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 ended March 31, 2023.
The consolidated performance of the Company and its subsidiaries has been referred to
wherever required.
1. Financial results
(Rs crore)
|
Standalone |
Consolidated |
|
Financial Year 2022-23 (FY 2023) |
Financial Year 2021-22 (FY 2022) |
Financial Year 2022-23 (FY 2023) |
Financial Year 2021-22 (FY 2022) |
Revenue from operations |
1,90,354 |
1,60,341 |
2,25,458 |
1,91,754 |
Other income |
5,328 |
7,486 |
3,449 |
4,018 |
Total income |
1,95,682 |
1,67,827 |
2,28,907 |
1,95,772 |
Expenses |
|
|
|
|
Operating expenditure |
1,39,357 |
1,14,096 |
1,66,199 |
1,38,697 |
Depreciation and amortisation expense |
3,940 |
3,522 |
5,022 |
4,604 |
Total expenses |
1,43,297 |
1,17,618 |
1,71,221 |
1,43,301 |
Profit before finance costs and tax |
52,385 |
50,209 |
57,686 |
52,471 |
Finance costs |
695 |
486 |
779 |
784 |
Profit before tax |
51,690 |
49,723 |
56,907 |
51,687 |
Tax expense |
12,584 |
11,536 |
14,604 |
13,238 |
Profit for the year |
39,106 |
38,187 |
42,303 |
38,449 |
Attributable to: |
|
|
|
|
Shareholders of the Company |
39,106 |
38,187 |
42,147 |
38,327 |
Non-controlling interests |
NA |
NA |
156 |
122 |
Opening balance of retained earnings |
68,949 |
70,928 |
78,158 |
79,586 |
Closing balance of retained earnings |
62,228 |
68,949 |
74,722 |
78,158 |
2. Return of surplus funds to Shareholders
In line with the practice of returning 80 to 100 percent free cash flow to shareholders
and based on the Company's performance, the Directors have declared three interim
dividends of Rs8 per equity share and a special dividend of Rs67 aggregating to Rs91 per
equity share involving a cash outflow of Rs33,297 crore during the year. The Directors
have also recommended a final dividend of Rs24 per equity share, the final dividend on
equity shares, if approved by the Members, would involve a cash outflow of Rs8,782 crore.
The total shareholders payout excluding the buyback tax of Rs4,192 crore paid at the
beginning of FY 2023, would involve a total cash outflow of Rs42,079 crore at Rs115 per
equity share, resulting in a dividend payout of 107.6 percent of the standalone profits of
the Company.
For FY 2022, the Company paid a total dividend of Rs43 per equity share, which resulted
in an outflow of Rs15,818 crore and a dividend payout of 41.4 percent of the standalone
profits of the Company. In addition to the above, the Company bought back 4,00,00,000
equity shares at a price of Rs4,500 per equity share for an aggregate consideration of
Rs18,000 crore. The offer size of the buyback was 21.03 percent and 19.06 percent of the
aggregate paid-up equity share capital and free reserves as per audited condensed
standalone interim financial statements and audited condensed consolidated interim
financial statements of the Company as at December 31, 2021, respectively.
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 2023, after all
appropriation and adjustments was Rs62,228 crore.
4. Company's performance
On a consolidated basis, the revenue for FY 2023 was Rs2,25,458 crore, higher by 17.6
percent over the previous year's revenue of Rs1,91,754 crore. The profit after tax (PAT)
attributable to shareholders and non-controlling interests for FY 2023 and FY 2022 was
Rs42,303 crore and Rs38,449 crore, respectively.
The PAT attributable to shareholders for FY 2023 was Rs42,147 crore registering a
growth of 10.0 percent over the PAT of Rs38,327 crore in FY 2022.
