Tcs Financial Analysis

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Analysis of Annual Report of TCS (2009-10)

Term Paper
Financial Accounting

Submitted By

|Roll No |NAME | |1013006 |Dwarkanath Balkrishna Prabhu | |1013014 |Palamala Radhika | |1013016 |Pramod Marotrao Dumre | |1013025 |Sreelekha VS | |1013027 |Suresh Chandra Gairola |

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T A B L E O F C O N T E N T S

Tata Consultancy Services Financial Analysis Summary3
A. Common Size Analysis -3
A.1 – Income Statement:3
TABLE 1: INCOME STATEMENT4
A.2 – Balance Sheet Analysis5
TABLE 2 : BALANCE SHEET5
B. Trend Analysis –6
TABLE 3 : TREND6
TABLE 4: Year-on-year growth %6
1. Revenue and Profit Trends:7
2. Segment-wise Revenue8
C. Ratios Analysis9
TABLE 5 : RATIOS9
1. Profitability Ratios10
2. Per share ratios10
3. Revenue and Days of collection period11
4. Dupont Analysis –11
5. Other Ratios:12
D. Cash Flow12
E.Conclusion12

Tata Consultancy Services Financial Analysis Summary

The purpose of this paper is to analyse the Annual Financial Statement of Tata Consultancy Services Ltd. for the year 2010.

Our analysis includes following components –
1. Common Size Analysis –
a. Income Statement Analysis - Vertical & Horizontal Analysis b. Balance Sheet Analysis - Vertical & Horizontal Analysis 2. Trend Analysis of past five years
3. Ratio Analysis
4. Dupont Analysis
5. Cash flow analysis
6. Overall conclusion

A. Common Size Analysis -

A.1 – Income Statement:

Vertical Analysis – We can see from the income statement that PBT has increased from 22.11% to 27.61% which is due to reduction in operating expenses from 38.59% to 34.82% of the operating revenue. Horizontal Analysis – Though revenue has grown by 7.97%, increase in profit is much more at 34.79%. We can see even if the financial performance is much better, PAT is reduced due to increase in taxation. Also during the current year the deferred tax benefit has been utilized by the company.

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2 TABLE 1: INCOME STATEMENT

|ITEM |2010 |CS |2009 |CS |Horizontal Analysis | |Rs. in crores | | | | |Difference | |1 SHAREHOLDERS’ FUNDS | | | | | | | | | Revenues | | | | | | | | | Total Revenue |30028.92 |27812.88 |22619.52 |18685.21 |13263.99 |9748.47 |0.25 | | International Revenue |27431.02 |25630.76 |20573.9 |17003.22 |11607.08 |8560.9 |0.26 | | Domestic Revenue |2597.9 |2182.12 |2045.62 |1681.99 |1656.91 |1187.57 |0.17 | | Revenue From Offshore Business |13989.82 |11328.8 |8620.46 |6886.3 |4341.05 |3313.07 |0.33 | | Revenue By Geographic segments | | | | | | | | | Americas |17272.93 |15600.21 |12394.05 |10514.81 |7831.28 |5771.41 |0.25 | | Europe |8009.57...
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