Latest news with #N.Chandrasekaran
The Hindu
4 days ago
- Business
- The Hindu
Rise of automation promises a future of ‘dark factories', says TCS' Chandrasekaran
IT and business services were rapidly moving toward autonomous operations, and the rise of autonomous robots and AI agents promised a future of 'dark factories' and AI-assisted enterprise functions, said N. Chandrasekaran, chairman, Tata Consultancy Services on Tuesday (May 27, 2025). He said, 'The path is clear: IT and business services are moving toward autonomous operations. The rise of autonomous robots and AI agents promises a future of 'dark factories' and AI-assisted enterprise functions,'' he said in TCS Annual Report FY2025 released on Tuesday. The single most transformative force in 2024 was Generative AI, which achieved near-human reasoning capabilities, he said in his letter to shareholders. ''GenAI is not just another tech cycle—it is a civilisational shift. TCS is uniquely positioned to lead this transition, with its domain expertise, deep client relationships, and contextual knowledge,'' he assured them. He further said, software development was being redefined by AI-led modernisation, as legacy code was being transformed rapidly. Agentic AI was being embedded deeply into enterprise systems. Looking ahead, TCS has charted out four distinct progressions: 1. Establish a large pool of AI agents working alongside our human workforce, 2. Deliver solutions through a human+AI model, 3. Consciously invest in AI data centers and cloud infrastructure and 4. Forge industry-best partnerships with hardware providers, solution innovators, and startups. On geopolitical landscape According to Mr. Chandrasekaran, who is also the chairman of Tata Sons and Tata Group, the evolving geopolitical landscape and the emergence of a multipolar world are now reshaping how global businesses operate. ''We are in the midst of an irreversible transition towards green energy; businesses must adapt by developing market-appropriate solutions,'' he said adding TCS has developed an AI-powered clever energy platform that has been helping clients optimise energy consumption, reducing emissions and energy costs. He further said, the financial year 2025 was a year of profound global disruption. 'In the face of this turbulence, TCS demonstrated exceptional resilience.'' TCS's financial performance was robust, Mr. Chandrasekaran said, with FY 2025 revenue of over $30 billion and an industry-leading operating margin of 24.3%. On Gen AI and AI Significant innovation was happening in the AI ecosystem across infrastructure, data platforms, models, and AI native business applications, said TCS, CEO and MD, K. Krithivasan in the report. ''These innovations are forcing companies to invest in technology modernisation and rapidly adopt AI to meet evolving customer expectations. Across industries, clients are increasingly shifting their focus from use case based approach to ROI led scaling of AI,'' he said. Mr. Krithivasan's salary saw a 4.6% increase in FY25 to ₹26.52 crore, as per the report.
Mint
4 days ago
- Business
- Mint
Tata Sons feels the heat as TCS shrinks dividend for the first time in 20 years
Bengaluru: Tata Sons received less money from Tata Consultancy Services Ltd in 2024-25 than in the year before, a first year-over-year decline since India's largest information technology services company went public in August 2004. TCS had accounted for about 84% of the Tata Group holding company's total income in 2023-24. Tata Sons earned ₹1,333 crore less in FY25 dividend income from TCS at a time when it needs more money to bankroll its group companies' new but loss-making businesses, including assembling iPhones for Apple Inc. (Tata Electronics Pvt. Ltd), running Air India, and building an e-commerce business under Tata Digital Ltd. TCS returned ₹45,588 crore to shareholders in FY25, representing a 4% decline from the ₹47,445 crore it distributed to shareholders in FY24, according to the company's annual report released on Wednesday. As Tata Sons owns 71.77% of TCS, it received ₹32,718.6 crore as dividend income for FY25, down from ₹34,051.27 crore for FY24. TCS's shareholder payout ratio as a percentage of total free cash flow in FY25 totalled 93.9%—the lowest since FY19, when it was 92.6%. In FY24, the ratio was 101.8%. Also read | Accenture and Infosys have beaten TCS. What is N. Chandrasekaran planning? Mint could not Independently ascertain the reason behind TCS distributing less money to its shareholders in the previous financial year. However, two executives, including a public investor in TCS, said the lower shareholder payout could signal that the Mumbai-headquartered company intends to invest more money in its information technology (IT) services business. 'The management needs to clarify if this decline (shareholder payout) is a one-off or if TCS would pay about 92-95% of free cash flow to shareholders," said the investor on condition of anonymity. 'Long-term investors like us understand that the business needs investments, especially as GenAI (generative artificial intelligence) technologies take centrestage." TCS did not immediately reply to an email seeking an explanation for the company's decision to return less cash to shareholders. TCS's relative resiliency Since going public in 2004, TCS has seen its parent and public shareholders earn more money year after year. The only aberration was when TCS returned ₹10,206 crore to shareholders in FY16 after giving them ₹18,088 crore the previous financial year. This was because TCS had given a special dividend of ₹9,166 crore in FY15 to commemorate 10 years since it went public. Presently, though, TCS's lower shareholder payout comes as the IT services company faces a challenging environment. TCS's revenue improved 3.8% to $30.18 billion in FY25 while net profit rose 2% to $5.74 billion. However, for the first time, TCS failed to fulfil its promise of annual salary hikes to its 607,979 employees. TCS offers a wage hike at the start of a fiscal year; however, in April, the company's management, citing macroeconomic uncertainty, said it would decide on salary increases later in the year. Also read | Will IT get better or worse? TCS points to cautious growth ahead For this reason, some analysts have started voicing concerns. 