The document provides an overview of the IT sector in India. It discusses the growth of the IT sector's contribution to GDP and revenues. The current scenario outlines growth projections for employment and revenues in the sector for 2011. Segment performances and key ratios for Tata Consultancy Services show strong financial performance with increasing revenues, profits, and margins year-over-year. The company has a large global presence and pursues CSR initiatives in areas like education and healthcare.

1. IT SECTOR
Made By – AKHIL KAPOOR (3064)
ROHIT PATNAIK(3066)
SNEHAJ(3068)
KAUSTUBH DUBEY ( 3074)
NAVNEET KUMAR(3080)
SARIN SIO(3083)
MOHAMMAD SHAMS ALAM(3089)
GANDHARVA TIWARI(3104)

2. Industry Overview
• IT share of GDP – 4.8% (2005-06) to 7% (2008)
• 2010-11 IT-BPO grew over Indian US $ 76 bn,
China $ 35.6, and Philippines $ 8.85 bn
• Domestic market (IT Services, software products
and BPO) is expected to grow from US $ 14.2
billion in 2009-10 to US $ 17.1 billion in the year
2010-11; (20.4% growth)

3. Current Scenario
• Indian IT industry will add over 2.25 lakh employees in 2011
and revenues of USD 71.7 billion by the end of the year :
Deloitte (TOI)
• The total number of employees working in the IT/ITeS (IT
enabled services) sector will grow to 22.3 lakh this year. An
additional 80 lakh people will get employment indirectly from
the sector: Delloite (TOI)
• Canada-based XMG Global: China is closing 2010 with 35.76
billion US dollars or 28.7 percent share of the global
outsourcing industry, while India maintains its lead capturing
54.33 billion US dollars or 43.7 percent of the total. (ET)
• The US and European region account for over 85 per cent of
the revenues of the over $ 70 bn Indian IT sector. (TOI)

4. Source:Ministry of IT, Annual Report 2009-10

5. Source: Ministry of IT, Annual Report 2009-10

6. INR-USD Recent Exchange Rate

7. TCS
( BSE – 532540, NSE - TCS, ISIN – INE467B01029 )
A Tata Group Enterprise
Headquarters – Mumbai, India
Biggest Provider of Information Tech in Asia
42 Countries, 142 Branches
• Current MP - 1027.75
• CEO - N Chandrasekaran
74.08
5.73
12.8
2.91 4.48
Shareholding Pattern
Promoters
Banks, Finance
Inst.&Insurance
FII's
Others
General Public
INR
Open 1048
Close 1027.75
Day High 1072.4
Day Low 1021.3
Change -1.34%
52 W High 1246.95
52 W Low 864.5
Volume 2328227
Friday, 16/9/2011
As on 30/6/2011

8. Balance Sheet-Analysis
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Sources Of Funds
Total Share Capital 295.72 295.72 197.86 197.86 97.86
Reserves 19,283.77 14,820.90 13,248.39 10,806.95 7,961.13
Networth 19,579.49 15,116.62 13,446.25 11,004.81 8,058.99
Secured Loans 35.87 29.25 32.63 9.27 41.76
Total Debt 41.12 35.74 40.37 18.25 50.74
Application Of Funds
Gross Block 6,030.16 4,871.21 4,359.24 3,240.64 2,315.36
Less: Accum. Depreciation 2,607.98 2,110.69 1,690.16 1,300.11 854.75
Net Block 3,422.18 2,760.52 2,669.08 1,940.53 1,460.61
Capital Work in Progress 1,345.37 940.72 685.13 889.74 757.85
Investments 5,795.49 7,893.39 5,936.03 4,509.33 3,252.04
Total CA, Loans &
Advances 15,480.07 10,837.08 9,250.79 7,396.46 5,294.74
Total CL & Provisions 6,422.50 7,279.35 5,054.41 3,713.00 2,655.51
Net Current Assets
9,057.57 3,557.73 4,196.38 3,683.46 2,639.23
Contingent Liabilities 3,938.76 3,292.50 2,924.33 2,726.11 3,003.25

