ŕœŔŜƠŕœ ¯Åâ¨Ùâ Ǥ>>\Ǥ8QNBQY NåÙÖÊÜƠÙ¯ÿÅƎ Qܯ¿¯ÅâƎ ǤÖâ¿Ǝ About TCS1 Theme Tata Consultancy Services is an IT services, consulting Recent events have highlighted the importance of building and business solutions organization that has been partnering organizational resilience, agility and adaptability. At the heart with many of the world's largest businesses in their of any organization’s resilience is its people, supported by Recent Annual enabling processes and technologies. Empowered people, transformation journeys for over 50 years. TCS offers Report Themes a consulting-led, cognitive powered, integrated portfolio who are driven by a sense of organizational purpose, take ownership for outcomes. They know the right thing to do of business, technology and engineering services and FY 2019 during a crisis, even when no explicit directions are provided. solutions. This is delivered through its unique Location Growth and Transformation TM with Business 4.0 Independent Agile delivery model, recognized as TCS’ track record of navigating multiple economic cycles and a benchmark of excellence in software development. technology changes over the past five decades can be traced to its culture of empowerment and its purpose-driven A part of the Tata group, India's largest multinational worldview. The company is best described by this year’s business group, TCS has over 448,000 of the world's theme: Purpose Driven. Resilient. Adaptable. best-trained consultants in 46 countries. The company generated consolidated revenues of US $22 billion During these difficult times, TCS is staying close to customers in the fiscal year ended March 31, 2020, and is listed and helping them develop and implement their own purpose- on the BSE (formerly Bombay Stock Exchange) driven strategies, and enhance their organizational resilience FY 2018 FY 2017 and the NSE (National Stock Exchange) in India. and adaptability so they can survive future shocks, pivot into new business models or launch new offerings and thrive Dawn of Business 4.0 Reimagining the Enterprise TCS' proactive stance on climate change and award-winning in the new normal. work with communities across the world have earned it a place in leading sustainability indices such as the MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit us at www.tcs.com 1102-1, 102-5, 102-7 Purpose-driven. FY 2016 FY 2015 Resilient. Shaping the Future Default is Digital Adaptable. TCS Annual Report 2019-20 About TCS I 01 Board of Directors From left to right N Chandrasekaran Chairman O P Bhatt Independent Director Hanne Birgitte Breinbjerg Sorensen Don Callahan Independent Director Independent Director Dr Pradeep Kumar Khosla Rajesh Gopinathan Independent Director Chief Executive Officer and Managing Director N G Subramaniam Chief Operating Officer Aarthi Subramanian and Executive Director Director Keki M Mistry Independent Director TCS Annual Report 2019-20 Board of Directors I 02 Rajesh Gopinathan N G Subramaniam V Ramakrishnan Milind Lakkad Chief Executive Officer Chief Operating Officer Chief Financial Officer Global Head Management Team and Managing Director and Executive Director Human Resources Corporate Rajashree R K Ananth Krishnan Madhav Anchan Rajendra Moholkar Chief Marketing Officer Chief Technology Officer General Counsel Legal Company Secretary & Corporate Affairs TCS Annual Report 2019-20 Management Team I 03 Surya Kant Krishnan Ramanujam K Krithivasan Shankar Narayanan North America, Business and Banking, Financial Retail, Travel and UK and Europe Technology Services Services and Insurance Consumer Products Business Heads Kamal Bhadada Debashis Ghosh Susheel Vasudevan Suresh Muthuswami Communication, Media Life Sciences, Healthcare Manufacturing and Utilities BFSI Platforms and Information Services and Public Services TCS Annual Report 2019-20 Management Team I 04 Dear Stakeholder, Adversity, they say, is the true test of character. Your company achieved many admirable wins and milestones through the first 11 months of FY 2020. But it was in the final days of the year that the true nature of its purpose-driven worldview truly shone through. Your company prioritized the health and safety of its employees, kept customers’ mission- critical systems running under very difficult circumstances and pitched in to help communities across the world battle the pandemic. When we emerge out of this crisis, the world will be a very different place. We are witnessing many of those changes already. With cloud and the new class of collaboration tools, people are discovering that they are able to collaborate with each other just as well working from home, as they did Letter from the Chairman in person in the pre-COVID era. Employers are discovering that the productivity is just as good, if not better, in this new way of working. In many sectors, digital channels have gone from being secondary, nice-to-have options to become the primary channels, and in some instances, the only channels. Schools, colleges and even courts have shifted to an online- only mode. Farmers’ cooperatives are taking online