To the Members,
The Directors present this Integrated Annual Report of Tata Consultancy
Services Limited ("the Company" or "TCS") along with the audited
financial statements for the financial year ("FY") ended March 31, 2025.
The consolidated performance of the Company and its subsidiaries has
been referred to wherever required.
1. Financial results
|
Standalone |
Consolidated |
|
Financial Year 2024-25 |
Financial Year 2023-24 |
Financial Year 2024-25 |
Financial Year 2023-24 |
|
(FY 2025) |
(FY 2024) |
(FY 2025) |
(FY 2024) |
| Revenue from operations |
2,14,853 |
2,02,359 |
2,55,324 |
2,40,893 |
| Other income |
9,642 |
7,273 |
3,962 |
4,422 |
| Total income |
2,24,495 |
2,09,632 |
2,59,286 |
2,45,315 |
| Expenses |
|
|
|
|
| Operating expenditure |
1,56,924 |
1,46,512 |
1,87,917 |
1,76,597 |
| Depreciation and amortisation expense |
4,220 |
3,887 |
5,242 |
4,985 |
| Total expenses |
1,61,144 |
1,50,399 |
1,93,159 |
1,81,582 |
| Profit before finance costs, exceptional item
and tax |
63,351 |
59,233 |
66,127 |
63,733 |
| Finance costs |
703 |
673 |
796 |
778 |
| Profit before exceptional item and tax |
62,648 |
58,560 |
65,331 |
62,955 |
| Exceptional item |
|
|
|
|
| Settlement of legal claim |
- |
958 |
- |
958 |
| Profit before tax |
62,648 |
57,602 |
65,331 |
61,997 |
| Tax expense |
14,591 |
14,043 |
16,534 |
15,898 |
| Profit for the year |
48,057 |
43,559 |
48,797 |
46,099 |
| Attributable to: |
|
|
|
|
| Shareholders of the Company |
48,057 |
43,559 |
48,553 |
45,908 |
| Non-controlling interests |
NA |
NA |
244 |
191 |
| Opening balance of retained earnings |
55,173 |
62,228 |
70,033 |
74,722 |
| Closing balance of retained earnings |
73,380 |
55,173 |
88,777 |
70,033 |
2. Return of surplus funds to Shareholders
In line with the practice of returning substantial free cash flow to
shareholders and based on the Company's performance, the dividends for FY 2025 would
amount to '126 per equity share, which includes payment of three interim dividends of '10
each, a special dividend of '66 per equity share, and recommended a final dividend of '30
per equity share. The shareholders' payout for FY 2025 would involve a total cash outflow
of '45,588 crore.
For FY 2024, the Company paid a total dividend of '73 per equity share
which included three interim dividends of '9 each, a special dividend of '18 per equity
share and a final dividend of '28 per equity share. In addition to the above, the Company
bought back 4,09,63,855 equity shares at a price of '4,150 per equity share for an
aggregate consideration of '17,000 crore. The Shareholders' payout with respect to
dividend and buyback including tax on buyback (excluding transaction costs, other
incidental and related expenses) aggregated to '47,445 crore.
The Dividend Distribution Policy, in terms of Regulation 43A of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 ("SEBI Listing Regulations"), is available on the Company's
website at https://on.tcs.com/Dividend.
3. Transfer to reserves
The closing balance of the retained earnings of the Company for FY 2025
after all appropriation and adjustments was '73,380 crore.
4. Company's performance
On a consolidated basis, the revenue from operations for FY 2025 was
'2,55,324 crore, higher by 6.0% over the previous year's revenue from operations of
'2,40,893 crore. The profit for the year attributable to shareholders for FY 2025 was
'48,553 crore registering a growth of 5.8% over the profit for the year attributable to
shareholders of '45,908 crore in FY 2024.
