Company Analysis - TCS (Tata Consultancy Services)

1

Meet Bhadra Hasti Bhanushali Rewat Bharsakle Kaustubh Barve Yogita Bhadekar

GROUP MEMBERS2

CONTENTS

3

INTRODUCTION FINANCIAL STATEMENTS SHAREHOLDING PATTERN REVENUE AND EXPENSES RATIO ANALYSIS CONCLUSION

INTRODUCTION

4

TYPE : PUBLICINDUSTRY : IT SERVICES, IT CONSULTING.FOUNDER: J R D TATA (Jehengir Ratanji Dadabhoy Tata) in

1968KEY PEOPLE: Cyrus Mistri (Chairman)

Natarajan Chandrashekaran (CEO & MD) AREAS SERVED : WORLDWIDEPARENT COMPANY: TATA GROUPSUBSIDARIES: CMC LIMITED, TCS CHINA ,TRDDC, TCS E-

SERVE LTD.HEADQUATER : MUMBAI,MAHARASHTRA, INDIA

CORPORATE FACTS

5

Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global businesses, ensuring a level of certainty that no other firm can match.

 TCS is the largest Indian company by market capitalization and is the largest India-based IT services company by 2013 revenues.

CORPORATE FACTS

6

Revenue of $11.6 billion; up 13.7% over prior year; net income at $2.6B; up 15.6% (fiscal year ending March 31, 2013).

TCS is second among most valuable it firms in the world.

TCS has over 276,000 of the world’s best-trained IT consultants in 44 countries.

TCS operates in 44 countries and has 199 branches across the world

SERVICES

FULL SERVICE PORTFOLIO Application development and

maintenance Asset leverage solutions Assurance services Business process outsourcing Consulting Engineering and Industrial

services Enterprise solutions IT infrastructure services

NEW SERVICES

Mobility Connected Marketing Social Computing Big Data Cloud

INDUSTRIES SERVICED

Banking, Financial Services

Insurance Retail and

Consumer Packaged Goods

Telecom Media and

Information Services

High Tech Manufacturing Life Sciences Healthcare Energy and Utilities Construction Metals and Mining Travel, Transportation

and Hospitality

8

AWARDS AND RECOGNITIONS

9

TCS was awarded the Business Standard's Company of the Year award for 2012.

Gold Shield award for excellence in financial reporting from the ICAI in 2012

Won 'Recruiting and Staffing Industry Leader of the Year' and ‘Best Employer Brand’ awards at the World HRD Congress' annual meet in 2012

FINANCIAL STATEMENTS10

SOURCES OF FUNDS

11

Mar/10 Mar/11 Mar/12 Mar/130.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

45,000.00

18,466.72

24,504.8129,579.23

38,645.73103.25

74.8

116.26

211

Total DebtNet Worth

APPLICATION OF FUNDS

12

Mar/10 Mar/11 Mar/12 Mar/130.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

7,494.20

14,326.8418,795.50

25,931.33

3,682.08

1,762.67

1,350.33

1,897.34

6,738.03

7,479.09

8,662.06

9,828.01

Net BlockInvestmentCurrent Assets

SHAREHOLDERS

13

Promoters 14%

public shareholding86%

Shareholders

Promoters Public Shareholding

SHAREHOLDERS

14

Institutional422.2683%

Non-Institutional87.4117%

Public shareholdings

InstitutionalNon-Institutional

15

Mar/10 Mar/11 Mar/12 Mar/130

10000

20000

30000

40000

50000

60000

70000

30028.9237324.5

48893.83

62989.48250.64

602.92

428.17

1178.23

Other IncomeSales Turnover

SOURCES OF INCOME

16

Consulting1.09%

Application Develop-ment And

Maintenance48.7Business Process

Outsourcing11.52%

Enterprise solutions

including in-telligence

16.2%

IT infrastruc-ture

services 8.36%

Assuranceservices

5.03

Engineering andindustrial services

5%Asset leverage

Solutions3.29%

REVENUE(2010)

BREAKUP OF REVENUE(IN PERCENTAGE)