On a standalone basis, the revenue for FY 2023 was Rs1,90,354 crore, higher by 18.7
percent over the previous year's revenue of Rs1,60,341 crore in FY 2022. The PAT
attributable to shareholders in FY 2023 was Rs39,106 crore registering a growth of 2.4
percent over the PAT of Rs38,187 crore in FY 2022.
5. Quality initiatives
The Company continues to strengthen its commitment to the highest levels of quality,
superior customer experience, best-in-class service management, robust information
security and privacy practices and mature business continuity management.
The relevance of TCS' integrated Quality Management System (iQMS) is continually
evaluated for new service offerings, emerging delivery methodologies, industry best
practices and latest technologies, and adequately upgraded to provide outstanding value
and experience to its customers.
TCS has successfully achieved Maturity Level 5 in CMMI Enterprise Wide assessment for
Development. TCS has successfully completed the annual ISO surveillance audit and has been
recommended for continuation of its enterprise-wide certification. TCS's enterprise ISO
certification scope includes conformance to the following globally recognized standards:
ISO 9001:2015 (Quality Management), ISO 20000-1:2018 (IT Service Management), ISO
22301:2019 (Business Continuity Management), ISO 27001:2013 (Information Security
Management), ISO 27017:2015 (Information Security Controls for Cloud Services), ISO
27018:2019 (Protection of PII in Public Clouds as PII Processors), ISO 27701:2019 (Privacy
Information Management Systems), AS 9100:2016 (Aerospace Industry), ISO 13485:2016
(Medical Devices) and TL 9000-SV R6.2/R5.7 (Telecom Industry).
The customer-centricity, focus on their growth and transformation, rigor in operations
and commitment to delivery excellence have resulted in sustained high customer
satisfaction levels in the periodic surveys conducted by the Company. This is validated by
top rankings in third party surveys as well. TCS achieved the top position in Whitelane
customer satisfaction survey for the tenth consecutive year, with an overall satisfaction
score of 83 percent compared to the industry average of 75 percent.
TCS has received multiple external awards this year, in the areas of quality and data
privacy. TCS won the Data Security Council of India (DSCI) Excellence Award 2022 in
category Best Privacy Practices in Organization, two years in a row; PICCASO Privacy
Awards Europe 2022 for Best Privacy Programme; Gold award won by BFSI Cognitive Business
Operations- IT IS Team in 8th National Institute for Quality and Reliability (NIQR) Annual
Six Sigma/Task Achievement Competition; Customer Experience Team of the Year Award by
Global Sourcing Association - UK.
6. Subsidiary companies
On March 31, 2023, the Company has 51 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
("Act").
On May 18, 2022, Tata Consultancy Services Asia Pacific Pte. Ltd. acquired additional
6.8 percent ownership interest in Tata Consultancy Services (China) Co., Ltd. (TCS China)
thereby making it a wholly owned subsidiary.
Tata Consultancy Services Danmark ApS was liquidated effective July 27, 2022.
On March 16, 2023, TCS China acquired 100 percent ownership interest in TCS Financial
Solutions (Beijing) Co., Ltd. from TCS Financial Solutions Australia Pty Limited.
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.
7. 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 2023.
8. Directors and key managerial personnel
As on March 31, 2023, the Company has nine Directors comprising of two Executive
Directors and seven Non-Executive Directors out of which five are Independent Directors.
There are two women directors.
On April 16, 2022, the Members approved the re-appointment of Rajesh Gopinathan (DIN
06365813) and N G Subramaniam (DIN 07006215) as the CEO and MD and COO and ED,
respectively.
On February 12, 2023, the Members approved the re-appointment of Dr Pradeep Kumar
Khosla (DIN 03611983) as an Independent Director. In the opinion of the Board, he is a
person of integrity, fulfils requisite conditions as per applicable laws and is
independent of the management of the Company.
Rajesh Gopinathan would relinquish his position of CEO and MD of the Company with
effect from June 1, 2023. The Board places on record its appreciation of the invaluable
services of Rajesh Gopinathan as the CEO and MD.
