MIRA
INFORM REPORT
|
Report Date : |
22.01.2011 |
IDENTIFICATION DETAILS
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Name : |
TATA CONSULTANCY SERVICES LIMITED |
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Registered Office : |
9th Floor, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
09.01.1995 |
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Com. Reg. No.: |
11-84781 |
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CIN No.: [Company
Identification No.] |
L22210MH1995PLC084781 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT00681C / MUMT11446B |
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PAN No.: [Permanent
Account No.] |
AAACR4849R |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the stock exchange. |
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Line of Business : |
Provides IT services Business Solutions and Outsourcing. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (81) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 600000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having excellent track.
It is a part of Tata group, country’s premier industrial house. Fundamentals
are strong and healthy. Payments are always correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in medium to long
run. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
9th Floor, |
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Tel. No.: |
91-22-67789595 |
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Fax No.: |
91-22-67789660 |
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E-Mail : |
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Website : |
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Corporate Office : |
TCS House, |
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Tel. No.: |
91-22-67789999 |
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Fax No.: |
91-22-67789000 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. R N Tata |
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Designation : |
Chairman |
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Date of Birth : |
28.12.1937 |
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Qualification : |
Bachelor of Science degree in Architecture from |
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Date of Appointment : |
05.05.2004 |
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Other Directorship : |
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Name : |
Mr. S Ramadorai |
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Designation : |
Managing Director |
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Name : |
Mr. Aman Mehta |
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Designation : |
Director |
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Date of Birth/Age : |
01.09.1946 |
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Qualification : |
Bachelors degree in Economics from |
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Experience : |
Wide experience in Banking and finance |
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Date of Appointment : |
06.05.2004 |
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Directorship held in other Public Companies (excluding foreign
companies) : |
· Wockhardt Pharmaceuticals Limited · Jet Airways Limited · Max Healthcare Institute Limited · Godrej Consumer · Products limited ·
Cairn |
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Name : |
Mr. V Thyagarajan |
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Designation : |
Director |
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Date of Birth : |
19.04.1946 |
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Qualification : |
B. Tech [Elec] and M.B.A. from the Indian Institute of Management
Ahmedabad |
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Date of Appointment : |
05.09.2005 |
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Other Directorship : |
Glaxo Smithkline Pharmaceuticals Limited |
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Name : |
Mr. Clayton M Christensen |
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Designation : |
Director |
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Name : |
Mr. Ron Sommer |
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Designation : |
Director |
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Date of Birth/Age : |
05.09.2006 |
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Qualification : |
Ph .D in mathematics |
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Experience : |
Wide experience in telecom and Business |
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Name : |
Mr. Laura M. Cha |
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Designation : |
Director |
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Date of Birth/Age : |
05.12.1949 |
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Qualification : |
B A JD (Juris Doctor i.e, doctor of law) |
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Experience : |
Wide experience in Law, Banking and securities markets. |
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Date of Appointment : |
02.11.2006 |
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Name : |
Mr. N. Chandrasekaran |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. S. Mahalingam |
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Designation : |
Chief Finance Officer and Executive Director |
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Name : |
Mr. Phiroz Vandrevala |
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Designation : |
Executive Director |
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Name : |
Dr. Vijay Kelkar |
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Designation : |
Director |
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Name : |
Mr. Ishaat Hussain |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Suprakash Mukhopadhyay |
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Designation : |
Company Secretary |
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Management Team: |
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Corporate: |
Mr. N. Chandrasekaran (Chief Executive Officer) |
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Mr. S Mahalingam (Chief Finance
Officer) |
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Mr. Phiroz Vandrevala (Corporate Affairs) |
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Mr. Ajoyendra Mukherjee (Global Human Resources) |
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Geography
Heads: |
Mr. Surya Kant ( |
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Mr. A.S. Lakshminarayanan ( |
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Ms. Girija Pande (APAC) |
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Mr. Vish Iyer (APAC) |
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Mr. Masahiko Kaji (APAC) |
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Mr. Henry Manzano ( |
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Mr. Girish Ramachandran (MEA) |
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Mr. Srinivasa G. Raghavan ( |
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Mr. John Lenzen (Marketing) |
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Ms. Pradipta Bagchi (Corporate Communication) |
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Mr. K. Ananth Krishnan (R and D) |
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Ms. Ritu Anand (Human Resources) |
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Mr. Ashok Mukherjee (Human Resources) |
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Mr. K. Ganesan (Human Resources) |
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Mr. Thomas Simon (Human Resources) |
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Mr. S. Narasimhan (Human Resources) |
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Mr. Satya Hegde (Legal) |
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Mr. B. Sanyal (Finance) |
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Mr. V. Ramakrishnan (Finance) |
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Mr. Pauroos Karkaria (Finance) |
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Mr. G.S. Lakshminathan (Finance) |
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Mr. Rajesh Gopinathan (Finance) |
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Mr. Ravindra J Shah (Chief Compliance Officer) |
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Mr. R. K. Raghavan (Security) |
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Industry Service Units: |
Mr. Ramanamurthy Magapu (Banking and Financial Services) |
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Mr. K Krithivasan (Banking and Financial Services) |
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Mr. Susheel Vasudevan (Banking and Financial Services) |
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Mr. Tej Paul Bhatla (Banking and Financial Services) |
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Ms. Vijaya Deepti (Insurance) |
