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 2023	INR	USD
Revenue	2,254.58B	28,053.87M
Gross Profit	910,330M	11,327.29M
Operating income	542,370M	6,748.74M
Income before tax	569,070M	7,080.97M
Net income	421,470M	5,244.37M
EBITDA	592,590M	7,373.63M
Diluted EPS	115.19	1.43
Dividends Per Share	--	--
Total Assets	1,436.51B	17,479.51M
Total liabilities	524,450M	6,381.52M
Total equity	904,240M	11,002.82M
Operating cash flow	442,790M	5,509.66M
	Currency in INR	Currency in USD

Historical Data

INR | USD

	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Revenue	1,464.63B	1,569.49B	1,641.77B	1,917.54B	2,254.58B
Gross Profit	525,610M	526,260M	536,220M	610,240M	910,330M
Operating income	376,700M	385,800M	424,810M	484,530M	542,370M
Income before tax	415,630M	422,480M	437,600M	516,870M	569,070M
Net income	314,720M	323,400M	324,300M	383,270M	421,470M
EBITDA	397,260M	421,090M	465,460M	530,570M	592,590M
Diluted EPS	83.04	86.18	86.70	103.61	115.19
Dividends Per Share	30	33	38	43	--
Total Assets	1,149.43B	1,208.99B	1,307.59B	1,415.14B	1,436.51B
Total liabilities	250,440M	361,500M	436,510M	516,680M	524,450M
Total equity	894,460M	841,260M	864,330M	891,390M	904,240M
Operating cash flow	310,440M	351,820M	409,060M	419,550M	442,790M

	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Revenue	20,940.42M	22,134.80M	22,115.84M	25,735.46M	28,053.87M
Gross Profit	7,514.86M	7,421.93M	7,223.27M	8,190.08M	11,327.29M
Operating income	5,385.83M	5,441.00M	5,722.50M	6,502.91M	6,748.74M
Income before tax	5,942.43M	5,958.31M	5,894.79M	6,936.95M	7,080.97M
Net income	4,499.68M	4,560.96M	4,368.55M	5,143.89M	5,244.37M
EBITDA	5,679.79M	5,938.70M	6,270.08M	7,120.82M	7,373.63M
Diluted EPS	1.18	1.21	1.16	1.39	1.43
Dividends Per Share	0.42	0.46	0.51	0.57	--
Total Assets	16,592.27M	15,981.09M	17,884.32M	18,675.55M	17,479.51M
Total liabilities	3,615.15M	4,778.50M	5,970.28M	6,818.60M	6,381.52M
Total equity	12,911.72M	11,120.23M	11,821.71M	11,763.64M	11,002.82M
Operating cash flow	4,438.49M	4,961.78M	5,510.33M	5,630.81M	5,509.66M

Valuation Measures

Mar 2023
PER	27.83
ROA	29.55%
ROE	46.94%
Operating margin	24.05%
Profit margin	18.69%

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. (72.2%)
Life Insurance Corporation of India (Investment Portfolio) (4.4%)
SBI Funds Management Pvt Ltd. (0.9%)
Invesco Advisers, Inc. (0.8%)
The Vanguard Group, Inc. (0.8%)
BlackRock Fund Advisors (0.6%)
Axis Asset Management Co. Ltd. (0.5%)
UTI Asset Management Co. Ltd. (Investment Management) (0.3%)
First Sentier Investors (Australia) IM Ltd. (0.3%)
Norges Bank Investment Management (0.2%)

Contact Details

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

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Last Updated on 31 May, 2023