TCS Annual Report 2012-2013: Sales, Revenue, Profits & Quarterly Earnings

TCS or Tata Consultancy Services Limited is an Indian multinational IT company that provides information technology based services like business solutions and consulting, outsourcing services business, intelligence and performance management worldwide. TCS is headquartered in Mumbai and operates in over 44 countries with 199 branches across the world. In addition, the company offers industrial and engineering services, including new product development. On September 27, 2013, Forbes announced TCS as one of the World’s Most Innovative Companies. TCS ranked 40th overall, making it not only the highest ranked IT services company to make it to the list, but also the top Indian company.

The company was founded by J.R.D Tata in 1968 as a division of Tata Sons Limited. TCS was founded in 1987 and went public in 2000 and is currently traded on the NASDAQ Stock Market (NASDAQ: TSYS).  The company is the country’s largest IT services company by revenues and biggest IT employer. The average age of TCS employees is 28 years. The company’s 93.3% of workforce is Indian. FY2012 revenue totaled $487 million, representing the company’s 14th consecutive year of record revenue.

Here is a synopsis of few recent key financial facts of the company:

Profitability Profit Margin (TTM) 21.88 %
  Operating Margin (TTM) 28.05 %
Management Effectiveness Return on Assets 24.30%
  Return on Equity (TTM) 39.23%
Income Statement Revenue (TTM) Rs 714.6 Billion
  Revenue Per Share (TTM) Rs 364.99
  Quarterly Revenue Growth (YOY): 34.30 %
  Quarterly Earnings Growth (YOY) 34.90%
  Gross Profit (TTM) N/ A
Balance Sheet Current Ratio (Most recent Quarter) 2.95
  Book Value Per Share (Most recent Quarter)                                             Rs 224.59

TTM = Trailing Twelve Months (as of 30-Sep-2013); MRQ = Most Recent Quarter (As Of 30-Sep-2013)

YOY = Year Over Year (as of 30-Sep-2013)

 

TCS Annual Sales, Annual Revenue, Annual Profits

Tata Consultancy Services Limited has been able to grow revenues to $10,084.6 billion (3/31/2013) from $4807.6 billion (31/3/2010). It is a 209% rise associated with a rise of 215% in Cost of Goods sold. The Selling and Administrative Expenses have gone up by 78.78% over the 4 year period. But the rise in revenues, if they are compared against the following expense bases and incomes, for last three year ends, i.e., March 2011 end, March 2012 end & March 2013 end, they are: Gross Profit (38.45%, 38.10% & 37.18% respectively), total Selling General & Admin Expenses (6.80%, 6.90% & 6.67%), Operating Income (28.09%, 27.74% & 27.51%). From these ratios, it is evident that the company has been able to maintain a consistent performance, has no evidence of global slowdown.

Currency in US Dollar (In millions) March 31, 2013 March 31, 2012 March 31, 2011 March 31, 2010
Revenues 10,084.6 7,827.9 5,975.7 4,807.6
Total Revenues 10,084.6 7,827.9 5,975.7 4,832.8
Cost Of Goods Sold 6,334.8 4,845.2 3,678.1 2,942.1
Gross Profit 3,749.8 2,982.7 2,297.6 1,890.7
Total Selling General & Admin Expenses 673.1 539.8 406.3 376.5
Total Depreciation & Amortization 172.9 147.0 117.7 105.8
Other Operating Expenses 158.9 124.7 99.9 91.8
Total Other Operating Expenses 1,004.9 811.4 624.0 574.1
Operating Income 2,744.9 2,171.3 1,673.6 1,316.6
Interest Expense -7.8 -3.6 -4.2 -2.6
Interest And Investment Income 167.5 123.5 82.2 48.4
Total Other Non-Operating Expenses 11.2 -63.9 0.3 -31.4
Other Non-Operating Income (Expenses) 3.3 4.3 6.1 -0.7
Impairment Of Goodwill -3.4 -0.1 -3.4
Gain (Loss) On Sale Of Investments 6.7 5.1 13.0
Gain (Loss) On Sale Of Assets 0.0 -0.1 -0.3 -0.6
Total Other Unusual Items -26.3 0.2 -0.1
EBT, Including Unusual Items 2,896.2 2,229.1 1,764.4 1,327.0
Income Tax Expense 642.6 544.3 293.1 191.6
Minority Interest In Earnings -25.4 -17.6 -19.4 -14.6
Earnings From Continuing Operations 2,253.5 1,684.8 1,471.2 1,135.4
Net Income 2,228.2 1,667.2 1,451.8 1,120.8
Net Income To Common Including Extra Items 2,224.6 1,663.1 1,449.7 1,117.6
Net Income To Common Excluding Extra Items 2,224.6 1,663.1 1,449.7 1,117.6