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Mr. Suresh Muthuswami (Insurance) |
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Mr. Ravi Viswanathan (Telecom) |
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Mr. Milind Lakkad (Telecom) |
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Mr. Nagaraj Ijari (Hi Tech) |
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Carol Wilson (Hi Tech) |
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Mr. Tanmoy Chakrabarty (Government) |
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Mr. Pratik Pal (Retail and Distribution) |
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Mr. Debashis Ghosh (Life Science and Healthcare) |
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Mr. Hasit Kaji (Energy, Resources and Utilities) |
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Mr. Kamal Bhadada (Media and Information Services) |
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Mr. S Sukanya (Travel and Hospitality) |
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Strategic Growth
Units: |
Mr. N G Subramaniam (TCS Financial Services) |
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Mr. Venguswamy Ramaswamy (Small and Medium Business) |
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Mr. Raj Agrawal (Platform BPO) |
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Service Units: |
Mr. J Rajagopal (Global Consulting Practice) |
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Mr. Regu Ayyaswamy (Engineering and Industrial Services) |
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Mr. P R Krishnan (Infrastructure Services) |
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Mr. Abid Ali Neemuchwala (BPO) |
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Mr. Siva Ganesan (Assurance Services) |
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Mr. Krishnan Ramanujam ( |
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Mr. K Jayaramakrishnan (Alliances) |
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Mr. Alok Kumar (Internal IT) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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1,447,783,748 |
73.97 |
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1,607,624 |
0.08 |
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1,607,624 |
0.08 |
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1,449,391,372 |
74.05 |
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Total shareholding of Promoter and Promoter Group (A) |
1,449,391,372 |
74.05 |
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(B) Public Shareholding |
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47,387,786 |
2.42 |
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492,479 |
0.03 |
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16,420 |
- |
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106,607,192 |
5.45 |
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250,266,237 |
12.79 |
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404,770,114 |
20.68 |
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12,928,555 |
0.66 |
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74,019,443 |
3.78 |
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14,058,654 |
0.72 |
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2,052,858 |
0.10 |
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428 |
- |
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150,934 |
0.01 |
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1,901,496 |
0.10 |
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103,059,510 |
5.27 |
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Total Public shareholding (B) |
507,829,624 |
25.95 |
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Total (A)+(B) |
1,957,220,996 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
1,957,220,996 |
100.00 |
(1) Indian
Bodies Corporate
TrustsBUSINESS DETAILS
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Line of Business : |
Provides IT services Business Solutions and Outsourcing. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2010
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Particulars |
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Installed
Capacity |
Actual
Production |
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Document processing systems |
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45000 |
9004 |
GENERAL INFORMATION
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Bankers : |
v Standard Chartered Grindlays Bank Limited v Citibank N.A. v
The National Bank of v
ABN v
Credit v
Bank v
Nepal Arab Bank Limited, v
ABN v
UNI v
CIBC v
DBS, |
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Facilities : |
Note:
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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US GAAP Auditors
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Name: |
Deloitte Haskins and Sells Chartered Accountant |
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Associates: |
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Fellow Subsidiaries: |
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Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2250000000 |
Equity Share |
Rs.1/- each |
Rs.2250.000 Millions |
|
1000000000 |
Redeemable Preference Shares |
Rs.1/- each |
Rs.1000.000 Millions |
|
|
Total |
|
Rs.3250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1957220996 |
Equity Share |
Rs.1/- each |
Rs.1957.200
Millions |
|
1000000000 |
Redeemable Preference Shares |
Rs./- each |
Rs.1000.000
Millions |
|
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Total |
|
Rs.2957.200 Millions |
Note:
1. Equity Shares of
Rs.10 each have been sub-divided into ten equity shares of Re. 1 each pursuant
to the resolution passed by the shareholders at the Annual General Meeting on
May 5, 2004.
2. The Company
allotted 9,11,00,009 equity shares as fully paid up bonus shares by
capitalisation of profits transferred from General Reserve, pursuant to a
shareholders’ resolution passed at the Annual General Meeting on May 5, 2004.
3. The Authorised
Share Capital was increased to 120,00,00,000 equity shares of Re.1 each
pursuant to a shareholders’ resolution passed at the Annual General Meeting on
June 29, 2006.
4. The Company
allotted 48,93,05,249 equity shares as fully paid up bonus shares on July 31,
2006 by utilisation of Securities Premium Account.
5. 91, 90,440
equity shares of Re. 1 each, had been allotted in 2005-06 as fully paid up to
the Shareholders of erstwhile Tata Infotech Limited pursuant to the Scheme of
Amalgamation.
6. The Authorised
Share Capital was increased to Rs. 2200.000 Millions by creation of
100,00,00,000 redeemable preference shares of face value of Re.1 each pursuant
to a shareholders’ resolution passed by postal ballot on March 17, 2008.
7. Effective March
28, 2008, the Issued, Subscribed and Paid up capital increased to Rs.1978.600
Millions by allotment of 100,00,00,000 redeemable preference shares of face
value of Re.1 each. These shares would be redeemable at par at the end of six
years from the date of allotment but may be redeemed at any time after 3 years
from the date of allotment at the option of shareholder. These shares would
carry a fixed cumulative dividend of 1% per annum and a variable non-cumulative
dividend of 1% of the difference between the rate of dividend declared during
the year on the equity shares of the Company and the average rate of dividend
declared on the equity shares of the Company for three years preceding the year
of issue of the redeemable preference shares.
8. The Authorised
Equity Share Capital was increased to 225,00,00,000 equity shares of Re.1 each
pursuant to the resolutions passed by the share holders by postal ballot on
June 12, 2009.
9. The Company
allotted 97,86,10,498 equity shares as fully paid up bonus shares on June 18, 2009
by utilisation of Securities Premium Account pursuant to a resolution passed by
the shareholders by postal ballot on June 12, 2009.
10. 144,34,04,398 equity shares (March 31, 2009 : 72,17,02,199 equity shares) and 100,00,00,000 redeemable preference shares (March 31, 2009 : 100,00,00,000 redeemable preference shares) are held by Tata Sons Limited, the holding company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2957.200 |
1978.600 |
1978.600 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
148209.000 |
132483.900 |
108069.500 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
151166.200 |
134462.500 |
110048.100 |
|
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LOAN FUNDS |
|
|
|
|
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1] Secured Loans |
292.500 |
326.300 |
92.700 |
|
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2] Unsecured Loans |
64.900 |
84.100 |
89.800 |
|
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TOTAL BORROWING |
357.400 |
410.400 |
182.500 |
|
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DEFERRED TAX LIABILITIES |
401.000 |
1030.500 |
544.900 |
|
|
|
|
|
|
|
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TOTAL |