The Board appointed K Krithivasan (DIN 10106739) as the Chief Executive Officer
Designate with effect from March 16, 2023 and as CEO and MD with effect from June 1, 2023
for a period of five years, subject to approval of the Members at the ensuing Annual
General Meeting (AGM).
K Krithivasan heads the Banking, Financial Services, and Insurance (BFSI) Business
Group at the Company and has been part of the global technology sector for over 34 years,
having joined the Company in 1989.
Aarthi Subramanian (DIN 07121802) retires by rotation and being eligible, offers
herself for re-appointment.
A resolution seeking shareholders' approval for their appointment/re-appointment along
with other required details forms part of the Notice.
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.
Pursuant to the provisions of Section 203 of the Act, Rajesh Gopinathan, CEO and MD, N
G Subramaniam, COO and ED, Samir Seksaria, Chief Financial Officer and Pradeep Manohar
Gaitonde, Company Secretary are the Key Managerial Personnel of the Company as on March
31, 2023.
9. Number of meetings of the Board
Six meetings of the Board were held during the year.
For details of meetings of the Board, please refer to the Corporate Governance Report,
which is a part of this report.
10. Board evaluation
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 on January 5, 2017. 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
directors and non-executive directors.
The Board and the Nomination and Remuneration Committee reviewed the performance of
individual directors on the basis of criteria such as the 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 Nomination and Remuneration Committee, the performance of the Board, its Committees,
and individual directors was also discussed. Performance evaluation of independent
directors was done by the entire Board, excluding the independent director being
evaluated.
11. 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 is a part of this report and is
also available on the Company's website at https://on.tcs.com/remuneration-policy.
12. Corporate Social Responsibility (CSR)
TCS' CSR initiatives and activities are aligned to the requirements of Section 135 of
the Act.
A brief outline of the CSR policy of the Company and the initiatives undertaken by the
Company on CSR activities during the year 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 is a part of this report.
13. Internal financial control systems and their adequacy
The details in respect of internal financial control and their adequacy are included in
the Management Discussion and Analysis, which is a part of this report.
14. 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.
15. 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.
16. 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.
17. 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.
18. Vigil Mechanism
The Company has a Whistle Blower Policy and has established the necessary vigil
mechanism for directors and employees in conformation with 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 .
19. 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.
20. 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 2023
and hence does not form part of this report.
Pursuant to SEBI Listing Regulations, the resolution for seeking approval of the
shareholders on material related party transactions is being placed at the AGM.
21. Annual Return
Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as
on March 31, 2023 is available on the Company's website at
https://on.tcs.com/annualreturn-22-23.
22. 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* |
- |
- |
O P Bhatt |
41.16 |
10.41 |
Aarthi Subramanian# |
- |
- |
Dr Pradeep Kumar Khosla |
37.10 |
10.80 |
Hanne Sorensen |
37.32 |
11.46 |
Keki Mistry |
41.03 |
9.80 |
Don Callahan |
37.23 |
10.76 |
Executive Directors: |
|
|
Rajesh Gopinathan |
427.10 |
13.17 |
N G Subramaniam |
345.68 |
14.08 |
Chief Financial Officer: |
|
|
Samir Seksaria |
- |
$ |
Company Secretary: |
|
|
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.
$ Remuneration received in FY 2023 is not comparable with remuneration received in FY
2022 (for part of the year) and hence not stated.
b. The percentage increase in the median remuneration of employees in the financial
year is 5.11 percent.
c. The number of permanent employees on the rolls of Company are 6,14,795.
d. The average annual increase was in the range of 5- 8 percent in India. However,
during the course of the year, the total increase is in the range of
6- 9 percent, after accounting for promotions and other event based compensation
revisions.
Employees outside India received a wage increase varying from 1.5 to 5.5 percent.
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 13.58 percent.
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.
23. 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 organisation's strategy, governance framework,
performance and prospects of value creation based on the five forms of capital viz.
financial capital, intellectual capital, human capital, social capital and natural
capital.
