Tata Consultancy Services Ltd
Tata Consultancy Services is the flagship company and a part of Tata group. It is an IT services, consulting and business solutions organization that has been partnering with many of the world's largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions. #
Revenue Breakup
Based on Industry classification, company operates in 5 key verticals i.e. Banking, finance services & insurance (BFSI) which accounts for 39% of revenues, followed by, retail & consumer business (17%), Communication, media & technology (16%), Manufacturing (11%) & other platforms which accounts for the rest 17% of revenues. #
Products & Platforms
Company has a range of platforms for numerous services in the IT field:-
TCS BaNCS - dedicated platform for BFSI services.
TCS iON - Virtual learning platform available for educational institutions.
Ignio - leading cognitive automation software for enterprise IT and business solutions.
TCS ADD - platform for digital transformation of drug development and clinics trials.
TCS HOBS - plug & play business platform for subscription based services.
TCS TwinX - AI powered system to help stimulate and optimize enterprise decisions.
TCS Optumera - helps retailers to optimize their space, mix & price in an integrated manner.
TCS Omnistore - help touch points for effortless friction less customer experience and predictive operations with help of AI.
Mastercraft - Digital platform to optimally automate and manage IT processes.
Jile - DevOps platform to accelerate software development and delivery and integrate DevOps tools. #
Brand Value
TCS’ reputation for customer-centricity, domain depth and execution excellence have made it the preferred growth and transformation partner to leading corporations across the world. In recent years, TCS has significantly built its presence and strengthened its brand across all major markets. It's brand alone is valued at a value of 13.5 Billion USD. #
Geographical Concentration
TCS generates around 52% of total revenues from the Americas clients base, followed by Europe (31%), India (6%) & the rest of world accounts for the rest 11% of revenues. #
Heavy Dividend Payouts
TCS has been a generous payer to shareholders and have paid 70% of its cash flows from FY05 to FY20. It has paid about 80% of its cash flows as dividends since FY15. #
Research & Development
TCS Research and Innovation is strongly aligned with the Company’s vision of Growth and Transformation. It continues to expand its foundational research in core computing areas. In FY20, the company applied for ~5,200 patents and has been granted ~1,350 out of them. #
Its innovation labs are located in India and across the world and its R&D expenditure for FY20 was 1,867 crores. #
Clients Base
The company serves to some of the biggest conglomerates in the world like Google, Amazon, Azure, openstack, Adobe, Intel, Bosch, IBM, Apple, Oracle, Symantec, etc. #
Presently, It has ~50 clients which pays 100 Mn. USD+ on yearly basis & ~100 clients who pays 50 Mn.+ USD on yearly basis. #
Employee Base
It is recognized as a top employer brand across the major markets it operates in, including North America, Europe, UK, India, Latin America and Australia, among others. It has an employee base of 450,000+ employees of which about 37% are women. # #
- Market Cap ₹ 1,090,517 Cr.
- Current Price ₹ 2,948
- High / Low ₹ 3,345 / 1,504
- Stock P/E 34.0
- Book Value ₹ 257
- Dividend Yield 1.12 %
- ROCE 47.8 %
- ROE 37.2 %
- Face Value ₹ 1.00
Pros
- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE 34.40%
- Company has been maintaining a healthy dividend payout of 52.46%
Cons
- Stock is trading at 11.46 times its book value
- The company has delivered a poor sales growth of 10.64% over past five years.