151924.600 |
135903.400 |
110775.500 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
27605.200 |
26690.800 |
19405.300 |
|
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Capital work-in-progress |
9407.200 |
6851.300 |
8897.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
78933.900 |
59360.300 |
45093.300 |
|
|
DEFERREX TAX ASSETS |
531.300 |
36.500 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
67.800
|
169.500 |
171.900
|
|
|
Sundry Debtors |
33323.000
|
37327.800 |
37470.100
|
|
|
Cash & Bank Balances |
33961.600
|
16052.600 |
5275.200
|
|
|
Other Current Assets |
6636.000
|
8173.500 |
8712.500
|
|
|
Loans & Advances |
33851.100
|
29669.800 |
21666.000
|
|
Total
Current Assets |
107839.500
|
91393.200 |
73295.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
20282.700
|
14981.900 |
|
|
|
Other Current Liabilities |
12843.700
|
20156.900 |
24041.800
|
|
|
Provisions |
39266.100
|
13289.900 |
11874.400
|
|
Total
Current Liabilities |
72392.500
|
48428.700 |
35916.200
|
|
|
Net Current Assets |
35447.000
|
42964.500 |
37379.500
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
151924.600 |
135903.400 |
110775.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Information technology and consultancy services |
222329.300 |
215357.500 |
185337.200 |
|
|
|
|
8115.200 |
8682.500 |
0.000 |
|
|
|
Other Income |
1776.000 |
(4562.400) |
4459.500 |
|
|
|
TOTAL (A) |
232220.500 |
219477.600 |
189796.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employees Costs |
78824.300 |
73700.900 |
|
|
|
|
Operation and other Expenses |
84903.500 |
90130.800 |
|
|
|
|
TOTAL (B) |
163727.800 |
163831.700 |
135136.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
68492.700 |
55645.900 |
54660.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES/ INTEREST (D) |
95.400 |
74.400 |
34.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
68397.300 |
55571.500 |
54626.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4693.500 |
4174.600 |
4587.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
63703.800 |
51396.900 |
50038.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7518.700 |
4434.800 |
4951.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
56185.100 |
46962.100 |
45087.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
99904.100 |
73748.900 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim dividends on equity shares |
11743.200 |
8807.400 |
-- |
|
|
|
Proposed final dividend on equity shares |
27401.100 |
4893.100 |
-- |
|
|
|
Dividend on redeemable preference shares |
170.000 |
70.000 |
-- |
|
|
|
Tax on dividend |
6575.100 |
2340.200 |
-- |
|
|
|
General reserve |
5618.500 |
4696.200 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
104581.300 |
99904.100 |
-- |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
1289.200 |
2026.800 |
167764.800 |
|
|
|
Consultancy services |
211152.800 |
206002.600 |
0.000 |
|
|
|
Interest income |
361.600 |
233.700 |
0.000 |
|
|
|
Other income |
92.100 |
103.400 |
0.000 |
|
|
TOTAL EARNINGS |
212895.700 |
208366.500 |
167764.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
111.100 |
422.800 |
411.900 |
|
|
|
Stores & Spares |
0.200 |
0.700 |
00.700 |
|
|
|
Capital Goods |
1018.400 |
2605.200 |
2315.500 |
|
|
TOTAL IMPORTS |
1129.700 |
3028.700 |
2728.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
28.61 |
23.95 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
|
Net Sales |
64109.500 |
72674.500 |
76272.600 |
|
Total Expenditure |
45496.000 |
51088.400 |
52821.900 |
|
PBIDT (Excl OI) |
18613.500 |
21586.100 |
23450.700 |
|
Other Income |
364.300 |
1032.200 |
1371.900 |
|
Operating Profit |
18977.800 |
22618.300 |
24822.600 |
|
Interest |
19.400 |
142.700 |
26.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
18958.400 |
22475.600 |
24796.600 |
|
Depreciation |
1146.000 |
1261.700 |
1392.300 |
|
Profit Before Tax |
17812.400 |
21213.900 |
23404.300 |
|
Tax |
2248.300 |
3087.400 |
2886.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
15564.100 |
18126.500 |
20517.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
15564.100 |
18126.500 |
20517.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
24.19
|
21.40 |
23.75 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
27.64
|
22.94 |
27.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
47.03
|
4352 |
5398 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.42
|
0.38 |
0.45 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.48
|
0.36 |
0.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49
|
1.89 |
2.04 |
LOCAL AGENCY FURTHER INFORMATION
Operating Results and Business
Overall, 2009-10 has
been a very satisfying year. TCS emerged stronger out of the global economic
downturn as
it stayed close to
its customers and helped them in the recovery process. The Company was
aggressive in its quest for new contracts, executed on its full services strategy
and maintained pricing discipline. This helped to deliver 8% revenue growth for
the year along with improvement in margin.
On an
Unconsolidated basis, in 2009-10 TCS revenues were at Rs.230444.500 Millions, a
growth of 2.86% over 2008-09. Operating margin (Profit before taxes excluding
other income) grew 189 basis points to 26.87% and net
margin grew 342
basis points to 24.38%.
On a Consolidated
basis, in 2009-10 TCS revenues were at Rs.300289.200 Millions, a growth of
7.97% over 2008-09. Operating margin (Profit before taxes excluding other
income) grew 304 basis points to 26.70% and net margin grew 441 basis points to
23.31%. This stellar performance was well received by investors, with the
market capitalisation increasing from Rs.528450.000 Millions ($10.4 billion) in
March 2009 to Rs.1528200.000 Millions ($34 billion) in March 2010.
The Company’s
business grew even in those sectors affected by the economic meltdown, mainly
because the customers appreciated the Company’s value proposition. Banking,
Financial Services, Retail, Life Sciences & Health Care and Government
sectors registered positive growth in FY10. However, sectors like
Manufacturing, Telecom, Hi-Tech and Insurance all declined on an annual basis.
The Company sees improvement in its order position in these industry segments
as well as growth in almost all geographical markets. TCS’ full services
trategy was validated with new service lines like BPO, Infrastructure,
Assurance and products all delivering double digit growth.
Change in Leadership
in TCS
Mr. S. Ramdorai retired as the Chief Executive Officer and
Managing Director of the Company on October 5, 2009 as per the Company’s
Policy. On October 6, 2009, Mr. N. Chandrasekaran assumed the role of Chief
Executive Officer and Managing Director of the Company. Mr. Ramadorai continues
to be on the Board as the Non-Executive Vice Chairman of the Company. Mr.
Chandrasekaran has spent over 20 years in the Company performing various roles
and was the Chief Operating Officer and Executive Director. With this seamless
transition of the CEO role, the Company has continuity in its strategic and
managerial approach.
Strategic
Acquisitions and Alliances
The Company has been making acquisitions either directly or
indirectly through its subsidiaries during the past few years in order to
strengthen its leadership position in terms of its industry and service lines.
TCS e-Serve Limited, TCS’ acquisition of Citigroup’s captive BPO operations in
Major Ongoing CS
initiatives:
Computer based Functional Literacy:
The functional
literacy offering of TCS has now covered more than 140,000 persons. A new
initiative for development of a solution for the Moree language spoken in
cover 70 million
illiterate persons.
Advanced
To address the need
for advanced learning institutions for visually impaired, TCS Maitree paved the
way and pioneered an Advanced Computer Training Centre for the visually
impaired at M. N. Banajee Industrial Home for the Blind at Mumbai. This centre
offers vocational courses based on industry requirements. More than 65 visually
impaired persons have been trained through this initiative in the last two
years International CS initiatives:
TCS has over 30 champions and teams having an impact on
society in towns and cities, supporting over 45 charities through more than 250
initiatives. TCS has created the Tata UK flagship initiative called TODAY IS A
GOOD DAY, which is a health programme deployed across the 19 Tata
TCS had extensive discussions with the Chilean Government to
identify areas where TCS could contribute effectively after last year’s
devastating earthquake in the region. Given the fact that the residents in the
affected areas were facing shortage of the basic amenities, TCS in consultation
with the Chile Government decided to provide Water Desalination plants. These
plants, which help in converting sea water into pure drinking water and are
adequate in meeting the drinking water requirements of a small community, were
also used extensively as part of the Tsunami relief efforts in
Since 2006, TCS
Mexico has collaborated in all events of the “Asociación Con ganas de Vivir”
(Eager to Live Association) for children suffering from cancer.
