Tata Consultancy Services Ltd.

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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	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

INR | USD

	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. (72.0%)
Life Insurance Corp of India (4.1%)
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%)
First Sentier Investors (Australia) IM Ltd. (0.5%)
Axis Asset Management Co. Ltd. (0.5%)
GIC Pte Ltd. (Investment Management) (0.4%)

Contact Details

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

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Competitors

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Last Updated on 2 Jul, 2020