TCS in jitters as Chandrasekaran moves to Tata HQ's
Under Chandrasekaran�s leadership value of TCS shares have quadrupled. But now there is panic among the TCS investors, as TCS shares fell more than 4 percent with in one day after his elevation to TATA headquarters.
The appointment of Natarajan Chandrasekaran to head the TATA Sons' holding company has sent shockwaves among investors of the IT major.
Under Chandrasekaran’s leadership value of TCS shares have quadrupled. But now there is panic among the TCS investors, as TCS shares fell more than 4 percent with in one day after his elevation to TATA headquarters.
"The IT industry is facing headwinds, and shareholders would have preferred Chandra to stay as CEO for some more time," said Souvik Guha, an investor and analyst.
Despite facing the heat in the global downward trend, TCS still contributes to nearly 90 % TATA’s total income. "Investors were more confident about Chandra," said a TCS employee. "In a tough time when volume growth is elusive, you want someone with a proven track record and it would been preferable to have someone from the business side," said sources.
Rajesh Gopinathan, who is known as an operations expert is the new head of TCS, as TCS is staring at a bleak future in the light of low growth and a fall in profits in the industry.
The IT industry is hit by curbs in the US since the Donald Trump is determined on reducing the number of Visas to Indian software professionals to US.