Friday, June 25, 2010

TCS = FY10 PERFORMANCE = DETAILED REVIEW = EXCELLENT GROWTH = INVESTORS DELIGHT



TATA CONSULTANCY SERVICES
FY10 ANNUAL REPORT
PERFORMANCE REVIEW

Now that the annual report of TCS is available, a review of operations and results is made with reference to the Annual report for FY 10. Some of the results items are extracted from details with NSE.
As we can see below - Net Sales has risen to Rs.30029 Cr from Rs.27813 cr in Fy09, Rs.        22620Cr in FY08, Rs.18685 Cr in FY07; Rs.13264 Cr in FY06 and Rs.9749 Cr in FY 05 – more than 300 % increase in sales over a six year period. This is a stupendous achievement by any standards.
Profit  After Tax has also risen more than proportionately to Rs.7001 cr in FY10 from Rs.5256 Cr in FY09; Rs.5026 Cr in FY08; Rs.4213 Cr in FY07;Rs.2967 Cr in FY06; and Rs.1977 Cr in FY 05. Thus, the rise from Rs.1977 cr in FY05 to Rs.7001 cr in FY10 is an excellent achievement by TCS.
TCS has been a regular Bonus issuer as can be seen from the rise in equity. A real delight for investors.
Its basic EPS adjusted  for bonus has been consistently rising to Rs.35.67 in FY10; from Rs.26.81 in FY09; Rs.25.68 in FY08; Rs.21.53 in FY07; Rs.15.16in FY 06; and Rs.11.84 in Fy 05. Same is the story with its dividend issues. While gross dividends have risen from Rs.11.5 to Rs.20 – adjusted for bonus, the same works out to a rise from Rs.2.88 to Rs.20.The total dividend outflow (including tax) amounts to 81.60% of the unconsolidated profits of the company – which reflects tremendous confidence of management in the company’s future.
The balance carried forward to Balance Sheet at the FY10 end is a huge Rs.10458 Cr, and the amount retained as general reserve is Rs.562 cr – while the equity of the company is just Rs.296 after all bonus issues so far – which reflects the ability of the company to declare Bonuses in future also at regular intervals.
On a consolidated basis, revenues have grown by7.97% in FY10 YOY. While operating margins have grown by304 basis points to 26.7%, net margin has grown by 441 basis point to 26.7%.This has been well received by Investors and the market capitalization has grown from Rs.52845 Cr in March 09 to Rs.152820 Cr in March 10.
Approximately 44.92% of TCS’ business emanates from BFSI vertical(Banking, financial services and insurance Cos). Telecom, Media and Entertainment accounts for 14.54%, Manufacturing accounts for 8.1%; Retail and consumer packaged goods accounts for 10.59. The balance 21.85% is by other sectors.
Geographically – North America accounts for 52.8% ;UK for 16.18%; Europe for 10.49%; India for 8.65%; Asia Pacific for 5.24% and others account for the balance percentage of Revenue.
Total Employee costs as a percentage of revenues has come down from 52.07% in FY09 to 50.17% in FY10.
Current Market price of TCS is Rs.761. On the consolidated EPS of Rs.35.67, the PE ratio works out to  21.33 while on stand alone EPS of 28.61, PE ratio works out to 26.6.
Considering the pace at which TCS is acquiring big ticket clients and extending its generalized products to others – there is good scope for investors in TCS for price appreciation from time to time.

CONSOLIDATED
 PERFORMANCE FIGURES

FY10
FY05
Net Sales
3002892
2781288
2261952
1868521
1326399
974857
Employees Cost
1506575
1448320
1141105
900139
611152
438452
Depreciation
66089
56408
56371
44017
28243
Other Exp.
1045480
1074150
905518
580303
486780
Total Exp.
2199526
2120716
1747349
1354636
958804
O P T
803366
660572


Other Income
27207
-42699

0
0
P B I E
830573
617873


Interest
1610
2866
3001
945
914
Profit after Int.
828963
615007

378905
Excep. items
-
-
-

0
P B T
828963
615007
584595
491828
350662
263369
Tax Expense
119697
83895
78631
66396
50957
P A T
700064
525642
502602
421263
296674
197690
Extrao. Items
-
-
-

3031
Net Profit
709266
531112
505964
421263
296674
Minority Int.
9099
5400
3442

Shares of Assoc.
103
70
-80

Consol. NPT
700064
525642
502602

296674
Div. per share
20
14
14
13
13.5
11.5
do-adj.forBonus
20
7
7
6.5
3.38
2.88
F V (in Rs.)
1
1
1
1
1
1
Paid-up Equity
29572
19786
19786
19786
4893
4801
Reserves
1817100
1550215
1210226
875224
594988
342953
Basic EPS
35.67
53.63
51.36
43.05
60.63
47.37
,,adj.for bonus
35.67
26.81
25.68
21.53
15.16
11.84
Publicholding%
25.88
23.79
-
Head count
160429
143761
111407
89419
66480
45714
YrEnd PE Ratio
21.89
10.07
15.79
28.97
31.57

STAND ALONE
PERFORMANCE
RESULTS
The stand alone results are also mostly on the same pattern as the consolidated results. Hence, further analysis of the same is not done – except presenting the figures.