Since August 2009,
a Blood Donation Program in co-ordination with the Ecuadorian Red Cross has
been scheduled to take place every six months. The last Campaign was directed
towards support of the
TCS has supported
numerous health related causes such as the Alzheimer’s Association Memory Walk
in which TCSers across 4 cities helped raise awareness on this issue. In the
area of education, TCS has created a student technology summer camp and
awareness program called ‘goIT’ that is available to high school students in
the Greater Cincinnati, Ohio region. Volunteering comes naturally to TCSers in
TCS has organized
and contributed towards a Bone Marrow Donation Awareness Programme and 20
TCSers have registered as Bone Marrow Donors.
INDUSTRY OVERVIEW
World-wide technology and related products and services spend is estimated to have crossed USD 1.5 trillion in 2009, a decline of 2.9% over 2008 as per NASSCOM Strategic Review 2010. Due to the global economic slowdown, considerable reductions were experienced in IT service spends across categories as global corporations cut back on discretionary spends and focused on leveraging IT spends to drive organisation-wide efficiencies, business transformation and adoption of new business models.
The economic downturn contributed to reductions in spending in the first half of 2009 and early signs of pick up in spending became visible in the second half of 2009. Companies had reduced IT spending either by delaying the decisions or by putting some discretionary spending on new IT projects on hold in the first half of 2009. This led to both pricing and volume pressures for IT service providers. In the second half of 2009 as economic growth showed signs of revival and driven primarily by the need to manage costs and increase operational efficiencies, as well as position themselves for the anticipated economic growth, many global corporations focused on (1) improvements in business processes (2) infrastructure consolidation (3) re-engineering (4) virtualization (5) workload management and (6) cutting down on cycle time and increasing speed to market. The components of IT services and BPO spend by nature of spend and geography and the growth in these markets for 2009 over 2008, which are of interest to the Company
Industry performance
and projections
Globally technology spending is expected to further increase once the global economic recovery process gathers speed and discretionary spending levels increase. Information technology (IT) has become an integral part of business operations across industries and is seen by organisations as a primary driver of productivity improvement and business transformation that lead to sustained competitive advantages in the market place. Some of the future expected drivers for IT spending are the anticipated levels of increased regulation especially in the Banking, Financial Services and Insurance (BFSI) space, security and reporting requirements, and new focus areas including green IT and mobility/ubiquity initiatives. Global technology spend is expected to increase from
USD 1.6 trillion in 2008 to USD 1.9 trillion by 2013 at a Compounded Annual Growth Rate (CAGR) of 3.5%.
FOCUS AREAS OF THE
COMPANY
Vision,
In the last four decades, TCS has established a global
reputation for its ability to help customers achieve their business objectives
by providing innovative, best-in-class consulting, IT solutionsand services.
TCS’ values underpin all activities in the Company and these include leadership
with trust, integrity, excellence and respect for the individual and learning and sharing. At the beginning of this decade TCS
had envisioned that it would be among the globaltop ten IT services companies
in the world by the end the decade. The company has achieved its stated vision
last year. On the basis of parameters like revenues, profits, number of
employees and market capitalization, the Company is among the top ten IT
services companies in the world. The company will continue to consolidate and
strengthen its position in the industry as an integrated full services player
with a global footprint in terms of innovation, operations and service
delivery.
Strategy of the Company: The core of TCS’
strategy is the focus on the customer. It enables clients to experience a very
high level of certainty in their IT operations.
Customer-centricity to enable certainty of experience: Their strategy is defined by their ability and experience to play the critical
role of a trusted business partner to large global corporations. They have
built a customer-centric organization based on the brand promise of ‘Experience
certainty’. This promise of certainty resonates with customers as it offers
them real business results through optimal IT design and deployment. It
reflects their ability to solve the
customer’s most challenging business problems.
Global Network Delivery Model: TCS has
established a unique Global Network Delivery Model TM (GNDMTM) that allows the
Company to deliver services to customers from multiple global locations
in
Integrated Full Services Offering: TCS
continues to build on its ‘Full Services Offering’ that offer global customers
an integrated portfolio of services. This includes a
comprehensive range of (1) IT services capabilities in the areas of Application
Development, Application Management and Enterprise Solutions (2) Business
Process Outsourcing Services (3) IT Infrastructure solutions with a strong
focus on ‘Remote Infrastructure Management’ and transformation (4) Engineering
services with a focus on Enterprise Asset Management, Industrial Embedded
Systems, Plant Automation Services and Product Engineering (5) Assurance and
Validation services (6) TCS’ own product based solutions specifically in
financial services and (7) Global Consulting capability that brings strong
skills in program management, change management, process management and
architecture.
This suite of integrated services continues to present a
compelling value proposition for global corporations and continues to gain
traction in the market place. The strategy captures the entire value chain of
IT – from consulting to products and solutions and from implementation to
support.
Strategic Acquisitions: In addition to
sustaining strong organic growth, the Company continues to closely look at
acquisitions that are strategic in nature. Through inorganic means the Company
may look to strengthen gaps in its services portfolio, enter new geographies or
market segments as well as in-source domain and technology expertise. The
strategic acquisitions done over the years have created new capabilities within
the Company and these acquisitions continue to yield synergistic growth. The
Company has not made any major acquisitions in fiscal 2010.
Non-Linear Growth Strategies: As a long-term
strategy, the Company continues to invest in Non-Linear Growth initiatives that
will allow it to drive revenue growth without commensurate growth in the
number of people. The Company is focused on a set of Strategic Growth Business
initiatives to drive non-linear growth opportunities.
TCS Financial Solutions: TCS Financial Solutions
enables transformation in financial services through a superior and holistic
suite of solutions, under the brand name TCS BaNCS for banks, capital market
firms, insurance companies and diversified financial institutions. The solution
is designed to be modular with a state-of-the-art technology and a robust
architecture.
TCS Financial Solutions increased its customers by adding 53
new clients during the financial year. In addition, 36 clients went “live” on
BaNCS solutions during the year.
TCS BaNCS is increasingly gaining market recognition and
industry analyst endorsements as listed below:
- Celent’s ABCD analysis for core banking systems ranked TCS BaNCS as
the leader
- TCS BxNCS was ranked as the 3 best selling banking product by lBS
Intelligence 2009
- IDC ranked TCS BxNCS as the #1 solution in the
- Forrester, Gartner and Tower — all have favorable endorsements on
TCS BNCS.
