TCS

Tata Consultancy Services (TCS) is an IT services, consulting and business solutions organization that
delivers real results to global businesses, ensuring a level of certainty no other firm can match. TCS
provides an integrated portfolio of consulting-led IT, BPO, infrastructure, engineering, and assurance
services. This is accomplished through its distinct Global Network Delivery Model (GNDM), which has
been recognized as the gold standard in software development. TCS, a subsidiary of the Tata Group,
India's largest industrial conglomerate, employs over 488,649 associates (including subsidiaries)
from 154 nationalities in 46 countries. The company is India's first listed IT company to reach a
market capitalization of $100 billion.

TCS's continued dominations in European markets and launch of new and innovative products with
latest technology, sustains them as market leader.

Shareholding pattern

We can see that the promoters are holding more than 70 % of the shares and institutions
hold around 20% of the shares this indicates they strong believe in the company.
Management

Name Designation

N Chandrasekaran Chairman

N G Subramaniam Exe.Director & COO

Keki M Mistry Ind. Non-Executive Director

Pradeep Kumar Khosla Ind. Non-Executive Director

Don Callahan Ind. Non-Executive Director

Rajesh Gopinathan Managing Director & CEO

Aarthi Subramanian Non Exe.Non Ind.Director

O P Bhatt Ind. Non-Executive Director

Hanne Sorensen Ind. Non-Executive Director

The company is controlled Tata sons the parent company of tcs.

SWOT ANALYSIS

Strength
Weakness
RoCE has improved in the last two years.
Profit Margin falls as Net Profit falls
No debt (QoQ)
Improving Cash Flow from Operations
over the last two years
Annual net profits have increased over
the last two years.
TCS
Opportunity
Threats
Technical looks bullish
Introduction of new tech opportunity for Competitions for other big players.
new projects.
Competitive Analysis

S.No. Name CMP Rs P/E Mar Div Sales Rs.Cr ROCE CMP
. Cap Rs.Cr Yld . % / BV
. %
1 TCS 3385.7 31.9 1238863 1.27 199101 54.87 13.9
5 3
2 Infosys 1597.1 30.1 672015 1.94 128215 37.09 9.11
7
3 HCL 970.05 19.3 263239 3.3 89047 25.4 4.25
Technologies 9
4 Wipro 432.45 20.5 237179 1.39 82373.2 21.13 3.62
4
5 Tech 1104.1 20.1 107414 1.36 47156.3 26.57 3.99
Mahindra 5
6 L&T 4892.7 35.2 85781.5 0.92 16729 35.72 9.73
Infotech 4
7 Mindtree 3520.7 32.6 58065.3 1.05 11354.7 41.54 10.0
9

Tcs is the market leader which highest market capitalization. RoCE is higher
than any other competitors. The company is currently over valued when
compared to its peer in terms of cmp/ book value.
As an established company in its maturing phase, it gives out 1.27% dividend
which is in par with other its peer in the similar phase.

Conclusion
Sector
• Strong industry fundamentals (favourable demand-supply scenario, consistent
industry growth), rising investments, a higher entry barrier, and favourable
government policies are all factors.
• Stagnant industry growth as a result of macroeconomic factors and lower
incremental investments by government and private companies
• Inability to recover from lows in a stable economic environment, negative
government policies affecting business fundamentals and global challenges
(currency headwinds and unfavourable policies implemented by global industrial
institutions), and any significant increase in commodity prices affecting profitability
TCS
• Reported revenue of Rs 506 billion (up 2.6% year on year in USD terms, 3.5% year on
year in INR terms). The growth was driven by strong performance in Retail and CPG
(up 22.1% year on year), Manufacturing (up 19% year on year), and Communication
and media (up 18.7% year on year).
• EBIT margin was flattish QoQ, down 7 basis points (down 189 basis points year on
year) to 24.96%, helped by an improved employee pyramid and other efficiency
measures.
• Deal booking momentum remained strong as it signed the highest ever deal booking
TCV of $11.3bn (with two large $1bn deals) vs TCV of $7.6bn in Q3FY22. Clients:
$100M+ up by 10% year on year; $50M+ up by 19% year on year; $10M+ up by 52%
year on year
• Added 35,209 employees during the quarter to reach 592,195, with a greater
emphasis on newer hires.
• LTM attrition increased by 210 bps to 17.4% vs 15.3% in Q3FY22. However, the
incremental attrition has moderated for the company
• Declared final dividend of Rs 22/ share.
TCS should use its market leader position to dominate in this sector and use its
established presence to negate the treat by the new players. Thought he company is in
its maturing phase they can use their existing customers project and incorporate latest
technologies in it and thus utilizing this opportunity the company can leap itself into new
realms and continue to be the market leader.