Company profile is the section through which you can know more about good companies which are listed in Indian Stock exchanges. This section is more like a company Wikipedia and through this section you will get to know about the company genesis, full form , company profile , about its founders, customers & segments, financial information like revenue , profits etc and many other relevant information.
This week, we are focusing on TCS ( Tata Consultancy Service ).
Read below the detailed information about TCS
Company Genesis & Profile: Brief Company Profile: TCS aka Tata Consultancy Service is one of the most reputed and oldest IT companies of India. It was established in 1968 and has its headquarter in Mumbai. TCS is the largest IT employer in India and 3rd largest IT employer in the world just behind IBM and HP, employing roughly around 400,000 lakhs people across the globe. The non-indian employees are around 7% , whereas 31% employees are women.
Inception & Founders: TCS was founded in 1960s in India by JRD Tata and FC Kohli under the aegis of TATA sons limited. Initially it used to cater the needs of TISCO and then later on expanded it services to non TATA companies.
Chairman & Directors: Natarajan Chandrasekaran is the chairman & Rajesh Gopinathan is the CEO & MD of TCS.
Customer Segment & Area of Operations: TCS mainly provides services in IT, business consulting, business solutions & outsourcing services to clients in more than 42 different countries across continents. TCS delivers services in segments like BFSI, energy, telecommunication, media & information service, government, resources & utilities, life sciences , healthcare , travel , transportation and hospitality, many more.
Confidence Booster of Investors: Following pointers will boost the confidence of any stock market analyst. As these highlight the favourable business outcomes for TCS.
TCS is debt free
Tata Consulting Services has recorded a ROE of 36.45% for about 3 years
The IT giant has been able to maintain the dividend payout of 47.3%
Quick Financial Information(Last Updated on 07/02/2018):
Following table highlights Key ratios and financial variables which will help investors a lot.
TCS Quick Financial Information
Information
Market Cap.
₹ 5,73,759.85 Cr.
Current Price
₹ 2,997.25
Book Value
₹ 549.39 Cr.
Stock P/E
22.43
Dividend Yield
1.61%
Face Value
₹ 1.00
52 Week High/Low
₹ 3,259.05 / ₹ 2,214.95
Return on equity
32.80%
Debt to equity
0
Current ratio
2.71
Return on invested capital
78.47%
Return on assets
35.86%
Operating cash flow 3 years
₹ 63,700.78 Cr.
Cash from operations last year
₹ 25,223.00 Cr.
PEG Ratio
1.12
Price to Earning
22.43
Price to book value
5.46
EPS
₹ 133.61
Shareholding Pattern:
The table below highlights the approximate shareholding pattern of TCS.
Holder's Name
% Shareholding
Promoters
73.57
Foreign Institutions
16.26
Financial Institutions
4.81
General Public
3.6
Banks & Mutual Funds
1.27
Others
0.45
Central Govt
0.05
Peer Comparison(Last Updated on 07/02/2018):
The table below highlights the Top 7 companies in the same business therefore giving the easy benchmark for comparing TCS with other 6 companies in the same business.
S.No.
Name
CMP (in ₹ )
P/E
Mar Cap (in Cr.)
Div Yld %
NP Qtr (in Cr.)
Qtr Profit Var %
Sales Qtr (in Cr.)
Qtr Sales Var %
CMP / BV
1
TCS
2997.25
22.43
5,73,759.85
1.61
6545
-3.95
30904
3.93
5.46
2
Infosys
1107.75
15.32
2,41,942.80
2.44
5129
38.32
17794
3.02
2.98
3
HCL Technologies
953.85
14.81
1,32,791.94
2.58
2075
0.58
12809
8.42
3.37
4
Wipro
294.65
15.74
1,33,286.22
0.36
1930.1
-8.73
13669
-0.14
2.3
5
Tech Mahindra
606.7
18.89
59423.34
1.48
924.36
9.41
7775.96
2.89
3.13
6
Oracle Fin.Serv.