'TCS managed the 2008-09 recession quite well and gained better market share after the recession compared with peers such as Infosys. We believe relative resiliency versus peers is lower in the current environment," Kotak Institutional Equities analysts Kawaljeet Saluja, Sathishkumar S., and Vamshi Krishna said in a note dated 11 April. 'TCS has not been able to outperform Tier 1 peers on revenue growth in the past couple of years, despite the demand environment being more conducive to cost take-outs, TCS' area of strength. Performance in developed markets in FY2025 has been disappointing. Revenue declined 0.2% in developed markets, significantly lower than our estimates for Infosys and HCLT (HCL Technologies), indicating market share losses for TCS," they added. Also read | Tech's Big Five cautious on salary hikes, hiring TCS: Most generous Tata Sons has earned ₹1,49,127 crore from TCS in dividends and share buybacks since FY21. It earned an additional ₹9,362.3 crore when it sold 0.65% of TCS shares in March last year—adding up to ₹1,58,489.35 crore ($18.5 billion) in five years. This inflow of cash from TCS helped Tata Sons pay off over ₹20,000 crore in debt, enabling the Tata Group holding company to start and run new businesses and utilise some of the money in its other listed companies. Tata Sons owns shares in 26 listed companies, including TCS, Tata Motors Ltd, and Tata Steel Ltd, which cumulatively earned over $165 billion in revenue in FY24. Tata Sons is owned 65.9% by Tata Trusts, 12.87% by half a dozen Tata Group companies, and 18.4% by the Mistry family (of the Shapoorji Pallonji Group). TCS, despite its lower shareholder payout ratio of 93.9% in FY25, is among the most generous of India's Big Five IT services companies. Infosys Ltd's capital allocation policy states that the country's second-largest IT services company will return 85% of its free cash flow to shareholders. HCLTech, India's third-largest IT services firm, has promised to return 75% of its profits to shareholders, while Wipro Ltd has assured investors of 50% of its earnings. Tech Mahindra Ltd has announced that it will distribute all its extra cash in dividends. Also read | Tata Sons goes debt-free as it seeks listing exemption
Time of India
6 days ago
- Automotive
- Time of India
Tata Motors Demerger: Everything You Need to Know
Indian conglomerate Tata Group is planning to split its automotive business into two listed companies—one for passenger vehicles and another for commercial vehicles. This demerger is expected to boost employment and aligns with the company's long-term growth strategy. Here are the key highlights: How will segregation work? The Tata Motors Group will be divided into two separate listed entities: Tata Motors Passenger Vehicles (TMPV) – This will include the passenger vehicle segment, electric vehicles, and Jaguar Land Rover (JLR).TML Commercial Vehicles (TMLCV) – This entity will focus exclusively on commercial vehicles. What will be the impact? Tata Sons Chairman N. Chandrasekaran described the demerger as a strategic move to accelerate business performance. 'The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation—delivering superior experiences for customers, rewarding careers for employees, and long-term returns for shareholders,' he said in the company's 80th Integrated Annual Report. In FY25, a tough year for Tata Motors, commercial vehicle sales declined by 5.1 per cent year-on-year to 384,704 units, and passenger vehicle sales slipped 3 per cent to 556,367 units. When is it expected to happen? The business split is expected to be completed in the second half of 2025. According to the company's investor presentation earlier this year, the demerger is likely to be wrapped up by Q3 of FY26. Tata Motors' share division As per the Composite Scheme of Arrangement, shareholders of Tata Motors Ltd (TML) will receive- One share of TMLCV (face value ₹2) for every one fully paid-up share of ₹2 held in TML of the same class. Advisors for the Tata Motors Demerger The company has appointed key advisors to facilitate the demerger: PwC Business Consulting Services LLP – Share entitlement report providerSBI Capital Markets – Fairness opinion advisor for the share entitlement ratioAZB & Partners – Legal advisors to the transactionDeloitte Touche Tohmatsu India LLP – Tax advisors for the transaction
Mint
15-05-2025
- Business
- Mint
Best stocks to buy today: Expert Raja Venkatraman's recommendations for 15 May
Markets remained volatile on May 14, with early gains quickly erased due to profit booking and persistent caution around geopolitical tensions. While the Nifty and Sensex ended marginally higher, sentiment was subdued as banking stocks dragged, even as IT, media, metal, and realty provided support at lower levels. The Sensex closed 182 points higher at 81,330.56, while the Nifty added 88 points to end at 24,666.90. Mixed global cues and ongoing uncertainty continue to weigh on investor confidence. Domestic macro signals offer some relief, but it remains to be seen whether they can support the market in the coming days. Also read: Tata Motors' windscreen is hazy amid the fog of tariffs Here are two stocks to buy or sell as recommended by Raja Venkatraman GREENPANEL : Buy CMP and dips to ₹230, stop ₹223 target ₹281- 298 SOLARA : Buy CMP and dips to ₹550, stop ₹540 target ₹610- 625 Outlook for trading With no clear trend emerging, the market now appears to be drifting into a range-bound scenario, as hesitation continues to linger. The absence of directional cues is holding back many participants, and the gradual movements, amid mixed information flows, are preventing any strong continuation. We continue to highlight the same zones shared yesterday, as there has been little change in the options data. This suggests that levels around 24,600 remain a good area to consider for a long position, while any move below 24,500 would indicate a breakdown. All hope is not lost, however. Q4 numbers have been better on a year-on-year basis, and if that helps ignite a trend, we may see a potential revival. With the momentum indicator also charged up, the focus could remain on a possible recovery. Also read: Five fundamentally strong stocks down nearly 40% in the past one year Source: TradingView Also read: Accenture and Infosys have beaten TCS. What is N. Chandrasekaran planning? Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
