Name:-

SAMRITI SAINI
Roll No:-
27642205102

Class:- MBA FINANCE 3ND SEM

UNIVERSITY OF SCHOOL FINICIAL STUDIES

GURU NANAK DEV UNIVERSITY , AMRITSAR

 INTRODUCTION
 Tata consultancy services provide of information technology
(IT) services. It provides a wide range of services including
business consulting, information technology, business process
outsourcing (BPO), infrastructure and engineering.

 The company operates in Americas, Europe, Middle East and

Asia Pacific . The company is headquartered in Mumbai, India

 A subsidiary of the Tata Group conglomerate and working on

149 locations in 46 countries.

 Tcs is the second largest Indian company by market

capitalization more then 9 lakh crores.
 HISTORY OF TCS
 Tata consultancy services Ltd (TCS) was founded in 1968 by
division of tata son limited.

 In 1981, TCS established India’s first dedicated software research

and development center, the Tata Research Development and
Design Center (TRDDC) in Pune.

 In 1985, TCS established India’s first client-dedicated offshore

development center, set up for client tandem

 In 2005 TCS became the first India-based IT services company

to enter into the bio informatics market.
 In 2016 , TCS already have offices in 42 countries as well as
105 delivery centers in 20 countries.

 In 2020 TCS ranked 1 for customer satisfaction by leading

German companies .

 In 2021 TCS ranked among the top 3 data and decision

services providers by HFS Research.

 In 2022 TCS ties up with Gujarat Government to impart digital

skills in schools .TCS receives Regional Asian Investor Award in
Ireland.
 HELPFUL TO ACHIEVING THE OBJECTIVE

STRENGTH OPPORTUNITIES
 Extensive Global Reach  M to M solution
 Empowered and encouraged
employees
 Major number of customers from
various sectors
 Strong reputed Brand image in the
market
 Well established strategic alliances
 Increasing focus on innovation
SWOT ANALYSIS
The SWOT analysis of TCS
STRENGTHS
 Healthy balance sheet with
strong financials.
 Flagship company of reputed
TATA group
 Strong dominance in domestic
market
 Comprehensive business
portfolio with end-to-end
technology service offerings
 Impressive client base with
several fortune 500 clients
 Increasing focus on innovation
WEAKNESS
 Major products absent,
largely dependent on
services
 Largely dependent on North
America and European
markets
 IT integration across
industries to drive growth
OPPORTUNITIES
 Business consulting has the
potential to drive
upstreaming growth
 Pursuing inorganic growth
by acquisitions in strategics
areas
 IT integration across
industries to drive growth
 Partnering with repudiated
companies to drive revenues
THREATS
 Intense competition from
domestic and international
players
 Visa fees and legislations to
impact the operating model
 Brexit to impact projects in
EU markets
 Penalty from lawsuits will
impact TCS’ reputation and
financial performance
 ANALYSIS OF TCS FOR 2021-22
TCS Balance Sheet Analysis

1. The company's current liabilities during 2022 stand at Rs 424 billion as

compared to Rs 342 billion in 2021, thereby witnessing an increase of 24.0%.

2. Current assets rise 9% and stand at Rs 1,083 billion, while fixed assets rose
7% and stand at Rs 295 billion in 2022.

3. Overall, the total assets and liabilities for 2022 stand at Rs 1,378 billion as
against Rs 1,268 billion during 2021, there by witnessing a growth of 9%.
 Ratio Analysis for TCS
1:-Solvency Ratios
Current Ratio:- The Company’s current ratio deteriorated and stood at 2.6 during 2022,
from 2.9 during 2021. The current ratio measures the company's ability to pay short-term
and long-term obligations.
Interest Coverage Ratio:- The Company’s interest coverage ratio deteriorated and stood
at 66.9 during 2022, from 69.7 during 2021. The interest coverage ratio of a company
states how easily a company can pay its interest expense on outstanding debt. A higher
ratio is preferable.
2.:-Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 43.1%
during 2022, from 37.7% during 2022. The ROE measures the ability of a firm to
generate profits from its shareholders capital in the company.
Return on Capital Employed (ROCE): The ROCE for the company improved and
stood at 58.9% during 2022, from 51.4% during 2021. The ROCE measures the ability
of a firm to generate profits from its total capital (shareholder capital plus debt capital)
employed in the company.
Return on Assets (ROA): The ROA of the company improved and stood at 28.5%
during 2022, from 26.2% during 2021. The ROA measures how efficiently the
company uses its assets to generate earnings.
POLITICAL FACTOR = TCS has established the dominant
position in domestic market. Although the position is strong in India
, still depends upon North America and European markets. They
experienced selling pressure of shares due to political instability in
Britain which is one of the major clients of Tata consulting services.

ECONOMIC FACTOR = As mentioned in the annual

report the TCS’s revenue has exceeds the figure of 20 billion,
which is almost 20 times than the last 16 years. It is the first
Indian company to have a market capitalization of 100 billion in
last 10 years. They were awarded with the honour of being the
fastest growing brand in IT service world wide by Brand Finance.
SOCIAL FACTORS = Over the years of it’s operation, TCS
has gained expertise into the area of establishing and retaining the
exiting customers. They have designed certain set of features which
are quiet unique to company which ha s helped them to gained
popularity. They provide a good work life balance to their employs.
Although the company has been criticized for many levels of
hierarchy in the organisation.

TECHNOLOGICAL FACTORS = The company collaborated

with Singapore airlines operation solution in order to change the
ground operation with the help of digital technologies. Further they
launched an intelligent power plant solution in order to digitally
transform operation with the help of power utilities by combining
AI, LoT AND Digital twin technologies
LEGAL FACTORS = TCS has been responsible for stealing
data in past. The case was filed by computer science cooperation
where Tata consultancy services were held responsible for
fraudulently accessing content to construct an insurance platform.
TCS has lost the case where they have to suffer from heavy
penalties of up to 420 million.

ENVIRONMENTAL FACTORS = TCS truly believes that

providing equitable access to financial service to the poorest of
states can act as a direct bridge out of poverty. TCS launched a
financial inclusion network which plays a major role in order to
bring about a banking revolution.
 CONCLUSION


 Global IT service market is huge and YoY this is only increasing exponentially and Covid
has just accelerated this journey ahead of time several years and TCS being a reputed
brand name in this 4 Big IT companies TCS should aim to a becoming a major global
company along with World’s 4 Big consulting firms in likes of Deloitee ,Accenture ,IBM
& Capgemini .Invest more in Talent with 1lakh engineering graduates coming of out of the
colleges every year India has huge talent potential for innovation .TCS &Ignio should start
looking at value creation and stop the tradition mind set of service dominant logic. Focus
more on domain expertise and industry specific specialized solutions rather than
genericproducts.TCS with its diverse industry and geographic reached global level and
with its huge brand value across domestic industries and global clientele continue to invest
in Talent and spend money research and development to create more innovating products
and the product features while become co value creators for the business community .With
government policies with Make in India and Digital India initiatives this is going to further
boost the IT industry and TCS with its innovative product like Ignio should make the most
out it.