Tata Consultancy Services Result Updated

8/2/2019 Tata Consultancy Services Result Updated

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Please refer to important disclosures at the end of this report 1

(` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Net revenue 13,259 13,204 0.4 10,158 30.5EBITDA 3,912 4,092 (4.4) 3,089 26.7

EBITDA margin (%) 29.5 31.0 (149)bp 30.4 (90)bp

PAT 2,932 2,887 1.6 2,381 23.2Source: Company, Angel Research

For 4QFY2012, TCS reported a modest set of numbers, in-line with streets

expectations on the revenue and operating fronts. Management sounded

confident of growing higher than the industry and expects FY2013 to be a normal

year (as against Infosys, the guidance numbers of which indicated growth to be

higher in 2HFY2012). Also, management indicated that revenue from BFSI will

pick up from 1QFY2013 and signed three of the six large deals in the BFSI

industry during the quarter. TCS continues to remain our preferred pick along

with HCL Tech in the IT pack. We maintain our Buy rating on the stock.Quarterly highlights: For 4QFY2012, TCS posted revenue of US$2,648mn, up2.4% qoq, on the back of volume growth of 3.2% qoq. However, the companys

pricing declined by 1.9% qoq. In INR terms, revenue came in at `13,259cr, up

0.4% qoq. EBITDA and EBIT margin declined by 149bp qoq and 155bp qoq to

29.5% and 27.7%, respectively, due to increased SG&A expenses and INR

appreciation against USD, which overshadowed the positive impact due to higher

productivity. PAT for the quarter came in at `2,932cr, aided by other income of

`108cr vs. `92cr loss in 3QFY2012.

Outlook and valuation: Management indicated that it will hire 50,000 grossemployees in FY2013 and has already extended offers to 43,600 campus

graduates, which is a healthy number and gives confidence about the demand

environment being witnessed by the company. TCS bagged six large deals in

4QFY2012. Management sounded confident of surpassing Nasscoms industry

growth guidance of 11-14% yoy for FY2013. Over FY2012-14E, we expect TCSs

revenue to post a 15.4% (USD terms) and 16.5% (INR terms) CAGR. The

company has announced wage hike of 6-8% for offshore employees and 2-4%

for onsite employees. On the EBITDA and PAT front, we expect the company to

post 14.9% and 14.2% CAGR over FY2012-14E. At the CMP, the stock is trading

at 14.9x FY2014E EPS. We value TCS at 18x FY2014E EPS of `70.9 with a targetprice of `1,276 and maintain our Buy rating on the stock.Key financials (Consolidated, IFRS)Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014ENet sales 30,028 37,324 48,891 57,189 66,329% chg 8.0 24.3 31.0 17.0 16.0

Net profit 6,873 8,715 10,636 12,359 13,871% chg 32.9 26.8 22.0 16.2 12.2

EBITDA margin (%) 28.9 30.0 29.5 29.3 28.7

EPS (`) 35.1 44.5 54.3 63.1 70.9P/E (x) 30.2 23.8 19.5 16.8 14.9

P/BV (x) 9.9 8.2 6.4 5.1 4.1

RoE (%) 32.8 34.3 32.7 30.5 27.7

RoCE (%) 28.8 32.0 32.8 31.0 28.8

EV/Sales (x) 6.6 5.4 4.0 3.4 2.8

EV/EBITDA (x) 22.9 17.9 13.7 11.5 9.9

Source: Company, Angel Research; Note: * In US GAAP

BUYCMP `1,059

Target Price `1,276

Investment Period 12 months

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 74.0

MF / Banks / Indian Fls 7.2

FII / NRIs / OCBs 14.0

Indian Public / Others 4.8

Abs. (%) 3m 1yr 3yr

Sensex 2.1 (12.8) 53.5

TCS (1.8) (11.1) 273.0

TCS@IN

17,097

5,201

TCS.BO

202,784

BSE Sensex

Nifty

Reuters Code

Face Value (`)

IT

Avg. Daily Volume

Market Cap (`cr)

Beta

52 Week High / Low

207,316

0.9

1

1,279/903

Ankita Somani+91 22 3935 7800 Ext: 6819

[email protected]

Tata Consultancy Services (TCS)Performance highlights

4QFY2012 Result Update | IT

April 23, 2012


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TCS | 4QFY2012 Result Update

April 23, 2012 2

Exhibit 1:4QFY2012 performance (Consolidated, IFRS)

(` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) FY2012 FY2011 % chg (yoy)Net revenue 13,259 13,204 0.4 10,158 30.5 48,891 37,324 31.0Cost of revenue 6,924 6,860 0.9 5,378 28.7 25,877 19,937 29.8Gross profit 6,336 6,344 (0.1) 4,779 32.6 23,014 17,387 32.4SG& A expenses 2,424 2,252 7.7 1,691 43.3 8,599 6,189 38.9

EBITDA 3,912 4,092 (4.4) 3,089 26.7 14,415 11,198 28.7Dep. and amortisation 240 230 4.1 212 13.0 904 721 25.3

EBIT 3,672 3,862 (4.9) 2,876 27.7 13,511 10,477 29.0

Other income 108 (92) 224 404 532

PBT 3,780 3,770 0.3 3,100 21.9 13,915 11,009 26.4

Income tax 817 854 (4.3) 677 20.7 3,169 2,174 45.8

PAT 2,962 2,916 1.6 2,423 22.3 10,747 8,835 21.6Earnings in affiliates - - - - - - - -

Minority interest 30 29 1.4 42 (29.2) 111 120 (7.3)

Adjusted PAT 2,932 2,887 1.6 2,381 23.2 10,636 8,715 22.0

EPS (`) 15.0 14.7 1.6 12.2 23.2 54.3 44.5 22.0

Gross margin (%) 47.8 48.0 (26)bp 47.1 73bp 47.1 46.6 49bp

EBITDA margin (%) 29.5 31.0 (149)bp 30.4 (90)bp 29.5 30.0 (52)bp

EBIT margin (%) 27.7 29.2 (155)bp 28.3 (62)bp 27.6 28.1 (44)bp

PAT margin (%) 21.9 22.0 (8)bp 22.9 (100)bp 21.6 23.0 (145)bp

Source: Company, Angel Research

Exhibit 2:Actual vs. Angel estimates

(` cr) Actual Estimate Var. (%)Net revenue 13,259 13,438 (1.3)

EBITDA margin (%) 29.5 30.8 (130)bp

PAT 2,932 2,952 (0.7)


Growth ahead of peers

For 4QFY2012, TCS reported a modest performance, with USD revenue at

US$2,648mn, up 2.4% qoq, on the back of volume growth of 3.26% qoq. USD

revenue was negatively impacted by the 1.87% qoq and 0.97% qoq decline in

price realization due to negative cross-currency movement. Going ahead, thecompany expects pricing to remain stable. In INR terms, revenue came in at

`13,259cr, up merely 0.4% qoq, impacted by qoq INR appreciation against USD

in 4QFY2012.

TCS has closed six large deals in 4QFY2012. These deals span across industry

segments as well as geographies.


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April 23, 2012 3

Exhibit 3:Trend in volume and revenue growth (qoq)


Pricing decline and cross currency negative impact of 1.87% qoq and 0.97% qoq,

respectively, partially offsetted the positive impact of volume growth of 3.26% qoq,

which led to INR revenue growth of 0.42% qoq.

Exhibit 4:Revenue drivers for 4QFY2012


2.9

7.4 6.3

3.23.3

4.7

7.5

4.7

2.4 2.4

2

4

6

8

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

(%)

Volume growth Revenue growth (USD terms)

3.26

(0.97)

(1.87)

0.42

(4)

(2)

0

2

4

(%)

Volume CC realization Pricing Total revenue growth


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April 23, 2012 4

Exhibit 5:Revenue drivers for FY2012


TCSs performance during the quarter was backed by healthy demand seen across

industry segments such as retail and distribution, manufacturing and hi-tech,

revenue of which grew by 4.1%, 3.7% and 4.1% qoq, respectively. Revenue of

BFSI, TCSs anchor industry segment, remained almost flat qoq due to delays in

ramp-ups of discretionary spending, but management expects this to pick up from

1QFY2013. The company signed three large deals in BFSI during 4QFY2012.

Other segments such as telecom, media and entertainment and lifesciences and

healthcare registered revenue growth of 2.4% qoq each. Revenue from telecom

has started to pick up and management has indicated that it is witnessing

transformation deals in the telecom industry, majorly in emerging economies, and

expects revenue from this segment to pick up from now on.