On a standalone basis, the revenue from operations for FY 2025 was
'2,14,853 crore, higher by 6.2% over the previous year's revenue from operations of
'2,02,359 crore. The profit for the year attributable to shareholders in FY 2025 was
'48,057 crore registering a growth of 10.3% over the profit for the year attributable to
shareholders of '43,559 crore in FY 2024.
5. Subsidiary companies
On March 31, 2025, the Company has 52 subsidiaries and there has been
no material change in the nature of the business of the subsidiaries. There are no
associates or joint venture companies within the meaning of Section 2(6) of the Companies
Act, 2013 ("the Act").
TCS Financial Solutions (Beijing) Co., Ltd. was merged with Tata
Consultancy Services (China) Co., Ltd. a step-down wholly owned subsidiary of the Company
w.e.f. July 1, 2024.
On December 20, 2024, Tata Consultancy Services (Africa) (Proprietary)
Limited ("TCS Africa"), a wholly owned subsidiary of the Company disposed off
30% of its equity stake in Tata Consultancy Services (South Africa) (Proprietary) Limited
("TCS SA"), a step-down wholly owned subsidiary of the Company at a
consideration of ZAR 61 million (equivalent to '28 crore) to Isisekelo Sethu Trust, to
comply with the Broad-Based Black Economic Empowerment ("B-BBEE") guidelines in
South Africa. Consequently, TCS SA ceased to be a step-down wholly owned subsidiary of the
Company.
On January 29, 2025, the Company executed a Share Purchase and
Securities Purchase Agreement ("SSPA") with Tata Realty and Infrastructure
Limited ("TRIL"), TRIL Bengaluru Real Estate Five Limited ("TBRF") and
TRIL Bengaluru Real Estate Six Limited ("TBRS") for acquisition of 100% of
equity shares and optionally redeemable convertible debentures of TBRF and TBRS held by
TRIL, in two tranches, at a consideration of '1,593 crore. Upon the execution of SSPA, 65%
of equity shares and optionally redeemable convertible debentures have been transferred to
the Company at a consideration of '1,036 crore and recognised a financial liability of
'557 crore towards consideration payable at a future date for 35% stake.
Pursuant to the provisions of Section 129(3) of the Act, a statement
containing the salient features of financial statements of the Company's subsidiaries in
Form No. AOC-1 is attached to the financial statements of the Company.
Further, pursuant to the provisions of Section 136 of the Act, the
financial statements of the Company, consolidated financial statements along with relevant
documents and separate audited financial statements in respect of subsidiaries, are
available on the Company's website at https://www.tcs.com/investor-relations.
6. Directors' Responsibility Statement
Pursuant to Section 134(5) of the Act, the Board of Directors, to the
best of its knowledge and ability, confirm that:
i. In the preparation of the annual accounts, the applicable accounting
standards have been followed and there are no material departures;
ii. They have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the end of the
financial year and of the profit of the Company for that period;
iii. They have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. They have prepared the annual accounts on a going concern basis;
v. They have laid down internal financial controls to be followed by
the Company and such internal financial controls are adequate and operating effectively;
vi. They have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems are adequate and operating
effectively.
Based on the framework of internal financial controls and compliance
systems established and maintained by the Company, the work performed by the internal,
statutory and secretarial auditors and external consultants, including the audit of
internal financial controls over financial reporting by the statutory auditors and the
reviews performed by management and the relevant board committees, including the Audit
Committee, the Board is of the opinion that the Company's internal financial controls were
adequate and effective during FY 2025.
7. Directors and Key Managerial Personnel
("KMP")
As on March 31, 2025, the Company has eight Directors of which seven
are Non-Executive Directors (including two women Directors). The Company has five
Independent Directors (including one woman Independent Director).