- In the recently published Forrester Global Banking Platform Deals
report for 2009, TCS BaNCS has moved from the 4th to the 3rd place since
last year
- ‘Indian Bank’ won the 2009 Celent Model Bank award. With this, for
the last three years in a row, TCS BNCS clients have won this award
globally (2007:CACU-Australia, 2008:
- Celent’s Case Study on State Bank of
Platform-based
BPO:
Platform based Business Process Outsourcing (BPO) is an
outsourcing model in which TCS provides management and execution of customer’s
business processes using its own technology platform — built, owned and
operated by it—on a utility-based model. This involves combining Information
Technology, Infrastructure and BPO services into a bundled service offering that
enables end-to-end execution of customer’s business processes. The strategic
driver behind this offering from the Company is to address organisations’
increasing need for higher cost savings, superior business performance and
single point of accountability in executing their business processes. TCS
believes that its ability to create and deliver value to customers will be
superior when it brings together all aspects – people, process and
technology -of such business areas.
The platform BPO unit has achieved good traction in the
market for its offerings. It has won key deals with customers in
expected to constitute around 14% of overall BPO services
market (of ~$170 billion) in 2010.
Small and Medium
Business Initiative:
TCS launched the Small and Medium Business (SMB) Solutions
Unit with the objective of providing end-to-end Information and Communication
Technology (ICT) solutions to SMBs.
TCS has built the necessary solutions for a SMB to run their
business. The company created a new service delivery model for the SMBs, called
“IT-as-a-Service”. This model leverages the cloud computing paradigm to
activate and manage ICT solutions. TCS charges monthly usage fees on a
subscription basis in this model.
The solution stack includes pre-integrated suite of
hardware, network and software solutions making TCS the single service provider
for all the ICT requirements of an SMB. This brings considerable total cost of
ownership savings to an SMB, helping them leverage technology to grow their
business and become more competitive. The Company believes that the
IT-as-a-Service model greatly simplifies IT adoption amongst SMBs.
Organisational structure aligned for Agile Response: The organisational structure has been aligned closely to
the Company’s business strategy and operating imperatives. It consists
of individual business units structured as industry solution units for
different industries with independent business units for new growth markets
like
Industry Solution Units: In order to retain
sharp customer focus on key global accounts and enhance customer centricity
across the organization, the Company has established Industry Solution Units
(ISUs) along industry verticals. The list of Industry Solutions Unit includes:
Banking and Financial Services, Insurance, Telecom, Manufacturing, Retail and
Consumer Packaged Goods, Life Science and Healthcare, Media and Information
Services, Hi-tech, Government, Energy, Resources and Utilities and Travel,
Transportation and Hospitality Banking, Financial Services and Insurance
(BFSI): The BFSI industry across the world has always
leveraged technology effectively for addressing business challenges across
different areas like globalisation, consolidation,
disintermediation, regulatory compliance, risk management,
evolving distribution channels etc. The events of 2008 and its repercussions
felt through 2009 swept the financial world into a corner, primarily as a
result of financial indiscipline and poor governance. The rapidly changing
business and economic environment requires BFSI institutions to effectively
respond to increasing Governance, Risk and Compliance requirements while
meeting superior levels of customer experience and effectively managing
revenues and costs.
Over the past four decades TCS has partnered with multiple
clients in the BFSI world and has executed a number of complex and time
critical assignments under challenging business and operating environments.
Their end-to-end
offerings, comprehensive product suite, scalable processes
and innovative frameworks have enabled significant strategic value creation for
their clients by helping them optimize
their IT investments, enhanced operational efficiencies, minimized risk, and
helped them to acquire sustained cost leadership.
Telecom: They serve many global clients and
have long-standing relationships spanning a decade or more with many of these
clients. They are currently executing several Transformational Projects which
are in progress across North America, Europe,
- 5 of top 10 Communication Service Providers worldwide V
- 4 of top 6 European Telecommunication Services Companies
- 8of top 10 Telecom Equipment Manufacturers globally
- 5 of top 7 North American Communication service providers
- 4 of top 5 Communication equipment vendors
- Leading Indian telecom service providers
With the objective of differentiating their offerings they have a spread of end-to-end
offerings in Operations Support Systems (OSS), Business Support Systems (BSS),
and Communication and Network Solutions. Over 30 % of the TCS consultants
engaged in Telecom programs are domain experts in the fields of Networking,
Telecom end-to-end processes, Customer
Relationship Management (CRM), Billing, Inventory, Provisioning,
Mediation, Legacy and
Commercial Off the Shelf (COTS) solutions, BPO
for Operational processes, Managed services,
Hosted Delivery, IT Assurance and Infrastructure
Services.
Their Productized
offerings include:
- “Telco in a
Box” frameworkwith readymade process definitions and solution sets for
different service provider business phases
- Service
Oriented Architecture Framework for IT transformation of Service Provider
- OSS/BSS
- IPTV
(Internet Protocol TV) framework for\ accelerating launch and deployment
of
- IPTV Service
- Handset
testing framework for rapid rollout of new applications
They have established Centers of Excellence (CoEs)/Labs for Customer
Experience, OSS/BSS, IPTV, Value Added Services (VAS), Mobility Solutions and
Integrated Network Convergence.
Manufacturing
Industry Solutions:
Manufacturing Industry Solutions Unit has been playing a
significant role as a strategic partner to its clients in Automotive,
Industrial Manufacturing and Components
(IMC), Process and Chemical and
Aerospace sectors. One out of every three Fortune 500 Manufacturing companies
works with the company to drive their next generation IT strategies. The Global
economic slowdown resulted in negative growth for this vertical during this
year. The discretionary IT spend of the automotive industry shrank in fiscal 2010,
while the IMC sector, impacted by the declining order book position, cut back
even on the ‘IT to run business’ expenditure. They diversified their portfolio by embracing BPO and Infrastructure
Management Services to broaden this units growth horizon for the future.
Significant investments have been made to this effect in product development,
supply chain management and customer experience management area, through
assets, solutions and alliances.
Retail and
Consumer Packaged Goods:
The Retail vertical is one of the fastest growing verticals
at TCS today. It offers a complete portfolio of services – Consulting, IT
Infrastructure Services, BPO, Assurance and Enterprise Solutions to Retail and
Consumer Packaged Goods (CPG) companies globally. TCS Retail practice has been
in existence for the past 15+ years with over 14000+ consultants serving 6 of
the top 10 global retailers. They have a number of solutions and frameworks
that include Store Based Loyalty, Point of Sale (POS) and Store Inventory
Management, Web 2.0 enabled Ecommerce Components, Mobile Marketing and Commerce
Solution, PLM (Product Lifecycle Management), Retail Analytics Platform and
Assortment Analysis Tool.