Exhibit 6:Revenue growth (Industry wise)

% to revenue % chg (qoq) % chg (yoy)BFSI 42.2 (0.2) 13.2

Manufacturing 7.9 3.7 24.3

Telecom 10.0 2.4

Lifesciences and healthcare 5.3 2.4 1

Retail and distribution 12.5 4.1 3

Travel and hospitality 3.7 (0.3) 11.9

Energy and utilities 3.8 (5.1) (2.5)

Media and entertainment 2.2 2.4 1

Hi-tech 6.0 4.1 3


Service line wise, BPO and asset leveraged solutions emerged as the primary

growth drivers for the company by posting 9.0% qoq and 5.1% qoq growth in

revenue, respectively. Revenue from application development and maintenance

(ADM), engineering and industrial services and infrastructure services grew by

3.3%, 2.4% and 0.5% qoq, respectively.

23.1

29.7

8.0

(0.3)

1.1

(4.2)(1.2) (0.9)

31.0

24.3

(7)

0

7

14

21

28

35

FY2012 FY2011

(%)

Volume Pricing Forex movement Effort mix shift onsite Total revenue growth


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April 23, 2012 5

Exhibit 7:Revenue growth (Service wise)

% to revenue % chg (qoq) % chg (yoy)IT solutions and services

ADM 44.43.3 13.6Business intelligence 4.2 (2.3) 1.1

Enterprise solutions 11.0 (1.2) 20.2

Assurance services 7.3(1.6) 23.0

Engg. and industrial services 4.6 2.4 1

Infrastructure services 10.4 0.5 34.8

Global consulting 2.7 (1.3) 51.7

Asset-leveraged solutions 3.9 5.1 27.8

BPO 11.5 9.0 17.0


Geography wise, growth was witnessed across all geographies, except Continental

Europe. Revenue from developed economies such as U.S., Latin America and U.K.

grew by 3.0%, 2.4% and 3.8% qoq, respectively. Emerging economies such as

India and Asia Pacific posted 3.6% qoq and 3.7% qoq growth in revenue,

respectively.

Exhibit 8:Revenue growth (Geography wise)

% of revenue % chg (qoq) % chg (yoy)U.S. 53.6 3.0 18.4

Latin America 3.1 2.4

U.K. 15.2 3.8 15.7

Continental Europe 9.8 (4.4) 16.8

India 8.5 3.6 14.0

Asia Pacific 7.73.7 26.2

MEA 2.1 2.4


Hiring spree continues

TCS has been on the hiring spree since 2HFY2010. In 4QFY2012, TCS added

whopping 19,156 gross employees and 11,832 net employees, taking its total

employee base to 238,583. During the quarter, attrition rate (LTM basis) declined

to 12.2% (lowest in last eight quarters) from 12.8% in 3QFY2012.

For FY2013, management has guided for gross hiring of 50,000 employees,

which is encouraging. Further, the company has given offers to 43,600 campus

graduates for FY2013 and expects 70% conversion ratio. These employees are

expected to start joining from June 2012.


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April 23, 2012 6

Exhibit 9:Hiring and attrition trend

Particulars 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12Gross addition 19,324 11,988 20,349 18,907 19,156

Net addition 11,700 3,576 12,580 11,981 11,832Total employee base 198,614 202,190 214,770 226,751 238,583

Attrition (%) - LTM basis 14.4 14.8 13.7 12.8 12.2


Exhibit 10:Trend in utilization


For 4QFY2012, utilization level including and excluding trainees declined by270bp and 140bp qoq to 71.3% and 80.6%, respectively, due to strong hiring

done in 2HFY2012. Improvement in utilization level from here on is an important

margin lever for TCS now as utilization level (including trainees) is off ~550bp

from its peak level.

Margins decline

TCSs EBITDA and EBIT margin declined by 149bp qoq and 155bp qoq to 29.5%

and 27.7%, respectively, due to increased SG&A expenses and INR appreciation

against USD, which overshadowed the positive impact due to higher productivity.

75.176.2 76.4

74.071.3

82.483.2 83.1

82.0

80.6

70

72

74

76

78

80

82

84


(%

)

Including trainees Excluding trainees


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April 23, 2012 7

Exhibit 11:Margin profile


EBIT margin witnessed a 120bp and 71bp qoq negative impact due to increased

SG&A expenses and INR appreciation, respectively. These negative impacts

offsetted the positive gains of 36bp qoq on account of increased productivity. All in

all, the companys EBIT margin declined by 155bp qoq during the quarter.