Based on the recommendation of Nomination and Remuneration Committee
("NRC"), and in terms of the provisions of the Act, the Board of Directors
appointed Sanjay V Bhandarkar (DIN 01260274) as an Additional Director of the Company
effective March 4, 2025. Further, in accordance with the provisions of Section 149 read
with Schedule IV to the Act and applicable SEBI Listing Regulations, Sanjay V Bhandarkar
was appointed as Non-Executive, Independent Director of the Company, not liable to retire
by rotation, for a term of five years commencing from March 4, 2025 to March 3, 2030. A
Special Resolution seeking Member's approval for his appointment is being sought through
Postal Ballot, for which the remote e-voting period commenced on March 26, 2025 and will
end on April 24, 2025. In the opinion of the Board, Sanjay V Bhandarkar is a person of
integrity and fulfils requisite conditions as per applicable laws and is independent of
the management of the Company.
The Board of Directors at its meeting held on April 10, 2025 appointed
Aarthi Subramanian (DIN 07121802) as the Whole-time Director designated as "Executive
Director - President and Chief Operating Officer" for a term of five years commencing
from May 1, 2025 to April 30, 2030, subject to approval of the Members at the ensuing
Annual General Meeting ("AGM"). A resolution seeking Member's approval for her
appointment forms part of the Notice for the ensuing AGM.
During the year under review, N G Subramaniam (DIN 07006215) ceased to
be the Chief Operating Officer and Executive Director ("COO & ED") of the
Company w.e.f. May 20, 2024, as per the retirement age policy of the Company and O P Bhatt
(DIN 00548091) ceased to be Director of the Company w.e.f. June 27, 2024 upon completion
of his term as an Independent Director. The Board places on record its appreciation for
their invaluable contribution and guidance provided to the Company.
Aarthi Subramanian retires by rotation and being eligible, offers
herself for reappointment as per Section 152(6) of the Act.
Pursuant to the provisions of Section 149 of the Act, the Independent
Directors have submitted declarations that each of them meets the criteria of independence
as provided in Section 149(6) of the Act along with Rules framed thereunder and Regulation
16(1)(b) of the SEBI Listing Regulations. There has been no change in the circumstances
affecting their status as independent directors of the Company.
During the year under review, the Non-Executive Directors of the
Company had no pecuniary relationship or transactions with the Company, other than sitting
fees, commission and reimbursement of expenses, if any.
Yashaswin Sheth was appointed as the Company Secretary and Compliance
Officer w.e.f. November 1, 2024, upon the superannuation of Pradeep Manohar Gaitonde
w.e.f. October 31, 2024.
The Board places on record its appreciation for Pradeep Manohar
Gaitonde for the valuable contribution provided to the Company.
Pursuant to the provisions of Section 203 of the Act,
K Krithivasan, Chief Executive Officer and Managing Director (CEO &
MD), Samir Seksaria, Chief Financial Officer and Yashaswin Sheth, Company Secretary, are
the KMPs of the Company as on March 31, 2025.
8. Number of meetings of the Board
Five meetings of the Board were held during the year under review. For
details of meetings of the Board, please refer to the Corporate Governance Report, which
forms part of this report.
9. Board evaluation1
The Board of Directors has carried out an annual evaluation of its own
performance, board committees, and individual directors pursuant to the provisions of the
Act and SEBI Listing Regulations.
The performance of the Board was evaluated by the Board after seeking
inputs from all the directors on the basis of criteria such as the board composition and
structure, effectiveness of board processes, information and functioning, etc.
The performance of the Committees was evaluated by the Board after
seeking inputs from the Committee members on the basis of criteria such as the composition
of committees, effectiveness of committee meetings, etc.
The above criteria are broadly based on the Guidance Note on Board
Evaluation issued by the Securities and Exchange Board of India. In a separate meeting of
Independent Directors, performance of Non Independent Directors, the Board as a whole and
Chairman of the Company was evaluated, taking into account the views of Executive and
Non-Executive Directors.
The Board and the NRC reviewed the performance of individual directors
on the basis of criteria such as contribution of the individual director to the Board and
Committee meetings like preparedness on the issues to be discussed, meaningful and
constructive contribution and inputs in meetings, etc.
