TCS

By
Celia Vincent 58
Abhishek Shah 45
Jaganath Sahu 41
Sai Krishna 23
Aditi M Gupta 18
 TCS
• Established in 1968,
• The largest IT services firm in Asia
• Mission: To help customers achieve their
business objectives by providing innovative,
best-in-class consulting, IT solutions and
services. 
To make it a joy for all stakeholders to work
with us.
• Vision: to be one of the top 10 global
companies by the year 2010.
• Values: Leading change, Integrity, Respect
for the individual, Excellence, Learning and
sharing.
 IPO
• TCS was a private company under the Tata
Sons group.

• 90% of the shares were held by Tata Sons

and 10% by the shareholders of Tata Sons.

• In the year the 2002 the company decided to

go public.
 The Main Reasons To Go Public
1.The tax advantages give by the government for software exports.

2. The 1990s dot com boom in India, which saw the rise of several
large, IT companies.

3. The stock market booming due the growth of the software

industry in the mid 90s

4. The growth of the Silicon Valley in the US 1990s.

5. Investors and the employees of a few IT companies benefited

greatly when the companies went public in India

6. The increase in size of employees in TCS and the employee

perspective to work for a listed company.
• DSP Merril Lynch, J P Morgan and JM Morgan Stanley were
selected to advise them on IPO

• Ratan Tata and TCS Head Ramdurai traveled to Hong Kong,

Singapore, London, New York and Boston to meet Fund
Managers and prospective investors.

• There was a problem on setting the price of the shares. The

price band was between 750 - 900 but after much thought
they arrived at the price of 850. 

In spite of the stock market crash of 17th May 2004, the

TCS IPO was launched on 29th July and closed on 6th August
04. The IPO raised around 5000 crores.
 Capital Structure
As on June 30, 2010
2,250,000,000
A. Authorised Capital 2,250,000,000 Equity Shares of Re. 1
each 1,000,000,000 Redeemable 1,000,000,000
Preference Shares of Re. 1 each 3,250,000,000
===========

B. Issued, subscribed & 1,957,220,996 Equity Shares of Re. 1 1,957,220,996

Paid-up Capital each fully paid-up 1,000,000,000
1,000,000,000 Redeemable Preference 2,957,220,996
Shares of Re. 1/- each ==========
Net Worth 18,467 Cr Market Capitalization $33.99 billion
Market price of the share 854
Fiscal year Fiscal year
2010 2009

Sales Turnover Rs.23,044 Cr Rs.22,404 Cr

Operating Profit Rs.6,667 Cr Rs.6,020 Cr

Debt: Equity .01 .04

Current Ratio 1.88 2.26

EPS 35.67 26.81

Dividend Per Share Rs20 Rs14.00

Dividend Payout 65.45% 30.54%

Price Earning Ratio, 21.89 10.07

Debtors Turnover 6.54 6.00

Ratio
Gross Profit 26.8 25.01
Margin(%)
 Dividends
• Decision on dividend is based on Tata Consultancy
Services Limited financials.
• The Board of Directors declares quarterly interim dividends
based on the performance of the Company.
• For fiscal 2010 the Company declared three interim
dividends of Rs.2 each on the equity shares. A final
dividend of
• Rs.4 per equity share has been recommended.
• In addition, a special dividend of Rs.10 for the current fiscal
has been recommended
• On approval of the final dividend of Rs.4 and the special
dividend of Rs.10, total dividend for fiscal 2010 would be
Rs.20 per equity share.
Why to Invest in TCS