About The Company

TATA Consultancy Services Limited (TCSL) is a multinational information technology (IT)

service, consulting and business solutions company headquartered in India. TCS operates in 46
countries.It is a subsidiary of the Tata Group and is listed on the Bombay Stock Exchange and
the National Stock Exchange of India. TCS is the largest Indian company by market
capitalization and is the largest India-based IT services company by 2013 revenues.TCS is now
placed among the Big 4 most valuable IT services brands worldwide.In 2013, TCS is ranked
40th overall in the Forbes World's Most Innovative Companies ranking, making it both the
highest-ranked IT services company and the top Indian company. It is the world's 10th largest IT
services provider, measured by revenues.

TCS and its 59 subsidiaries provide a range of information technology-related products and
services including application development, business process outsourcing, capacity planning,
consulting, enterprise software, hardware sizing, payment processing, software management and

technology education services.Its established software products are TCS BaNCS and TCS
MasterCraft.

History of the Company

Tata Consultancy Services Ltd (TCS) was founded in 1968 by a division of Tata Sons
Limited. Its early contracts included providing punched card services to sister company TISCO
(now Tata Steel), working on an Inter-Branch Reconciliation System for the Central Bank of
India, and providing bureau services to Unit Trust of India.
In 1975, TCS conducted its first campus interviews, held at IISc, Bangalore. The recruits
comprised 12 Indian Institutes of Technology graduates and three IISc graduates, who became
the first TCS employees to enter a formal graduate trainee programme.
By 2008, TCS's e-business activities were generating over US$500 million in annual revenues.
On 25 August 2004, TCS became a publicly listed company.
In 2013 TCS moved from the 13th position to 10th position in the League of top 10 global IT
services companies
In July 2014, TCS became the first Indian company to cross the Rs 5 lakh croremark in market
capitalization.

Management Team
Cyrus Mistry(Chairman)
S Ramadorai(Vice Chairman)
N Chandrasekaran (CEO and Managing Director)
Aman Mehta
V Thyagarajan
Prof. Clayton M Christensen
Dr. Ron Sommer
Dr. Vijay Kelkar

IshaatHussain
PhirozVandrevala
O. P. Bhatt

Other Members and Employees

TCS is one of the largest private sector employers in India, and the second-largest employer among listed
Indian companies (after Coal India Limited). TCS had a total of 276,196 employees as of March 2013, of
which 31% were women. The number of non-Indian nationals was 21,282 as at March 31, 2013 (7.7%). The
employee costs for the FY 2012-13 were US$ 4.38 billion, which was approx. 38% of the total revenue of the
company for that period.[1] In the fiscal year 2012-13, TCS recruited a total of 69,728 new staff, of whom
59,276 were based in India and 10,452 were based in the rest of the world.

Companys Growth Strategy

The Companys strategy for long-term growth is based on continuing to scale, strengthen core
business and grow in new areas of business. The Company has a matured set of elements of
strategy, which have evolved over time. While the core elements of strategy continue to remain
same, there is a structured attempt by the Company to look for new dimensions of growth within
these elements.
Key elements of the Companys growth strategy are:

Customer centricity
Full service portfolio
Global network delievery model
Non linear business models
Experience certainty.

The Company continues to look for new ways to strengthen customer relationships, expand
services portfolio by continuously introducing new services, expand global infrastructure by
opening up new delivery centers in new countries, launching new products and platforms and

continuously improving quality processes to raise the delivery promise to customers. The
Company believes in strong focus on execution of strategy to deliver long-term growth.

Creation of Wealth
Revenue trend
Revenue in fiscal 2014 grew to ` 81,809 crores ($ 13.44billion) - an impressive 8-fold increase in
ten years with a compounded annual growth rate (CAGR) of 26.66%.

Growth in geographic revenue

Over the last ten years, the Company had impressive(34%), UK(28%) and North America
(25%). CAGR in new growth markets whichcomprise Latin America, Asia-Pacific and Middle
East &Africa has been more than 35% validating our strategyto diversify geographically.

Management of costs
The employee base had more than 6 fold increase from 45,714 in fiscal 2005 to 3,00,464 in fiscal
2014. However, our efforts to continuously strengthen our cost management processes have
ensured that employee expenses in relation to revenue have remained steady.
Our sustained productivity drive is also reflected in steady decrease in non-employee costs as
percentage of revenue.

Earnings per share

TCS has delivered consistent growth in earnings pershare (EPS) - the growth in the last five
years has beenremarkable. The EPS, after adjusting for two 1:1 bonusissues, went up 8 fold,
from Rs. 11.84 in fiscal 2005 toRs. 97.67 in fiscal 2014.

Increase in net worth

The net worth has increased consistently, more than 14 times in the last decade.

Market capitalisation

In terms of market capitalisation, TCS was the largest Indian company as on March 31, 2014.
Compared to the issue price, the market capitalisation has increased by more than 10 times.