Exhibit 12:Factors affecting EBIT margin of 4QFY2012


30.4

28.1

29.1

31.0

29.5

28.3

26.2

27.1

29.2

27.7

24

25

26

27

28

29

30

31

32


(%)

EBITDA margin EBIT margin

(71)

36

(120)

(155)

(225)

(150)

(75)

0

75

(bp)

Rupee dep/(app) Productivity SG&A increase Total impact


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April 23, 2012 8

Exhibit 13:Factors affecting EBIT margin of FY2012


Client pyramid enhances

Client pyramid during the quarter witnessed qualitative improvement, with client

additions on the higher side of the revenue brackets. TCS added four clients in the

US$50mn-100mn bracket and five in the US$10mn-20mn bracket. Also, one

client was added in the US$5mn-10mn bracket. In total, 10 clients were added to

the US$1mn+ brackets, which is a noteworthy improvement. Overall, client

addition stood robust at 42 in 4QFY2012.

Exhibit 14:Client pyramid

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12US$1mn5mn 250 254 265 277 277

US$5mn10mn 65 71 75 74 75

US$10mn20mn 62 57 61 66 71

US$20mn50mn 54 58 58 56 56

US$50mn100mn 19 23 24 25 29

US$100mn plus 8 10 12 14 14

Number of active clients 969 959 1,010 1,003 1,037

Clients added 39 24 35 40 42


Outlook and valuation

Management indicated that it will hire 50,000 gross employees in FY2013 and has

already extended offers to 43,600 campus graduates, which is a healthy number

and gives confidence about the demand environment being witnessed by the

company. TCS witnessed an all-time high gross addition of 70,400 employees in

FY2012 (initial guidance was 60,000), taking its total employee base to 238,583

employees. Even with aggressive hiring plans, management targets to maintain its

utilization levels excluding trainees at 82-84% in FY2013. The company bagged six

large deals in 4QFY2012. The companys revenue from BFSI was largely flat qoq

due to delays in ramp-up in discretionary projects; but going ahead, management

indicated that revenue from the BFSI industry will pick up.

218

(215)

133

58

(289)

39

(106)

252

(44)

134

(400)

(300)

(200)

(100)

0

100

200

300

FY2012 FY2011

(BP)

Rupee dep/(app) Pricing and productivi ty Higher wage

Effort shift offshore SG&A efficiency Total impact


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April 23, 2012 9

Management sounded confident of surpassing Nasscoms industry growth

guidance of 11-14% yoy for FY2013. Thus, growth momentum for the company is

expected to remain intact. Accordingly, over FY2012-14E, we expect TCSs

revenue to post a 15.4% (USD terms) and 16.5% (INR terms) CAGR.

The company has announced wage hike of 6-8% for offshore employees and

2-4% for onsite employees, which will be a major headwind for the companys

operating margin in FY2013, but management indicated that EBIT margin would

remain flat yoy in FY2013. On account of tailwinds such as 1) healthy USD

revenue growth, 2) headroom to scale up utilization levels and 3) SG&A expense

optimization, we expect the company to absorb the impact of wage hikes

gradually. We expect EBIT margin to be at 27.4% for FY2013 from 27.6% in

FY2012.

On the EBITDA and PAT front, we expect the company to post 14.9% and 14.2%

CAGR over FY2012-14E, respectively. At the CMP, the stock is trading at 14.9x

FY2014E EPS. We value TCS at 18x FY2014E EPS of `70.9 with a target price of`1,276 and maintain our Buy rating on the stock.Exhibit 15:Key assumptions

FY2013 FY2012Revenue growth (USD) 14.8 16.0

USD-INR rate (realized) 49.0 49.0

Revenue growth (`) 17.0 16.0

EBITDA margin (%) 29.3 28.7

Tax rate (%) 26.0 27.0EPS growth (%) 16.2 12.2


Exhibit 16:Change in estimates

FY2013E FY2014EParameter Earlier Revised Variation Earlier Revised Variation(` cr) estimates estimates (%) estimates estimates (%)Net revenue 57,294 57,189 (0.2) 66,696 66,329 (0.6)EBITDA 16,895 16,758 (0.8) 19,260 19,045 (1.1)

Other income 993 1,232 24.1 1,267 1,447 14.2PBT 16,742 16,904 1.0 19,193 19,232 0.2

Tax 4,353 4,395 1.0 5,374 5,193 (3.4)

