ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Technology Services

TATA CONSULTANCY SERVICES LTD

Company Background

Tata Consultancy Services is a leader in India's information technology services sector and has the highest market capitalization among the country's listed companies. The key unit of the Tata group, one of India's three iconic business groups, has 300,000 employees and serves clients in more than 40 countries. It generates over 90% of its consolidated revenue abroad. Tata Sons, the Tata group holding company, is the consultancy's largest shareholder, with a stake exceeding 70%.

Tata Consultancy Services is also something of a cash cow -- one whose earnings are poured into the group's coffers. It first began tasting success before the turn of the century, back when India was transforming itself into an IT services powerhouse. In the late 1990s, computer users -- companies, governments and individuals alike -- began worrying about something that became known as the Y2K problem. It was thought that when the calendar turned over to 2000, Windows computers would default to 1900 and financial calculations would go haywire. Indian IT and outsourcing companies began receiving floods of orders from foreign companies at this time.

Tata Consultancy Services has seen more than an eightfold increase in consolidated revenues since 2004, when the company went public. It has recently shifted its focus to upgrading its main services, such as developing specialized software for clients and taking on business process outsourcing work. It is also strengthening its development systems for a new generation of information technologies, including cloud services as well as social media and big data analysis.

Business Summary

Tata Consultancy Services Ltd. is an IT services, business solutions and outsourcing organization. The firm offers consulting-led, integrated portfolio of IT and IT-enabled services which includes application development and maintenance, business intelligence, enterprise solutions, assurance services, engineering and industrial services, infrastructure services, consulting, asset leveraged Solutions and business process services. It operates through the following segments: Banking, Financial Services, & Insurance; Manufacturing; Retail & Consumer Business; Communication, Media, & Technology; and Others. The company was founded in 1968 and is headquartered in Mumbai, India.

Financial Highlights

Mar 2019 INRUSD
Revenue1,464.63B20,940.42M
Gross Profit525,610M7,514.86M
Operating income376,700M5,385.83M
Income before tax415,630M5,942.43M
Net income314,720M4,499.68M
EBITDA397,260M5,679.79M
Diluted EPS83.041.18
Dividends Per Share300.42
Total Assets1,149.43B16,592.27M
Total liabilities250,440M3,615.15M
Total equity894,460M12,911.72M
Operating cash flow310,440M4,438.49M
Currency in INRCurrency in USD

Historical Data

 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 946,484.10M 1,086.46B 1,179.66B 1,231.04B 1,464.63B
Gross Profit 302,468.90M 363,350M 382,680M 385,240M 525,610M
Operating income 226,840.50M 287,890M 303,240M 302,040M 376,700M
Income before tax 262,981.20M 318,400M 345,130M 340,920M 415,630M
Net income 198,521.80M 242,700M 262,890M 258,260M 314,720M
EBITDA 244,827.40M 306,770M 323,110M 322,180M 397,260M
Diluted EPS 50.67 61.58 66.71 67.09 83.04
Dividends Per Share 19.50 21.75 23.50 25 30
Total Assets 736,608.80M 890,960M 1,032.52B 1,062.96B 1,149.43B
Total liabilities 218,983.60M 176,690M 166,720M 207,660M 250,440M
Total equity 506,347.60M 710,720M 862,140M 851,280M 894,460M
Operating cash flow 212,676.90M 209,160M 269,920M 276,590M 310,440M
 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 15,479.72M 16,594.56M 17,591.88M 19,095.94M 20,940.42M
Gross Profit 4,946.87M 5,549.79M 5,706.78M 5,975.85M 7,514.86M
Operating income 3,709.97M 4,397.22M 4,522.11M 4,685.25M 5,385.83M
Income before tax 4,301.05M 4,863.23M 5,146.81M 5,288.36M 5,942.43M
Net income 3,246.82M 3,706.99M 3,920.39M 4,006.13M 4,499.68M
EBITDA 4,004.14M 4,685.59M 4,818.43M 4,997.66M 5,679.79M
Diluted EPS 0.82 0.94 0.99 1.04 1.18
Dividends Per Share 0.31 0.33 0.35 0.38 0.42
Total Assets 11,770.43M 13,454.03M 15,900.82M 16,297.64M 16,592.27M
Total liabilities 3,499.18M 2,668.12M 2,567.49M 3,183.90M 3,615.15M
Total equity 8,091.04M 10,732.30M 13,276.96M 13,052.09M 12,911.72M
Operating cash flow 3,478.32M 3,194.70M 4,025.22M 4,290.47M 4,438.49M