24. Disclosure requirements
As per SEBI Listing Regulations, the Corporate Governance Report with the Auditors'
Certificate thereon, and the integrated Management Discussion and Analysis, the Business
Responsibility and Sustainability Report ("BRSR") form part of the Director'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.
25. 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.
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
(https://on.tcs.com/Environmental-Sustainability).
During the year, 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), LEDs, motors, chillers and Energy Monitoring
and Analytics (Clever Energy + Resource Oprtimization Center) which resulted in energy
savings of 4,219 MWh, equivalent to 3,016 tCO2e reduction during FY 2023.
Initiatives in green IT focussed on data center and IT device consolidation and
optimization to reduce the carbon footprint. Our data centers had a weighted average power
utilisation effectiveness (PUE) of 1.66 during the year. In addition to this, the Company
ensures energy efficiency of the equipment it procures.
The Company continues to leverage the TCS' IoT-based Real-time Energy Management System
(TCS Clever EnergyTM) that involves real time monitoring to optimization of
operational energy efficiency across all offices.
The roof top solar photo voltaic installations this year remained at 10.2 MWp
contributing to 3.44 percent of total electricity use in the reporting year. The Company
increased the renewable energy procurement through switch over to green tariffs for its
operations in several states in India and addition to open access power purchase
agreements (PPA). The renewable energy procurement has resulted in an increase in
renewable energy use to 55.2 percent of total energy use.
TCS is certified to ISO 50001:2018 standards for Energy Management Systems (EnMS)
across 19 campuses in India of which 14 campuses were included in FY 2023 ensuring our
commitment to energy conservation and management.
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 12.4 percent. The Company has achieved a 71 percent reduction in
absolute emissions (Scope 1 and Scope 2) when compared to the base year of FY 2016 thereby
achieving the 2025 target (of 70 percent reduction) ahead of time. The electricity
consumption across TCS operations increased by 33.3 percent compared to FY 2022. This is
due to increased resumption of operations in FY 2023 compared to FY 2022 and inclusion of
22 locations globally in the reporting boundary during the current year.
The Company has achieved carbon neutrality across Scope 1 and Scope 2 in Asia Pacific*,
Europe, North America, UK & Ireland**, Latin America, Middle East & Africa regions
during the reporting year.
Continued focus on the above initiatives will enable steer the Company towards
achieving its carbon target to become net zero by 2030.
Technology absorption, adoption and innovation Research & Development (R&D):
Specific areas in which R&D was carried out by the Company
With innovation being central to the Company's purpose statement TCS Research, TCS
PACE and TCS Co-Innovation Network(COIN) adopted many initiatives to address
customer needs and create impact.
In its fifth decade, TCS Research continued to expand its foundational research in
computing, and its intersection with the sciences. As part of physical sciences research,
TCS focused on formulation of new materials with applications in batteries, catalysis
and industrial effluents. Teams also worked on carbon capture, digital twins for
continuous manufacture of biopharma, and emission reduction in industries. Generative
Design research and realisation of this with complex problems with customers showed that
algorithmic methods, including AI, can transform early stage design of complex systems
with significant benefits over the traditional methods. In the life sciences area, the
Company explored generative design across drug design and synthesis, molecules and
formulations, and manufacturing processes.
TCS Research used diffusion models as well as large language models for computational
creativity. The software research teams worked on learning aided adaptive software,
digital transformation of applications, and AI in the software development lifecycle and
data analytics. Cyber security remains an important area of research; AI for
cybersecurity, privacy enabled service operations, privacy preserving biometrics and
trustworthy AI initiatives are in progress. Research in AI was oriented around the latest
in Generative Large Language Models, to create techniques for controlled code generation,
question answering, consistent image generation, solving optimisation problems and other
core AI problems.
