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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, & Insurance; Manufacturing; Retail & Consumer Business; Communication, Media, & 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 2021 INRUSD
Revenue1,641.77B22,115.84M
Gross Profit536,220M7,223.27M
Operating income424,810M5,722.50M
Income before tax437,600M5,894.79M
Net income324,300M4,368.55M
EBITDA465,460M6,270.08M
Diluted EPS86.701.16
Dividends Per Share380.51
Total Assets1,307.59B17,884.32M
Total liabilities436,510M5,970.28M
Total equity864,330M11,821.71M
Operating cash flow409,060M5,510.33M
Currency in INRCurrency in USD

Historical Data

 Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021
Revenue 1,179.66B 1,231.04B 1,464.63B 1,569.49B 1,641.77B
Gross Profit 382,680M 385,240M 525,610M 526,260M 536,220M
Operating income 303,240M 302,040M 376,700M 385,800M 424,810M
Income before tax 345,130M 340,920M 415,630M 422,480M 437,600M
Net income 262,890M 258,260M 314,720M 323,400M 324,300M
EBITDA 323,110M 322,180M 397,260M 421,090M 465,460M
Diluted EPS 66.71 67.09 83.04 86.18 86.70
Dividends Per Share 23.50 25 30 33 38
Total Assets 1,032.52B 1,062.96B 1,149.43B 1,208.99B 1,307.59B
Total liabilities 166,720M 207,660M 250,440M 361,500M 436,510M
Total equity 862,140M 851,280M 894,460M 841,260M 864,330M
Operating cash flow 269,920M 276,590M 310,440M 351,820M 409,060M
 Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021
Revenue 17,591.88M 19,095.94M 20,940.42M 22,134.80M 22,115.84M
Gross Profit 5,706.78M 5,975.85M 7,514.86M 7,421.93M 7,223.27M
Operating income 4,522.11M 4,685.25M 5,385.83M 5,441.00M 5,722.50M
Income before tax 5,146.81M 5,288.36M 5,942.43M 5,958.31M 5,894.79M
Net income 3,920.39M 4,006.13M 4,499.68M 4,560.96M 4,368.55M
EBITDA 4,818.43M 4,997.66M 5,679.79M 5,938.70M 6,270.08M
Diluted EPS 0.99 1.04 1.18 1.21 1.16
Dividends Per Share 0.35 0.38 0.42 0.46 0.51
Total Assets 15,900.82M 16,297.64M 16,592.27M 15,981.09M 17,884.32M
Total liabilities 2,567.49M 3,183.90M 3,615.15M 4,778.50M 5,970.28M
Total equity 13,276.96M 13,052.09M 12,911.72M 11,120.23M 11,821.71M
Operating cash flow 4,025.22M 4,290.47M 4,438.49M 4,961.78M 5,510.33M

Valuation Measures

Mar 2021
PER36.64
ROA25.77%
ROE38.02%
Operating margin25.87%
Profit margin19.75%

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: Rajendra Moholkar

Shareholders

  • Tata Sons Pvt Ltd. (72.1%)
  • Life Insurance Corp of India (3.6%)
  • The Vanguard Group, Inc. (0.9%)
  • Invesco Advisers, Inc. (0.7%)
  • SBI Funds Management Pvt Ltd. (0.7%)
  • BlackRock Fund Advisors (0.6%)
  • Axis Asset Management Co. Ltd. (0.6%)
  • JPMorgan Asset Management (UK) Ltd. (0.3%)
  • GIC Pte Ltd. (Investment Management) (0.3%)
  • Fidelity Management & Research Co. LLC (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

  • International Business Machines Corporation
  • FPT Corp.
  • Capita plc
  • Sopra Steria Group SA
  • Capgemini SE
  • Cognizant Technology Solutions Corporation Class A
  • Globant SA
  • Atos SE
  • DATAGROUP SE
  • Amdocs Limited
  • Rackspace Technology, Inc.
  • Infotel SA
  • NetSol Technologies, Inc.
  • Rimini Street Inc Class A
  • EPAM Systems, Inc.
  • Exela Technologies, Inc.
  • Endava Plc Sponsored ADR Class A
  • Intellect Design Arena Ltd
  • Cigniti Technologies Limited
  • Innodata Inc.
  • TaskUs, Inc. Class A
  • Grid Dynamics Holdings, Inc. Class A
  • Mastech Digital, Inc.
  • Addnode Group AB Class B
  • ExlService Holdings, Inc.
  • CLPS, Inc.
  • Firstsource Solutions Limited
  • Teleperformance SA
  • WNS (Holdings) Limited Sponsored ADR
Last Updated on 21 Oct, 2021

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