They constantly develop new capabilities, forge alliances,
and develop proprietary solutions and assets to meet the changing demands of
the market. These solutions help their customers gain significant competitive
advantage. To sustain competitive advantage in an industry characterized by
intense competition, expanding boundaries, changing trends, short life cycle
products, complex global supply chains and high customer churn, retailers need to leverage
technology and create winning strategies. From high end consulting to
integrated solution suites TCS provides end-to-end technology and business
solutions that help retailers win customers and ensure success. In addition to
end-to-end IT and BPO services TCS has also invested in the following
proprietary solutions:
- TCS Ecommerce Platform
- Customer program Management (CPM)
- Assortment Optimization
- Workforce Management
- Platform based solution for finance and account (F and A), Human
Resources, indirect Sourcing and Business Intelligence
- TCS Retail Vertical also focuses on providing business process
improvements for retailers leveraging its assets and lean framework.
At TCS, they continue to see Retailers focusing on improving their
customer centricity, increasing operational efficiencies, reducing working
capital and enabling multi-channel capabilities. The Business trends high on
priority for leading retailers are investments in e-commerce and web 2.0;
Inventory Optimization; mobile commerce and improved Customer Intimacy.
Business Process Outsourcing (BPO): TCS BPO is
now ranked amongst the top 2 BPO providers in
Due to its focus on domain-intensive transaction processing services and
knowledge services, as well as its high quality delivery, TCS BPO is forging
newer customer relationships every quarter while strengthening its
long-standing ties with key customers.
TCS’ proprietary GNDMTM (Global Network Delivery Model TM) has been
effectively leveraged by TCS BPO Services, to facilitate a near-shore delivery
for many of its global customers. During the financial year, the company
continued to invest in scaling up its operations and delivering BPO Services
from
Engineering and Industrial Services (EIS):
The EIS business is an integral element of TCS’ strategy to
provide full services across the engineering, product development and Rand D
value stream of companies across all the industry verticals. The EIS portfolio
provides a wide range of solutions catering to individual customer needs
focusing on New Product Development Solutions, Product Lifecycle Management
Solutions, Plant Solutions and Services
and Geospatial Solutions.
This vertical was impacted during the overall macroeconomic
and manufacturing industry slow down and has since shown signs of recovery.
Global Consulting Practice: The Global
Consulting Practice (GCP) uses consulting and IT services capabilities to bring
continuity and consistency to strategic programs and help organisations manage
current business requirements, while preparing for the future. It is a key component
of the Company’s full services strategy to deliver greater value to clients.
Their consulting-led, integrated
portfolio of IT and IT-enabled services is designed to help organizations
increase alignment between Business Operations and IT.
Building on TCS’ delivery excellence and proven technology
expertise, GCP leverages TCS’ industry insight and consulting knowhow gained
over the last 40 years to deliver trusted advice to client organisations
globally. GCP is instrumental in positioning TCS as a business advisor. It
allows us to develop closer, broad based relationships with leading
organizations, as they strive to optimize and transform their businesses using
technology.
GCP partners with such clients across the transformation landscape
and lifecycle to create innovative business solutions, support implementation
and deliver measurable results.
Technology and Innovation: Over the last three
decades, innovation has evolved in TCS in line with the environment and market.
As on March 31, 2010, TCS had established a global network 19 Rand D Innovation
Labs with specific focus on technologies and verticals. The Company had also
established 60 Centers of Excellence (CoEs) in all areas of information
technology and business services as well as on partner products. This ensured
that all their offerings incorporated
the latest products and services capabilities from the Company and its alliance
partners and allowed us to build new skill sets among the employee base to
better serve customers current and emerging needs.
TCS’ Innovation Labs works on numerous research themes
primarily in the field of information technology. These themes include use of
IT for improving operational efficiency, business agility and simplification of
complex systems and customer driven research themes to improve customer
experience.
The TCS Co-Innovation Network (COIN™) has a key role in
leveraging an external ecosystem to create leading edge solutions. During the
current fiscal they created two significant solutions, the Home Infotainment
Platform and Tata Swach for purifying water, in new business areas and at
disruptive price points, by collaborating with their partners.
Intellectual Property (IP): The Company has
defined an IP strategy with the objective of building an effective portfolio
for future monetization, collaboration and risk mitigation. The total number of
granted patents is 60. In addition, TCS has over 295 patents pending in
multiple jurisdictions.
Human Resources Strategy: The Company continues
to invest in human resources development. The total number of employees
including subsidiaries as at March 31, 2010 was 160,429 (143,761 as at March
31, 2009).
The Company had a gross addition (including Indian
subsidiaries) of 38,063 (previous year 48,595) employees and a net addition of
16,668 (previous year 32,354) employees. Gross additions for last fiscal year
included over
12,500 people as a result of the Citigroup BPO acquisition.
The Company has recruited 38,063 employees in fiscal 2010 as compared to 35,345
employees in fiscal 2009 an increase in gross additions of 7.67% during the
current fiscal.
Talent Retention: The attrition rate of 11.8%
in fiscal 2010 (previous year 11.4%) is the lowest in the industry. This low
attrition rate has been achieved by continuously investing in learning and
development programs for employees, competitive compensation, creating a
compelling work environment, empowering employees at all levels, as well as a
well-structured reward and recognition mechanism.
Talent Diversity: The composition of the
global workforce continues to show increasing trends in the number of female
employees and foreign nationals from countries across the globe. As at March
31, 2010, women constituted 30.4% of the Company’s workforce (30.1% as at March
31, 2009). The Company employed persons from 80 different nationalities
(previous year 67 different nationalities). The headcount of TCS Global
non-Indian nationals including the employees of its subsidiaries as on March
31, 2010 was 10,475 employees (includes the foreign nationals employed by
Diligenta their UK Subsidiary). TCS is
focused on adding to its global knowledge workforce and integrating these
professionals into its workforce.
Academic Program: Continuous interaction with
universities and other educational institutions remains a central plank of TCS’
strategy to attract the best scientific and engineering talent. TCS has also
set-up an Industry – Academia collaboration network with some of the foremost
Universities in
Talent acquisition: The Company continues to
invest in improving the overall quality of engineering talent in
Inclusive Talent Development - TCS Ignite: Launched
in 2007, Ignite demonstrates the Company’s commitment to inclusive growth. More
than 60% of hiring done by the Company since inception under this program is of
first generation graduates. Recruitment takes place from across 500 colleges in
higher education opportunities like Masters in Computer
Applications (MCA) in collaboration with its academic partners. The top 1% of
Ignite recruited employee’s are pursuing the challenging MSc Computer Science
program at the Chennai Mathematical Institute.