The Company expanded its space tech research, working on on-board computing for remote
sensing satellites to reduce data and bandwidth for ground communication; it is also
leveraging neuromorphic computing for low power computing at the edge. In the area of
embedded devices and intelligent systems, research continued solving customer problems in
machine, material, infrastructure, and people sensing, using AIoT and edge computing.
Teams also worked on meta materials for next gen communications, computational
sensing/imaging and neuromorphic computing.
TCS deepened its expertise in heterogeneous computing. The high performance computing
team is working on accelerating runtime performance of computing systems while minimizing
energy consumption and costs.
Quantum computing, resilience on cloud with data residency, compliance and security on
cloud are other areas of focus.
In the area of behavioural and business sciences, the Company created tools for
emotional wellbeing of employees, studied consumer behaviour in retail and gamified
learning. Research also provided intervention options for caregivers of elders in
connected homes.
Quantum computing initiatives progressed with Proofs of Concepts and customer
engagements. Research based offerings in robotics are moving to deployment for logistics
and warehouses. TCS' Digital twins are now integrating industrial, data driven,
physics-based and enterprise models to offer comprehensive insights to customers.
TCS' IP based offerings made headway. TCS TwinX, an AI powered enterprise digital
twin platform for risk-free business simulations, is available on Google Cloud.
The Company's substantial Investments in IP, as in MFDM, TCS Cognix,
ignio, Pace Ports, and Dedicated Cloud Units, was seen as a key strength by
analysts.
TCS Avapresence, a cloud-based virtual event platform with extended reality(XR)
elements, was leveraged by customers for product launches. TCS Conversa and TCS
GoSafe have multiple implementations across the globe;
TCS Crvstallus adoption and Industry Innovations continue to resonate well with
customers in their enterprise transformation journey. Semiconductor engineering, 5G
engineering and software product engineering services made a mark and won awards.
The Company's research and innovation in meta-material- based antenna, network
softwarization and desegregation, expanded the opportunity pipeline. TCS contributed in
the area of interoperability of ORAN sub-systems. It contributed to the Chromite Core
community in processor design and verification areas.
The Company's Pace Ports are spaces that connect customers to all of TCS'
organizational capabilities in innovation, technology, and industry expertise.
The Company inaugurated two Pace Ports this year:
TCS Pace Port Pittsburgh, on the Carnegie Mellon University campus; and TCS Pace
Port Toronto. TCS and Boots launched an innovation hub, INNOVATE Powered by TCS
Pace, at the Boots Nottingham headquarters. TCS forged a major applied engineering
and research partnership with The National Robotarium, UK's largest and most advanced AI
and robotics research centre.
TCS launched a Quantum Computing Lab on AWS.
TCS COIN expanded its global footprint. It now has over 2,700 start-ups in the
network and 80+ active academic partnerships. COIN Business Accelerator, a high-touch
program with emerging tech companies, has kicked off its 3rd cohort. The Accelerator is
playing an instrumental part in TCS' ecosystem strategy, increasing its innovation
footprint, and winning deals.
In keeping with the Company's commitment to social responsibility and sustainability,
TCS Research continued its focus on energy, circularity, and development related projects.
These have won appreciation from analysts.
TCS' Clever Energy was launched on Google Cloud.
TCS' futuristic accessibility research was also lauded. Barclays leveraged TCS' VHAB, a
gamified assistive tech offering, to help children with special needs. The Digital farming
Initiative enabled carbon sequestration in agriculture. TCS' energy research teams worked
on smart grids, the EV ecosystem, the energy internet, and carbon market.
TCS conducted several sustainathons to create pools of ideas to address social issues.
TCS Sustainathon South Africa 2022 focused on nutrition and food security for
underprivileged South African children. Another sustainathon was launched in UK and
Ireland with University of Glasgow to Develop Sustainable Technology Solutions that
support businesses.
The Digital Impact Square, that encourages innovation using digital technologies to
address social challenges, onboarded many new projects selected from 900+ applications.