9. P&L Analysis
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Sales Turnover
29,275.41 23,044.84 22,404.00 18,536.55 14,942.09
Total Income 29,760.98 23,225.17 21,947.41 18,974.13 15,153.22
Raw Materials 17.75 23.75 53.67 45.81 22.02
Employee Cost 10,190.31 7,882.43 7,370.09 6,015.19 6,186.85
Other Manufacturing Expenses 8,135.57 6,446.99 6,947.60 5,687.82 3,095.82
Selling and Admin Expenses 1,097.52 1,268.03 1,218.41 991.43 765.08
Total Expenses
20,502.72 16,375.90 16,382.82 13,508.07 10,635.70
PBDIT 9,258.26 6,849.27 5,564.59 5,466.06 4,517.52
Interest 20.01 9.54 7.44 3.42 3.43
PBDT 9,238.25 6,839.73 5,557.15 5,462.64 4,514.09
Depreciation 537.82 469.35 417.46 458.78 343.41
Profit Before Tax 8,700.43 6,370.38 5,139.69 5,003.86 4,170.68
PBT (Post Extra-ord Items) 8,700.43 6,356.40 5,036.58 4,966.34 4,168.09
Tax 1,130.44 737.89 340.37 457.58 410.8
Reported Net Profit 7,569.99 5,618.51 4,696.21 4,508.76 3,757.29
Total Value Addition 20,484.97 16,352.15 16,329.15 13,462.26 10,613.68
Equity Dividend 2,740.10 3,914.43 1,370.05 1,370.05 1,125.39
Corporate Dividend Tax 450.82 657.51 234.02 232.85 169.48
Per share data (annualised)
Earning Per Share (Rs) 38.62 28.62 47.92 46.07 38.39
Equity Dividend (%) 1,400.00 2,000.00 1,400.00 1,400.00 1,150.00
•Increase in the Top Line By
21.28 % (2010-11)
• Increase in PBDIT By 35.01 %
(2010-11)
• Increase in the Bottom Line by
Rs 1951.48 cr, mainly due to
reduction in Raw Materials Cost
and Increased Revenues
•The EPS stands at Rs 38.62
against Rs 28.62 YOY
Rs Crore

11. Revenue Analysis
• Major Reason is the
Growth in the
Volume (29.65 %)
• The growth in Biz
operations
overshadows the
Sluggish Pricing and
Exchange Rates
Setbacks.

13. Expenditure Analysis

14. Cash Flow Analysis
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Net Profit Before
Tax 8700.43 6370.38 5139.68 5003.86 4170.68
Net Cash From
Operating Activities 5741.28 6264.74 4874.12 3827.91 3551.26
Net Cash (used
in)/from Financing
Activities -4605.61 -1969.65 -1588.25 -1424.77 -1075.35
Net
(decrease)/increase
In Cash and Cash
Equivalents 283.9 -261.55 123.65 -29.62 385.97
Opening Cash &
Cash Equivalents 293.28 554.83 417 557.14 171.17
Closing Cash & Cash
Equivalents 577.18 293.28 540.65 527.52 557.14
•The main Cash Inflows comes from Cash
Generated From its Operations
•The low Outflows towards Repayment
towards Borrowings And Interest
Payments Shows Low Dependency On
Borrowings
•The High % of Dividends shows the
Commitment Towards Share Holders
Rs Crore

15. Segment Performance
•As seen the major
chunk of the Profits
are generated from
Banking and Finance
•Second Comes
Telecom with
20.55%
•And there is a Dip
in the Clients From
Manufacturing
Sector YOY

16. KEY RATIOS
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Operating Profit Margin(%) 29.96 28.93 26.87 27.11 28.79
Gross Profit Margin(%) 28.12 26.89 25.01 24.64 29.17
Net Profit Margin(%) 25.44 24.13 20.74 24.11 25
Return On Capital Employed(%) 44.38 42.46 43.27 42.92 49.87
Current Ratio 2.41 1.49 1.83 1.98 1.93
Debt Equity Ratio 0.01 0.01 0.01 0.01 0.01
Interest Cover 435.25 674.43 784.41 1,383.58 1,179.14
Financial Charges Coverage Ratio 462.13 723.63 840.52 1,517.73 1,279.26
Inventory Turnover Ratio 5,451.66 3,398.94 1,321.77 1,137.21 1,245.97
Debtors Turnover Ratio 7.19 6.54 6 5.66 5.83
Earning Retention Ratio 57.73 19.37 70.74 62.47 64.34
Earnings Per Share 38.62 28.62 47.92 46.07 38.39
• An increasing trend in
the Profit Margins
• High Current Ratio and
Low D/E Ratio shows a
Good Solvency Position
•High Interest Coverage
and Financial Coverage
shows Great
Management of Debt
•There is also good
Retention of Profit

17. HR - TRENDS
• There was an increase in
the employ base by
23.80% in 2010-11 YOY
• This Continuous Increase
Shows the expansion
plans of the company
• TCS also boasts a Global
Workforce.