Ignite continues to make significant strides in the areas of
learning (new advanced electives in Performance Engineering, Visual Excellenc,
and Learning from
Three ecosystem initiatives focusing on continuing
education, schools and adult employability were launched. The dedicated MCA
program for Ignite trainees is already among the country’s largest corporate
continuing education program.
Learning and Development: More than 17,524 trainees
completed the Initial Learning Program (ILP). Their employees gained 9,151 new technology and
process certifications during 2009-10 as part of the Continuous Learning Program
(CLP). The e-Learning coverage was significantly enhanced. Modules in Portuguese,
Mandarin and Spanish rolled out last year are being used. The new version of
Competency Management System (iCALMS) and a Learning Planning System have been
deployed globally to enhance the automation of Land D Processes.
FINANCIAL
PERFORMANCE
Tata Consultancy Services Limited (TCS Limited) is a public
company listed on “National Stock Exchange of India Limited (NSE)” and “The
Bombay Stock Exchange Limited (BSE)” since August 25, 2004. The financial
statements of TCS Limited are prepared in compliance with the Companies Act,
1956 and generally accepted accounting principles in
(i) Tata Consultancy Services Limited (Consolidated) which
includes performance of subsidiaries of TCS Limited.
Preparation and presentation of such Consolidated Financial
Statements brings out comprehensively the performance of the TCS group of companies
and is more relevant for understanding the overall performance of
TCS.
(ii) Tata Consultancy Services Limited (Unconsolidated) which excludes
the performance of subsidiaries of TCS Limited.
Contingent Liabilities:
|
Particular |
As on 31.03.2010 (Rs. In
Millions) |
As on 31.03.2009 (Rs. In
Millions) |
|
Claims against the company not acknowledged
as debts |
189.800 |
438.200 |
|
Income tax demands |
2590.200 |
2690.400 |
|
Indirect tax demands |
475.500 |
355.600 |
|
Guarantees given by the company on behalf of
subsidiaries |
18519.300 |
19388.400 |
|
Total |
21774.800 |
22872.600 |
Note:
- The Company is contesting claims made by lessors for properties
leased under tenancy agreements in the courts. Of these claims, a
provision has been held for Rs. 1065.900 Millions (March 31, 2009: Rs.
675.800 Millions) and Rs. 09.900 Millions (March 31, 2009: Rs. 329.000
Millions) has been included above under the head “Claims against the
Company mot acknowledged as debt”.
- TCS e-Serve Limited has a contingent liability of Rs. 2125.900
Millions (March 31, 2009: Rs. 2207.200 Millions) in respect of Income Tax
matters in dispute. TCS e-Serve Limited has also paid advance taxes
aggregating to Rs. 1621.300 Millions (March 31, 2009: Rs. 7621.300
Millions) against the disputed amounts for the relevant assessment years.
The Company s entitled to an indemnification of the above referred
contingent claims on TCS e-Serve Limited from the seller and would be
required to pay amounts equal to amounts refunded to TCS a-Serve Limited
on those claims as an adjustment to the purchase price consideration.
- The Company has provided guarantees aggregating to Rs. 17193.200
Millions (GBP 252.500 Millions) (March 31, 2009: Rs. 18338.000 Millions)
(GBP 252.500 million) to third parties on behalf of its subsidiary
Diligenta Limited The Company does not expect any outflow of resources in
respect of the above.
Fixed Assets:
- Freehold
Buildings
- Factory
Buildings
- Leasehold
Buildings
- Plant and
Machineries
- Computer
Equipments
- Motor Cars
- Office
Equipments
- Electrical
Installations
- Furniture and
Fixtures
Audited
Consolidated Financial Results for the quarter ended 31 December, 2010
Rs. In Millions
|
Particular |
Quarter
ended 31.12.2010 |
Nine
Month Ended 31.12.2010 |
|
Information Technology
and Consultancy Services |
93314.700 |
261983.100 |
|
|
3318.800 |
9687.100 |
|
Expenditure |
|
|
|
Employees cost |
35522.300 |
100024.700 |
|
Overseas business
expenses |
14055.700 |
40497.100 |
|
Services rendered
by business associates and others |
4367.700 |
13288.500 |
|
Depreciation |
1883.900 |
5223.800 |
|
Other expenditure
|
13691.200 |
37006.600 |
|
Total expenditure |
|
|
|
Profit from operation
before other income, interest and exceptional items |
27112.700 |
75629.500 |
|
Other income |
1942.100 |
3604.200 |
|
Profit before
interest and taxes |
29054.800 |
79233.700 |
|
Interest |
48.700 |
228.300 |
|
Profit before
taxes |
29006.100 |
79005.400 |
|
Provision for
taxes |
5041.400 |
13670.800 |
|
Profit after
taxes but before minority interest and share of profit of associates |
23964.700 |
65334.600 |
|
Minority interest
|
266.400 |
880.500 |
|
Share of loss of
associates |
-- |
3.000 |
|
Net profit / Loss
for the period |
23698.300 |
64451.100 |
|
Paid up equity
share capital (face value of equity shares of Re. 1/- each) |
1957.200 |
1957.200 |
|
Reserves
excluding revaluation reserves |
-- |
-- |
|
Dividend per shares
(par value Re. 1/- each) |
|
|
|
Interim dividend
on equity shares (In Rupees) |
0.200 |
0.600 |
|
Final dividend on
equity shares (In Rupees) |
-- |
-- |
|
Total dividend on
equity shares (In Rupees) |
0.200 |
0.600 |
|
Dividend on redeemable
preference shares (In Rupees) |
20.000 |
60.000 |
|
Preference
dividend percentage |
-- |
-- |
|
Earning per
shares (in Rs) Basic/ Diluted |
12.08 |
32.85 |
|
Public
shareholding |
|
|
|
Number
of Shares |
507829624 |
507829624 |
|
% of Shareholding |
25.95% |
25.95% |
|
Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
-
Number of Shares |
222100000 |
222100000 |
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoters and
Promoter Group) |
15.32 |
15.32 |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
11.35 |
11.35 |
|
b)
Non Encumbered |
|
|
|
-
Number of Shares |
1227291372 |
1227291372 |
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
84.68 |
84.68 |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
62.70 |
62.70 |
Consolidated Segment
Information
Rs. In Millions
|
Particular
|
Quarter
ended 31.12.2010 |
Nine
Month Ended 31.12.2010 |
|
Revenues
by industry practice |
|
|
|
Banking, financial services and insurance |
43087.000 |
120614.100 |
|
Manufacturing |
6963.900 |
19915.700 |
|
Retail and CPG |
10559.100 |
29681.000 |
|
Telecom |
13725.000 |
39404.700 |
|
Others |
22298.500 |
62054.700 |
|
Revenues
from operation |
96633.500 |
271670.200 |
|
Segment
Results |
|
|
|
Banking, financial services and insurance |
13288.400 |
37376.800 |
|
Manufacturing |
1684.200 |
5207.600 |
|
Retail and CPG |
2905.000 |
7716.900 |
|
Telecom |
4898.700 |
14104.500 |
|
Others |
5924.400 |
15494.200 |
|
Total
|
28700.700 |
79900.000 |
|
Unallocable expenses (Net) |
1636.700 |
4498.800 |
|
Operating income |
27064.000 |
75401.200 |
|
Other income (Net) |
1942.100 |
3604.200 |
|
Profit
before taxes |
29006.100 |
79005.400 |
|
|
|
|
|
Segment
capital employed |
|
31.12.2010 |
|
Banking, financial services and insurance |
|
62932.400 |
|
Manufacturing |
|
7025.700 |
|
Retail and CPG |
|
8691.900 |
|
Telecom |
|
16350.100 |
|
Others |
|
30606.400 |
|
Total |
|
125606.500 |
|
Unallocable assets (Net) |
|
115216.100 |
|
Total
Capital employed (Net) |
|
240822.600 |
Note:
- The group has
identified business segments (industry practice) as its primary segment
and geographic segment as its secondary segment.