PAT 12,241 12,359 1.0 13,653 13,871 1.6Source: Company, Angel Research


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April 23, 2012 10

Exhibit 17:One-year forward PE chart


Exhibit 18:Recommendation summary

Company Reco CMP Tgt. price Upside FY2014E FY2014E FY2011-14E FY2014E FY2014E(`) (`) (%) EBITDA (%) P/E (x) EPS CAGR (%) RoCE (%) RoE (%)

HCL Tech Accumulate 495 560 13.1 17.4 11.5 17.0 20.4 21.3

Hexaware Neutral 125 - - 18.3 12.1 53.4 24.1 21.6

Infosys Buy 2,312 2,792 20.8 30.6 13.2 13.4 22.8 20.8

Infotech Enterprises Accumulate 160 177 10.9 16.6 8.6 13.9 16.9 13.2

KPIT Cummins Buy 82 98 18.9 14.9 7.6 (1.4) 20.0 18.0

Mahindra Satyam Buy 76 89 16.7 15.0 9.2 25.3 11.4 13.0Mindtree Accumulate 545 585 7.4 15.5 9.3 32.9 19.8 17.0

Mphasis Buy 372 433 16.3 17.9 9.0 1.7 14.1 13.7

NIIT Buy 46 61 34.1 16.9 5.0 18.0 11.5 19.0

Persistent Accumulate 335 361 7.6 22.4 8.4 4.7 17.0 14.5

TCS Buy 1,059 1,276 20.5 28.7 14.9 16.8 28.8 27.7Tech Mahindra Accumulate 696 750 7.7 15.7 8.0 20.8 12.9 18.0

Wipro Accumulate 424 4639.3 19.3 14.0 11.8 14.1 19.3


0

300

600

900

1,200

1,500

1,800

2,100

Apr-07

Oct-07

Apr-08

Oct-08

Apr-09

Oct-09

Apr-10

Oct-10

Apr-11

Oct-11

Apr-12

(`)

Price 25x 21x 16x 11x 6x


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April 23, 2012 11

Profit & Loss statement (Consolidated, IFRS)

Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014ENet sales 30,028 37,324 48,891 57,189 66,329Cost of revenues 15,724 19,937 25,877 31,083 36,876Gross profit 14,303 17,387 23,014 26,106 29,453% of net sales 47.6 46.6 47.1 45.6 44.4

SGA expenses 5,625 6,189 8,599 9,348 10,409

% of net sales 18.7 16.6 17.6 16.3 15.7

EBITDA 8,679 11,198 14,415 16,758 19,045% of net sales 28.9 30.0 29.5 29.3 28.7

Dep. and amortization 721 721 904 1087 1260

% of net sales 2.4 1.9 1.8 1.9 1.9

EBIT 7,958 10,477 13,511 15,672 17,784% of net sales 26.5 28.1 27.6 27.4 26.8

Other income, net 226 532 404 1232 1447

Profit before tax 8,184 11,009 13,915 16,904 19,232

Provision for tax 1,209 2,174 3,169 4,395 5,193

% of PBT 14.8 19.7 22.8 26.0 27.0

PAT 6,975 8,835 10,747 12,509 14,039Earnings in affiliates (0) - - - -

Minority interest 102 120 111 150 168

Adj. PAT 6,873 8,715 10,636 12,359 13,871Fully diluted EPS (`) 35.1 44.5 54.3 63.1 70.9

Note:* in US GAAP


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April 23, 2012 12

Balance sheet (Consolidated, IFRS)

Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014EAssetsCash and cash equivalents 1,025 1,554 1,984 2,499 3,338Other current financial assets 3,653 3,934 6,509 9,530 13,945

Accounts receivable 5,810 8,201 11,499 13,475 15,628

Unbilled revenues 1,201 1,349 2,248 2,820 3,271

Other current assets 2,127 1,449 - - -

Property and equipment 4,171 5,200 6,455 7,873 9,137

Intangible assets and goodwill 3,242 3,379 3,493 3,380 3,380

Investments 3,784 1,839 1,478 2,000 2,300

Other non-current assets 2,610 2,575 - - -

Total assets 27,621 32,788 41,199 50,611 61,717LiabilitiesCurrent liabilities 5,289 5,834 6,806 8,090 9,598

Short term borrowings 231 33 11 11 11

Redeemable preference shares 100 100 100 100 100

Long term debt 11 6 115 115 115

Other non-current liabilities 673 1,097 1,115 1,235 1,313

Minority interest 377 315 528 528 528

Shareholders funds 20,940 25,404 32,523 40,531 50,051

Total liabilities 27,621 32,788 41,199 50,611 61,717Note:* in US GAAP


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April 23, 2012 13

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014EPre-tax profit from oper. 7,958 10,477 13,511 15,672 17,784

