TATA consultancy service one of the flagship company who announced two dividends at a same time for each share you hold you will receive first dividend reward is 66 rupees and second interim 3 which is 10 rupees which is total amount will receive by shareholder is 76 rupees. If you want more information about TCS, read this article..
TATA Consultancy Service
Tata
Consultancy Services (TCS) is the main company of the Tata Group. It is a global
organization that provides IT services, consulting, and business solutions.
For over 50 years, TCS has worked with some of the world’s largest
companies, helping them adapt and grow in their industries. The
company offers a mix of consulting and technology services that include business,
engineering, and digital solutions to support clients in solving their
challenges and achieving success.
Financial Performance of TCS
The
financial performance of the company for three consecutive quarters -December
2024, September 2024, and June 2024 - is summarized as follows.
In December
2024, the total revenue was 65,216Cr, while gross profit was
25,741Cr. EBITDA (Earnings Before Interest, Taxes, Depreciation, and
Amortization) stood at 18,277Cr, and the net profit was 12,444Cr.
In September 2024, the total revenue
was slightly lower at 64,988Cr, with a gross profit of 25,104Cr. EBITDA
during this quarter was 17,460Cr, and the net profit was 11,955Cr.
For June
2024, the total revenue was 63,575Cr, gross profit was 25,008Cr, EBITDA
reached 17,624Cr, and the net profit was 12,105Cr.
The table below presents the data for better
clarity:
|
Quarters |
Dec 24 |
Sep 24 |
Jun 24 |
|
Total Revenue |
65,216 |
64,988 |
63,575 |
|
Gross Profit |
25,741 |
25,104 |
25,008 |
|
EBITDA |
18,277 |
17,460 |
17,624 |
|
Net Profit |
12,444 |
11,955 |
12,105 |
This data
indicates stable financial performance across the three quarters, with
consistent gross profit and slight variations in total revenue, EBITDA, and net
profit.
Performance of TCS
The
company’s performance over the last three years is summarized below,
highlighting growth in key metrics:
Sales Growth: - Over three years, sales
have grown by 46%, indicating strong business performance and revenue
expansion.
EBITDA Growth: - The company achieved a
39% growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and
Amortization), reflecting improved operational efficiency.
Net Profit Growth: - Net profit grew by
41% during this period, showcasing the company's ability to increase
profitability despite market challenges.
Stock Price Growth: - The stock
price experienced a 9% increase, reflecting moderate investor confidence
and market performance.
This data
highlights the company's steady growth across key financial metrics, driven by
effective strategies and consistent performance.
The data is
presented in table form below for clarity:
|
Metric |
3 Years |
|
Sales Growth |
46% |
|
EBITDA Growth |
39% |
|
Net Profit Growth |
41% |
|
Stock Price Growth |
9% |
Assets and Liabilities of TCS
Assets
|
Category |
Amount |
|
Long Term & Other Assets |
₹48,852 Cr |
|
Physical Assets |
₹17,262 Cr |
|
Inventory |
₹28 Cr |
|
Receivables |
₹53,577 Cr |
|
Cash & Short Term |
₹27,898 Cr |
Liabilities
+ Equity
|
Category |
Amount |
|
Equity |
₹90,489 Cr |
|
Other Liabilities |
₹38,501 Cr |
|
Debt |
₹8,021 Cr |
|
Accounts Payable |
₹9,981 Cr |
Shareholding Pattern
As of
September 24th, the shareholding pattern of the company reveals how ownership
is distributed among different types of investors. The promoters, or company
founders and major stakeholders, hold the largest share, owning 71%
of the company. This large ownership gives them substantial control over the
company's decisions and operations.
Foreign
Institutional Investors (FIIs) own 12% of the company's shares. These are large
investors, typically from overseas, such as international banks, pension funds,
and mutual funds. Their stake indicates that the company has attracted
significant interest from global investors.
Domestic
Institutional Investors (DIIs), which include local banks, insurance companies, and other
investment institutions, own 10% of the company’s shares. This shows
strong local support for the company from institutional investors.
The remaining 5% of the shares are held by the public, which includes individual retail investors and other smaller shareholders. This portion is comparatively small, meaning that individual investors have less influence over the company's decisions compared to promoters and institutional investors.
|
Shareholding Percentage |
Category |
|
71 |
Promoters |
|
12 |
FII |
|
10 |
DII |
|
5 |
Public |
Overall, the shareholding pattern highlights the dominance of the promoters in controlling the company, with institutional investors playing a significant role in ownership as well.
Market Cap
Market
Capitalization: 1,543,310 Crore
This figure
represents the total market value of the company's outstanding shares. It is
calculated by multiplying the company's current share price by the total number
of shares outstanding.
Sales in
Last 12 Months: 252,082 Crore
This metric
indicates the company's revenue generated over the past year. It provides
insight into the company's sales performance and its ability to generate
income.
Sector:
IT - Software
This
information classifies the company's industry as belonging to the Information
Technology and Software sector. This categorization helps investors understand
the company's competitive landscape and potential growth drivers within its
specific market.
Book
Value per Share: 279
Book value
per share represents the company's net assets per share. It is calculated by
dividing the company's total assets minus total liabilities by the total number
of outstanding shares. This metric gives investors an idea of the company's
intrinsic value and financial health.
The three
common financial ratios used to assess a company's valuation: the Price-to-Earnings
Ratio (P/E), the Price-to-Book Ratio (P/B), and the Price-to-Sales
Ratio (P/S).
The P/E
ratio, which is 31x in this case, measures the market value of a
company's stock relative to its earnings per share. A higher P/E ratio suggests
that investors are willing to pay a premium for the company's future earnings
potential.
The P/B
ratio, at 15x,
compares the market value of a company's stock to its book value per share
(assets minus liabilities). A higher P/B ratio indicates that the market values
the company's intangible assets (like brand value, intellectual property) more
than its tangible assets.
The P/S ratio, which is 6x, evaluates the market value of a company's stock relative to its annual revenue. A higher P/S ratio might suggest that investors expect strong future revenue growth or are willing to pay a premium for the company's market share.
Financial Ratio Of TCS
1. Return on
Equity (ROE): 47.35% (3-year average)
· This shows how well the company is
using its equity (owner's money) to generate profits. A high ROE is a good sign
of strong profitability.
2. Return on
Capital Employed (ROCE): 58.34% (3-year average)
· This ratio tells us how efficiently
the company is using both its debt and equity to make profits. A high ROCE
suggests the company is making good use of its resources.
3.Debt-to-Equity
Ratio: 0.09x (3-year average)
· This measures the company’s debt
compared to its equity. A low ratio means the company is not overly reliant on
debt, which reduces financial risk.
4. Interest
Coverage Ratio: 74.25x (3-year average)
· This shows how easily the company can
pay its interest on debt. A high ratio indicates that the company is in a
strong financial position and can easily meet its debt obligations.