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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 information technology services, consulting, and business solutions organization. The firm offers a consulting-led, cognitive powered, portfolio of business, technology, and engineering services and solutions. It operates through the following segments: Banking, Financial Services, and Insurance; Manufacturing; Retail and Consumer Business; Communication; Media and Technology; and Others, such as energy, resources and utilities, life sciences and healthcare, s-governance, and products. The company was founded in April 1968 and is headquartered in Mumbai, India.

Financial Highlights

Mar 2022 INRUSD
Revenue1,917.54B25,735.46M
Gross Profit610,240M8,190.08M
Operating income484,530M6,502.91M
Income before tax516,870M6,936.95M
Net income383,270M5,143.89M
EBITDA530,570M7,120.82M
Diluted EPS103.611.39
Dividends Per Share430.57
Total Assets1,415.14B18,675.55M
Total liabilities516,680M6,818.60M
Total equity891,390M11,763.64M
Operating cash flow419,550M5,630.81M
Currency in INRCurrency in USD

Historical Data

 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 1,231.04B 1,464.63B 1,569.49B 1,641.77B 1,917.54B
Gross Profit 385,240M 525,610M 526,260M 536,220M 610,240M
Operating income 302,040M 376,700M 385,800M 424,810M 484,530M
Income before tax 340,920M 415,630M 422,480M 437,600M 516,870M
Net income 258,260M 314,720M 323,400M 324,300M 383,270M
EBITDA 322,180M 397,260M 421,090M 465,460M 530,570M
Diluted EPS 67.09 83.04 86.18 86.70 103.61
Dividends Per Share 25 30 33 38 43
Total Assets 1,062.96B 1,149.43B 1,208.99B 1,307.59B 1,415.14B
Total liabilities 207,660M 250,440M 361,500M 436,510M 516,680M
Total equity 851,280M 894,460M 841,260M 864,330M 891,390M
Operating cash flow 276,590M 310,440M 351,820M 409,060M 419,550M
 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 19,095.94M 20,940.42M 22,134.80M 22,115.84M 25,735.46M
Gross Profit 5,975.85M 7,514.86M 7,421.93M 7,223.27M 8,190.08M
Operating income 4,685.25M 5,385.83M 5,441.00M 5,722.50M 6,502.91M
Income before tax 5,288.36M 5,942.43M 5,958.31M 5,894.79M 6,936.95M
Net income 4,006.13M 4,499.68M 4,560.96M 4,368.55M 5,143.89M
EBITDA 4,997.66M 5,679.79M 5,938.70M 6,270.08M 7,120.82M
Diluted EPS 1.04 1.18 1.21 1.16 1.39
Dividends Per Share 0.38 0.42 0.46 0.51 0.57
Total Assets 16,297.64M 16,592.27M 15,981.09M 17,884.32M 18,675.55M
Total liabilities 3,183.90M 3,615.15M 4,778.50M 5,970.28M 6,818.60M
Total equity 13,052.09M 12,911.72M 11,120.23M 11,821.71M 11,763.64M
Operating cash flow 4,290.47M 4,438.49M 4,961.78M 5,510.33M 5,630.81M

Valuation Measures

Mar 2022
PER36.08
ROA28.15%
ROE43.65%
Operating margin25.26%
Profit margin19.98%

Key executives

  • CEO, MD & Non-Independent Executive Director: Rajesh Gopinathan
  • COO & Non-Independent Executive Director: N. Ganapathy Subramaniam
  • Chief Financial Officer: Samir Seksaria
  • Chief Technology Officer: K. Ananth Krishnan
  • Secretary & Compliance Officer: Pradeep Manohar Gaitonde

Shareholders

  • Tata Sons Pvt Ltd. (72.9%)
  • Life Insurance Corporation of India (Investment Portfolio) (3.6%)
  • The Vanguard Group, Inc. (0.8%)
  • Invesco Advisers, Inc. (0.8%)
  • SBI Funds Management Pvt Ltd. (0.7%)
  • BlackRock Fund Advisors (0.6%)
  • Axis Asset Management Co. Ltd. (0.6%)
  • GIC Pte Ltd. (Investment Management) (0.3%)
  • UTI Asset Management Co. Ltd. (Investment Management) (0.3%)
  • JPMorgan Asset Management (UK) Ltd. (0.3%)

Contact Details

  • Website:http://www.tcs.com
  • Address: Nirmal Building, Nariman Point, Mumbai, 400021, India
  • Phone: +91.22.67789595

Related Companies

  • SAUDI DESERT ROSE HOLDING B.V.
  • Tata Consultancy Services Philippines, Inc. (Philippines)
  • Tata Sons & Consultancy Services Employees Welfare Trust
  • TCS e-Serve America, Inc.
  • MGDC SC
  • Technology Outsourcing SAC
  • TCS Uruguay SA
  • TCS Inversiones Chile Ltda.
  • Tata Consultancy Services Argentina SA
  • TCS Solution Center SA
  • TCS Iberoamerica SA
  • TCS Financial Solutions Beijing Co., Ltd.
  • TCS FNS Pty Ltd.
  • TCS Business Services GmbH
  • Tata Consultancy Services Danmark ApS
  • Tata Consultancy Services Osterreich GmbH
  • Tata Consultancy Services (Thailand) Ltd.
  • PT Tata Consultancy Services Indonesia
  • Tata Consultancy Services Saudi Arabia
  • Tata Consultancy Services Qatar SSC
  • Tata Consultancy Services (Africa) (Pty) Ltd.
  • Tata Consultancy Services (South Africa) (Pty) Ltd.
  • Tata Consultancy Services Employees Gratuity Fund
  • Tata Consultancy Services Employees Provident Fund
  • 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) Unipessoal Ltda.

Competitors

  • FPT Corp.
  • Hitachi,Ltd.
  • Capita plc
  • Capgemini SE
  • Sopra Steria Group SA
  • Globant SA
  • Atos SE
  • DATAGROUP SE
  • Cognizant Technology Solutions Corporation Class A
  • Amdocs Limited
  • Kyndryl Holdings Incorporation
  • Infotel SA
  • Rimini Street Inc Class A
  • EPAM Systems, Inc.
  • Deutsche Telekom AG
  • NetSol Technologies, Inc.
  • Intellect Design Arena Ltd
  • Endava Plc Sponsored ADR Class A
  • Cigniti Technologies Limited
  • CI&T, Inc. Class A
  • Innodata Inc.
  • Grid Dynamics Holdings, Inc. Class A
  • Arabian Internet and Communications Services Company
  • Mastech Digital, Inc.
  • Addnode Group AB Class B
  • Duck Creek Technologies, Inc.
  • ExlService Holdings, Inc.
  • CLPS, Inc.
  • Firstsource Solutions Limited
  • Teleperformance SA
Last Updated on 1 Jul, 2022

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