Wednesday, July 4, 2012
TCS = ANNUAL REPORT FOR FY 2012 = SUMMARY / REVIEW (POST 1)
ANNUAL REPORT FOR FY 2012
SUMMARY / REVIEW (POST 1)
ANNUAL REPORTS of Large Companies like TCS run into hundreds of Pages and contain Highly Useful Information on the Past, the present as well as the future. It is difficult to present complete Report or even a good portion of it in a Blog Post.
TCS is currently the No.1 in Indian IT Industry – and is confident of remaining so in future too. Hence, the essence of its Annual Report is presented here in 2 parts – (i) containing the financial Information and (2) containing important info on trends.
Here is the first part :
It has been another milestone year for TCS in 2011-12 - made all the more memorable with TCS achieving the $10-billion mark in revenue this financial year. On a consolidated basis, revenue for 2011-12 grew by 31% to Rs.48,894 Cr ($10.17 billion). The Net Profits grew by 15% to Rs.10,413 Cr.
Dividend payout is Rs.25 per share including Rs.8 proposed as final dividend and Rs.8 proposed as special dividend - (previous year Rs.14 per share) on the capital of 1,95,72,20,996 equity shares of Rs.1 each. .
EPS increased to Rs.53.07.
Details : 2011-12 : 2010-11 : % DIF
Revenue from operations : 48,893.83 : 37,324.51 :31
Operating expenditure : 34,458.52 : 26,146.15 31.79
Depreciation and amortization : 917.94 : 735.26 : 24.85
Operating proﬁt : 13,517.37 : 10,443.10 : 29.44
Interest expense : 22.23 : 26.48 : -16.05
Other income (net) : 428.17 : 604 : -29.11
Proﬁt before tax : 13,923.31 : 1,020.62 : 26.34
Provision for tax : 3,399.86 : 1,830.83 : 85.7
Minority interest + share of loss of associate : 109.96 : 121.75 : -9.68
Proﬁt for the year : 10,413.49 : 9,068.04 : 14.84
Balance b/f from previous year : 18,635.05 : 13,604.84 : 36.97
Amount available for appropriation : 29,048.54 : 22,672.88 : 28.12
Interim dividends on equity shares : 1,761.49 : 1,174.32 : 50
Proposed ﬁnal dividend on equity shares (including special dividend) : 3,131.55 : 1,565.78 : 100
Total dividend on equity shares (a + b) : 4,893.04 : 2,740.10 : 78.57
Proposed dividend on redeemable preference shares : 22 : 11 : 100
Tax on dividend : 806.86 : 459.15 : 75.73
General reserve : 1,166.10 : 827.58 : 40.9
Balance carried to balance sheet : 22,160.54 : 18,635.05 : 18.92
VALUE CREATION :- EPS + MARKET CAPITALIZATION :
Earnings per share, after adjusting for two 1:1 bonus Market capitalization crossed Rs.2,29,000 Crs on issues, went up from Rs.11.84 in FY 2005 to Rs.53.07, in March 31, 2012. Compared to the listing price, capital appreciation of a share, post two 1:1 bonus issues is more than - 4.5 times in eight years.
TREND OF REVENUE :- Revenue grew to a record high of Rs. 48,894 Crs (USD 10.17 billion) in ﬁscal 2012 – growth of ﬁve times in eight years.
GROWTH IN GEOGRAPHIC REVENUE :- Over the last 8 years, CAGR in Americas and Europe has been more than 25%. CAGR in emerging markets such as Asia Paciﬁc and Middle East & Africa has been more than 35%.
EARNING TRENDS :- Earnings before interest, tax, depreciation and amortisation (EBITDA) excluding other income have grown by more than ﬁve times in the last eight years. Proﬁtability has been one of the focus areas of TCS, as reﬂected in the EBITDA margin.
CONSOLIDATED FINANCIAL RESULTS – SUMMARY
Revenue of TCS aggregated Rs.48,893.83 Crs in FY 2012 (Rs.37,324.51 Crs in FY 2011), registering a growth of 31.00%. TCS had the distinction of being the ﬁrst Indian IT company to cross the USD 10 billion revenue milestone in ﬁscal 2012.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) excluding other income aggregated Rs.14,435.31 Crs in FY2012 (Rs.11,178.36 Crs in FY 2011) – a growth of 29.14%.
Proﬁt before tax (PBT) aggregated Rs.13,923.31 Crs in FY2012 (Rs.11,020.62 Crs in FY2011)– a growth of 26.34%.
Net proﬁt after tax (PAT) for FY 2012 aggregated Rs.10,413.49 Crs (Rs.9,068.04 Crs in FY 2011) – a growth of 14.84%. TCS is the ﬁrst Indian IT company, which has crossed Rs.10,000 Crs of PAT in a year.
Consolidated earnings per share (EPS) were Rs.53.07 in FY 2012 (Rs.46.27 in FY 2011)
Out of the total revenue of TCS, 92% was earned in foreign currencies. FY 2012 witnessed strong volatility in exchange rates particularly affecting USD, GBP and Euro. Net impact of such strong volatility in exchange rates on revenue of TCS has been a positive variance of 7.99% in FY 2012.
In FY 2012, the consolidated revenue of the Company has crossed USD 10 billion, the ﬁrst IT Company in India to achieve this feat. Service lines BPO, IT IS, Enterprise Solutions as well as the industry vertical Retail and CPG have individually crossed the USD 1 billion milestone in revenue.
Balance in statement of proﬁt and loss as at March 31, 2012 was at Rs.22,160.54 Crs (Rs.18,635.05 Crs as at March 31, 2011) after appropriation towards equity dividend (interim and proposed ﬁnal dividend), preference dividend, tax on dividends and transfer to general reserves.
Reserves and surplus at the end of ﬁscal 2012 stood at Rs.29,283.51 Crs, an increase of 20.96% over Rs.24,209.09 Crs at the end of FY 2011.
COMMENTS :- TCS is one INDIAN IT company which has displayed tremendous hope on future performance. The FY 2012 performance is excellent – and is clearly that of the No.1 in the Indian IT Industry. The financial performance of the company can be seen in this Post. Many other details – indicating its FUTURISITIC, and FAST FORWARD mode of preparation and the likely results thereof in future - can be seen in Post.2. Based on all this, one can expect that TCS will repeat its Growth Momentum in FY 13 too easily.
See these “OTHER DETAILS” in the next Post at :-
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