Tata Consultancy Services (TCS) is an Indian MNC. Headquartered in Mumbai, India, it functions in 46 nations. The company offers a huge gamut of IT-enabled products and services to global clients.
*Note: Prices that are specified below is based on INR
TCS Historical Share Price (NSE)
As of early March 2018, the market capitalisation of TCS was Rs.582,173.14 crore.
Company’s wealth and recent performanceQ1 FY 2018-19
The key financial highlights of the company’s performance for Q1 FY 2018-19, ended 31 June 2018 are as follows:
- The net profit recorded an increase of 23% and stood at Rs.7,340 crore, up from Rs 5,945 crore in the corresponding quarter in the previous year.
- Net cash from operations stood at 103.7% of Net Profit.
- The company recorded a 15.8% YoY (year-on-year) increase in revenue which stood at Rs.34,261 crore.
- Net income registered a growth of 23.5% YoY and stood at Rs.7,340 crore.
- TCS added 2 new clients in $100M+ band while 13 clients were added in $5M+ band
- The country's largest software exporter reported an operating margin was at 25%.
- The digital revenue reported an increase of 25% and was up 44.8% YoY.
- The company’s banking and financial services segment recorded a growth in revenue by 4.1%.
- Constant Currency Revenue growth stood at 9.3 per cent YoY.
The key financial highlights of the company’s performance for FY 2017-18, ended 31 March 2018 are as follows:
- The operating income stood at Rs.30,502 crore.
- Operating Margin at 24.8 %.
- The net profit fell 1.7% and stood at Rs.25,826 crore.
- Revenue increased 4.3% and stood at Rs 1.23 lakh crore.
- The company’s clients in $100M+ slab were up by 3, clients in $50M+ slab reported an increase by 13, clients in $20M+ band increased by 17, clients in $10M+ band increased by 40
- The company returned cash of more than Rs.26,800 crore to shareholders in dividends and buyback.
- For Q4 FY 2017-18 the consolidated net profit stood at Rs.6,904 crore.
- The operating cash flow in Q4 was its highest ever and stood at 121.70%.
- The company’s digital vertical contributed to 23.8% of its revenue that increased 42.8% on an annual basis.
- The digital revenue of TCS was up by 1.3% in the third quarter FY 2017-2018 compared to the second quarter.
- Operating revenues and net income have accelerated by 1.2% and 1.3% respectively in the third quarter ending 31 December 2017.
- The operating margin of TCS, a key measure, has accelerated by 0.1% in the third quarter. By the end of the third quarter, net cash from operations were at Rs.7,788 crore.
- The earnings per share (EPS) and dividend per share (DPS) of TCS were at Rs.34.12 and Rs.7 respectively for the third quarter.
- The retail vertical turns around was up by 6.4% and IT attrition rate was down by 0.2% in the Q3 compared to the Q2.
- TCS, a big space for career builders, has hired 12,534 employees during the Q3. The total number of employees was stood at 390,880 by the third quarter ending 31 December 2017.
TCS Stock Trends for 2018
- The opening price of the TCS stock at the beginning of January 2018 on NSE was Rs.1,341. The scrip increased by around 230 points throughout the month. By the end of January, the price of the stock stood at Rs.1,568.
- In the month of February, the stock price fell for most part of the month however, it picked up the pace towards the end. The opening price of the stock by the end of February was Rs.1,517.
- The scrip declined in the month of March by around 110 points. By the end of March, the price of the stock was at Rs.1,417.
- In April, the price of the stock gained strength and crossed the Rs.1,700 mark. It was up by 305 points throughout the month and stood at Rs.1,725 by the end of April.
- The price of the stock continued to increase in the month of May. It crossed the Rs.1,800 mark but ended the month at Rs.1,734.
- In the month of June, the scrip picked up the pace by around 105 points. The opening price of the stock by the end of June was Rs.1,865.
- The scrip crossed the Rs.2,000 mark in the month of July and recorded an increase of around 150 points.
- In the month of August, the price of the stock increased further by around 135 points. The opening price of the stock by the end of August was Rs.2,082.
TCS stock trends in 2016 and 2017
- During the first week of January 2016, the stock price of Tata Consultancy Services Limited was closed at Rs.2,382.6. The price of TCS stock was close to Rs.2,391 during the last week of the same month.The price rise can be attributed to a 14.2% increase in the net earnings of TCS.
- TCS announced a 4% drop on Cognizant revenue outlook. This move may have caused a fall in the stock price of TCS in February 2016. In the beginning, the market value of equities stood at Rs.2,402. Towards the end, it fell to Rs.2,210.50.
- March 2016 began with a positive note where the stock price was Rs.2,357 towards the end of the first week. It jumped to Rs.2,520 by the month end since the company had won a contract from Swedish Bank and had registered a rise in the net profit margin.
- TCS equities were traded at Rs.2,470 approximately at the commencement of April 2016 and at Rs.2535 at the month’s end. There were many positive notes that had driven the price, including the announcement of a new corporate office at Toronto. During this period, TCS was identified as a leader in the insurance IT segment.
- May and June 2016 had been the crucial months for TCS. During which, the company had registered several noticeable events. As a result, the market price of TCS shares had witnessed a rise.
- Stock prices were on a rising trend in the first 6-7 days of July 2016 compared to the previous month as the company had booked a rise in the net profits for the first quarter FY 2016-2017. They continued to grow in the beginning of August 2017 and were priced at 2,632 approximately. Towards the end, they were at Rs.2,510.
