InCred Equities - Tata Consultancy Services

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	2,408,930	2,553,240	2,636,581	2,818,240
Operating EBITDA (Rsm)	642,960	674,060	709,240	769,380
Net Profit (Rsm)	468,660	485,521	513,637	560,760
Core EPS (Rs)	128.5	134.2	142.0	155.0
Core EPS Growth	11.6%	4.4%	5.8%	9.2%
FD Core P/E (x)	26.33	25.22	23.84	21.83
DPS (Rs)	73.0	128.0	127.8	139.5
Dividend Yield	2.15%	3.90%	3.78%	4.12%
EV/EBITDA (x)	18.61	17.55	16.58	15.19
P/FCFE (x)	29.06	26.24	24.49	22.83
Net Gearing	(41.9%)	(44.4%)	(49.3%)	(53.4%)
P/BV (x)	13.64	13.06	12.38	11.72
ROE	51.8%	52.7%	53.3%	55.1%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	2,408,930	2,553,240	2,636,581	2,818,240
Gross Profit	1,022,830	1,045,710	1,094,181	1,169,570
Operating EBITDA	642,960	674,060	709,240	769,380
Depreciation And Amortisation	(49,850)	(52,410)	(52,732)	(54,956)
Operating EBIT	593,110	621,650	656,509	714,424
Financial Income/(Expense)	36,440	31,660	34,445	39,621
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	629,550	653,310	690,954	754,045
Exceptional Items
Pre-tax Profit	629,550	653,310	690,954	754,045
Taxation	(158,980)	(165,349)	(174,876)	(190,844)
Exceptional Income - post-tax
Profit After Tax	470,570	487,961	516,077	563,200
Minority Interests	(1,910)	(2,440)	(2,440)	(2,440)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	468,660	485,521	513,637	560,760
Recurring Net Profit	468,660	485,521	513,637	560,760
Fully Diluted Recurring Net Profit	468,660	485,521	513,637	560,760

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	642,960	674,060	709,240	769,380
Cash Flow from Invt. & Assoc.
Change In Working Capital	(68,820)	(15,803)	(9,946)	(17,722)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(1,910)	(2,440)	(2,440)	(2,440)
Other Operating Cashflow
Net Interest (Paid)/Received
Tax Paid	(124,890)	(165,349)	(174,876)	(190,844)
Cashflow From Operations	447,340	490,468	521,978	558,373
Capex	(22,020)	(22,020)	(22,020)	(22,020)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	82,280	39,620	43,525	48,701
Cash Flow From Investing	60,260	17,600	21,505	26,681
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased	(210,050)
Dividends Paid	(251,370)	(463,089)	(462,273)	(504,684)
Preferred Dividends
Other Financing Cashflow	(23,940)	(7,960)	(9,080)	(9,080)
Cash Flow From Financing	(485,360)	(471,049)	(471,353)	(513,764)
Total Cash Generated	22,240	37,019	72,129	71,290
Free Cashflow To Equity	425,320	468,448	499,958	536,353
Free Cashflow To Firm	507,600	508,068	543,483	585,054

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	447,670	484,689	556,818	628,108
Total Debtors	535,770	558,589	573,210	601,122
Inventories	280	280	280	280
Total Other Current Assets	146,120	146,120	146,120	146,120
Total Current Assets	1,129,840	1,189,678	1,276,429	1,375,631
Fixed Assets	188,260	157,870	127,158	94,223
Total Investments	36,980	36,980	36,980	36,980
Intangible Assets	23,420	23,420	23,420	23,420
Total Other Non-Current Assets	85,990	85,990	85,990	85,990
Total Non-current Assets	334,650	304,260	273,548	240,613
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	99,810	104,928	108,353	115,818
Other Current Liabilities	361,230	363,129	364,379	367,104
Total Current Liabilities	461,040	468,056	472,731	482,922
Total Long-term Debt
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	90,260	90,260	90,260	90,260
Total Non-current Liabilities	90,260	90,260	90,260	90,260
Total Provisions
Total Liabilities	551,300	558,316	562,991	573,182
Shareholders Equity	904,890	937,526	988,889	1,044,965
Minority Interests	8,300	8,300	8,300	8,300
Total Equity	913,190	945,826	997,189	1,053,265

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	6.8%	6.0%	3.3%	6.9%
Operating EBITDA Growth	8.5%	4.8%	5.2%	8.5%
Operating EBITDA Margin	26.7%	26.4%	26.9%	27.3%
Net Cash Per Share (Rs)	104.89	115.96	135.90	155.60
BVPS (Rs)	248.14	259.14	273.33	288.83
Gross Interest Cover	76.24	78.10	72.30	78.68
Effective Tax Rate	25.3%	25.3%	25.3%	25.3%
Net Dividend Payout Ratio	56.7%	98.2%	90.0%	90.0%
Accounts Receivables Days	78.43	78.22	78.34	76.05
Inventory Days	0.07	0.07	0.07	0.06
Accounts Payables Days	26.99	24.79	25.24	24.81
ROIC (%)	90.1%	89.5%	97.3%	110.4%
ROCE (%)	45.4%	46.7%	47.3%	48.9%
Return On Average Assets	30.6%	31.4%	32.2%	33.7%

(91) 22 4161 1543 abhishek.shindadkr@incredresearch.com

(91) 22 4161 1544 vikas.swami@incredresearch.com

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Market Data

Source: Bloomberg