- Business segments
comprise companies providing banking, finance and insurance services,
manufacturing companies in retail and consumer packaged goods industries,
companies in telecommunication, media and entertainment and others such as
utilities, travel, transportation and hospitality and third party
products, etc.
Audited
Financial Results for the quarter ended 31st December 2010
Rs. In Millions
|
Particular
|
Quarter
ended 31.12.2010 |
Nine
Month Ended 31.12.2010 |
|
Income from operation |
|
|
|
Information technology and consultancy
services |
73228.900 |
204573.800 |
|
|
3043.700 |
8482.800 |
|
Total
|
76272.600 |
213056.600 |
|
Expenditure
|
|
|
|
Employees cost |
26255.000 |
74176.900 |
|
Overseas business
expenses |
12588.600 |
36482.600 |
|
Services rendered
by business associates and others |
4516.700 |
12642.800 |
|
Depreciation |
1392.300 |
3800.000 |
|
Other expenditure
|
9461.600 |
26104.000 |
|
Total expenditure |
54214.200 |
153206.300 |
|
Profit from operations before other
income, interest and taxes |
22058.400 |
59850.300 |
|
Other income (net) |
1371.900 |
2768.400 |
|
Profit before interest and taxes |
23430.300 |
62618.700 |
|
Interest |
26.000 |
188.100 |
|
Profit before taxes |
23404.300 |
62430.600 |
|
Provision for taxes |
2886.800 |
8222.500 |
|
Net profit after taxes |
20517.500 |
54208.100 |
|
Basic and diluted earnings per share (in
Rupees) |
10.46 |
27.62 |
PRESS RELEASE
Volume surge boosts
Tata Consultancy Services revenue to Rs 96630.000 Millions ($2.14 billion); up
4.1 per cent Q-o-Q, 26.3 per cent Y-o-Y
Net profit at Rs 23700.000 Millions; up 9.3
per cent Q-o-Q, 30 per cent Y-o-Y
·
Operating margins near
historic high at 28 per cent
·
Growth led by mature
markets; volume up 5.7 per cent
·
Highest ever gross
addition at 20,219; net addition at 12,497
MUMBAI: Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS),
reported its consolidated financial results according to Indian GAAP for the
quarter ended December 31, 2010.
Highlights for the
quarter ended December 31, 2010
·
Operating profits at Rs. 27070.000 Millions; up 5
per cent Q-o-Q and 29 per cent Y-o-Y.
·
35 new clients added.
·
Attrition at 14.4 per cent LTM (including BPO).
·
Quarterly dividend of Rs2 per share.
·
EPS at Rs12.08 in Q3.
Growth was led by the developed markets like the
Key wins
·
Selected by a large global professional services
firm in a multi-million, multi-year ADM and infrastructure services deal.
·
Selected by a leading pharmaceutical and healthcare
company as a strategic partner in a multi-million dollar, multi-year deal for
KPO services in clinical development.
·
Signed a multi-year contract for providing
application and infrastructure management services for a leading financial
services firm based in the
·
Signed a multi-year agreement with a global
hospitality leader to help accelerate and enhance its worldwide technology
strategy as part of its worldwide innovation collaborative.
·
Signed a multi-year, multi-million agreement with a
global top 10 airline for application maintenance and support of its critical
customer-centric applications.
·
Partnered with a leading Indian private sector bank
to launch an online trading platform with TCS providing end-to-end services
including consulting and implementation of its TCS BaNCS securities trading and
securities processing solutions.
·
Selected by a large integrated telecom service
provider in the
·
Selected as the technology service provider by a
leading Indian bank to provide banking services in un-banked areas enabling its
reach to cover 1000+ branches in its five regional rural banks over the next
nine months.
Innovation and
intellectual property:
During this quarter the company has been granted three patents. As of 31
December 2010, the company has applied for 413 patents and has been granted 67
patents.
Global Network
Delivery Model
Offshore revenues were up by 30 basis points at 51.4 per cent, while
revenues from non-Indian GNDM centres were at 4.9 per cent.
TCS BANCS
The company’s portfolio of financial products under the umbrella brand
of TCS BANCS continued to exhibit strong double-digit growth. The company won six
engagements in core banking, capital markets and insurance segments across
markets. In addition four product installations went live during the quarter,
including the multi-country core banking rollout for a large European-HQ global
bank..
Human resources
Utilisation in Q3 FY11 remained at 83.8 per cent (excluding trainees)
and 77.1 per cent (including trainees). The attrition rate in Q3 for IT
services was 13.2 per cent (LTM), BPO: 24.7 per cent (LTM) while overall
attrition was at 14.4 per cent. At the end of Q3, the total employee strength
of the company was 186,914. Non Indian nationals formed 6.8 per cent of the
total employee base and 31 per cent were women.
“We have welcomed the highest ever number of new TCSers in a single
quarter with a gross addition of 20,219 employees as we continued to support
the company’s strong growth and business pipeline,” said Ajoy Mukherjee, vice
president, head, global human resources. “Given the strength of business
demand, we have exceeded the hiring target we had set for this fiscal year.”
Awards and
recognition
TCS was listed in Forbes's sixth annual '
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.70 |
|
|
1 |
Rs.72.78 |
|
Euro |
1 |
Rs.61.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.