MIRA
INFORM REPORT
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Report Date : |
17.10.2011 |
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) : |
31.03.2011 |
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Date of Incorporation : |
19.01.1995 |
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Com. Reg. No.: |
11-84781 |
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Capital
Investment / Paid-up Capital : |
Rs.2957.200
Millions |
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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 : |
Providing Information Technology (IT) Services, Business Solutions and Outsourcing. |
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No. of Employees : |
1200 Approximately |
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 783179600 |
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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.
INFORMATION PARTED BY (General Details)
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Name : |
Ms. Harsha |
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Designation : |
H.R. |
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Contact No.: |
91-22-67789999 |
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Date : |
17.10.2011 |
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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Location: |
Owned |
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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
AS ON 31.03.2011
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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 30.06.2011
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Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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1,448,205,472 |
73.99 |
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1,607,624 |
0.08 |
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1,607,624 |
0.08 |
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1,449,813,096 |
74.08 |
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Total shareholding of Promoter and Promoter Group (A) |
1,449,813,096 |
74.08 |
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(B) Public Shareholding |
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46,183,450 |
2.36 |
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831,758 |
0.04 |
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20,932 |
- |
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111,372,903 |
5.69 |
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250,560,080 |
12.80 |
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408,969,123 |
20.90 |
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8,532,890 |
0.44 |
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73,849,616 |
3.77 |
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13,931,034 |
0.71 |
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2,125,237 |
0.11 |
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428 |
- |
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218,904 |
0.01 |
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1,905,905 |
0.10 |
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98,438,777 |
5.03 |
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Total Public shareholding (B) |
507,407,900 |
25.92 |
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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 |
Shareholding belonging to the category :
"Promoter and Promoter Group"
|
Sl. |
Name of the
Shareholder |
Total Shares
held |
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Number |
As a % of |
||
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1 |
Tata Sons Limited |
1,443,404,398 |
73.75 |
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2 |
Jamsetji Tata Trust |
1,160,280 |
0.06 |
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3 |
Tata Industries Limited |
1,029,700 |
0.05 |
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4 |
Tata Aig Life Insurance Company
Limited |
1,689,790 |
0.09 |
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5 |
Tata Global Beverages Limited |
391,200 |
0.02 |
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6 |
AF-Taab Investment Company Limited |
761,952 |
0.04 |
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7 |
Tata Investment Corporation Limited |
570,452 |
0.03 |
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8 |
Navajbai Ratan Tata Trust |
447,344 |
0.02 |
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9 |
Tata International Limited |
332,928 |
0.02 |
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10 |
Kalimati Investment Company Limited |
24,400 |
0.00 |
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11 |
Tata Power Company Limited |
452 |
0.00 |
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12 |
Tata Capital Limited |
200 |
0.00 |
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Total |
1,449,813,096 |
74.08 |
Shareholding belonging to the category
"Public" and holding more than 1% of the Total No.of Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares |
Shares as % of
Total No. of Shares |
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1 |
Life Insurance Corporation of India |
50,022,460 |
2.56 |
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2 |
Franklin Templeton Investment Funds |
34,304,396 |
1.75 |
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Total |
84,326,856 |
4.31 |
BUSINESS DETAILS
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Line of Business : |
Providing Information Technology (IT) Services, Business Solutions and Outsourcing. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
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Particulars |
Installed
Capacity |
Actual
Production |
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Document processing systems |
45000 |
4314 |
GENERAL INFORMATION
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No. of Employees : |
1200 Approximately |
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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, Singapore v Kotak Mahindra Bank, Fort, Mumbai, Maharashtra, India |
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Facilities : |
Rs. In Millions
Note: Loans Repayable within one year Rs.12.500 Millions |
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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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Holding Company : |
Tata Sons Limited |
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Associates: |
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Fellow Subsidiaries: |
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Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2011
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 |
|
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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.1/- 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 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2957.200 |
2957.200 |
1978.600 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
192837.700 |
148209.000 |
132483.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
195794.900 |
151166.200 |
134462.500 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
358.700 |
292.500 |
326.300 |
|
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2] Unsecured Loans |
52.500 |
64.900 |
84.100 |
|
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TOTAL BORROWING |
411.200 |
357.400 |
410.400 |
|
|
DEFERRED TAX LIABILITIES |
693.200 |
401.000 |
1030.500 |
|
|
|
|
|
|
|
|
TOTAL |
196899.300 |
151924.600 |
135903.400 |
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
34221.800 |
27605.200 |
26690.800 |
|
|
Capital work-in-progress |
13453.700 |
9407.200 |
6851.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
57954.900 |
78933.900 |
59360.300 |
|
|
DEFERREX TAX ASSETS |
520.300 |
531.300 |
36.500 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
53.700
|
67.800
|
169.500 |
|
|
Sundry Debtors |
48066.700
|
33323.000
|
37327.800 |
|
|
Cash & Bank Balances |
56045.200
|
33961.600
|
16052.600 |
|
|
Other Current Assets |
9010.700
|
6636.000
|
8173.500 |
|
|
Loans & Advances |
41104.100
|
33851.100
|
29669.800 |
|
Total
Current Assets |
154280.400
|
107839.500
|
91393.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
24518.000
|
20282.700
|
14981.900 |
|
|
Other Current Liabilities |
14112.700
|
12843.700
|
20156.900 |
|
|
Provisions |
24901.100
|
39266.100
|
13289.900 |
|
Total
Current Liabilities |
63531.800
|
72392.500
|
48428.700 |
|
|
Net Current Assets |
90748.600
|
35447.000
|
42964.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
196899.300 |
151924.600 |
135903.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Information technology and consultancy services |
281712.600 |
222329.300 |
215357.500 |
|
|
|
|
11041.500 |
8115.200 |
8682.500 |
|
|
|
Other Income |
4947.300 |
1776.000 |
(4562.400) |
|
|
|
TOTAL (A) |
297701.400 |
232220.500 |
219477.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employees Costs |
101903.100 |
78824.300 |
73700.900 |
|
|
|
Operation and other Expenses |
103215.700 |
84903.500 |
90130.800 |
|
|
|
TOTAL (B) |
205118.800 |
163727.800 |
163831.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
92582.600 |
68492.700 |
55645.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES/ INTEREST (D) |
200.100 |
95.400 |
74.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
92382.500 |
68397.300 |
55571.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5378.200 |
4693.500 |
4174.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
87004.300 |
63703.800 |
51396.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
11304.400 |
7518.700 |
4434.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
75699.900 |
56185.100 |
46962.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
104581.300 |
99904.100 |
73748.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim dividends on equity shares |
11743.200 |
11743.200 |
8807.400 |
|
|
|
Proposed final dividend on equity shares |
15657.800 |
27401.100 |
4893.100 |
|
|
|
Dividend on redeemable preference shares |
110.000 |
170.000 |
70.000 |
|
|
|
Tax on dividend |
4508.200 |
6575.100 |
2340.200 |
|
|
|
General reserve |
7570.000 |
5618.500 |
4696.200 |
|
|
BALANCE CARRIED
TO THE B/S |
140692.000 |
104581.300 |
99904.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
1140.800 |
1289.200 |
2026.800 |
|
|
|
Consultancy services |
265351.800 |
211152.800 |
206002.600 |
|
|
|
Interest income |
165.700 |
361.600 |
233.700 |
|
|
|
Other income |
0.000 |
92.100 |
103.400 |
|
|
TOTAL EARNINGS |
266658.300 |
212895.700 |
208366.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
140.400 |
111.100 |
422.800 |
|
|
|
Stores & Spares |
0.100 |
0.200 |
0.700 |
|
|
|
Capital Goods |
3618.200 |
1018.400 |
2605.200 |
|
|
TOTAL IMPORTS |
3758.700 |
1129.700 |
3028.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
38.61 |
28.61 |
23.95 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st Quarter |
|
Net Sales |
86135.600 |
|
Total Expenditure |
61795.000 |
|
PBIDT (Excl OI) |
24340.600 |
|
Other Income |
2574.000 |
|
Operating Profit |
26914.600 |
|
Interest |
23.600 |
|
Exceptional Items |
0.000 |
|
PBDT |
26891.000 |
|
Depreciation |
1572.600 |
|
Profit Before Tax |
25318.400 |
|
Tax |
4694.100 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
20624.300 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
20624.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
25.42
|
24.19
|
21.40 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
29.71
|
27.64
|
22.94 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
46.15
|
47.03
|
4352 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.44
|
0.42
|
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.33
|
0.48
|
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.42
|
1.49
|
1.89 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details:
|
Particulars
|
Rs.
In Millions 31.03.2011 |
Rs.
In Millions 31.03.2010 |
Rs.
In Millions 31.03.2009 |
|
Sundry Creditors
|
|
|
|
|
Dues of micro and small
enterprises |
71.300 |
2.600 |
10.100 |
|
Dues of Others Creditors |
24446.700 |
20280.100 |
14971.800 |
BUSINESS
DESCRIPTION
Subject is engaged in providing information technology (IT) services, business
solutions and outsourcing. The Company’s services portfolio consists of
application development and maintenance, business intelligence, enterprise
solutions, assurance, engineering and industrial services, IT infrastructure
services, business process outsourcing, consulting and asset leveraged
solutions. It also services several other industries, such as life sciences and
healthcare, hi-tech, energy, resources and utilities, media and entertainment
and travel, transportation and hospitality. On August 31, 2010, Diligenta
Limited, a majority owned subsidiary, acquired Unisys Insurance Services
Limited. On October 4, 2010, Tata America International Corporation, a wholly
owned subsidiary, acquired 100% interest in MS CJV Investments Corporation. On October
8, 2010, the Company acquired 100% interest in SUPERVALU Services India Private
Limited from SUPERVALU Inc. For the fiscal year ended 31 March 2011, Tata
Consultancy Services Limited's revenues increased 24% to RS373.25B. Net income
increased 26% to RS86.83B. Revenues reflect higher income from information
technology and consultancy services. Net income also reflects an increase in
gross profit margin, higher interest income and presence of non operating
income. The company is an information technology company.
COMPANY’S
PERFORMANCE
Financial Year
2010-11 marked a strong resurgence in volume and demand growth post the
financial crisis. This growth was led by developed markets of the United States
and Europe with strong contributions from Asia Pacific, Middle East and Africa
and was secular across all industries and markets. The second half of the year
also witnessed an uptick in pricing for the first time since September 2008.
The Company has registered a strong broad based sequential growth across all
key markets and customer segments. On consolidated basis for the year 2010-11,
revenues at Rs. 373245.1 millions were higher by 24.30% over the previous
year’s revenues of Rs. 300289.2
millions. Operating profit (profit before taxes excluding other income) at Rs. 104166.2 millions was higher by 29.92%
over the previous year’s operating profit of Rs. 80175.6 millions. Net profit
for the year at Rs. 90680.4 millions was higher by 29.53% over the previous
year’s net profit of Rs. 70006.4 millions.
On unconsolidated
basis, revenues at Rs. 292754.1 millions for the year 2010-11 were higher by
27.04% over the previous year’s revenues of Rs. 230444.5 millions. Operating
profit (profit before taxes excluding other income) at Rs. 82057.0 millions was
up 32.50% from the previous year’s operating profit of Rs. 61927.8 millions.
Net profit for the year at Rs. 75699.9 millions was higher by 34.73% than the
previous year’s net profit of Rs. 56185.1 millions.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY OVERVIEW
Market sizing,
trends and potential
World-wide
spending on technology and related products and services is estimated to have
crossed US$ 1.6 trillion in 2010, a growth of 4.0% over 2009, with growth
driven by emerging verticals and emerging geographies in addition to USA.
Global IT services
spend increased from US$ 566 billion in 2009 to US$ 574 billion in 2010. The
geographic revenues break-up for IT services was as follows:
- America’s share
43.0% in 2010 (42.8% in 2009)
- Europe
Middle-East and Africa revenues 39.7% in 2010 (40.2% in 2009)
- Asia-Pacific
revenues 17.3% in 2010 (17.0% in 2009) Global Business Process Outsourcing
(BPO) services spend has increased from US$ 152 billion in 2009 to US$ 158
billion in 2010. The geographic revenues break-up for BPO spend was as follows:
- America’s share
at 55.3% in 2010 (55.8% in 2009)
- Europe
Middle-East and Africa revenues 25.9% in 2010 (26.0% in 2009)
- Asia-Pacific
revenues 18.8% in 2010 (18.2% in 2009)
Trends in global
sourcing remained positive and showed a growth rate of 10.4% in 2010 over 2009
and the global
sourcing market
size was in the range of US$ 102 to 106 billion in 2010. IT sourcing grew at
10.3% to a market size of US$ 62 to 64 billion and BPO sourcing grew at 10.6%
to a market size of US$ 40 to 42 billion.
There is enough
potential for growth. Estimate of the addressable global sourcing market is in
the range of US$ 500 billion (US$ 280 billion for IT services and US$ 220
billion for BPO services). (Source: NASSCOM Strategic Review 2008 - 2011)
One of the major
beneficiary countries of the global sourcing trend continues to be India whose
expertise and capability in the area of Information Technology (IT) and
Information Technology Enabled Services (ITES) has made it a leading destination
for global corporations looking for technology partners.
Growth forecasts
for IT Services Industry1
IT services spend
is expected to increase from US$ 566 billion in 2009 to US$ 684 billion by 2014
at a CAGR2 of
3.9%.
·
IT outsourcing component is expected to grow from
US$ 225 billion in 2009 to US$ 239 billion in 2014 at a CAGR of 1.1%.
·
IT services offshored are expected to grow from US$
31.1 billion in 2009 to US$ 42.8 billion in 2014 at a CAGR of 6.6%.
BPO spend is expected
to increase from US$ 152.1 billion in 2009 to US$ 201.5 billion in 2014 at a
CAGR of 5.8%.
IT spend forecasts
by global technology analyst firms like Gartner, Forrester, IDC and others
indicate a growing market for IT and ITES for industry verticals, service
offerings and geographies of interest to the Company and excellent prospects
for growth in the future.
CONTINGENT LIABILITIES:
|
Particular |
As on 31.03.2011 (Rs. In
Millions) |
As on 31.03.2010 (Rs. In
Millions) |
|
Claims against the company not acknowledged
as debts |
203.200 |
189.800 |
|
Income tax demands |
6026.500 |
2590.200 |
|
Indirect tax demands |
626.100 |
475.500 |
|
Guarantees given by the company on behalf of
subsidiaries |
21209.100 |
18519.300 |
|
Total |
28064.900 |
21774.800 |
NOTES:
i) TCS e-Serve
Limited has a contingent liability of Rs. 2364.1 millions in respect of
Income Tax matters in dispute. As on the acquisition date, i.e. December 31, 2008
TCS e-Serve Limited has net advance taxes aggregating to Rs. 1851.3 millions
against disputed amounts for the various assessment years. The Company is
entitled to an indemnification from the seller, of the above referred
contingent claims on TCS e-Serve Limited, and would be required to refund to
the seller, amounts equal to the monies received by TCS e-Serve Limited, on all
such claims, as an adjustment to the purchase price consideration.
ii) The Company
has provided guarantees aggregating to Rs. 19784.1 millions (GBP 275.60
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.
iii) The Company
has undertaken to provide financial support for the amount of loan taken by a
subsidiary and interest thereon. As at March 31, 2011, an amount of Rs. 63.4
millions has been provided for in the books of accounts of the Company against
such financial support.
Fixed Assets:
- Freehold Buildings
- Factory
Buildings
- Leasehold
Buildings
- Plant and
Machineries
- Computer
Equipments
- Motor Cars
- Office
Equipments
- Electrical
Installations
- Furniture and
Fixtures
PRESS RELEASE
TCS named a Leader in Analyst Firm’s
Magic Quadrant for International Retail Core Banking 2011
Mumbai | Chicago, October 13, 2011: Tata Consultancy Services (TCS),
(BSE: 532540, NSE: TCS), a leading IT services, consulting and business
solutions organization, announced today that the International Retail Core
Banking report has placed TCS BaNCS product in the Leaders Quadrant. TCS BaNCS
is one of the 20 core banking platforms that were profiled from an original
list of 48 candidates.
Gartner
defines “leaders” as vendors that demonstrate strong development methodologies.
All of these vendors have a measurable strategy for disaggregating core banking
software functionality into component-based constructs. Many vendors possess
methodologies for quality assurance or are executing on a strategic road map to
attain certification. Most vendors maintain a strong banking market
understanding through methodical processes and have extensive marketing
delivery and sales channels. Although there are many well-balanced vendors /
products in this quadrant, some are in transition and possess evolving
products, process maturity or both.
NG
Subramaniam, President, TCS Financial Solutions, said, “Our unwavering focus is
on our customers’ ever-evolving business needs and on partnering with them to
succeed in their respective businesses. We are glad to receive what we believe
to be an accolade that reinforces our commitment in making TCS BaNCS
functionally rich, compliant to regulations and agile to customer needs.” The
report titled, “Magic Quadrant for International Retail Core Banking
2011”, authored by Don Free was released on September 21, 2011.
TCS
BaNCS Core Banking Solution Version 12 is the centerpiece of this evaluation
along with myriad other aspects that cumulatively drive the go-to-market
strategy for TCS Financial Solutions. The latest version contains important
functional additions like IFRS reporting, advanced multi-entity support and
extensibility layer enhancements. Advanced multi-entity support allows
collocation of multiple business entities of a financial institution, including
those spanning geographies. These provisions that configure and control
cross-entity transactions and 360-degree views of the customer and the bank
across entities continue to differentiate TCS BaNCS.
Utilizing
sophisticated integration methodologies, techniques and tools, this version
also presents innovative functional enhancements in the areas of lending,
deposits, securitization, trade finance and treasury. This advanced solution is
also available with business rule-driven TCS BaNCS Origination.
About the Magic Quadrant
The Magic Quadrant is copyrighted 2011 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
About TCS Financial Solutions
TCS Financial Solutions is a strategic business unit of Tata Consultancy Services. Dedicated to providing business application solutions to financial institutions globally, TCS Financial Solutions has compiled a comprehensive product portfolio under the brand name of TCS BaNCS. Our mission is to provide best–of-breed solutions that will drive growth, reduce costs, mitigate risk and offer a faster speed-to-market for our clients. With a global customer base of more than 240 institutions operating in over 80 countries, TCS Financial Solutions deliver state-of-the-art software solutions for the banking, insurance and capital markets industries worldwide. For more information, visit us at www.tcs.com/bancs.
About Tata Consultancy Services Ltd. (TCS)
Tata
Consultancy Services is an IT services, consulting and business solutions
organization that delivers real results to global business, ensuring a level of
certainty no other firm can match. TCS offers a consulting-led, integrated
portfolio of IT, BPO, infrastructure, engineering and assurance services. This
is delivered through its unique Global Network Delivery Model™
(GNDM), recognized as the benchmark of excellence in software development.
A part of the Tata group, India’s largest industrial conglomerate, TCS has over
202,000 of the world’s best-trained consultants in 42 countries. The company
generated consolidated revenues of US $8.2 billion for year ended March 31,
2011 and is listed on the National Stock Exchange and Bombay Stock
Exchange in India. For more information, visit us at www.tcs.com.
|
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter's background |
-- |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
-- |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
No |
|
28) Incorporation details, if applicable |
-- |
|
29) Last accounts filed at ROC |
-- |
|
30) Major Shareholders, if available |
-- |
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.49.07 |
|
|
1 |
Rs.77.42 |
|
Euro |
1 |
Rs.67.72 |
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.