TCS

₹3895.9 -64.2 | 1.6%

WEBSITE BSE:532540 NSE : TCS LTD. 10 May, 16:01

Market Cap ₹1409553 Cr.

Stock P/E 30.9

P/B 15.6

Current Price ₹3895.9

Book Value ₹ 249.5

Face Value 1

52W High ₹4254.5

Dividend Yield 1.87%

52W Low ₹ 3156.2

Edit Ratio

TCS Research see more...

Research Report: TCS

Tata Consultancy Services Ltd. (Q2FY24 Result Analysis)

TCS Q1FY24 Earning Highlights

Equity Research Report: TCS -Q4FY23

Overview Inc. Year: 1995Industry: IT - Software

Tata Consultancy Services Ltd (TCS) is an India-based company engaged in providing IT offerings, virtual and enterprise solutions. The Company's segments are Banking, Financial Services and Insurance, Manufacturing, Retail and Consumer Business, Communication, Media and Technology, Life Sciences and Healthcare and Others. The Company's merchandise includes TCS BaNCS, TCS Connected Intelligence Platform, ignio, TCS iON, TCS MasterCraft, TAP, CHROMA, TCS Customer Intelligence & Insights, TCS Intelligent Urban Exchange, Jile, TCS OmniStore, Quartz and The Smart Ledgers. Its systems include TCS ADD TCS BFSI Platforms ERP on Cloud and TCS HOBS. Its services portfolio consists of IT and assurance services, enterprise intelligence and overall performance management, commercial enterprise system offerings, cloud services, linked advertising solutions, mobility products and services and platform solutions. It serves industries, inclusive of insurance, healthcare, retail, telecom and others.

TCS Share Price

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Peer Comparison

TCS Quarterly Results

#(Fig in Cr.)	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Net Sales	48885	50591	52758	55309	58229	59162	59381	59692	60583	61237
Other Income	1205	981	789	965	520	1175	1397	1006	862	1157
Total Income	50090	51572	53547	56274	58749	60337	60778	60698	61445	62394
Total Expenditure	35452	36746	39342	40793	42676	43388	44383	43946	44195	44073
Operating Profit	14638	14826	14205	15481	16073	16949	16395	16752	17250	18321
Interest	251	245	199	148	160	272	163	159	230	226
Depreciation	1196	1217	1230	1237	1269	1286	1243	1263	1233	1246
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	-958	0
Profit Before Tax	13191	13364	12776	14096	14644	15391	14989	15330	14829	16849
Provision for Tax	3385	3405	3257	3631	3761	3955	3869	3950	3732	4347
Profit After Tax	9806	9959	9519	10465	10883	11436	11120	11380	11097	12502
Adjustments	-37	-33	-41	-34	-37	-44	-46	-38	-39	-68
Profit After Adjustments	9769	9926	9478	10431	10846	11392	11074	11342	11058	12434
Adjusted Earnings Per Share	26.4	27.1	25.9	28.5	29.6	31.1	30.3	31	30.5	34.3

TCS Profit & Loss

#(Fig in Cr.)	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Net Sales	81809	94648	108646	117966	123104	146463	156949	164177	191754	225458	240893	240893
Other Income	1643	3230	3084	4221	3642	4311	4592	3134	4027	3610	4422	4422
Total Income	83452	97878	111730	122187	126746	150774	161541	167311	195781	229068	245315	245315
Total Expenditure	56662	70167	77969	85655	90588	106957	114840	117631	138706	166360	176597	176597
Operating Profit	26790	27712	33761	36532	36158	43817	46701	49680	57075	62708	68718	68718
Interest	39	104	33	32	52	198	924	637	784	779	778	778
Depreciation	1349	1799	1888	1987	2014	2056	3529	4065	4604	5022	4985	4985
Exceptional Income / Expenses	0	490	0	0	0	0	0	-1218	0	0	-958	-958
Profit Before Tax	25402	26298	31840	34513	34092	41563	42248	43760	51687	56907	61997	61997
Provision for Tax	6070	6239	7502	8156	8212	10001	9801	11198	13238	14604	15898	15898
Profit After Tax	19332	20060	24338	26357	25880	31562	32447	32562	38449	42303	46099	46099
Adjustments	-168	-208	-68	-68	-54	-90	-107	-132	-122	-156	-191	-191
Profit After Adjustments	19164	19852	24270	26289	25826	31472	32340	32430	38327	42147	45908	45908
Adjusted Earnings Per Share	48.8	50.7	61.6	66.7	67.6	83.9	86.2	87.6	104.7	115.2	126.8	126.1