Working Capital
Working Capital is measure of company efficiency and operating liquidity. The working capital
is usually calculated by subtracting Current Liabilities from Current Assets. It is important
indicator of the firm ability to continue its normal operations without additional debt obligations.
Tata Working Capital = Current Assets - Current Liabilities = 238.56 B
Working Capital can be positive or negative, depending on how much of current debt the
company is carrying on its balance sheet. In general terms, companies that have a lot of working
capital will experience more growth in the near future since they can expand and improve their
operations using existing resources. On the other hand, companies with small or negative
working capital may lack the funds necessary for growth or future operation. Working Capital
also shows if the company has sufficient liquid resources to satisfy short-term liabilities and
operational expenses.

Fixed assets

Additions to the gross block in fiscal 2014 amounted to Rs. 2,284.07 crores (Rs. 2,274.86 crores
in fiscal 2013). The Company has been investing in infrastructure development across various
locations in India to meet its growing business needs. In fiscal 2014 TCS has invested in state-ofthe-art facilities at Mumbai, Ahmedabad, Chennai, Bengaluru, Kochi, Hyderabad, Bhubaneswar
and Pune. The Company has also initiated construction of large delivery centers across 15
locations in India, which are presently at different stages of completion.

Performance of TCS
1.TCS first Indian firm to top Rs 5 lakh cr in m-cap
Market value exceeds those of Infy, Wipro, HCL Tech combined; analysts say
$100 bn, or Rs 6 lakh cr, possible in 2 years
Tata Consultancy Services (TCS) on Wednesday became the first Indian company to exceed Rs 5
lakh crore in market capitalisation. The company's share price touched a 52-week high of Rs
2,580.60, taking its market cap to Rs 5.6 lakh crore ($86.5 billion, at 60 a dollar).
This is more than the combined market cap of rival information technology companies Infosys
(Rs 1,92,198crore), Wipro (Rs 1,40,481 crore) and HCL Technologies (Rs 1,07,878
crore). TCS is also ahead of global competitors like Accenture and is within striking distance of
SAP's $100 billion, though it is far behind IBM's $193.70 billion.
In a list of the world's most valuable companies, TCS has moved up to 103 from 139 at the
beginning of the year. SAPis at 100.
Analysts believe TCS is well on its way to reach a $100-billion market cap in the next two years.
"TCS has managed to maintain industry-leading growth; it can add to this through the inorganic
route," said RaamdeoAgarwal, joint managing director, MotilalOswal Financial Services.
At its current share price, TCS needs at least 20 per cent growth to touch the $100-billion mark,
which analysts say is entirely possible.

2. After TCS, Tata Motors propels growth for group

It is well known, that Tata Consultancy Services (TCS), with an over 5-lakh-crore market-cap,
has always generated huge free cash-flows for the Tata group in the past, offsetting the weak
performance of other companies within the group.
TCS sported a profit of about 19,000 crore in 2013-14 equal to the profit reported by all
other group companies put together.
Even so, this pales somewhat when compared to the companys out-performance over other
group companies last fiscal. In 2012-13, TCS profit was more than twice that of other Tata
Group companies put together.
The narrowing of the gap this year is thanks to the better performance of Tata Motors.
Tata Motors has been putting up a good show in recent times thanks to a phenomenal
performance by the companys JLR portfolio. When it acquired Fords Jaguar and Land Rover in
a $2.3-billion all-cash deal in 2008, it found itself saddled with more than 20,000 crore of debt.

3.TCS net profit now within striking distance of Reliance Industries

After significantly overtaking Reliance Industries

(RIL) inmarketcapitalisation,software major Tata Consultancy Services(TCS) operational
performance over the last five years has now brought it within touching distance of the
petrochemicals giant in profitability terms as well. RIL currently tops the list of private firms
ranked in terms of net profits.
While RILs net profit in FY09 was thrice that of TCS, a 29.5 per cent compounded annual
growth rate (CAGR) in its net profit over the last five years has enabled TCS to inch close to
RILs bottomline figure. During the five year period, RIL saw its net profit grow at only 7 per
cent.

Even as TCS numbers for the FY14 stood at Rs 19,163 crore, short of RILs net profit of Rs
21,984 crore, if the two companies were to continue their CAGR track record, TCS could move
ahead of RIL in the current fiscal to emerge as the company with the highest net profit.
While TCS has steadily bridged the gap with RIL in terms of profitability, the stock markets have
been responding to the software firms performance, which is being reflected in the market
capitalisation charts.
Even as the oil and gas major had a higher market cap as compared to TCS till the middle of
February last year, TCS overtook Reliance in that month by August 2014 had taken a lead of well
over Rs 1 lakh crore. As on Thursday, TCS had a market cap of Rs 4,34,338 crore while RIL had
a market cap of Rs 3,09,883 crore, thereby resulting in a gap of Rs 1.25 lakh crore between the
top two firms in the market cap charts. TCS rise in market cap last year was supported by a
growth revival in the US economy and a sharp depreciation in rupee against the dollar.