RESEARCH INSIGHTS OF TCS

General Overview- Tata Consultancy Services Ltd. is an IT services, business solutions

and outsourcing organization. The firm offers consulting-led, integrated portfolio of IT and
IT-enabled services which includes application development and maintenance, business
intelligence, enterprise solutions, assurance services, engineering and industrial services,
infrastructure services, consulting, asset leveraged Solutions and business process services. It
operates through the following segments: Banking, Financial Services, & Insurance;
Manufacturing; Retail & Consumer Business; Communication, Media, & Technology; and
Others. The company was founded in 1968 and is headquartered in Mumbai, India.

Shareholding pattern of the company-

Holder’s Name No. of shares % share holding

No of Shares 3699051373 100%

Promoters 2670204298 72.19%

Foreign Institutions 554061955 14.98%

N Banks Mutual Funds 122919485 3.32%

Central Govt 1531354 0.04%

Others 38344007 1.04%

General Public 141572601 3.83%

Financial Institutions 170417673 4.61%

Management of the company-

Aarthi Subramanian Director

Debashis Ghosh Business Head

Don Callahan Independent Director

Hanne Birgitte Breinbjerg Sorensen Independent Director

K Ananth Krishnan Chief Technology Officer

K Krithivasan Business Head

Kamal Bhadada Business Head

Keki M Mistry Independent Director

Krishnan Ramanujam Business Head

Milind Lakkad Chief Human Resource Officer

N Chandrasekaran Chairman

N G Subramaniam Exe.Director & COO

O P Bhatt Independent Director

Pradeep Kumar Khosla Independent Director

R Rajashree Chief Marketing Officer

Rajendra Moholkar Co. Secretary & Compl. Officer

Rajesh Gopinathan Managing Director & CEO

Samir Seksaria Chief Financial Officer

Shankar Narayanan Business Head

Suresh Muthuswami Business Head

Susheel Vasudevan Business Head

N. Chandrasekaran

SWOT analysis of the company

Strengths

● Huge Customer Base: TCS serves clients in a variety of industries, including banking,
financial services, retail, telecommunications, and media and entertainment. Exposure to
diverse businesses dilutes the risks of a single market or industry’s over-dependence.
TCS is also serving the Government of India for Passport services.
● Global Footprints: TCS’s presence across various markets in which the company has
attempted to gain as much coverage as possible is its global footprint, which now
stretches from North America, UK, Africa, Europe, and the Asia-Pacific regions. A
presence in diversified geographical areas reduces corporate risk and provides TCS with
a strong global image.
● Strategic Partnership: TCS established a strong partnership around the world with global
enterprises. It worked with certain technological giants like Amazon, Adobe, Dell, Bosch,
HP, etc. TCS offers both technologically sustainable and innovative business and
strategic solutions through these partnerships.
● Strong Service Portfolio: TCS offers a strong and balanced service portfolio, which
includes: application development and maintenance of Business Process Services (BPS),
IT infrastructures, business intelligence, and more. Various business customers attract
such a strong and diverse portfolio.
● Good Returns on Capital Expenditure: TCS is relatively successful at the execution of
new projects and generates good returns on capital expenditure by building new revenue
streams.
● Highly skilled workforce through successful training and learning programs. TCS is
investing huge resources in the training and development of its employees resulting in a
workforce that is not only highly skilled but also motivated to achieve more.
Weaknesses

● Legal Judgements: TCS engaged in a 2014 legal battle for alleged misuse of confidential
information by Epic System against Epic Systems. In 2016, TCS was found to have been
found guilty and charged $940 million in damages. TCS opposed and rejected the judgment
by the higher competence. Such events influence the company’s image.
● Diligent decrease in performance: The TCS subsidiary Diligenta continuously operated
below par. Diligenta. The enterprise is unlikely to improve performance quickly and
therefore affect the bottom line of TCS.

Opportunities

● Digital Transformation: The world is digital and thus business dynamics are transforming
the digital economy. The focus of TCS is to transform itself digitally and offer digital
solutions. TCS should look forward to more spending on technology for digital
transformation.
● Increasing Demand for Cloud-Based Computing: Digital technology and fast internet
connectivity have emerged. In fact, in the next 5 years, expenditure on cloud services will
increase in the next 19% in CAGR. The world is progressing toward cloud solutions. TCS
has a strong cloud-based infrastructure, and is, therefore, ready to benefit from the
generated requirement.
● Solutions from machine to machine (M2M): M2M solutions enable both wireless and
wired communications systems. For M2M solutions, there are positive prospects in the
future, and revenues are expected to be high. TCS has a complete range of M2M
services that enable the demand for M2M solutions to be taken advantage of.
● Mobility Solutions: Enterprise mobility solutions are expected to be driven by business
applications with a growing mobile worker population and the increasing use of
sophisticated mobile devices. The demand for mobility solutions is latent and is projected
to increase by 24.7 percent in a CAGR until 2022. TCS is well-positioned to benefit from
its growing focus on the development of enterprise mobility solutions.

Threats

● Immigration and its Limitations: Indian IT companies are expected to suffer as they increase
their cost and impact profitability, and therefore pose a risk to the industry with immigration
rules, increased H-1B visa fees, and changing political circumstances in the US.
 ● Intense competition: IT companies such as Infosys, Wipro, Capgemini, Deloitte,
Accenture, etc are faced with heavy competition. The result is price wars in the sector
and the market share is limited.
● High Attrition rate: The Indian IT industry undergoes a high rate of attrition, which
increases costs to provide new employees with skills and leadership development and
also affects the company’s image.