 

TCS Quarterly Earnings

The company’s rate of Net Income on Total revenue for last four quarters from December 2012 till September 2013, were:

Dec 2012= 22.09%;

Mar 2013= 21.87%;

Jun 2013= 22.08%=21.35% &

Sep 2013=22.08%.

The company has maintained a consistent performance in last four quarters.

Currency in US Dollar (In millions) Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012
Revenues

3,358.5

2,879.7

2,630.5

2,572.8

Total Revenues

3,358.5

2,879.7

2,630.5

2,572.8

Cost Of Goods Sold

2,039.4

1,824.6

1,656.9

1,621.9

Gross Profit

1,319.1

1,055.2

973.6

950.9

Total Selling General & Admin Expenses

205.0

189.3

170.8

162.0

Total Depreciation & Amortization

52.5

47.6

46.4

44.4

Other Operating Expenses

51.2

41.7

36.5

41.8

Total Other Operating Expenses

308.7

278.6

253.7

248.2

Operating Income

1,010.4

776.6

719.9

702.7

Interest Expense

-2.0

-1.1

-3.0

-1.3

Interest And Investment Income

48.4

52.7

46.5

43.6

Total Other Non-Operating Expenses

-55.2

-15.3

21.0

-10.5

Other Non-Operating Income (Expenses)

5.3

1.4

1.1

1.2

Gain (Loss) On Sale Of Investments

1.6

3.1

2.5

1.4

Gain (Loss) On Sale Of Assets

0.1

0.2

0.1

0.0

Total Other Unusual Items

0.1

-26.3

0.0

EBT, Including Unusual Items

1,003.3

816.3

760.6

735.9

Income Tax Expense

255.3

196.3

175.0

161.0

Minority Interest In Earnings

-6.2

-5.3

-6.7

-6.6

Earnings From Continuing Operations

748.0

620.0

585.6

574.9

Net Income

741.8

614.7

578.9

568.3

Net Income To Common Including Extra Items

741.8

614.7

575.3

568.3

Net Income To Common Excluding Extra Items

741.8

614.7

575.3

568.3

 

The performance of the company has been displayed here through different financial and profitability scales. There were ups and downs in revenue in past years no doubt, but still TCS has managed to get a stable return on capital employed.

Financials (Indian Rupees) TTM Mar 31, 2013 Mar 31, 2012 Mar 31, 2011 Mar 31, 2010
Revenue INR Mil

714,643

629,895

488,938

373,245

300,289

Gross Margin %

59.8

61.8

96.9

Operating Income INR Mil

207,128

180,897

135,728

Operating Margin %

29.0

28.7

27.8

Net Income INR Mil

156,381

139,173

104,135

91,898

70,927

Earnings Per Share INR

79.90

70.99

53.07

46.27

35.67

Book Value Per Share INR

228.49

201.00

153.98

127.54

95.69

Operating Cash Flow INR Mil

116,150

116,150

70,084

66,381

74,062

Free Cash Flow Per Share INR

45.87

25.55

24.46

32.50

Working Capital INR Mil

197,338

128,101

142,762

73,950

           
Profitability          
Flow Tax Rate %

23.75

22.19

24.42

16.61

14.44

Net Margin %

21.88

22.09

21.30

24.30

23.31

Asset Turnover (Average)

1.24

1.35

1.32

1.24

1.20

Return on Assets %

27.06

29.72

28.09

30.15

27.98

Financial Leverage (Average)

1.29

1.33

1.37

1.32

1.46

Return on Equity %

34.97

40.06

37.87

41.60

40.46

Return on Invested Capital %

34.87

39.92

37.68

41.33

39.70

Interest Coverage

627.33

417.19

 

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Sandra
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