18. Key Developments
• Made a $ 5 Bn Bid for 80% Stake in Lufthansa IT Systems
•Short Listed among The 2 Firms For the Rs 750 Cr of AAI
– 13/5/2011
•$1 Bn Contract From Telecommunication Consultancy Of
India
• High Cash Reserve of $2 bn as on 5/9/2011
•Bid worth Rs 1500-2000 cr Vodafone IT Contract – Likely
Winners

19. TCS CSR
• Two distinct tiers - impacting communities directly in line of
its business and concern for preservation of the
environment.
• Overseas, the company employees have been involved in
community work in libraries, fund raising for charity, assisting
the elderly, and blood donation camps.
• Faculty upgradation programmes, part time teaching by TCS
employees in university programmes and sponsorship of
research .
• mKrishi is an agro advisory system developed by TCS. It
connects farmers to their own eco-systems through specially
developed applications on mobile phones. The application can
support interactive and multimedia content to provide
farmers the required information.

20. ...Contd
HIV/AIDS sensitization, peer education, Green Audits to check the
excess consumption of energy resources have now been accepted
as best practices by the organization.
• In a partnership with Red Cross, TCS embarks on periodic blood-
donation drives towards the treatment of Thalassaemia.
• Computer Based functional Literacy (CBFL) : 40 hours computer
literacy programme using low-end machines. It’s listed in the India
segment of the UNESCO Meta-survey on the use of technologies in
education.
• Asian Corporate Social Responsibility Award (Asian CSR Award) in
the support and improvement in education category

21. SCRIP STUDY
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
18/Jul/11
20/Jul/11
22/Jul/11
24/Jul/11
26/Jul/11
28/Jul/11
30/Jul/11
01/Aug/11
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09/Aug/11
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27/Aug/11
29/Aug/11
31/Aug/11
02/Sep/11
04/Sep/11
06/Sep/11
08/Sep/11
10/Sep/11
12/Sep/11
Closing Prices
Closing Prices

22. Contd-
• Beta – 0.70
• P/E (TTM) - 21.82
• Industry P/E (TTM) – 31.17
• EPS (TTM) – 27.47
• YIELD % - 1.46
• P/C- 23.39
• Open Int Chg - (4.49 %)
• The Low Beta Makes this Scrip a
good bet in the Present Bearish
market.

23. Volume Outlook
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
25/Jul/11
27/Jul/11
29/Jul/11
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06/Aug/11
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26/Aug/11
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30/Aug/11
01/Sep/11
03/Sep/11
05/Sep/11
07/Sep/11
09/Sep/11
11/Sep/11
Volume
Volume
The Increase In the Volume Of the Scrip Shows The High Marketability Of
The Scrip.

30. Tech Mahindra
( BSE – 532755, NSE – TECHM, ISIN - INE669C01028)
Joint Venture Btw – Mahindra Group(44%) &BT Group Plc (39%)
Headquarters – Pune, India
30 Countries,
128 Consumer Engagements
• Current MP – Rs 647.90
• CEO – Vineet Nayyar
Open 641.85
Close 636.2
Day High 657
Day Low 631.2
Change 2.24%
52 W High 851
52 W Low 476.85
Volume 280656
47.78
23.32
14.55
3.96
1.5 8.43
Indian Prmoters
Forigen Prmoters
Banks & Financial
Inst. , Insurance
FII's
Others
General Public
As on 30/6/2011
Rs Cr
As on 16/9/2011