FY10(lakhs)
Net Sales
2304445
2240400
1853372
1493997
Other Oprtng Income
-
-
44595
21655
SIT WIP
-
-
-
0
Raw Materials
-
-
-
0
Traded goods
-
-
-

Employees Cost
788243
737009
601519
618685
Depreciation
46935
41746
45878
34341
Other Expenditure
849035
901308
749842
445215
Total Expenditure
1684213
1680063
1397239
1063900
Profit from Operations
620232
560337


Other Income
17760
-45624

0
Profit before IE
637992
514713


Interest
954
744
342
343
Profit after I -before EI
637038
513969

451409
Exceptional items
-
-
-
Profit before tax
637038
513969
500386
417068
Tax Expense
75187
44348
49510
41339
Net Profit after tax
561851
469621
450876

Extraordinary Items
-
-
-

Net Profit
561851
469621
450876
375729
Dividend (%)
-
500
500
1300
Face Value (in Rs.)
1
1
1
1
Paid-up Equity
-
-
9786
9786
Reserves
1482090
1324839
1080695
796113
Basic EPS before EI
28.61
47.91
46.07
38.39
Diluted EPS before EI
28.61
47.91
46.07
38.39
Basic EPS after EI
28.61
47.91
46.07
Diluted EPS after EI
28.61
47.91
46.07

ANNOUNCEMENTS
OF TCS
TO THE NSE

16-06-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated June 16, 2010, titled "Telenor Norway selects Tata Consultancy Services to modernise its IT". 
15-06-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated June 15, 2010, titled "Tata Consultancy Services and Xynteo to collaborate on solutions for a low-carbon economy".        
08-06-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated June 08, 2010, titled "Inter-connected Stock Exchange of India Ltd. (ISE) selects TCS BaNCS for integrated Trading, Clearing and Surveillance platform".
28-05-2010        Tata Consultancy Services Limited has submitted to the Exchange a press release dated May 28, 2010, titled "Tata Consultancy Services Awarded 2010 SAP® Pinnacle Award".
20-05-2010        Tata Consultancy Services Limited has submitted to the Exchange a press release dated May 20, 2010, titled "Tata Consultancy Services rated Level A+ for its Sustainability Report by GRI".
18-05-2010        Tata Consultancy Services Limited has submitted to the Exchange a press release dated May 18, 2010, titled "BNP PARIBAS Securities Services migrates local custody operations onto TCS BaNCS Platform".        
13-05-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated May 13, 2010, titled "Tata Consultancy Services appointed official technology partner to Cervelo, a leading European Pro-cycling team".
11-05-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated May 11, 2010 , titled "Tata Consultancy Services ranked #1 Service Provider in the Nordic Region".     
29-04-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated April 29, 2010 , titled " Tsunami Early Warning System Receives Highest Accolade at Web Ratna Awards'09". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
28-04-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated April 28, 2010, titled "Hua Xia Bank, China (HXB) and TCS win Best Core Banking Project Implementation Award". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
21-04-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated April 21, 2010 , titled "Rolls-Royce Selects Tata Consultancy Services to expand engineering services footprint in India". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
20-04-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated April 20, 2010 , titled "TCS BaNCS reiterates its strong association and commitment to Middle East & Africa markets." A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
20-04-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated April 20, 2010 , titled "TCS Financial Solutions announces enhancements to its multi-asset, multi-market, multi-lingual securities trading platform for Gulf Cooperation Council (GCC) & International markets." A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
20-04-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated April 20, 2010, titled "TCS BaNCS enables LIC International to automate processes across Gulf Cooperation Council (GCC)". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
19-04-2010        Tata Consultancy Services Limited has informed the Exchange regarding a press release dated April 19, 2010, titled "Solid Fourth Quarter Crowns: Strong Annual Performance". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
19-04-2010        Tata Consultancy Services Limited has informed the Exchange that the Board of Directors, in its meeting held on April 19, 2010, have recommended a Final Dividend of Rs.4/- and a Special Dividend of Rs.10/- on Equity Share of Re.1/- each of the Company for approval by the shareholders of the Company.
19-04-2010        Tata Consultancy Services Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 2304445 lacs for year ending on 31-MAR-2010 against Rs. 2240400 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 561851 lacs for the year ending on 31-MAR-2010 against Rs. 469621 lacs for the year ending on 31-MAR-2009.
19-04-2010        Tata Consultancy Services Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 3002892 lacs for year ending on 31-MAR-2010 against Rs. 2781288 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 700064 lacs for the year ending on 31-MAR-2010 against Rs. 525642 lacs for the year ending on 31-MAR-2009.


 *  *  *   E N D   *  *  *

No comments:

Post a Comment