Peer comparison
Sector: IT - Software Industry: Computers - Software - Large
Quarterly Results
Consolidated Figures in Rs. Crores / View Standalone
Mar 2018 | Jun 2018 | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
32,075 | 34,261 | 36,854 | 37,338 | 38,010 | 38,172 | 38,977 | 39,854 | 39,946 | 38,322 | 40,135 | 42,015 | |
23,423 | 25,190 | 26,576 | 27,255 | 27,936 | 28,135 | 28,752 | 28,983 | 28,971 | 28,298 | 28,622 | 29,807 | |
Operating Profit | 8,652 | 9,071 | 10,278 | 10,083 | 10,074 | 10,037 | 10,225 | 10,871 | 10,975 | 10,024 | 11,513 | 12,208 |
OPM % | 27% | 26% | 28% | 27% | 26% | 26% | 26% | 27% | 27% | 26% | 29% | 29% |
Other Income | 994 | 1,225 | 730 | 1,163 | 1,193 | 1,675 | 1,361 | 818 | 738 | 598 | -304 | 691 |
Interest | 12 | 17 | 137 | 16 | 28 | 257 | 193 | 223 | 251 | 142 | 174 | 183 |
Depreciation | 505 | 493 | 507 | 519 | 537 | 817 | 864 | 897 | 950 | 976 | 998 | 1,024 |
Profit before tax | 9,129 | 9,786 | 10,364 | 10,711 | 10,702 | 10,638 | 10,529 | 10,569 | 10,512 | 9,504 | 10,037 | 11,692 |
Tax % | 24% | 25% | 24% | 24% | 24% | 23% | 23% | 23% | 23% | 26% | 25% | 25% |
Net Profit | 6,904 | 7,340 | 7,901 | 8,105 | 8,126 | 8,131 | 8,042 | 8,118 | 8,049 | 7,008 | 7,475 | 8,701 |
EPS in Rs | 18.03 | 19.17 | 21.06 | 21.60 | 21.66 | 21.67 | 21.43 | 21.63 | 21.45 | 18.68 | 19.92 | 23.19 |
Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes |
Profit & Loss
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | TTM | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
27,813 | 30,029 | 37,325 | 48,894 | 62,989 | 81,809 | 94,648 | 108,646 | 117,966 | 123,104 | 146,463 | 156,949 | 160,418 | |
21,424 | 21,334 | 26,146 | 34,459 | 44,950 | 56,657 | 70,167 | 77,969 | 85,655 | 90,588 | 106,957 | 114,840 | 115,698 | |
Operating Profit | 6,388 | 8,695 | 11,178 | 14,435 | 18,040 | 25,153 | 24,482 | 30,677 | 32,311 | 32,516 | 39,506 | 42,109 | 44,720 |
OPM % | 23% | 29% | 30% | 30% | 29% | 31% | 26% | 28% | 27% | 26% | 27% | 27% | 28% |
Other Income | 354 | 272 | 604 | 428 | 1,178 | 1,637 | 3,720 | 3,084 | 4,221 | 3,642 | 4,311 | 4,592 | 1,723 |
Interest | 29 | 16 | 26 | 22 | 48 | 39 | 104 | 33 | 32 | 52 | 198 | 924 | 750 |
Depreciation | 564 | 661 | 735 | 918 | 1,080 | 1,349 | 1,799 | 1,888 | 1,987 | 2,014 | 2,056 | 3,529 | 3,948 |
Profit before tax | 6,150 | 8,290 | 11,021 | 13,923 | 18,090 | 25,402 | 26,298 | 31,840 | 34,513 | 34,092 | 41,563 | 42,248 | 41,745 |
Tax % | 14% | 14% | 17% | 24% | 22% | 24% | 24% | 24% | 24% | 24% | 24% | 23% | |
Net Profit | 5,256 | 7,001 | 9,068 | 10,413 | 13,917 | 19,164 | 19,852 | 24,270 | 26,289 | 25,826 | 31,472 | 32,340 | 31,233 |
EPS in Rs | 13.43 | 17.88 | 23.17 | 26.60 | 35.55 | 48.92 | 50.68 | 61.58 | 66.71 | 67.46 | 83.87 | 86.19 | 83.24 |
Dividend Payout % | 26% | 56% | 30% | 47% | 31% | 33% | 78% | 35% | 35% | 37% | 36% | 85% |
Compounded Sales Growth | |
---|---|
10 Years: | 18% |
5 Years: | 11% |
3 Years: | 10% |
TTM: | 3% |
Compounded Profit Growth | |
---|---|
10 Years: | 17% |
5 Years: | 11% |
3 Years: | 7% |
TTM: | -1% |
Stock Price CAGR | |
---|---|
10 Years: | 18% |
5 Years: | 22% |