31. Balance Sheet-Analysis
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Sources Of Funds
Total Share Capital 126 122.3 121.7 121.4 121.22
Reserves 3,258.00 2,744.20 1,759.20 1,107.00 756.76
Networth 3,384.00 2,866.70 1,880.90 1,228.40 878.12
Secured Loans 1,183.70 1,517.70 0 0 10.01
Total Debt 1,806.40 2,134.90 0 95 52.65
Total Liabilities 5,190.40 5,001.60 1,880.90 1,323.40 930.77
Application Of Funds
Gross Block 1,248.50 1,112.80 896.2 550.5 442.75
Less: Accum. Depreciation 648.5 518.8 406.1 259.6 195.72
Net Block 600 594 490.1 290.9 247.03
Capital Work in Progress 110.3 320.8 154.1 138.5 54.65
Investments 3,114.90 3,113.90 453.5 298.6 283.21
Cash and Bank Balance 193.8 136.7 494.4 80 12.83
Total CA, Loans & Advances 2,244.70 1,807.80 1,654.10 1,488.00 984
Total CL & Provisions 879.5 834.9 870.9 892.6 638.11
Net Current Assets
1,365.20 972.9 783.2 595.4 345.89
Contingent Liabilities 341.4 335.5 138.7 169.5 136.38

32. P/L Analysis
• Increase In the Top Line
By 10.74 % (2010-11)
• Decrease in PBDIT by
9.35% (2010-11)
• Decline in EPS by Rs 5.
•Decline in Operating
Profit By 15.04%
• Major Reason For
Decline is a Surge in the
Missc Expenses
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Sales Turnover 4,965.50 4,483.80 4,357.80 3,604.70 2,753.22
Net Sales 4,965.50 4,483.80 4,357.80 3,604.70 2,753.22
Other Income 115.2 58.5 -61.7 -351.8 -519.76
Total Income 5,080.70 4,542.30 4,296.10 3,252.90 2,233.46
Employee Cost 1,943.80 1,598.70 1,419.70 1,222.40 840.41
Selling and Admin Expenses 0 434.6 503.4 633.7 430.85
Miscellaneous Expenses 2,092.70 181 218.3 179.7 186.39
Total Expenses 4,036.50 3,390.30 3,107.50 2,765.30 2,032.34
Operating Profit 929 1,093.50 1,250.30 839.4 720.88
PBDIT 1,044.20 1,152.00 1,188.60 487.6 201.12
Interest 99.9 171.8 2.5 28.3 28.09
PBDT 944.3 980.2 1,186.10 459.3 173.03
Depreciation 138.3 129.9 107.4 73.6 46.28
Profit Before Tax 806 850.3 1,078.70 385.7 126.75
PBT (Post Extra-ord Items) 806 874.2 1,090.50 411.1 160.7
Tax 109.3 131.4 103.9 68.9 61.51
Reported Net Profit 696.7 742.8 986.6 325.7 65.23
Total Value Addition 4,036.50 3,390.30 3,107.50 2,765.30 2,032.34
Equity Dividend 51 42.8 48.8 66.8 26.62
Corporate Dividend Tax 8.3 7.3 8.3 11.3 3.73
Shares in issue (lakhs) 1,259.55 1,223.20 1,217.34 1,213.63 1,212.17
Earning Per Share (Rs) 55.31 60.73 81.05 26.84 5.38
Equity Dividend (%) 40 35 40 55 23
Earnings Per Share 55.31 60.73 81.05 26.84 5.38
Rs Cr

34. Revenue Analysis
• The high exposure in
Europe is a Cause of
Concern
• The Revenue from the
ROW is up to 19.6%
from 10.3% YOY
• Revenue to gain from
Dollar Valuation

35. 87%
5.10%
6.30% 1.60%
2011
TSP
TMP
BSG(BPO)
Others
85.90%
5.70%
5.80% 2.80%
2010
TSP
TMP
BSG(BPO)
Others
Revenue By Segment

36. Expenditure Analysis

37. Key Ratios
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Operating Profit Margin(%) 18.7 24.38 28.69 23.28 26.18
Gross Profit Margin(%) 15.92 21.49 26.22 21.24 26.33
Net Profit Margin(%) 13.71 16.43 22.54 9.01 2.35
Return on Assets Including
Revaluations 268.67 234.34 154.51 101.22 72.43
Current Ratio 2.55 1.5 1.9 1.51 1.4
Debt Equity Ratio 0.53 0.74 -- 0.08 0.06
Interest Cover 9.07 6.44 464.68 77.58 99.66
Financial Charges Coverage
Ratio 10.45 6.57 507.64 30.01 26.19
Inventory Turnover Ratio 8,275.83 3,202.71 3,352.15 -- --
Debtors Turnover Ratio 4.59 4.85 4.56 3.9 4.57
Cash Flow Indicator Ratios 84.75 114.33 98.19 71.12 99.28
Earning Retention Ratio
7.1 5.74 5.21 19.55 27.21
Earnings Per Share 55.31 60.73 81.05 26.84 5.38
• There is a clear decline In
the Profit Margins Of the
Company
•The high Current Ratio and
low D/E Ratios show good
Solvencies
•Interest Coverage at 9.07
gives Optimistic Signal .
•High Retention Ratio shows
helps future growth