Competitive Analysis- A competitive analysis is a strategy that involves researching

major competitors to gain insight into their products, sales, and marketing tactics. Implementing
stronger business strategies, warding off competitors, and capturing market share are just a few
benefits of conducting a competitive market analysis.

Name Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
TCS 3,599.95 1,331,640.00 135,963.00 30,960.00 74,794.00
Infosys 1,778.20 747,899.11 85,912.00 18,048.00 71,531.00
Wipro 587.45 322,031.37 50,299.40 10,060.90 51,046.90
HCL Tech 1,175.30 318,937.06 35,673.00 8,743.00 43,760.00
Tech Mahindra 1,461.95 141,988.86 29,640.90 4,239.10 26,246.20
L&T Infotech 6,437.75 112,834.54 11,562.60 1,787.40 6,939.80
Mindtree 3,996.75 65,877.88 7,967.80 1,110.30 4,318.60
MphasiS 3,175.30 59,701.97 5,561.25 1,110.36 4,498.15
Persistent 4,196.15 32,069.08 2,479.61 505.09 2,766.08
Oracle Fin Serv 3,427.50 29,559.37 3,645.21 1,639.29 5,645.99
Balance Sheet ------------------- in Rs. Cr. -------------------

TCS Infosys Wipro HCL Tech Tech Mahindra

Mar '21 Mar '21 Mar '21 Mar '21 Mar '21

Sources Of Funds

Total Share Capital 370.00 2,130.00 1,095.80 543.00 484.10

Equity Share Capital 370.00 2,130.00 1,095.80 543.00 484.10

Share Application Money 0.00 372.00 0.00 0.00 1,687.80

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 74,424.00 69,029.00 44,145.80 43,010.00 24,074.30

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 74,794.00 71,531.00 45,241.60 43,553.00 26,246.20

Secured Loans 0.00 0.00 5,805.30 207.00 0.00

Unsecured Loans 0.00 0.00 0.00 0.00 0.00

Total Debt 0.00 0.00 5,805.30 207.00 0.00

Total Liabilities 74,794.00 71,531.00 51,046.90 43,760.00 26,246.20

Profit & Loss account ------------------- in Rs. Cr. -------------------

TCS Infosy Wipro HCL Tech

s Tech Mahindra

Mar '21 Mar Mar Mar Mar '21

'21 '21 '21

Income

Sales Turnover 135,96 85,912 50,299 35,673 29,640.90

3.00 .00 .40 .00
Excise Duty 0.00 0.00 0.00 0.00 0.00

Net Sales 135,96 85,912 50,299 35,673 29,640.90

3.00 .00 .40 .00
Other Income 4,169.0 2,467. 2,382. 997.00 923.80
0 00 90
Stock Adjustments 0.00 0.00 -34.50 3.00 0.00

Total Income 140,13 88,379 52,647 36,673 30,564.70

2.00 .00 .80 .00
Expenditure

Raw Materials 0.00 0.00 587.90 142.00 0.00

Power & Fuel Cost 0.00 0.00 0.00 0.00 0.00

Employee Cost 69,046. 45,179 26,467 11,749 9,162.60

00 .00 .30 .00
Other Manufacturing 1,230.0 13,533 10,675 7,515. 11,320.60
Expenses 0 .00 .40 00
Selling and Admin 0.00 0.00 83.90 0.00 40.60
Expenses
Miscellaneous 25,377. 2,743. 396.60 1,835. 3,786.80
Expenses 00 00 00
Preoperative Exp 0.00 0.00 0.00 0.00 0.00
Capitalised
Total Expenses 95,653. 61,455 38,211 21,241 24,310.60
00 .00 .10 .00
Conclusion and way forward for the company:

TCS expects to grow at a faster rate than the industry average. According to the industry lobby
group Nasscom, the IT sector's revenue from software exports could grow 13-15% this financial
year, pushed by spending by big foreign companies like General Electric and Citigroup.

Here are some IT technology advancements that are going to be BIG in the next 20 years.

Internet Of Things (IoT)

A recent survey conducted showed that over 86% of the respondents plan to increase their IoT
spends significantly over the next couple of years. The survey also went on to say that
enterprises in the US spend an average of $4.6 million in 2018 on IoT, to digitally transform their
business models. The next 20 years will see sensors incorporated on machinery, equipment,
heating units, security systems, and pretty much everything – and IoT will play a significant role
in this.

Artificial Intelligence & Robotics

Though the concept of Artificial Intelligence is well over 60 years old, it has only become
popular in the last decade. With passive operational power and storage, AI can transform
business strategies like no other. Self-driving cars, robotics, new teaching methods, and even
personalized medicines – AI is set to take over, and take over it will.

Augmented Reality
Augmented reality is no longer science-fiction, thanks to the IT technological advancements in
the last decade. While earlier, the costs associated with AR meant that projects were few and far
apart, today, technology has made it possible for AR to be available even on the mobile handset.
In the future, Augmented Reality will find its application in education, art, architecture, military,
and navigation – the possibilities are truly endless.