Growth Rates

#	1 Year	3 Year	5 Year	10 Year
Sales CAGR	7%	14%	10%	11%
Operating Profit CAGR	10%	11%	9%	10%
PAT CAGR	9%	12%	8%	9%

#	1 Year	3 Year	5 Year	10 Year
Share Price CAGR	19%	7%	13%	14%
ROE Average	51%	47%	44%	40%
ROCE Average	70%	65%	59%	54%

TCS Balance Sheet

#(Fig in Cr.)	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Shareholder's Funds	49195	50635	71072	86214	85128	89446	84126	86433	89139	90424	90489
Minority's Interest	708	1128	355	366	402	453	623	675	707	782	830
Borrowings	127	114	83	71	54	0	0	0	0	0	0
Other Non-Current Liabilities	1017	872	-661	-739	-565	304	6262	5565	5609	5580	5623
Total Current Liabilities	15670	20318	15569	14512	17828	22084	27060	34155	42351	43558	46104
Total Liabilities	66718	73067	86418	100424	102847	112287	118071	126828	137806	140344	143046
Fixed Assets	9544	11638	11774	11701	11973	12290	20928	21021	21298	20515	19604
Other Non-Current Assets	14267	12616	11431	8407	9650	7866	6906	6527	8198	9559	10458
Total Current Assets	42898	48813	63213	80316	81224	92131	90237	99280	108310	110270	112984
Total Assets	66718	73067	86418	100424	102847	112287	118071	126828	137806	140344	143046

TCS Cash Flow

#(Fig in Cr.)	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Opening Cash & Cash Equivalents	1841	1468	1862	6295	3597	4883	7224	8646	6858	12488	7123
Cash Flow from Operating Activities	14751	19369	19109	25223	25067	28593	32369	38802	39949	41965	44338
Cash Flow from Investing Activities	-9667	-1701	-5150	-16732	2886	1596	8565	-8129	-897	39	6026
Cash Flow from Financing Activities	-5673	-17168	-9666	-11026	-26885	-27897	-39915	-32634	-33581	-47878	-48536
Net Cash Inflow / Outflow	-589	500	4293	-2535	1068	2292	1019	-1961	5471	-5874	1828
Closing Cash & Cash Equivalent	1468	1862	6295	3597	4883	7224	8646	6858	12488	7123	9016