DiSQ expanded its ecosystem with more network partners. Several companies within the
purview of DiSQ have won awards. The TCS Research Scholarship Program, that completed 10
years, has been extended.
In keeping with the Company's belief of building greater futures through innovation and
collective knowledge, Research and Innovation initiatives to foster a culture of
creativity continued this year. An organization-wide incubation bootcamp to encourage and
support entrepreneurial ideas in areas of Space Tech, Future of Software, Sustainability,
Financial Crime and Compliance was held. To further scale out the concept of Rapid Labs,
"Build your own Rapid" initiative was held, mentoring teams to create labs that
can deliver quick MVPs for customer requests. The TCS Innovista 2022 contest drew 10,000+
innovative entries. TCS won four awards in the Tata Innovista 2022 finals.
TCS CodeVita completed a decade of engaging students with programming as a sport.
Season 10 saw participation of 100,000+ students from 87 countries and was one of the most
competitive finales in the contest's history.
TCS OmniStore and TCS Optumera won Stevies at the International Business
Awards 2022 in the AI/ML solution category. TCS won gold in the category 'Smart
Technology- Electricity Transmission' at Indian Smart Grid Forum (ISGF) Innovation Awards
2023. VidyutVanika created in collaboration with IIIT Hyderabad won at the international
smart grid competition PowerTAC 2022.
TCS' Digital Farming Initiatives won the NASSCOM Enterprise Cloud Awards '22.
ignio AIOps was awarded significant industry accolades.
TCS continues to contribute to standards in areas such as environmental engineering,
cyber security, cyber resilience, Internet of Things, smart cities, software architecture,
quantum computing & communication, accessibility of ICT for the differently abled, AI
and FinTech-RegTech.
The Company's intellectual property grew with 260+ publications and presentations in
top-tier journals and conferences. As of March 31, 2023, 7305 patents have been filed
(cumulatively) by the Company and 2878 have been granted. TCS won many awards relating to
IP, including the Asia IP Elite Award 2022 for being an exemplar of IP value creation.
Future course of action:
TCS will continue to scale the Patents, Products and Platforms strategy across the
organization, harnessing the collective knowledge and creativity of internal teams and of
partners to deliver innovative solutions for customers.
Expenditure on R&D:
TCS research and innovation centres are located in India and other parts of the world.
The research centres in India, as certified by Department of Scientific & Industrial
Research (DSIR), function from Pune, Chennai, Bengaluru, Delhi- NCR, Hyderabad, Kolkata
and Mumbai.
Expenditure incurred in the R&D centers and innovation centers of TCS during FY
2023 and FY 2022 are given below:
|
|
|
|
(Rs crore) |
Expenditure on R&D and innovation |
Standalone |
Consolidated |
|
FY 2023 |
FY 2022 |
FY 2023 |
FY 2022 |
a. Capital |
1 |
_* |
1 |
_* |
b. Recurring |
375 |
337 |
380 |
341 |
c. Total R&D expenditure (a+b) |
376 |
337 |
381 |
341 |
d. Innovation center expenditure |
2,048 |
1,841 |
2,119 |
1,901 |
e. Total R&D and innovation expenditure (c+d) |
2,424 |
2,178 |
2,500 |
2,242 |
f. R&D and innovation expenditure as a percentage of total turnover |
1.3% |
1.4% |
1.1% |
1.2% |
*Represents value less than Rs0.50 crore
Foreign exchange earnings and outgo
Export revenue constituted 94.3 percent of the total standalone revenue in FY 2023
(94.0 percent in FY 2022).
|
|
(Rs crore) |
Foreign exchange earnings and outgo |
FY 2023 |
FY 2022 |
a. Foreign exchange earnings |
1,83,412 |
1,55,240 |
b. CIF Value of imports |
144 |
216 |
c. Expenditure in foreign currency |
75,786 |
63,689 |
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 12, 2023 |
|