TCS CEO N Chandrasekaran named Tata Sons Chairman
TCS CEO Natarajan Chandrasekaran, 53, who has spent some 30 years in the Tata group, will be the new executive chairman of Tata Sons — the first non-Parsi to head the $103-billion global empire with a 148-year history.
Background of CEO and COO
Rajesh Gopinathan started his professional career with Tata Consultancy Services in 2001. He was appointed as chief financial officer of the company in February 2013. He has played a key role in helping TCS become a $16.5 billion global company with over 371,000 employees.
Prior to becoming the CFO Rajesh Gopinathan was the vice president – Business Finance. In this role he was responsible for the financial management of the company’s individual operating units. His responsibilities include financial planning and control as well as revenue assurance and margin management.
NG Subramaniam (NGS) is currently president of TCS Financial Solutions. He has been part of TCS and the Indian IT Industry for the past 34 years and has had opportunities to perform a variety of roles in delivering solutions to customers globally, especially in the Banking and Financial Services sector.
TCS performance
Chandrasekaran had already been inducted into the board of Tata Sons in October last year as additional director, a day after Cyrus Mistry was unceremoniously removed as chairman.
Just a few hours before the announcement, the group veteran had reported a better-than-expected third quarter results for Tata Consultancy Services, one of the highest revenue earners for the group.
Tata Consultancy Services (TCS) on Thursday reported robust net profit (10.9 per cent) and revenue growth (8.7 per cent) for the third quarter of fiscal 2016-17.
“Our net profit grew 10.9 percent to Rs 6,778 crore for the quarter under review (Q3) from Rs 6,110 crore in like period year ago as per the Indian accounting norm,” said the firm in a statement here.
Revenue grew 8.7 percent to Rs 29,735 crore for Q3 from Rs 27,364 crore in same period year ago.
Sequentially, net profit grew 2.9 percent from Rs 6,586 crore and revenue 1.5 percent from Rs 29,284 crore in the second quarter under the Indian accounting norm.
Under the International Financial Reporting Standard (FRS), net income grew 7.9 percent to $1,000 ($1 billion) from $926 million in like period year ago and 1.6 percent sequentially from $984 million last quarter.
Gross revenue under IFRS grew 5.8 percent to $4,387 million ($4.4 billion) from $4,145 million ($4.1 billion) in same period last year and fractionally up (0.3 percent) from $4,374 million ($4.37 billion) last quarter.
“Digital revenue accounted for 16.8 percent of total revenue, up 30 percent annually. Sequentially under constant currency (billion), revenue grew 2 per cent and volume growth 1 percent,” said the statement.
Operating margin at Rs 7,733 crore ($1.14 billion) is 26 percent of revenue, net margin at Rs 6,778 crore ($1 billion) 22.8 percent of revenue and cash flow at Rs 7,957 crore ($1.12 billion) is 26.8 percent.
Clients in $50 million revenue band increased by two and in $10 million by 5.
“We have shown great discipline and control at all levels to deliver another credible quarter. Besides, a good growth performance, we have been able to keep profitability stable in our desired range and deliver over $1 billion in free cash flow during the quarter,” said Chief Financial Officer Rajesh Gopinathan.
The revenue growth sequentially was led by Energy & Utilities (5.8 percent), Hi-Tech (2.6 per cent), BFSI and Manufacturing (2.1 percent) and Retail (1.9 percent) in constant currency.
In terms of geographies, emerging markets like Latin America and India clocked double digit growth of 12.5 percent and 10.3 percent sequentially, while North America grew 2.2 percent and Britain 1.7 percent.
The company applied for 3,161 patents till December 31, including 80 in Q3 and was granted 440 patents.
Though the company hired 18,362 new people, net addition was only 6,978 due to exit of 11,384 techies during the quarter, taking the total headcount to 378,497.
The attrition rate declined to 11.3 percent in IT services and was at 12.2 percent overall.
“Our retention rates continue to rise as we remain engaged with our employees to help them succeed in a digital world,” added Human Resources Global Head Ajoy Mukherjee.
