Tata Consultancy Services Ltd.
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- Accenture earnings raise hopes for Indian software exporters Mar 20, 2020 See more articles on 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
Financial Highlights
| Mar 2020 | INR | USD |
| Revenue | 1,569.49B | 22,134.80M |
| Gross Profit | 526,260M | 7,421.93M |
| Operating income | 385,800M | 5,441.00M |
| Income before tax | 422,480M | 5,958.31M |
| Net income | 323,400M | 4,560.96M |
| EBITDA | 421,090M | 5,938.70M |
| Diluted EPS | 86.18 | 1.21 |
| Dividends Per Share | 33 | 0.46 |
| Total Assets | 1,208.99B | 15,981.09M |
| Total liabilities | 361,500M | 4,778.50M |
| Total equity | 841,260M | 11,120.23M |
| Operating cash flow | 351,820M | 4,961.78M |
| Currency in INR | Currency in USD |
Historical Data
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
| Revenue | 1,086.46B | 1,179.66B | 1,231.04B | 1,464.63B | 1,569.49B |
| Gross Profit | 363,350M | 382,680M | 385,240M | 525,610M | 526,260M |
| Operating income | 287,890M | 303,240M | 302,040M | 376,700M | 385,800M |
| Income before tax | 318,400M | 345,130M | 340,920M | 415,630M | 422,480M |
| Net income | 242,700M | 262,890M | 258,260M | 314,720M | 323,400M |
| EBITDA | 306,770M | 323,110M | 322,180M | 397,260M | 421,090M |
| Diluted EPS | 61.58 | 66.71 | 67.09 | 83.04 | 86.18 |
| Dividends Per Share | 21.75 | 23.50 | 25 | 30 | 33 |
| Total Assets | 890,960M | 1,032.52B | 1,062.96B | 1,149.43B | 1,208.99B |
| Total liabilities | 176,690M | 166,720M | 207,660M | 250,440M | 361,500M |
| Total equity | 710,720M | 862,140M | 851,280M | 894,460M | 841,260M |
| Operating cash flow | 209,160M | 269,920M | 276,590M | 310,440M | 351,820M |
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
| Revenue | 16,594.56M | 17,591.88M | 19,095.94M | 20,940.42M | 22,134.80M |
| Gross Profit | 5,549.79M | 5,706.78M | 5,975.85M | 7,514.86M | 7,421.93M |
| Operating income | 4,397.22M | 4,522.11M | 4,685.25M | 5,385.83M | 5,441.00M |
| Income before tax | 4,863.23M | 5,146.81M | 5,288.36M | 5,942.43M | 5,958.31M |
| Net income | 3,706.99M | 3,920.39M | 4,006.13M | 4,499.68M | 4,560.96M |
| EBITDA | 4,685.59M | 4,818.43M | 4,997.66M | 5,679.79M | 5,938.70M |
| Diluted EPS | 0.94 | 0.99 | 1.04 | 1.18 | 1.21 |
| Dividends Per Share | 0.33 | 0.35 | 0.38 | 0.42 | 0.46 |
| Total Assets | 13,454.03M | 15,900.82M | 16,297.64M | 16,592.27M | 15,981.09M |
| Total liabilities | 2,668.12M | 2,567.49M | 3,183.90M | 3,615.15M | 4,778.50M |
| Total equity | 10,732.30M | 13,276.96M | 13,052.09M | 12,911.72M | 11,120.23M |
| Operating cash flow | 3,194.70M | 4,025.22M | 4,290.47M | 4,438.49M | 4,961.78M |
Valuation Measures
| Mar 2020 | |
| PER | 21.15 |
| ROA | 27.42% |
| ROE | 37.26% |
| Operating margin | 24.58% |
| Profit margin | 20.60% |
Key executives
- CEO, MD & Non-Independent Executive Director: Rajesh Gopinathan
- COO & Non-Independent Executive Director: N. Ganapathy Subramaniam
- Chief Financial Officer: Ramki Ramakrishnan
- Chief Technology Officer: K. Ananth Krishnan
- Head-Communication, Media & Information Services: Kamal Bhadada
Shareholders
- Tata Sons Pvt Ltd. (71.1%)
- Life Insurance Corp of India (3.9%)
- The Vanguard Group, Inc. (0.8%)
- Invesco Advisers, Inc. (0.7%)
- SBI Funds Management Pvt Ltd. (0.7%)
- BlackRock Fund Advisors (0.6%)
- Axis Asset Management Co. Ltd. (0.5%)
- JPMorgan Asset Management (UK) Ltd. (0.4%)
- GIC Pte Ltd. (Investment Management) (0.4%)
- Vontobel Asset Management, Inc. (0.3%)
Contact Details
- Website:http://www.tcs.com
- Address: Nirmal Building, Nariman Point, Mumbai, 400021, India
- Phone: +91.22.67789595
Related Companies
- Tata Consultancy Services Philippines, Inc. (Philippines)
- Tata Sons & Consultancy Services Employees Welfare Trust
- TCS e-Serve America, Inc.
- MGDC SC
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- TCS Uruguay SA
- TCS Inversiones Chile Ltda.
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- 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.
- BridgePoint Group LLC
Competitors
- International Business Machines Corporation
- Sopra Steria Group SA
- Capgemini SE
- Cognizant Technology Solutions Corporation Class A
- Virtusa Corporation
- Atos SE
- Globant SA
- Amdocs Limited
- Infotel SA
- NetSol Technologies, Inc.
- EPAM Systems, Inc.
- Perficient, Inc.
- Endava Plc Sponsored ADR Class A
- Intellect Design Arena Ltd
- Optiva Inc.
- Cigniti Technologies Limited
- 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
- Nagarro SE
- Shenzhen Farben Information Technology Co. Ltd. Class A
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Last Updated on 22 Jan, 2021
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