Tata Consultancy Services Limited offers IT-enabled services and information technology across the globe. The business is divided into the areas of banking, financial services and insurance, manufacturing, retail and consumer business, communication, media and technology, life sciences and healthcare, and others.

It provides TCS iON, an assessment platform, TAP, a procurement service, TCS MasterCraft, a platform to automate and manage IT processes, Quartz, a blockchain solution, and TCS OmniStore, a commerce platform. It also offers CHROMA, a cloud-based personnel management system.

The company also offers customer intelligence and insight solutions, Intelligent Urban Exchange, a smart city solution, OPTUMERA, a platform for product optimization, TwinX, an AI-powered system of actionable intelligence for business leaders to simulate and optimise enterprise decisions, TCS BaNCS, a financial platform, and Jile, an agile DevOps platform.

Additionally, it provides connected intelligent platforms, ERP on the cloud, an enterprise solution, and HOBS, a platform for subscription-based digital company. The company also offers consultancy, analytics, artificial intelligence, Internet of Things, cloud, blockchain, cyber security, interactive, digital and quality engineering, sustainability, and corporate application services.

Global growth is anticipated to slow from 6.1% in 2021 to 3.6 percent in 2027 as a result of major nations ending their monetary accommodative policies, ongoing supply-side shortages, and the economic harm caused by the conflict in Ukraine.

Enterprise technology investment is anticipated to increase, but industry-level growth is anticipated to slow year over year, creating room for outperformance through market share gains and significant deal wins.Through proactive investments in developing novel capabilities, reskilling its employees, and the introduction of newer services, solutions, products, and platforms to take advantage of those opportunities, TCS has been able to widen and deepen its relationships with its clients.

FINANCIAL INFORMATION

Source: Company financial Report

The financial results for the second quarter and the six months ending September 30, 2022, were released by Tata Consultancy Services Limited. Sales for the second quarter were INR 553,090 million, up from INR 468,670 million in the same period last year, according to the business. Revenue increased from INR 479,780 million to INR 562,740 million. Compared to a year ago, net income increased by INR 104,310 million to INR 96,310 million. In comparison to INR 26.02 a year before, basic earnings per share from continuing activities were INR 28.51.Sales for the six months totaled INR 1,080,670,000,000, up from INR 922,780,000,000 in the prior year. Revenue increased from INR 941,100,000,000 to INR 1,098,210,000,000. Compared to a year ago, net income increased by INR 199,090 million to INR 186,320 million. Basic earnings per share from ongoing activities increased from 50.37 to 54.41 Indian rupees.

Revenue by Industry Vertical   

  SHAREHOLDING PATTERN

Source: Company financial Report

  SHAREHOLDING COMPARE (% Holding)

Source: Company financial Report

COMPARE VALUATIONS WITH PEERS

Source: Company financial Report

Even though new COVID-19 virus varieties caused new waves of the pandemic in CY 2021, the world economy made a significant recovery. Strong governmental backing in mature nations, the availability of vaccines, and the easing of pandemic restrictions all assisted in the recovery of economies, increasing global output by an estimated 6.1%1. Global technology spending increased significantly in 2021, reaching $1.7 trillion2.

 In response to altered customer behaviour and the need for improved operational resilience, accelerated investments in digital transformation and cloud adoption were the main drivers. Additionally, businesses who wanted to free up financial and human resources to carry out their transformation initiatives expanded their outsourcing. The outsourcing necessity was exacerbated by the significant talent shortage.

When compared to BPM, which saw a roughly 5% growth to reach $211 billion, IT services saw a 6.2% YoY growth to surpass $899 billion.

Even the largest supplier only holds a mid-single digit proportion of the global IT services market, indicating that the sector is still very fragmented. With a market share of 2.3%, TCS is among the biggest global providers of IT services. Over the past ten years, the company has outperformed the industry by increasing at a rate that is noticeably higher than that of the whole market.

This may be attributed to market share increases brought on by TCS' customer-centric organisational structure and strategy, a very stable management team, targeted investments in constructing superior capabilities, better execution leading to greater customer satisfaction, and steadily expanding participation in customers' growth and transformation spends.