- Between September 2016 and December 2016, the stock prices of TCS had both upward and downward trends. This period had offered several clues for long-term investors to invest in TCS stocks. The major ones include the extension of the previous business contracts with renowned corporate clients. By December 2016, they stood at Rs.2,351.
- There had been several major events that took place between January 2017 and March 2017. As a result, TCS stock prices were on the rise. During this period, they accelerated from Rs.2,361 to Rs.2,410. The company had reported an 11% hike in the net earnings for the last quarter of FY 2016-2017.
- The stock price of Tata Consulting Services Limited had fallen to Rs.2,333 during the last week of June 2017 from Rs.2,400 since the fundamentals of the company were on a positive note, including the net profit margin.
- In December 2017, the market price of TCS stocks stood closely at Rs.2,700. They were marginally up compared to the previous quarter. There were many clues for both short-term and long-term investors to wisely invest in TCS stocks.
Why should I invest in TCS stocks?
- Needless to say, Tata Consultancy Services is a premier brand to offering individilised technology solutions and services. It has gained the brand identity through steady financial results. The fundamentals of TCS have been doing well since the last five financial years. The constantly growing fundamentals can be better signs for investors to invest in equities.
- Many investors would look at the net worth. The net worth of Tata Consultancy Services has increased considerably over the last two years. It was Rs.65,013 in 2016 and further accelerated to Rs.78,022 in the last fiscal year.
- The earnings per share drives investors to invest in Stocks. Compared to the last 2-3 financial years, the earnings per share, which was recently declared in the Q3 FY 2017-2018, was up by a decent margin. This could be a better sign for stock investors.
- There are many hints that can entice investors to buy TCS stocks. For instance, TCS has been chosen by a large European bank to transmit core systems across multiple business lines. It has also been chosen by a large Australian bank to offer application services across multiple business lines.
- TCS was chosen as a primary partner for technology-enabled solutions by a retailer for the UK. It was also opted by a Danish telecommunication enterprise to offer IT infrastructure services. This project is aimed at reducing the operational overheads of clients.
- According to the experts of technical analysis, the investors, who intend to make short-run and long-run stock investments, may consider holding the stocks of Tata Consultation Services to yield a decent amount of returns.
- TCS is one of the leading brands in the industry. It has steadily been extending its business lines since many years. TCS is a strong player with better financial results. It has a unique brand identity in terms of competitiveness and may not face threats from rivals in the industry.
- TCS is a highly liquid company. The liquidity ratios such as current ratio, quick ratio and cash ratio have proven this fact recently. TCS is one of the best investment options for investors, who are willing make stock investments in IT-based companies.
TCS company profile
Tata Consultancy Services offers business, technology (IT) and consulting solutions. The company caters to the need of overseas customers. The specialised offers of TCS include IT solutions, BPO services, engineering solutions, infrastructure solutions and assurance services. The company delivers these offers through a global network delivery model. The prime business areas of TCS include supply chain management, digital enterprise, IT and IT infrastructure solutions, platform services, performance administration, integrated engineering solutions, etc.
TCS is renowned for its unique business expertise and delivers cutting-edge and real-time solutions to help clients get excellent business results. The company has a good network of corporate partners spread across the globe. It consistently refines its offers through its powerful research and development (R&D) wing. TCS serves a wide range of industry lines, including healthcare, financial services, IT, insurance, telecommunication, hospitality, transportation, oil and natural gas, banking, etc.
Management of TCS
Chairman of the Board of Tata Sons
N. Chandrasekaran is currently serving as the Chairman of the Board of Tata Sons. Tata Sons is a holding company and promotes 100 plus Tata operating business entities. He was included in the Board of Tata Sons in October 2016. In January 2017, he was appointed as the Chairman. He has more than 30 years of corporate experience and has worked for different business modules. Under the flagship of N. Chandrasekaran, Tata Consultancy Services accumulated a total business revenues of $16.5 billion in 2015-2016.
Chief Executive Officer and Managing Director (CEO and MD)
Rajesh Gopinathan is the CEO and MD of Tata Consultancy Services. He became the CEO in 2017 and also has handled the role of the Chief Financial Officer of the company. His contributions have been excellent in making TCS a $17.6 billion corporation. Rajesh Gopinathan has been working at TCS since 2001. He has a good amount of corporate experience to handle promising assignments. By qualification, he is an electronic engineer from REC Trichy.
Aman Mehta is presently serving as a Director of Tata Consultancy Services. He is an economics graduate from Delhi. Prior to TCS, he was associated with HSBC Group where he worked on a diverse range of corporate projects. Aman Mehta has more than 36 years of sound business experience. Primarily, he specialises in the finance and banking domains. Being a director, his role has been significant in TCS.
History of TCS
- Tata Consultancy Services was founded in 1968. It is a subsidiary of Tata Group, which was conceptualised in 1848 by Jamsetji Tata.
- Citigroup Global Services was acquired by TCS for $505 million.
- TCS BaNCS Core Banking Release 12.0 was declared by TCS at the yearly flagship occasion for capital markets and banking in Toronto.
- TCS made an announcement to open a Corporate Learning Centre in the city of Thiruvananthapuram. The Centre can accommodate 50,000 people.
Registered TCS office address
Tata Consultancy Services Limited
Barrister Rajni Patel Marg,
Nariman Point, Mumbai, Maharashtra 400021
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