4173.85
27.47
35640.6
4.06
341.91
17.15
1189.53
11.66
8.96
7
L & T Infotech
1176.9
18.78
20234.91
1.4
282.8
14.03
1883.8
13.03
5.1
Annual & Quarterly Results:
Below is the Quarterly and Annual Results of TCS.
Quarters
Sep 2016
Dec 2016
Mar 2017
June 2017
Sep 2017
Dec 2017
Sales
29,284.00
29,735.00
29,642.00
29,584.00
30,541.00
30,904.00
Expenses
21,171.00
21,506.00
21,510.00
22,171.00
22,377.00
22,617.00
Operating Profit
8,113.00
8,229.00
8,132.00
7,413.00
8,164.00
8,287.00
OPM
27.7
27.67
27.43
25.06
26.73
26.82
Other Income
1,057.00
1,192.00
997
959
819
870
Depreciation
496
496
505
499
504
506
Interest
5
7
8
27
7
6
Profit before tax
8,669.00
8,918.00
8,616.00
7,846.00
8,472.00
8,645.00
Tax
2,066.00
2,104.00
1,994.00
1,896.00
2,012.00
2,100.00
Net Profit
6,603.00
6,814.00
6,622.00
5,950.00
6,460.00
6,545.00
Years
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
TTM
Sales
62,989.48
81,809.36
94,648.41
1,08,646.00
1,17,966.00
120671
Expenses
44,949.57
56,656.57
70,166.70
77,969.00
85,655.00
88675
Operating Profit
18,039.91
25,152.79
24,481.71
30,677.00
32,311.00
31996
OPM
28.64
30.75
25.87
28.24
27.39
26.51
Other Income
1,178.23
1,636.74
3,719.66
3,084.00
4,221.00
3645
Interest
48.49
38.52
104.19
33
32
48
Depreciation
1,079.92
1,349.15
1,798.69
1,888.00
1,987.00
2014
Profit before tax
18,089.73
25,401.86
26,298.49
31,840.00
34,513.00
33579
Tax
4,014.04
6,069.99
6,238.79
7,502.00
8,156.00
8002
Net Profit
13,917.31
19,163.87
19,852.18
24,270.00
26,289.00
25577
EPS (unadj)
67.29
93.63
87.9
115.65
124.39
-
Dividend Payout
30.94
32.71
77.95
35.32
35.23
-
Cash Flow statement:
Readers will find the cash flow statements of TCS of past 6 years.
Years
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Cash from Operating Activity
7,127.44
11,614.96
14,751.41
19,368.78
19,109.00
25,223.00
Cash from Investing Activity
-2,727.45
-6,037.61
-9,451.67
-1,807.14
-5,010.00
-16,895.00
Cash from Financing Activity
-3,955.09
-5,729.48
-5,673.24
-17,167.61
-9,666.00
-11,026.00
Net Cash Flow
444.9
-152.13
-373.5
394.03
4,433.00
-2,698.00
Balance Sheet:
The below table highlights the balance sheet position for the past 6 years.
Years
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Share Capital
295.72
295.72
195.87
195.87
197
197
Reserves
29,283.51
38,350.01
48,998.89
50,438.89
70,875.00
86,017.00
Borrowings
126.55
232.27
296.87
357.7
245
289
Other Liabilities
11,724.71
13,389.87
17,646.15
22,668.42
17,814.00
17,056.00
Total Liabilities
41,330.49
52,167.87
67,137.78
73,660.88
89,131.00
1,03,559.00
Fixed Assets
8,662.06
9,828.01
9,544.33
11,638.17
11,774.00
11,701.00
CWIP
1,446.37
1,895.36
3,168.48
2,766.37
1,670.00
1,541.00
Investments
1,350.33
1,897.34
3,433.74
1,661.78
22,822.00
41,980.00
Other Assets
29,871.73
38,547.16
50,991.23
57,594.56
52,865.00
48,337.00
Total Assets
41,330.49
52,167.87
67,137.78
73,660.88
89,131.00
1,03,559.00
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The author has over 9 years+ experience in media, traditional and digital marketing. Chirag currently leads the Marketing function at Samco Group and overlook all marketing and communications for the Samco Group.
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