From TCS to Wipro, India's top IT companies a gravy train for shareholders

Top Indian IT firms returned over ₹6.4 trillion to shareholders in 10 years while reinvesting just ₹1.2 trillion, raising questions amid slowing growth and AI-led churn

India’s top information- technology (IT) services companies, all cash-rich, have  been tightfisted about ploughing back their earnings in new projects or acquisitions and the bulk of the profits have been distributed to shareholders through dividend and share buybacks.

 

In the past 10 years (that is, excluding the current one), the firms have reinvested in growth and expansion only around 13.5 per cent of the cash flow generated from their operations.

 

But, on average, nearly 73 per cent of cash profits have been returned to shareholders by way of dividend and share buybacks.  Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies,