MARKET CAP ₹ 13,78,763 CR

CURRENT MARKET PRICE ₹ 3,811

 ABOUT THE COMPANY
 Tata Consultancy Services is an IT services, consulting and business solutions
organization that has been partnering with many of the world’s largest businesses in
their transformation journeys for over 56 years.
 Its consulting-led, cognitive powered, portfolio of business, technology and
engineering services and solutions is delivered through its unique Location
Independent Agile™ delivery model, recognized as a benchmark of excellence in
software development.
 A part of the Tata group, India’s largest multinational business group, TCS has over
601,000 of the world’s best-trained consultants in 54 countries. The company is listed
on the BSE and the NSE in India.
 TCS is the second-largest Indian company by market capitalization, the most valuable
IT service brands worldwide, and the top Big Tech (India) company.
 Key Offerings of TCS are:
1. IT Services: Application Development, Systems Integration, IT Infrastructure,
Digital Transformation.
2. Business Solutions: ERP, CRM, SCM, Business Process Outsourcing.
3. Digital and Technology Services: Cloud Computing, AI & Machine Learning,
IoT, Blockchain, Cyber Security.

HISTORY
Tata Consultancy Services (TCS) has a rich history that reflects its growth from a
regional IT service provider to a global leader in technology and business solutions.
Here is a brief overview of the key milestones in TCS's history:
1968: TCS was founded by Tata Sons and established as a division of Tata Group. It
started as a management and technology consultancy focused on providing computer
services to Tata Group companies.
1969: TCS's first project involved automating the inter-branch reconciliation system
for the Central Bank of India.
1971: The company ventured into software development and exported its first
software project to an American client, a milestone in India's IT export history.
1980: TCS introduced its offshore delivery model, which became a cornerstone of its
business strategy.
1993: TCS became the first Indian company to develop and release a commercial
product, MasterCraft, a software engineering and project management tool.
2004: TCS went public with an initial public offering (IPO) on the Bombay Stock
Exchange (BSE) and National Stock Exchange (NSE) in India.
2005: TCS became the first Indian IT services company to cross the $2 billion revenue
mark. 2018: TCS crossed the $100 billion market capitalization mark, making it one
of the most valuable IT services companies globally.
From its inception in 1968 to becoming a global IT powerhouse, TCS has consistently
focused on innovation, customer-centric solutions, and global expansion. Its history is
marked by significant milestones in technology development, market expansion, and
strategic acquisitions, establishing TCS as a leader in the IT and business solutions
industry.

MEET OUR TEAM

K. Krithivasan is the Chief Executive Officer and Managing Director of Tata
Consultancy Services (TCS).In his prior role, Krithi was the Global Head of Banking,
Financial Services, and Insurance (BFSI) Business Group.Krithi has a bachelor’s
degree in Mechanical Engineering from the University of Madras and a master’s
degree in Industrial and Management Engineering from IIT Kanpur.

Mr. Samir Seksaria took over as the CFO of Tata Consultancy Services on
1st May 2021. Prior to this role, he was heading the Business Finance function for
 TCS. In his former role, he was responsible for the financial management of the
company’s individual operating units.Samir graduated in 1997 from Narsee Monjee
College in Mumbai, and completed his Chartered Accountancy from ICAI, Mumbai.

Milind Lakkad is the Executive Vice President and CHRO in TCS since May
2019. Prior to taking this role, he was the Global head of Manufacturing Business
Group since 2008.

INDUSTRY OVERVIEW
The India ICT Market size was estimated at USD 273.50 billion in the current year and
is expected to reach USD 421.59 billion in five years, registering a CAGR of 9.04%
during the forecast period. Source:
 The ICT market is estimated based on IT hardware, software, and services
supplied by organizations in the country. With India's digital transformation,
the Indian information technology market has become more diverse
 Digital technologies are emerging as a game changer for every sector of
India's economy, driven by digital capabilities increasing and connectivity
becoming universal. Developing a digital infrastructure is fundamental for
countries to move their digital value chains.
 The Government of India is driven to establish favorable policy and
regulatory environments for the ongoing expansion of 5G, Internet of Things
(IoT), Artificial Intelligence (AI), Cloud Technology, Blockchain and
Machine-to Machine (M2M), and many more sectors as a result of the ICT
sector's rapid growth in India and its substantial contribution to the
socioeconomic development of the nation.
 The Intensity of competitive rivalry is expected to be high in the Indian ICT
market, as several key players in the ICT market are constantly trying to
bring advancements. A few prominent companies are entering into
collaborations and are expanding their footprints in developing regions to
consolidate their positions in the market. The major players are Tata
Communications, HCL Technologies, and Infosys Limited, among many
others.

The Indian ICT market is divided into organized and unorganized sectors. The
organized sector consists of well-established companies with structured operations,
regulatory compliance, and significant market presence. The unorganized sector
comprises smaller entities, often with less formal business structures and limited market
reach. Organized Sector accounts Approximately 65-70% & Unorganized Sector
accounts Approximately 30-35% of the Indian ICT market.
 MARKET SHARE
 Global IT Services Market: TCS is among the top IT services providers worldwide.
As of recent reports, TCS holds about 3-4% of the global IT services market, which is
substantial given the fragmented nature of this market.
 Indian IT Services Market: In India, TCS is a dominant player. The company's
market share in the Indian IT services sector is significantly higher, estimated to be
around 25-30%, considering the size and scope of its operations relative to other
Indian IT service providers.
 TCS's revenue provides a strong indicator of its market position. For example, TCS
reported revenues of approximately USD 25 billion for the fiscal year 2023,
highlighting its significant footprint in the industy.
 The CAGR of TCS over the period from FY 2018 to FY 2023 is approximately
5.52%. TCS has 51 subsidaries spread throughout the globe.
TCS offers a wide range of products and services catering to a wide customer base across
various industries it includes:

Products and platforms

 TCS ADD™
 TCS BaNCS™
 TCS BFSI Platforms
 TCS CHROMA™
 TCS Customer Intelligence & Insights™
 TCS ERP on Cloud
 ignio™ Opens in new tab
 TCS HOBS™
 TCS Intelligent Urban Exchange™
 TCS OmniStore™
 TCS Optumera™
 TCS TAP™
 Quartz™ – The Smart Ledgers™
 TCS TwinX™
 TCS MasterCraft™
 Jile™ Opens in new tab
 TCS iON™

Services

 Artificial Intelligence
 Cloud
 Cognitive Business Operations
 Consulting
 Cybersecurity
 Data and Analytics
 Enterprise Solutions
 IoT and Digital Engineering
 Sustainability Services
 Network Solutions and Services
 TCS Interactive
 TCS and AWS Cloud
 TCS Enterprise Cloud
 TCS and Google Cloud
 TCS and Microsoft Cloud
 TCS also provides tailored solutions for various industries
These products and services illustrate TCS's comprehensive approach to addressing the
diverse needs of its global client base, leveraging technology and innovation to drive
business value.

MAJOR CLIENTS
Banking and Financial Services:
 Citibank
 Bank Of America
 JP Morgan Chase
Insurance:
 Prudential Financial
 AIG (American International Group)
Retail and Consumer Goods:
 Walmart
 Marks and Spencer
Telecommunications:
 Verizon
 BT group
Manufacturing:
 General Motors
 Siemens
Healthcare and Life Sciences:
 AstraZeneca
 Johnson & Johnson
Travel, Transportation, and Hospitality:
 Airbus
 Marriott International
Energy, Resources, and Utilities:
 ExxonMobil
 Shell
Government and Public Service:
 UK Government
 Indian Government
 SWOT ANALYSIS
Strengths of TCS
Broad client base: TCS caters to a broad range of audiences from Industries like
entertainment banking, financial services, media services, and telecommunication. The
company has also worked with many industry giants and has helped them implement their
digital presence across the globe. By expanding and bringing diverse services to its plate, TCS
can easily loosen the risk of being reliant on a specific industry.

Expanded global reach: The worldwide reach of TCS extends from the UK, Africa,
Europe, North America, and the Asia Pacific regions. This showcases the consistent efforts of
the company to acquire as many areas as possible. It has helped the company to stretch its
presence and solidify its global position.

Varied service portfolio: TCS has a decentralized portfolio including various services
like business intelligence, application development, IT infrastructure, and better maintenance
of business process services. A lot of business clients attract such effective portfolios and
make respective collaborations.
High return on investment: With all the strengths the company has, TCS successfully
implements its new projects as well as ventures. It helps generate high returns on capital
expenditure resulting in the company’s exponential growth across the globe.

Strong collaborations: TCS has established successful connections with numerous

multinational companies including HP, Dell, Amazon, Bosch, etc. The company provides
technical and strategic sustainable solutions to its clients through its different collaborations
and partnerships.

Weaknesses of TCS
TCS has the following weaknesses that come under the SWOT analysis.
 Legal complexities: In 2014, TCS and Epic Systems had a legal dispute and the
company was accused of inappropriate use of confidential corporate information. In
2016, TCS was hit for its repetition and was proven guilty with a safety amount of
penalty. This amount was a staggering $900 million in damages. The company however
disagreed and ignored the court decision which harmed the company’s reputation.
 Sharp fall in performance: TCS subsidiary, Diligenta performed poorly continuously
in its financial reports. As the company was not efficient enough to perform well, the
bottom line of TCS couldn’t rise quickly. This, however, tarnished the company’s
overall performance.
 Tata Consultancy Services needs to be more agile to compete with the giants as well as
companies that are developing specialized IT solutions and operations landscapes.
 Opportunities of TCS Below are the major opportunities that TCS holds.
 Mobility solutions: The digital space is evolving continuously and has increased the
use of mobile phones as well as digital gadgets. TCS is an available position company
and has got the opportunity to leverage this emerging digital age. The progress of
business applications is given extra attention by the company. These applications are
really expected to be the primary driving force behind the mobility solutions for
different companies.
 M2M solutions: Tata Consultancy Services has made provision for M2M solutions
including wired and wireless communication media. The company leverages the
emerging opportunities in this field. TCS offers a range of machine-to-machine
solutions and services with increasing demands.
 Demand for cloud-based computing: TCS has a very strong cloud based
infrastructure that is all set to benefit from the demand developed for the services.
Today, the industry is moving towards cloud-based solutions and hints demand
innovation as well as the speed of digital transformation.
 Digital transformation: Today, the world is becoming more digital and companies are
forced to change their digital economy. The company’s primary goal is to transform
and deliver digital solutions and expects more expenditure on technology for the
evolution.

Threats to TCS
TCS faces major threats like intense competition, legal complexities, etc.
Severe competition: The competition in the IT industry is becoming more tough. The market
share of TCS is very limited so the constant price issues remain. Big IT companies like
Accenture, Infosys, Deloitte Capgemini, etc. are playing a major role in the IT industry with
the same efforts. TCS should continuously develop better and new solutions for its clients to
overcome the intense competition.
Legal issues: Continuously, changing legal rules in unions and countries can disturb the
company’s functionalities. This can impact the profit and revenue of TCS.
Higher turnover rate: TCS undergoes particular attrition that harms its repetition and brand
image. It ultimately increases the expense of upgrading the skill sets of new employees and
instilling leadership qualities.

KEY RATIOS
 BALANCE SHEET

PROFIT & LOSS

 SHAREHOLDING

FINANCIALS
 As of March 2024, company’s promoter held 71.77% stake in Tata Consultancy
Services, with no shares having been pledged.
 Over the last one year, Tata Consultancy Services share price has moved up from
Rs.3215.45 to Rs.3838.45 registering a gain of Rs.623 which is around 19.76%.
 EBITDA stands at Rs.17,075 Cr in March 2024 which is up by 8.26% from
Rs.15,663 Cr in March 2023.
 Net profit has increased from Rs.11,436 Cr in March 2023 to Rs.12,502 Cr in
March 2024 which is a gain of approximately 8.52%. This was due to a number of
factors including-
 Despite achieving a robust order book and maintaining strong demand for their
services, TCS faced challenges in converting these into significant revenue growth.
The global economic environment and varying client spending patterns impacted
the overall growth rate. Additionally, the macroeconomic environment influenced
IT spending, leading to cautious expenditure by clients
 TCS continued to invest heavily in new technologies and workforce development,
including a significant focus on generative AI and other emerging technologies.
These investments, while crucial for long-term growth, added to the operational
 costs and affected short-term revenue growth. The company also rolled out salary
increases and made other employee-related investments, impacting margins.
 Certain sectors like Life Sciences and Healthcare, and Manufacturing showed
strong growth, but other sectors did not perform as well, leading to an overall
moderate growth rate. This sectoral variability contributed to the overall revenue
growth being less pronounced .
 Debt to equity ratio is 0.09 which shows ability of a company’s shareholder equity
to pay its debt obligations in a tough time. D/E of less than 1 is preferred in case of
TCS limited it is very low which is very good.
 Return on capital employed is 64.3% means the company is able to generate
favorable amount of returns on the investment done in business activities.
 58% is the dividend payout ratio of TCS. It is the percentage of a company's
earnings that are paid out to shareholders as dividends. It is very good as investors
are receiving dividends every year good for people looking for dividend as one
source of income.

PEER COMPARISON

 Tata Consultancy Servicres tops the chart is doing very well as compared to its peers
in the same sector.
 It has a comparatively very high return on capital investments and high quarter on
quarter profit variation as compared to most its peers.
 The company’s working in the same sector has a very high price to earnings ratio as
compared to Coal India Limited.

CONCLUSION
 Tata Consultancy Services (TCS) reported a record $13.2 billion in deal wins, which
was an all-time high for the company & the company is continuously researching into
development of new technologies to keep up with the fast changing world.
 It has a very stable financial performance over the years with a continuous growth
also giving value to its investors by sharing dividends regularly.
 Other news include A 15-year deal with UK insurance company Aviva, TCS got core
banking transformation deal from Kuwait’s Burgan Bank, TCS launched an industry-
first GenAI aggregation platform called TCS AI WisdomNext