Tata Consultancy Services Limited
NSE Symbol TCS
TCS has again produced star performance in FY 2011 (Consolidated) Results compared to the preceding Year of FY 2010.
Net Sales from Operations in FY 2011 is Rs.37324.51 cr –against Rs.30028.92 cr in FY 2010 – an increase of 24.3%.
Total Expenditure in FY 2011 is Rs.26881.41 cr – against Rs.21995.26 cr in FY 2010 – an increase of 22.21% (less than proportionate to the Net sales income).
Profit from Operations has therefore increased to Rs.10443.10 cr – from Rs.8033.66 cr in FY 2010 – a more than proportionate increase of 29.99%.
Other Income in FY 2011 is Rs.604 cr – against Rs.272.07 cr – an increase of 122%.
Profit before tax in FY 2011 is Rs.11020.62 cr – against Rs.8289.63 cr in FY 2010 – an increase of 32.94%.
Tax Expense has however increased to Rs.1830.83 cr in FY 2011 from Rs.1196.97 cr in FY 2010 – i.e., by 52.96%.
Net Profit stands at Rs.9189.79 cr – against Rs.7092.66 cr – an increase of 29.57%.
Taking into account minority interest and share of associates, Consolidated Net Profit stands at Rs.9068.04 cr in FY 2011 – against Rs.7000.64 cr in FY 2010 – an increase of 29.53%.
Basic EPS has gone up to Rs.46.27 in FY 2011 – against Rs.35.67 in FY 2010, on a Face Value of Rs.1.
Gross Addition : 69,685 employees;
Net Addition : 38,185 ;
Total Dividend of Rs.14 per share including Rs.8 as proposed final dividend.
This Blog has covered the Q4 prospects of TCs in an earlier post dt April,9th,2011 - under the URL :
http://wiseinvestmentideas.blogspot.com/2011/04/tata-consultancy-services-limited-tcs.html
clearly indicating that “Q4 FY 11 AND FUTURE Qs CAN BE EXPECTED TO BE VERY GOOD” and that TCS has been the Fastest growing company in the IT sector in FY 11.
While the consolidated Net profit has grown by 29.57% YOY in 2011 – given the stronger demand environment, we may expect at least similar growth rate in FY 2012. TCS is developing strong strengths in its product portfolio and can be expected to come up with more standard products, and more projects in FY 2012, given its huge recruitment drive, and high utilization rate.
At the current price of around Rs.1200, and EPS of Rs.46.27, the PE ratio works out to 25.93 – which, considering the future prospects of TCS, seems to leave enough scope for price appreciation in the medium term.
HIGH LIGHTS OF Q4 FY 11 :
Even in the normally leaner 4th quarter – TCS has registered impressive growth, over the previous quarters.
Revenues at Rs.10,157 cr; up 31.3% YOY & 5.1% QoQ.
Operating Profits at Rs.2877 cr – up 32.9% YoY; 6.3% QoQ. OPM up 31 basis points at 28.3%.
Net Profit at Rs.2,623 cr; up 31.1% YoY & 10.7% QoQ; Net Margin up 130bp sequentially at 25.8%
Volume Growth at 2.9%;
Gross Addition of 19,324 employees; Net Addition of 11.700.
Attrition Rate :14.4% LTM;
Utilisation rate (excl Trainees) :82.4%
EPS at Rs.13.41 – up from Rs.12.08 in Q3.
The Management is quite optimistic that given the strong demand environment, TCS will have very good growth in coming quarters as well.
CONSOLIDATED RESULTS TABLE :
| FY 2011 | ||
| Net Sales from Operations | 3732451 | 3002892 |
| %INCREASE | | 24.3 |
| Employees Cost | 1372610 | 1087957 |
| Depreciation | 73526 | 66089 |
| Other Expenditure | 1242005 | 1045480 |
| Total Expenditure | 2688141 | 2199526 |
| | | 22.21 |
| Profit from Operations | 1044310 | 803366 |
| | | 29.99 |
| Other Income | 60400 | 27207 |
| | | 122 |
| Interest | 2648 | 1610 |
| Profit before tax | 1102062 | 828963 |
| | | 32.94 |
| Tax Expense | 183083 | 119697 |
| | | 52.96 |
| Net Profit | 918979 | 709266 |
| | | 29.57 |
| Minority Interest | 12145 | 9099 |
| Shares of Associates | 30 | 103 |
| Consolidated Net Profit | 906804 | 700064 |
| | | 29.53 |
| Face Value (in Rs.) | 1 | 1 |
| Paid-up Equity | 19572 | 19572 |
| Reserves | 2420909 | 1817100 |
| Basic EPS (in Rs.) | 46.27 | 35.67 |
| Public Holding (%) | 25.95 | 25.88 |
ANNOUNCEMENTS TO THE NSE
21-04-2011 the Board of Directors of the Company at its meeting held on April 21, 2011, have recommended a Final Dividend of Rs. 8 on Equity Share of Rs.1 each of the Company which shall be paid on the fourth day from the conclusion of the Annual General Meeting, subject to the approval of the shareholders of the Company.
21-04-2011 standalone Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 2927541 lacs for year ending on 31-MAR-2011 against Rs. 2304445 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 756999 lacs for the year ending on 31-MAR-2011 against Rs. 561851 lacs for the year ending on 31-MAR-2010.
21-04-2011 consolidated Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 3732451 lacs for year ending on 31-MAR-2011 against Rs. 3002892 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 906804 lacs for the year ending on 31-MAR-2011 against Rs. 700064 lacs for the year ending on 31-MAR-2010.
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