TCS CEO Rajesh Gopinathan resigns! IT firm’s share price rose 185% during his six-year tenure
Nearly four years ahead of the completion of his tenure, Tata Consultancy Services Ltd chief Rajesh Gopinathan resigned to “pursue his other interests” and will be replaced by company veteran K Krithivasan. Under his leadership, TCS shares have nearly tripled, revenue has almost doubled and profit has risen about 60%, as of last quarter.
Gopinathan will continue with TCS till September 15, 2023 to provide transition and support to his successor, TCS said on Thursday. Gopinathan took the reins of TCS from Chandrasekaran who was elevated to the post of Tata Sons Chairman in February 2017.
Under Gopinathan’s leadership, TCS revamped its organisational structure with specialised groups targeted to help startups as well as large global firms, eyeing revenues of up to $50 billion before 2030. TCS generated sales of $25.7 billion in the year through March 2022.
During Gopinathan’s six-year tenure as TCS CEO, the IT major’s share price rose 185% as of March 16, 2023. The company’s shares were trading at Rs 1,116 apiece in February 2017 and on Thursday, the company’s scrip on BSE closed trading at Rs 3,182. If TCS stock’s all-time high of Rs 3,968, achieved in January 2022, is considered the stock rose as much as 255% from the time Gopinathan took over as CEO.
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In a statement, Gopinathan, who spent over two decades at the IT firm, expressed satisfaction that during his tenure as CEO the company’s market capitalisation increased by $70 billion.
“The last six years of leading this iconic organisation have been most enriching and fulfilling, adding over $10 billion in incremental revenues and over $70 billion increase in market capitalisation,” said Gopinathan
Under Gopinathan’s leadership, the market capitalisation of the company crossed $100 billion during April 2018, making TCS the most valuable company in India. In 2021, TCS’ brand value grew by $1.4 billion over the prior year to $15 billion and was ranked among the Top 3 most valuable brands in the IT Services sector globally according to the Brand Finance 2021 report.
Gopinathan graduated in 1994 with an Electrical and Electronics Engineering degree from the Regional Engineering College, Tiruchirappalli (now National Institute of Technology, Tiruchirappalli). In 1996, he obtained a post-graduate diploma in Management (PGDM) from Indian Institute of Management-Ahmedabad.
”I have been harbouring a few ideas on what I want to do in the next phase of my life. After deep reflection and in discussion with the Chairman and the Board, we decided that the end of this fiscal year is a good time for me to step aside and pursue those interests,” Gopinathan said.
Gopinathan has been with TCS since 2001 and has held multiple leadership positions, including that of chief financial officer.
TCS Chairman N Chandrasekaran said that Gopinathan provided strong leadership to the company.
”Over the last 6 years, Rajesh has provided strong leadership as the MD & CEO and has laid the foundation for the next phase of TCS’ growth with significant investments in cloud, agile and automation to help clients accelerate their transformation. I am deeply appreciative of Rajesh’s enormous contribution to TCS. I wish him the very best for the future,” he said.
”After a stellar career of over 22 years with Tata Consultancy Services (TCS) and a successful stint as Managing Director and CEO during the last 6 years, Rajesh Gopinathan has decided to step down from the company to pursue his other interests,” the company said in a statement.
Krithivasan joined TCS in 1989 and has held various leadership roles in the company.
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