**TCS Underperformance Highlighted by Chairman Chandrasekaran**
**Meta Description:** TCS chairman Chandrasekaran emphasizes the company’s stock market struggles and AI leadership gaps during a recent keynote address.
**URL Slug:** tcs-chairman-chandrasekaran-stock-performance
**TCS Underperformance Highlighted by Chairman Chandrasekaran**
In a recent keynote address, Chandrasekaran, known as Chandra among his colleagues, emphasized the underperformance of Tata Consultancy Services (TCS) in the stock market. This statement came during a 30-minute presentation where he showcased a PowerPoint slide illustrating that shares of the Tata Group’s 26 publicly listed companies surged by 270% from 2020 to 2024. Notably, excluding TCS, the shares of this group experienced an impressive increase of over 530% during the same period.
Chandra expressed concern that TCS has yet to establish itself as a leader in artificial intelligence (AI) and is not fully realizing its potential. His message was clear: TCS must improve its performance. The significance of TCS to the Tata Group cannot be overstated, as it represents approximately 84% of Tata Sons’ total income in 2024 and accounts for 41% of the combined market capitalization of $365 billion as of March 31, 2024.
Chandra’s address in Dubai followed closely on the heels of another significant event that underscored his growing concerns about TCS. In early February, nearly a dozen senior executives presented their performance metrics and future goals. This annual review was not only overseen by CEO K Krithivasan but also attended by Chandra, marking the first time he evaluated the IT company’s senior leaders since relocating to Tata Sons’ corporate headquarters in February 2017.
“This is the first time the chair reviewed individual business unit heads,” noted one executive. Another remarked on Chandra’s classic approach, highlighting that the review meeting extended beyond 75 minutes. “He was sharp and encouraged us to set larger goals,” the executive added. During the reviews, Chandra expressed dissatisfaction with the company’s performance and readiness in AI, appointing two leaders to assist the CEO in addressing these challenges.
K Krithivasan took over as CEO on June 1, 2023, following the resignation of Rajesh Gopinathan in March. Gopinathan had previously succeeded Chandra in February 2017 and was granted a second five-year term in October 2021. At that time, Chandra had also voiced his disappointment regarding TCS’s performance, echoing similar sentiments expressed during the company’s annual review in Geneva in November 2021.
Less than a year after Krithivasan’s appointment, TCS’s Chief Operating Officer, Natarajan Ganapathy Subramaniam, retired upon reaching the age of 65, the designated retirement age.
**FAQ Section**
**Q: What are the main concerns raised by TCS Chairman Chandrasekaran?**
A: Chandrasekaran highlighted TCS’s underperformance in the stock market and its lack of leadership in artificial intelligence, emphasizing the need for the company to improve its overall performance.