38. Cash Flow Analysis
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Net Profit Before
Tax 806 874.2 1090.5 834.7 651.68
Net Cash From
Operating Activities 470.7 1412.5 1200.3 209.7 3.24
Net Cash (used
in)/from
-131.8 -2571 -620.4 -198.3 -142.36Investing Activities
Net Cash (used
in)/from Financing
Activities -286.7 803.8 -164.5 35.6 122.71
Net
(decrease)/increase
In Cash and Cash
Equivalents 52.2 -354.7 415.4 47 -16.42
Opening Cash &
Cash Equivalents 139.6 494.3 76.5 29.5 49.65
Closing Cash &
Cash Equivalents 191.8 139.6 3.5 76.5 33.23
•The fall of 66.71% in Cash Flows
From operating Activities Shows
the firm has taken a hit in its
operations
•There is a Halt in the loses from
Investing Activities shows that the
Stop Gap measures have
marginally worked
• The Firms Road to recovery has
been hit by a whopping fall in
cash From Financing Activates.
Rs Crore

39. H-R Analysis
• There is an increase in the
headcount of 14.3 % YOY
• The IT attrition Rate for
the last quarter has been
25%
• The continued Hiring
Despite the Global
Economic Slow Down
shows the positive future.

40. Key Developments
• Tech Mahindra Q1 Profit inc 2 times 2.7% vs 1.4%
• Tech Mahindra Bags $ 250 Million Deal from VHA
( Vodafone Hutchison Australia )
• Bagged Deal with Vodafone Qatar for Industry
Solutions.
• Q4 (2010-11) LOSS on grounds of one time
expense of loss in law suit filed in USA

41. UPDATE ON SATYAM
• Reported a Net Loss of Rs 127.60 Cr in 2010-11 up
79.1% YOY.
• The successful execution of 2010 FIFA World Cup gives
optimistic signal’s.
• Bagged FIFA 2014-2022 W.C Logistics contract helping
there Image.
• Mahindra Satyam has un accounted Tax Dues of
around Rs 2,114 Cr.

42. INR – EURO Recent Exchange Rate

43. Tech Mahindra CSR
 Mahindra Education Foundation:
• setting up of an employability portal which will help towards
personal development and training of persons with disability; the
software will be developed by employees of your Company;
• TMF has also partnered with many vocational training institutes to
give loans and scholarships which would help economically
challenged but deserving students to pursue their education
• works with 50 NGOs enabling it to reach out to many more
children, with special attention to the educational needs of such
vulnerable sections as girls from economically disadvantaged
minority families.

44. ...Contd
 Innovative use of technology to reach out to the needs of the
physically, particularly visually challenged.
 Campus at Hinjewadi
• Renewable energy using Wind & Solar for generating electricity for the
utility block.
• Rainwater Harvesting & Sewage Treatment Plant.
• Eco-friendly e-waste disposal systems.
 TM’s Sustainability report to GRI was assured by Ernst & Young and
conforms to the highest level for reporting ‘Sustainability’
performance, which is A+.

45. Scrip Study
0
100
200
300
400
500
600
700
800
900
25/Jul/11
27/Jul/11
29/Jul/11
31/Jul/11
02/Aug/11
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06/Aug/11
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07/Sep/11
09/Sep/11
11/Sep/11
13/Sep/11
15/Sep/11
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19/Sep/11
Tech Mahindra
Tech Mahindra

46. Scrip Study
• Beta – 1.32
• Industry Beta – 0.84
• P/E (TTM) – 7.19
• INDUSTRY P/E (TTM) – 30.93
• YIELD – 0.61
• INDUSTRY YIELD – 1.57
• EPS (TTM) – 63.37
• OPEN INT. CHANGE – 0.84

47. Volume Outlook
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
25/Jul/11
27/Jul/11
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Volume

54. THANK YOU