At the Board meeting that followed the meeting of the Independent
Directors and meeting of NRC, the performance of the Board, its Committees, and individual
directors was also discussed. Performance evaluation of Independent Directors was done by
the entire Board.
10. Policy on directors' appointment and remuneration and other details
The Company's policy on appointment of Directors is available on the
Company's website at https://on.tcs.com/ApptDirectors.
The policy on remuneration and other matters provided in Section 178(3)
of the Act has been disclosed in the Corporate Governance Report, which forms part of this
report and is also available on the Company's website at
https://on.tcs.com/remuneration-policy.
11. Corporate Social Responsibility ("CSR")
The Company's CSR initiatives and activities are aligned to the
requirements of Section 135 of the Act.
A brief outline of the CSR policy and the initiatives undertaken by the
Company on CSR activities during the year under review are set out in Annexure I of this
report in the format prescribed in the Companies (Corporate Social Responsibility Policy)
Rules, 2014. This Policy is available on the Company's website at
https://on.tcs.com/Global-CSR- Policy.
For other details regarding the CSR Committee, please refer to the
Corporate Governance Report, which forms part of this report.
12. Internal financial control systems and their adequacy
The details in respect of internal financial controls and their
adequacy are included in the Management Discussion and Analysis, which forms part of this
report.
13. Audit Committee
The details pertaining to the composition of the Audit Committee are
included in the Corporate Governance Report, which is a part of this report.
14. Auditors
At the twenty-seventh AGM held on June 9, 2022, the Members approved
the re-appointment of B S R & Co. LLP, Chartered Accountants (Firm Registration No.
101248W/W- 100022) as Statutory Auditors of the Company to hold office for a period of
five years from the conclusion of that AGM till the conclusion of the thirty-second AGM to
be held in the year 2027.
In compliance with Regulation 24A of the SEBI Listing Regulations and
Section 204 of the Act, the Board at its meeting held on April 10, 2025, based on
recommendation of the Audit Committee, has approved the appointment of Parikh &
Associates, Practising Company Secretaries, a peer reviewed firm (Firm Registration No.
P1988MH009800) as Secretarial Auditors of the Company for a term of five consecutive years
commencing from FY 2025-26 till FY 2029- 30, subject to approval of the Members at the
ensuing AGM.
15. Auditor's report and Secretarial audit report
The Statutory Auditor's report and the Secretarial Auditor's report do
not contain any qualifications, reservations, or adverse remarks or disclaimer.
Secretarial audit report is attached to this report as Annexure II.
16. Risk management
The Board of Directors of the Company has a Risk Management Committee
to frame, implement and monitor the risk management plan for the Company.
The Committee is responsible for monitoring and reviewing the risk
management plan and ensuring its effectiveness.
The Audit Committee has additional oversight in the area of financial
risks and controls. The major risks identified by the businesses and functions are
systematically addressed through mitigating actions on a continuing basis.
The development and implementation of risk management policy has been
covered in the Management Discussion and Analysis, which forms part of this report.
17. Vigil Mechanism
The Company has a Whistle Blower Policy and has established the
necessary vigil mechanism for employees, Directors and stakeholders in conformation with
the provisions of Section 177(9) of the Act and Regulation 22 of SEBI Listing Regulations,
to report concerns about unethical behaviour. This Policy is available on the Company's
website at https://on.tcs.com/WhistleB .
18. Particulars of loans, guarantees and
investments
The particulars of loans, guarantees and investments as per Section 186
of the Act by the Company have been disclosed in the financial statements.
19. Transactions with related parties
None of the transactions with related parties fall under the scope of
Section 188(1) of the Act. Accordingly, the disclosure of related party transactions as
required under Section 134(3)(h) of the Act in Form AOC-2 is not applicable to the Company
for FY 2025 and hence, does not form part of this report.