TOTAL=62989.48 CR

Consulting 3.03%

Application Development And Mainte-

nance42.80 %

Business ProcessOutsourcing

12.47 %

Enterprise so-lutions

including intel-ligence 15.20 %

IT infrastruc-ture

services 11.48 %

Assuranceservices 7.71 %

Engineering andindustrial services

4.61 % Asset leverage solutions 2.70 %

TOTAL=30028.92 CR

REVENUE(2013)

17

Mar/10 Mar/11 Mar/12 Mar/130

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

21291.51

26145.07

34458.52

44949.57

Expenses

Expenses

ALLOCATION OF EXPENSES

18

Employee Cost

51.11%

Other Manu-facturing

Expenses43.18 %

Miscellaneous Expenses

5.71%

Expenses(2010)

TOTAL=21,291.51 CR

Employee Cost

53.49 %Other Manu-

facturing Expenses33.63 %

Miscella-neous

Expenses12.88%

TOTAL= 44,949.57 CR

Expenses(2013)

BREAK UP OF TOTAL EXPENSES(IN PERCENTAGE)

19

Analysis of Percentage Of Repeat Business Of TCS

2010 2011 2012 2013

Percentage of repeat business

97.8% 98.4% 97.5% 98.6%

20

2010 2011 2012 20130

2000

4000

6000

8000

10000

12000

14000

16000

7092.66

9189.79

10523.45

14075.69

NetProfit ( in Rs. Crore)

NetProfit ( in Rs. Crore)

NET PROFIT

21

2010 2011 2012 201319.5

20

20.5

21

21.5

22

22.5

23

23.5

24

24.5

23.07

23.93

21.11

21.68

Net Profit ( in %)

Net Profit ( in %)

NET PROFIT

RATIO ANALYSIS22

23

2010 2011 2012 20130

0.5

1

1.5

2

2.5

3

3.5

1.87

2.852.69

3

Current Ratio

Current Ratio

CURRENT RATIO

2010 2011 2012 20130

0.02

0.04

0.06

0.08

0.1

0.12

0.1 0.1 0.1 0.1

Debt Equity Ratio

Debt Equity Ratio

DEBT EQUITY RATIO

24

2010 2011 2012 20130

10

20

30

40

50

60

70

80

35.67

46.27

53.07

70.99

Earnings Per Share (in Rs.)

Earnings Per Share

EARNINGS PER SHARE

25

2010 2011 2012 20130

5

10

15

20

25

30

20

14

25

22

Dividend Per Share (in Rs.)

Dividend Per Share

26

DIVIDEND PER SHARE

CONCLUSION27

CONCLUSION

28

HIGHLIGHTS : Financial year 2012-2013, global economic

slow down.

Overcoming uncertainties was a challenge.

Higher rate of efficiency and preparedness was needed.

29

TCS on a consolidated basis, achieved a well rounded growth.

United Kingdom (44%), Latin America, (40%), North America (27%), Europe (21%), Asia Pacific (27%), Middle East Africa (28%) and India (16%).

30

Company crossed USD 3 billion revenue in a quarter during Q4 of the financial year 2012- 2013. Last quarter TCS booked profits around 34%

profit compared to last year.

Key player in IT sector.

31

Quality Initiatives :

Indias most admired knowledge enterprise (MAKE) winner -1st place. 8th time in India as well as Asia. TCS won the QuEST forum India quality award

2012 for being the first telecom software company in the world to implement the advanced surveillance.

32

and recertification procedure (ASRP) methodology for TL 9000.

A diverse workforce of 2,76,196 representing 118 nationalities.

http://en.wikipedia.org/wiki/Tata_Consultancy_Services

http://www.tcs.com/about/corp_facts/Pages/default.aspx

http://www.tcs.com/investors/Documents/Annual%20Reports/TCS_Annual_Report_2012-2013.pdf

http://www.moneycontrol.com/financials/tcs/consolidated-ratios/TCS

http://www.moneycontrol.com/bse/shareholding/shp_public_shares.php?sc_dispid=TCS#TCS

http://www.moneycontrol.com/company-facts/tataconsultancyservices/shareholding-pattern/TCS#TCS

http://www.moneycontrol.com/bse/shareholding/shp_promoters.php?sc_dispid=TCS#TCS

http://www.equitymaster.com/detail.asp?date=06/27/2013&story=2&title=What-if-Infosys-stepped-up-on-its-selling-expenses

BIBLIOGRAPGHY33

THANK YOU!

34