3 Years: | 25% |
1 Year: | 39% |
Return on Equity | |
---|---|
10 Years: | 37% |
5 Years: | 35% |
3 Years: | 34% |
Last Year: | 37% |
Balance Sheet
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Sep 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
198 | 296 | 296 | 296 | 296 | 196 | 196 | 197 | 197 | 191 | 375 | 375 | 375 | |
Reserves | 15,502 | 18,171 | 24,209 | 29,284 | 38,350 | 48,999 | 50,439 | 70,875 | 86,017 | 84,937 | 89,071 | 83,751 | 94,762 |
Borrowings | 564 | 103 | 75 | 127 | 232 | 297 | 358 | 245 | 289 | 247 | 62 | 6,906 | 7,882 |
6,413 | 8,856 | 8,092 | 11,551 | 13,154 | 17,337 | 22,325 | 16,974 | 15,830 | 19,751 | 24,393 | 29,088 | 30,379 | |
Total Liabilities | 22,577 | 27,326 | 32,572 | 41,157 | 51,932 | 66,829 | 73,318 | 88,291 | 102,333 | 105,126 | 113,901 | 120,120 | 133,398 |
6,746 | 6,738 | 7,479 | 8,662 | 9,828 | 9,544 | 11,638 | 11,774 | 11,701 | 11,973 | 12,290 | 20,928 | 20,583 | |
CWIP | 705 | 1,017 | 1,194 | 1,446 | 1,895 | 3,168 | 2,766 | 1,670 | 1,541 | 1,278 | 963 | 906 | 1,035 |
Investments | 1,614 | 3,682 | 1,763 | 1,350 | 1,897 | 3,434 | 1,662 | 22,822 | 41,980 | 36,008 | 29,330 | 26,356 | 36,617 |
13,512 | 15,888 | 22,136 | 29,698 | 38,312 | 50,682 | 57,252 | 52,025 | 47,111 | 55,867 | 71,318 | 71,930 | 75,163 | |
Total Assets | 22,577 | 27,326 | 32,572 | 41,157 | 51,932 | 66,829 | 73,318 | 88,291 | 102,333 | 105,126 | 113,901 | 120,120 | 133,398 |
Cash Flows
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
5,498 | 7,359 | 6,614 | 7,127 | 11,615 | 14,751 | 19,369 | 19,109 | 25,223 | 25,067 | 28,593 | 32,369 | |
-3,435 | -5,413 | -1,431 | -2,727 | -6,038 | -9,452 | -1,807 | -5,010 | -16,895 | 3,104 | 1,645 | 8,968 | |
-1,672 | -2,381 | -4,659 | -3,955 | -5,729 | -5,673 | -17,168 | -9,666 | -11,026 | -26,885 | -27,897 | -39,915 | |
Net Cash Flow | 392 | -435 | 524 | 445 | -152 | -374 | 394 | 4,433 | -2,698 | 1,286 | 2,341 | 1,422 |
Ratios
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
ROCE % | 42% | 47% | 51% | 51% | 53% | 57% | 51% | 51% | 44% | 39% | 48% | 48% |
Debtor Days | 80 | 71 | 80 | 86 | 82 | 81 | 79 | 81 | 70 | 74 | 68 | 71 |
Inventory Turnover | 4.97 | 9.21 | 14.88 | 18.05 | 24.45 | 28.99 | 36.69 | 0.00 | 5.03 | 3.66 | 2.22 | 2.40 |
Documents
Add documentRecent announcements
- Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate 10h
- Announcement under Regulation 30 (LODR)-Press Release / Media Release 11h
- Announcement under Regulation 30 (LODR)-Press Release / Media Release 1d
- Announcement under Regulation 30 (LODR)-Press Release / Media Release 2d
- Announcement under Regulation 30 (LODR)-Press Release / Media Release 2d
View all
Annual reports
- Financial Year 2020 from bse
- Financial Year 2019 from bse
- Financial Year 2018 from bse
- Financial Year 2017 from bse
- Financial Year 2016 from bse
- Financial Year 2015 from bse
- Financial Year 2014 from bse
- Financial Year 2013 from bse
- Financial Year 2013 from nse
- Financial Year 2012 from bse
- Financial Year 2011 from bse
- Financial Year 2011 from nse
- Financial Year 2010 from bse
- Financial Year 2010 from nse