Valuation Measures

Mar 2019
PER24.08
ROA28.45%
ROE36.05%
Operating margin25.71%
Profit margin21.48%

Key executives

  • Chief Executive Officer, MD & Executive Director: Rajesh Gopinathan
  • Chief Operating Officer & Executive Director: N. Ganapathy Subramaniam
  • Chief Financial Officer: Ramki Ramakrishnan
  • Chief Technology Officer: K. Ananth Krishnan
  • Head-Business & Technology Services: Krishnan Ramanujam

Shareholders

  • Tata Sons Ltd. (72.0%)
  • Life Insurance Corp. of India (3.9%)
  • The Vanguard Group, Inc. (0.8%)
  • BlackRock Fund Advisors (0.7%)
  • SBI Funds Management Pvt Ltd. (0.6%)
  • First Sentier Investors (Australia) IM Ltd. (0.5%)
  • Invesco Advisers, Inc. (0.4%)
  • JPMorgan Asset Management (UK) Ltd. (0.3%)
  • Axis Asset Management Co. Ltd. (0.3%)
  • Vontobel Asset Management, Inc. (0.3%)

Contact Details

  • Website:http://www.tcs.com
  • Address: Nirmal Building, Nariman Point, Mumbai, 400021, India
  • Phone: +91.22.6778.9595

Related Companies

  • Gm Technical Center India Pvt Ltd. /Engineering Assets/
  • Tata Consultancy Services Malaysia Sdn. Bhd.
  • W12 Studios Ltd.
  • Tata Consultancy Services Ltd. (United Kingdom)
  • TCS Foundation
  • Tata Consultancy Services Portugal
  • BridgePoint Group LLC
  • Tata Consultancy Services (New Jersey)
  • Tata Consultancy Services (Philippines), Inc.
  • Tata Consultancy Services de Espana SA
  • Tata Consultancy Services Sucursal Del Peru
  • SUPERVALU Services India Pvt Ltd.
  • Tata Consultancy Services de Mexico SA de CV
  • Tata Consultancy Services Italia SRL
  • TCS e-Serve International Ltd.
  • Tata Consultancy Services Ltd. Filial I Finland
  • Tata Consultancy Services Netherlands BV
  • Tata Consulting Services
  • Tata Research Development & Design Centre
  • TCSJohnHuxley Ltd.
  • TCS do Brasil
  • Diligenta Ltd.
  • TCS Management Pty Ltd.
  • Tata Consultancy Services Switzerland Ltd.
  • Tata Consultancy Services Asia Pacific Pte Ltd.
  • Comicrom
  • Financial Network Services Pty Ltd.
  • Tata America International Corp.
  • WTI Advanced Technology Ltd.
  • TCS e-Serve Ltd.

Competitors

  • Sopra Steria Group SA
  • Cognizant Technology Solutions Corporation Class A
  • Atos SE
  • Capgemini SE
  • Virtusa Corporation
  • Infotel SA
  • NetSol Technologies, Inc.
  • Sify Technologies Limited Sponsored ADR
  • Globant SA
  • EPAM Systems, Inc.
  • Perficient, Inc.
  • Amdocs Limited
  • Endava Plc Sponsored ADR Class A
  • Intellect Design Arena Ltd
  • AMERI Holdings, Inc.
  • Cigniti Technologies Limited
  • Optiva Inc.
  • Proximus SA de droit public
  • Innodata Inc.
  • Mastech Digital, Inc.
  • Addnode Group AB Class B
  • ExlService Holdings, Inc.
  • Firstsource Solutions Limited
  • Teleperformance SE
  • WNS (Holdings) Limited Sponsored ADR
Last Updated on 5 Dec, 2019

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media