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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 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 April 1968 and is headquartered in Mumbai, India.

Financial Highlights

Mar 2020 INRUSD
Revenue1,569.49B22,134.80M
Gross Profit526,260M7,421.93M
Operating income385,800M5,441.00M
Income before tax422,480M5,958.31M
Net income323,400M4,560.96M
EBITDA421,090M5,938.70M
Diluted EPS86.181.21
Dividends Per Share330.46
Total Assets1,208.99B15,981.09M
Total liabilities361,500M4,778.50M
Total equity841,260M11,120.23M
Operating cash flow351,820M4,961.78M
Currency in INRCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 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 2016Mar 2017Mar 2018Mar 2019Mar 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
PER21.15
ROA27.42%
ROE37.26%
Operating margin24.58%
Profit margin20.60%

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. (72.0%)
  • Life Insurance Corp of India (4.2%)
  • The Vanguard Group, Inc. (0.8%)
  • Invesco Advisers, Inc. (0.7%)
  • SBI Funds Management Pvt Ltd. (0.7%)
  • JPMorgan Asset Management (UK) Ltd. (0.6%)
  • BlackRock Fund Advisors (0.5%)
  • Axis Asset Management Co. 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

  • 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.
  • BridgePoint Group LLC
  • Tata Consultancy Services (New Jersey)
  • Tata Consultancy Services (Philippines), Inc.

Competitors

  • International Business Machines Corporation
  • Sopra Steria Group SA
  • Capgemini SE
  • Cognizant Technology Solutions Corporation Class A
  • Virtusa Corporation
  • Atos SE
  • Globant SA
  • Infotel SA
  • NetSol Technologies, Inc.
  • Amdocs Limited
  • Sify Technologies Limited Sponsored ADR
  • EPAM Systems, Inc.
  • Perficient, Inc.
  • Endava Plc Sponsored ADR Class A
  • Intellect Design Arena Ltd
  • AMERI Holdings, Inc.
  • Optiva Inc.
  • Cigniti Technologies Limited
  • Proximus SA de droit public
  • Innodata Inc.
  • Mastech Digital, Inc.
  • Addnode Group AB Class B
  • Majesco
  • ExlService Holdings, Inc.
  • Firstsource Solutions Limited
  • Teleperformance SE
  • WNS (Holdings) Limited Sponsored ADR
Last Updated on 5 Aug, 2020

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