Pursuant to the SEBI Listing Regulations, the resolutions seeking
approval of the Members on material related party transactions forms part of the Notice of
the ensuing AGM.
20. Annual Return
Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the
Annual Return as on March 31, 2025 is available on the Company's website at
https://on.tcs.com/annual- return-24-25.
21. Particulars of employees
The information under Section 197 of the Act read with Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
a. The ratio of the remuneration of each director to the median
remuneration of the employees of the Company and percentage increase in remuneration of
each Director, Chief Executive Officer, Chief Financial Officer and Company Secretary in
the financial year:
| Name |
Ratio to median remuneration |
% increase in remuneration in the
financial year |
| Non-Executive
Directors: |
|
|
| N Chandrasekaran@ |
- |
- |
| Aarthi
Subramanian@@ |
- |
- |
| Dr Pradeep Kumar Khosla |
34.0 |
3.8 |
| Hanne Sorensen |
34.1 |
3.8 |
| Keki Mistry |
38.0 |
5.5 |
| Al-Noor Ramji |
34.1 |
A |
| Sanjay V Bhandarkar* |
$ |
$ |
| O P Bhatt** |
$ |
$ |
| Executive Directors: |
|
|
| K Krithivasan |
329.8 |
4.6 |
| N G Subramaniam& |
$ |
$ |
| Chief Financial Officer: |
|
|
| Samir Seksaria |
96.7 |
7.8 |
| Company Secretary: |
|
|
| Yashaswin Sheth# |
$ |
$ |
| Pradeep Manohar Gaitonde## |
$ |
$ |
@ As a policy, N Chandrasekaran, Chairman, has abstained from receiving
commission from the Company and hence not stated.
@@ In line with the internal guidelines of the Company, no payment is
made towards commission to the Non-Executive Directors of the Company, who are in full
time employment with any other Tata Company and hence not stated.
A
Remuneration received in FY 2025 is not
comparable with remuneration received in FY 2024 which was for part of
the year and hence, not stated.
* Appointed as Independent Director w.e.f. March 4, 2025.
** Ceased to be Director w.e.f. June 27, 2024 upon completion of his
term as Independent Director.
& Ceased to be Chief Operating Officer and Executive Director
w.e.f. May 20, 2024, as per the retirement age policy of the Company.
# Appointed as the Company Secretary and Compliance Officer w.e.f.
November 1, 2024.
## Ceased to be Company Secretary and Compliance Officer w.e.f. October
31, 2024.
$ Remuneration received in FY 2025 (for part of the year) is not
comparable with remuneration for FY 2024 and hence not stated.
b. The percentage increase in the median remuneration of employees in
the financial year is 6.3%.
c. The number of permanent employees on the rolls of Company are
6,07,979.
d. The average annual increase was in the range of 4.5-7%, with top
performers receiving double digit increment in India. However, during the course of the
year, the total increase is in the range of 5.5-7.5%, after accounting for promotions and
other event based compensation revisions. Employees outside India received a wage increase
varying from 1.5-6%.
The increase in remuneration is in line with the market trends in the
respective countries. In order to ensure that remuneration reflects the Company's
performance, the performance pay is also linked to organization performance and individual
utilization in addition to individual performance.
Increase in the managerial remuneration for the year was 4.6% for CEO
& MD. Remuneration for erstwhile COO & ED is for part of the year and hence not
considered.
e. The Company affirms that the remuneration is as per the remuneration
policy of the Company.
f. The statement containing names of top ten employees in terms of
remuneration drawn and the particulars of employees as required under Section 197(12) of
the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this
report.
Further, the report and the accounts are being sent to the Members
excluding the aforesaid annexure.
In terms of Section 136 of the Act, the said annexure is open for
inspection and any Member interested in obtaining a copy of the same may write to the
Company Secretary.
