Financial Analysis of Hcl

Topics: Financial ratios, Balance sheet, Financial ratio Pages: 29 (7055 words) Published: May 23, 2011
Financial AnalysisTCS & HCL

October 23

CF ASSIGNMENT1 SUBMITTED BY: Amrita Pratap (043009) Hitaishi Gupta (043026) SaurabhDugar (043049)

Analyzing the Profit and Loss Account, Share price and Balance Sheets of the two companies and understanding the condition of the companies in terms of its top and bottom line.

Financial Analysis-TCS & HCL

Tata Consultancy Services (TCS) is a Software services consulting company headquartered in Mumbai, India. TCS is the largest provider of information technology and business process outsourcing services in Asia.TCS has offices in 42 countries with more than 142 branches across the globe. The company is listed on the National Stock Exchange and Bombay Stock Exchange of India. TCS is a flagship subsidiary of one of India's largest and oldest conglomerate company, the Tata Group, which has interests in areas such as energy, telecommunications, financial services, manufacturing, chemicals, engineering, materials, government and healthcare.

In the early 1970s, Tata Consultancy Services started exporting its services. The company pioneered the global delivery model for IT services with its first offshore client in 1974. TCS's first international order came from Burroughs, one of the first business computer manufacturers. TCS was assigned to write code for the Burroughs machines for several US-based clients.This experience also helped TCS bag its first onsite project - the Institutional Group & Information Company (IGIC), a data centre for ten banks, which catered to two million customers in the US, assigned TCS the task of maintaining and upgrading its computer systems. In 1981, TCS set up India's first software research and development center, the Tata Research Development and Design Center (TRDDC). The first client-dedicated offshore development center was set up for Compaq (then Tandem) in 1985. In 1989, TCS delivered an electronic depository and trading system called SECOM for SIS SegaInterSettle, Switzerland. It was by far the most complex project undertaken by an Indian IT company. TCS followed this up with System X for the Canadian Depository System and also automated the Johannesburg Stock Exchange (JSE). TCS associated with a Swiss partner, TKS Teknosoft, which it later acquired.

IMG 4 | Corporate Finance Assignment 1

Financial Analysis-TCS & HCL
In the early 1990s, the Indian IT outsourcing industry grew tremendously due to the Y2K bug and the launch of a unified European currency, Euro. TCS pioneered the factory model for Y2K conversion and developed software tools which automated the conversion process and enabled third-party developers and clients to make use of it. In 2008, TCS saw outsourcing opportunity in E-Commerce and related solutions and set up its EBusiness division with ten people. By 2004, E-Business was contributing half a billion dollars (US) to TCS.

On 9 August 2004, TCS became a publicly listed company, much later than its rivals, Infosys, Wipro and Mahindra Satyam. During 2005, TCS ventured into a new area for an Indian IT services company - Bioinformatics. In 2008, the company went through an internal restructuring exercise that executives claim would bring about agility to the organization.

Founded in Headquarters Chairman CEO Revenue Employees

1968 Mumbai, Maharashtra,India Ratan Tata N. Chandrasekaran US $ 6.76 billion (2010) 174417(2010)

IMG 4 | Corporate Finance Assignment 1

Financial Analysis Analysis-TCS & HCL

YEAR 2009-2010 2010

In a year marked with challenges and opportunities, the Company has achieved credible financial results. On a consolidated basis, • • Revenues have grown 8 per cent to Rs. 30,029 crore ($6.34 billion). Driven by robust evenues volume growth of 17 per cent. Revenue growth was translated into higher profitability at the operating and net levels on the back of good execution. On a consolidated basis, operating profits (EBT before Other Income) grew to Rs. 8,018 crore, an...
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