Depreciation 721 721 904 1,087 1,260Exp. (deferred)/written off 103 120 112 150 168

Pre tax cash from oper 8,576 11,078 14,303 16,608 18,876

Other inc./prior period ad 226 532 404 1,232 1,447

Net cash from operations 8,802 11,611 14,707 17,841 20,324

Tax 1,209 2,174 3,169 4,395 5,193

Cash profits 7,593 9,437 11,538 13,446 15,131(Inc)/dec in acc. recv. 343 (2,391) (3,298) (1,976) (2,153)

(Inc)/dec in unbilled rev. 280 (148) (899) (573) (451)

(Inc)/dec in oth. current asst. 1,077 (3,255) (1,127) (3,022) (4,415)

Inc/(dec) in current liab. (212) 347 951 1,284 1,508

Net trade working capital 1,489 (5,448) (4,373) (4,286) (5,511)

Cashflow from opert. actv. 9,081 3,989 7,166 9,159 9,620(Inc)/dec in fixed assets (1,142) (1,750) (2,159) (2,504) (2,524)

(Inc)/dec in investments (5,709) 5,597 361 (522) (300)

(Inc)/dec in intangible asst. 177 (138) (114) 113 -

(Inc)/dec in non-cur.asst. (925) (3,275) (1,649) (1,500) (1,684)

Cashflow from invt. actv. (7,600) 435 (3,561) (4,413) (4,508)Inc/(dec) in debt (397) 419 128 120 79

Inc/(dec) in equity 571 328 1,979 (0) (0)

Inc/(dec) in minority int. 64 (62) 213 - -

Dividends (2,158) (4,580) (5,496) (4,351) (4,351)

Cashflow from finan. actv. (1,920) (3,895) (3,176) (4,231) (4,272)Cash generated/(utilized) (438) 529 430 515 839Cash at start of the year 1,463 1,025 1,554 1,984 2,499

Cash at end of the year 1,025 1,554 1,984 2,499 3,338

Note:* in US GAAP


14/15


April 23, 2012 14

Key ratios

Y/E March FY2010* FY2011 FY2012 FY2013E FY2014EValuation ratio(x)P/E (on FDEPS) 30.2 23.8 19.5 16.8 14.9P/CEPS 27.3 22.0 18.0 15.4 13.7

P/BVPS 9.9 8.2 6.4 5.1 4.1

Dividend yield (%) 1.0 2.2 2.7 2.1 2.1

EV/Sales 6.6 5.4 4.0 3.4 2.8

EV/EBITDA 22.9 17.9 13.7 11.5 9.9

EV/Total assets 7.2 6.1 4.8 3.8 3.0

Per share data (`)EPS 35.1 44.5 54.3 63.1 70.9

Cash EPS 38.8 48.2 59.0 68.7 77.3

Dividend 11.0 23.4 28.1 22.2 22.2

Book value 107.0 129.8 166.2 207.1 255.7

Dupont analysisTax retention ratio (PAT/PBT) 0.9 0.8 0.8 0.7 0.7

Cost of debt (PBT/EBIT) 1.0 1.1 1.0 1.1 1.1

EBIT margin (EBIT/Sales) 0.3 0.3 0.3 0.3 0.3

Asset turnover ratio (Sales/Assets) 1.1 1.1 1.2 1.1 1.1

Leverage ratio (Assets/Equity) 1.3 1.3 1.3 1.2 1.2

Operating ROE 33.3 34.8 33.0 30.9 28.0

Return ratios (%)RoCE (pre-tax) 28.8 32.0 32.8 31.0 28.8

Angel RoIC 41.5 41.1 43.3 42.8 42.

RoE 32.8 34.3 32.7 30.5 27.7

Turnover ratios(x) Asset turnover (fixed assets) 7.2 7.2 7.6 7.3 7.3

Receivables days 71 80 86 86 86

Note:* in US GAAP


15/15


Research Team Tel: 022 - 3935 7800 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies

referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and

risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make

investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this

document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. WhileAngel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or

other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in

the past.

Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in

connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates ma have investment ositions in the stocks recommended in this re ort.

Disclosure of Interest Statement TCS

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to 15%) Sell (< -15%)

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors

Tata Consultancy Services Result Updated

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