22. Integrated Report
The Company has voluntarily provided Integrated Report, which
encompasses both financial and non-financial information to enable the Members to take
well-informed decisions and have a better understanding of the Company's long-term
perspective. The Report also touches upon aspects such as organization's strategy,
governance framework, performance and prospects of value creation based on the five forms
of capital viz. financial capital, human capital, intellectual capital, social capital and
natural capital.
23. Disclosure requirements
As per SEBI Listing Regulations, the integrated Management Discussion
and Analysis, the Corporate Governance Report with the Auditors' Certificate thereon, and
the Business Responsibility and Sustainability Report ("BRSR") forms part of the
Board's Report.
The BRSR indicates the Company's performance against the principles of
the 'National Guidelines on Responsible Business Conduct'. This would enable the Members
to have an insight into Environmental, Social and Governance initiatives of the Company.
The Company has devised proper systems to ensure compliance with the
provisions of all applicable Secretarial Standards issued by the Institute of Company
Secretaries of India and that such systems are adequate and operating effectively.
24. Deposits from public
The Company has not accepted any deposits from public and as such, no
amount on account of principal or interest on deposits from public was outstanding as on
the date of the balance sheet.
25. Quality initiatives
The Company reinforces its steadfast commitment to excellence through
the continuous pursuit of the highest quality standards, exceptional customer experience,
industry leading service management, robust information security and privacy frameworks,
and a resilient business continuity strategy.
The TCS Integrated Quality Management System ("iQMSTM")
serves as a structured and strategic framework designed to ensure the consistent delivery
of products and services that meet or exceed customer expectations while driving
operational efficiency. It is continuously assessed and enhanced to align with evolving
market dynamics and emerging technologies, including AI and Cloud, enabling the
organization to deliver certainty and create exceptional value and experiences for its
customers.
The Company continues to maintain enterprise-wide certification to the
following globally recognized standards:
• Quality Management (ISO 9001:2015)
• IT Service Management (ISO 20000-1:2018)
• Business Continuity Management (ISO 22301:2019)
• Information Security Management (ISO 27001:2022)
• Privacy Information Management Systems (ISO 27701:2019)
• Information Security Controls for Cloud Services (ISO
27017:2015)
• Protection of PII in Public Clouds as PII Processors (ISO
27018:2019)
The Company also continues to maintain certification to Health, Safety,
Environment (HSE) and Energy Management Systems Standards such as:
• ISO 14001:2015 (Environment management)
• ISO 45001:2018 (Health and Safety)
• ISO 50001:2018 (Energy management)
Certification in Industry domain specific standards such as AS9100
(Aerospace), TL9000 (Telecom) and ISO 13485 (Medical devices) are also maintained.
The Company is also at Maturity level 5 of ISACA's Capability Maturity
Model Integration - Development (CMMI? DEV) and Services (CMMI? SVC), a worldwide
recognized industry benchmark and performance improvement model.
The Company has received multiple external awards this year in the
American Society for Quality ("ASQ") South Asia Team Excellence Awards, the Lean
Six Sigma event from National Institution for Quality & Reliability ("NIQR")
and in CII Lean National Awards 2024 as well as the CII Six Sigma National competition.
26. Conservation of energy, technology absorption,
foreign exchange earnings and outgo
Conservation of energy
The Company is committed towards conservation of energy and climate
action which is reaffirmed in its Environmental Sustainability policy
[Environmental-Sustainability-Policy.pdf (tcs.com)l.
During the year under review, several initiatives were aligned to
achieve the carbon targets which included those in building and IT infrastructure.
Initiatives in building infrastructure included higher energy efficiencies in heating,
ventilation, and air conditioning ("HVAC") systems, uninterruptible power supply
("UPS"), green buildings and energy monitoring & analytics (Clever Energy
& Resource Optimisation Centre) which have resulted in energy savings of 12,470 MWh,
equivalent to 9,066 tCO2e reduction.