TCS Ratios

#	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Earnings Per Share (Rs)	48.85	50.68	61.6	66.72	67.61	83.93	86.24	87.65	104.72	115.16	126.82
CEPS(Rs)	52.79	55.8	66.56	71.94	73.02	89.65	95.94	98.99	117.63	129.3	141.12
DPS(Rs)	32	79	43.5	47	50	30	73	38	43	115	73
Book NAV/Share(Rs)	125.56	129.26	180.25	217.45	223.07	238.01	222.21	231.36	242.22	246.95	249.32
Core EBITDA Margin(%)	30.74	25.86	28.24	27.39	26.41	26.97	26.83	28.35	27.66	26.21	26.69
EBIT Margin(%)	31.1	27.89	29.34	29.28	27.74	28.51	27.51	27.04	27.36	25.59	26.06
Pre Tax Margin(%)	31.05	27.78	29.31	29.26	27.69	28.38	26.92	26.65	26.95	25.24	25.74
PAT Margin (%)	23.63	21.19	22.4	22.34	21.02	21.55	20.67	19.83	20.05	18.76	19.14
Cash Profit Margin (%)	25.28	23.09	24.14	24.03	22.66	22.95	22.92	22.31	22.45	20.99	21.21
ROA(%)	32.61	28.7	30.52	28.21	25.46	29.34	28.17	26.59	29.06	30.42	32.53
ROE(%)	44.07	40.19	40.01	33.64	30.29	36.18	37.6	38.55	44.13	47.26	51.04
ROCE(%)	57.58	52.56	52.14	43.94	39.84	47.8	50.02	52.56	60.22	64.44	69.5
Receivable days	88.05	89.66	87.9	86.46	88.14	79.91	79.96	81.06	74.68	74.28	78.43
Inventory Days	0.08	0.06	0.05	0.06	0.07	0.04	0.02	0.01	0.03	0.04	0.04
Payable days	0	0	0	0	0	0	0	0	0	0	0
PER(x)	21.79	25.13	20.42	18.22	21.07	23.84	21.14	36.25	35.7	27.84	30.62
Price/Book(x)	8.48	9.85	6.98	5.59	6.39	8.4	8.2	13.73	15.44	12.98	15.58
Dividend Yield(%)	1.5	3.1	1.73	1.93	1.75	1.5	4	1.2	1.15	3.59	1.88
EV/Net Sales(x)	4.92	5.08	4.5	4.03	4.36	5.03	4.29	7.1	7.04	5.16	5.78
EV/Core EBITDA(x)	15.03	17.35	14.49	13	14.86	16.83	14.43	23.48	23.66	18.53	20.26
Net Sales Growth(%)	29.88	15.69	14.79	8.58	4.36	18.98	7.16	4.61	16.8	17.58	6.85
EBIT Growth(%)	40.26	3.78	20.72	8.38	-1.16	22.31	3.38	2.84	18.19	9.94	8.82
PAT Growth(%)	37.34	3.76	21.33	8.3	-1.81	21.96	2.8	0.35	18.08	10.02	8.97
EPS Growth(%)	37.57	3.75	21.55	8.32	1.32	24.14	2.76	1.63	19.48	9.97	10.13
Debt/Equity(x)	0.01	0.01	0	0	0	0	0	0	0	0	0
Current Ratio(x)	2.74	2.4	4.06	5.53	4.56	4.17	3.33	2.91	2.56	2.53	2.45
Quick Ratio(x)	2.74	2.4	4.06	5.53	4.55	4.17	3.33	2.91	2.56	2.53	2.45
Interest Cover(x)	660.45	253.41	965.85	1079.53	656.62	210.91	46.72	69.7	66.93	74.05	80.69
Total Debt/Mcap(x)	0	0	0	0	0	0	0	0	0	0	0

TCS Shareholding Pattern

#	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	72.19	72.3	72.3	72.3	72.3	72.3	72.3	72.3	72.41	71.77
FII	14.98	14.15	13.5	13.05	12.94	12.72	12.46	12.47	12.47	12.7
DII	7.97	7.85	8.4	8.58	9.31	9.63	9.86	10.06	10.09	10.67
Public	4.86	5.7	5.8	6.07	5.45	5.35	5.38	5.17	5.03	4.87
Others	0	0	0	0	0	0	0	0	0	0
Total	100	100	100	100	100	100	100	100	100	100

#	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	267.02	264.54	264.54	264.54	264.54	264.54	264.54	264.54	262	259.66
FII	55.41	51.77	49.39	47.76	47.36	46.53	45.59	45.63	45.12	45.95
DII	29.49	28.73	30.75	31.41	34.07	35.25	36.08	36.82	36.5	38.59
Public	17.99	20.87	21.23	22.19	19.94	19.59	19.7	18.92	18.2	17.61
Others	0	0	0	0	0	0	0	0	0	0
Total	369.91	365.91	365.91	365.91	365.91	365.91	365.91	365.91	361.81	361.81

Pros

Company has a good return on equity (ROE) track record: 3 Years ROE 47%
Company is almost debt free.

Cons

Stock is trading at 15.6 times its book value.
The company has delivered a poor profit growth of 7% over past five years.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.