orders and directly delivering fresh produce to city-dwellers. This is the transformation that we had spoken of five years go, when we said that Default is Digital, but even I am still amazed by the scale and speed of the change. TCS Annual Report 2019-20 Letter from the Chairman I 05 By staying true to its purpose and its values, Stepping back from the enterprise level and taking a more economic and technology cycles, and doing good for and helping its employees, customers and global view, I believe that the new world in which digital all its stakeholders. This is the secret behind its longevity channels become mainstream, which I described in my book and sustainability. communities use the power of technology Bridgital Nation, will offer countries like India, a unique to realize their potential, your company is the opportunity to implement large scale digital interventions The next few months will be difficult, but your company embodiment of stakeholder capitalism in the that would provide its citizenry easier access to essential is strong with deep relationships with customers and true spirit of the Tata ethos. Over the last five services, while creating millions of new jobs. Your company partners, enviable scale, a diversified business mix, a robust has been at the forefront in enabling several such high- and resilient business model, and strong financials. It is well decades, your company has shown itself impact initiatives. TCS’ Financial Inclusion Network supports positioned to weather the storms ahead and take advantage to be very purpose-driven, resilient and over 210 million no-frills accounts set up under the Pradhan of opportunities that come up during the downturn to adaptable, staying relevant to its customers Mantri Jan Dhan Yojana. The scheme has created jobs for acquire new capabilities and gain market share. In the post- through multiple economic and technology over 100,000 banking correspondents who go out to remote pandemic world, technology will play an ever larger role in villages with handheld devices to provide banking services helping enterprises adapt to the new normal and differentiate cycles, and doing good for all its stakeholders. to the unbanked. themselves. Your company is well poised to take the lead This is the secret behind its longevity and in partnering customers to recover and rebound on to their sustainability. There are several other examples: the Passport Seva project growth and transformation journeys. which completely reimagined the issuance of passports, the digital transformation of India Post, the platform that On behalf of the Board of Directors of Tata Consultancy supports Ayushman Bharat – the world’s largest, fully funded Services, I want to thank you for your continued trust, health insurance scheme covering 500 million of India’s confidence, and support. poorest, and so on. Each of these initiatives showcases the innovative use of technology to transform citizen services, Warm regards, The sharp shift in consumer preferences will force enterprises enhance inclusivity and reduce inequity in society. to significantly accelerate their digital transformation N Chandrasekaran initiatives. They will also invest heavily in building resilience By staying true to its purpose and its values, and helping Chairman at every level, on the front-end as well as in back-office its employees, customers and communities use the power operations. Having pioneered Location Independent Agile™ of technology to realize their potential, your company is the and the Machine First™ Delivery Model, both of which are of embodiment of stakeholder capitalism in the true spirit immense value to organizations looking to build operational of the Tata ethos. Over the last five decades, your company resilience and agility, your company is very well positioned has shown itself to be very purpose-driven, resilient and to benefit from these trends. adaptable, staying relevant to its customers through multiple TCS Annual Report 2019-20 Letter from the Chairman I 06 Dear Stakeholder, It is a measure of how quickly and profoundly our world has changed, that when we look back at the year gone by, it feels like a different era altogether. In FY 2020, your Company delivered revenue of `156,949 crore, growing 7.2% over the prior year in reported terms, and 7.1% in constant currency terms. Our operating margin continued to be best in class, at 24.6%. Net profit was `32,340 crore, a net margin of 20.6%. Our cash conversion continues to be very strong, with a cash conversion ratio of 100.1% and free cash flow of `29,281 crore. 1 Letter from the CEO The Board has recommended a final dividend of `6 for the year, bringing the total dividend for the year to `73 per share. This translates into `31,895 crore returned to shareholders in FY 2020, which is 108.9% of the free cash flow. We had a very productive year, engaging with customers in their innovation, growth and transformation initiatives, expanding and deepening our relationships, deploying very impactful solutions, and winning some of our largest deals till date.