Initiatives in green IT focused on data center and IT device
consolidation and optimization to reduce the carbon footprint. The Company's data centers
have achieved a weighted average PUE of 1.59 in FY 2025 compared to 1.7 in FY 2024. The
data centers use 100% renewable electricity. In addition to this, the Company will
continue to ensure energy efficiency of the procured equipment.
TCS' IoT-based Real-time Energy Management System (TCS Clever
Energy™) involves real-time energy monitoring, continues to yield benefits in terms
of optimization of operational energy efficiency across the Company's offices.
The roof top solar photo voltaic installations this year remained at
10.2 MWp contributing to 2.7% of total electricity use in the reporting year. The Company
continued its procurement of renewable energy through power purchase agreements
("PPA's"), availing green tariffs in India and procurement of Energy Attribute
Certificates ("EACs"). Renewable energy procurement has resulted in an increase
in renewable energy use to 79% of total energy use during the year.
As a commitment to energy conservation and management, the Company has
continued to implement initiatives, monitor and measure energy performance at 22 large
campuses in India, which are certified to ISO 50001:2018.
The above energy efficiency and renewable energy procurement efforts
helped achieve a year-on-year reduction in absolute carbon footprint (across Scope 1 and
Scope 2) of TCS' global operations by 20%. The Company has achieved 84% reduction in
absolute emissions (Scope 1 and Scope 2) when compared to the base year of FY 2016. The
electricity consumption across the Company's operations increased by 11% in the current
year compared to FY 2024. This is considering increased operations due to return to
office, and inclusion of additional locations.
Continued focus on the above initiatives will enable the Company's
aspiration of achieving its SBTi-approved near term targets.
Technology absorption, adoption and innovation:
Research & Development ("R&D"): Specific areas in
which R&D was carried out by the Company
TCS Research and Innovation ("R&I") continues to develop
novel methods, technologies, and platforms that can transform the art of becoming
perpetually adaptable into systematic engineering. TCS R&I pursues two types of
initiative:
• Future of Technology ("FoT") initiatives: These are
aimed at tracking and developing novel technologies and platforms that accelerate
technology adoption. They focus on areas including sensing, communication, computing, data
and knowledge engineering, digital and physical AI, as well as experiential technologies.
• Future of Work ("FoW") initiatives: These are aimed at
infusing emerging technologies to invent the next practices, focusing on a various work
domains such as IT (e.g., technology operations and modernization), business (e.g.,
continuous talent transformation, drug discovery and illness management in healthcare),
and societal (e.g., bioremediation of pollutants for sustainability).
During FY 2025, the Company undertook several R&I projects, which
include:
• A platform to expedite the transition of enterprises'
cryptographic systems to post-quantum cryptography ("PQC") protocols.
• An intelligent hybrid workspace platform to design, build, and
orchestrate the integration of physical robots and human workers in areas such as
warehouse operations. •
• An AI-powered platform to provide personalized, real-time
expertise and wisdom, transforming the nature of knowledge work.
• An Internet-like platform to facilitate the discovery and
exchange of energy assets among various energy prosumers across administrative boundaries.
• A platform for designing microbial consortia that can be used
for the bioremediation of pollutants and waste, contributing to sustainable futures.
Strengthening IP Base
As of March 31, 2025, the Company has filed 8,816 patents cumulatively,
and 4,820 have been granted.
Co-innovation with customers and partners
The Company's flagship co-innovation program, TCS Innovation Ecosystem
continues to serve as the go-to platform for co- innovation and business transformation.
The Company expanded the Pace footprint by launching three innovation hubs this year- a
Pace Port in Paris and two Pace Studios in Stockholm (Sweden) and Manila (Philippines).
The Company's ecosystem development program, TCS COIN™ (co-innovation network),
expanded its global footprint this year. The Company today boasts partnerships with more
than 3,000 startups and 50+ academic institutes.
The Company partnered with IIT Kharagpur and launched an advanced
research centre for innovation in digital health, robotics and intelligent systems.
Creating a culture of innovation
The Company continues to focus on building a culture of innovation
across its talent value chain, through programs like:
• TCS Techvantage Program: Launched for fostering engineering
talent within the Company. The program recognizes technology talent within the Company by
encouraging them to submit technical papers that are adjudged and awarded by a jury of
peers. Through this program, over 22,000 technologists were engaged across the Company.
• The 12th season of TCS CodeVita™, a global programming
contest saw huge global participation.
External recognitions
• TCS and IIT Delhi won the CII Award for Excellence in
Industry-Academia Partnership 2024 for their collaboration on continuous biopharma
technology.
• TCS' Intelligent Speech Assistant won an award under 'Design for
Social Impact' category at 14th CII Design Excellence Awards 2024.
• TCS was awarded with ISGF Innovation Award 2024 Certificate of
Merit for qualifying in the Top Five amongst Adoption of Artificial Intelligence, Machine
Learning and Robotic Solutions - Industry (including Smart Business Models).
• Recognized with the Asia IP Elite Award 2024 for being an
exemplar of IP value creation.
• Recognized with Special Appreciation Award by CII acknowledging
very special and distinctive features of some inspiring IP initiatives of the
organization.
• The TCS Research brand won at The Global Digital Excellence
Awards 2024 for 'Organic Social Media Campaign of the Year'. This award celebrates
company's commitment to simplifying complex research and presenting it in ways that
resonate with people.
Future course of action
The Company will continue to invest in foundational technologies
through its FoT initiatives, especially in the areas of AI, quantum computing, sensing,
communications and experience, and thereby stay ahead of the curve in technologies of
relevance to its customers. Through FoW initiatives, the Company will continue to invent
and adopt next practices in new areas of work through technology infusion.
Expenditure on R&D
The Company's R&I centers are in India and other parts of the
world. The research centers in India function from Pune, Chennai, Bengaluru, Delhi-NCR,
Hyderabad, Kolkata and Mumbai. The Company's Pace Port and Pace Studio innovation hubs
operate in Amsterdam, Toronto, Pittsburgh, Tokyo, New York, London, Paris, Riyadh,
Letterkenny, Sydney, Stockholm and Manila.
Expenditure incurred in the R&D centers and innovation centers of
the Company during FY 2025 and FY 2024 is given below:
(Rs crore)
| Expenditure on R&D and innovation |
Standalone |
Consolidated |
|
FY 2025 |
FY 2024 |
FY 2025 |
FY 2024 |
| a. Capital |
4 |
8 |
4 |
8 |
| b. Recurring |
411 |
419 |
416 |
426 |
| c. Total R&D expenditure (a+b) |
415 |
427 |
420 |
434 |
| d. Innovation center expenditure |
2,131 |
2,228 |
2,210 |
2,317 |
| e. Total R&D and innovation expenditure
(c+d) |
2,546 |
2,655 |
2,630 |
2,751 |
| f. R&D and innovation expenditure as a
percentage of total turnover |
1.2% |
1.3% |
1.0% |
1.1% |
Foreign exchange earnings and outgo
Export revenue constituted 90.0% of the total standalone revenue in FY
2025 (93.5% in FY 2024).
(Rs crore)
| Foreign exchange earnings and outgo |
FY 2025 |
FY 2024 |
| a. Foreign exchange earnings |
2,00,801 |
1,93,252 |
| b. CIF Value of imports |
117 |
174 |
| c. Expenditure in foreign currency |
79,991 |
81,726 |
27. Acknowledgements
The Directors thank the Company's employees, customers, vendors,
investors and academic partners for their continuous support. The Directors also thank the
Government of India, Governments of various states in India, Governments of various
countries and concerned Government departments and agencies for their co-operation.
The Directors appreciate and value the contribution made by every
member of the TCS family.
|
On behalf of the Board of Directors |
|
N Chandrasekaran |
|
Chairman |
|
DIN 00121863 |
| Mumbai, April 10, 2025 |
|