InCred Equities - Tata Consultancy Services

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	2,408,930	2,596,109	2,831,213	3,111,056
Operating EBITDA (Rsm)	642,960	705,805	784,246	864,874
Net Profit (Rsm)	468,660	513,137	571,676	631,703
Core EPS (Rs)	128.5	141.8	158.0	174.6
Core EPS Growth	11.6%	10.4%	11.4%	10.5%
FD Core P/E (x)	31.43	28.48	25.56	23.13
DPS (Rs)	73.0	120.0	134.3	148.4
Dividend Yield	1.80%	2.97%	3.33%	3.67%
EV/EBITDA (x)	22.33	20.05	17.95	16.18
P/FCFE (x)	34.69	30.39	27.79	25.25
Net Gearing	(41.9%)	(47.1%)	(50.7%)	(53.9%)
P/BV (x)	16.28	14.85	13.66	12.55
ROE	51.8%	54.3%	55.7%	56.6%
% 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	2,596,109	2,831,213	3,111,056
Gross Profit	1,022,830	1,106,252	1,214,591	1,337,754
Operating EBITDA	642,960	705,805	784,246	864,874
Depreciation And Amortisation	(49,850)	(50,615)	(53,793)	(58,177)
Operating EBIT	593,110	655,191	730,453	806,697
Financial Income/(Expense)	36,440	36,190	39,404	43,630
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	629,550	691,380	769,857	850,327
Exceptional Items
Pre-tax Profit	629,550	691,380	769,857	850,327
Taxation	(158,980)	(175,644)	(195,581)	(216,024)
Exceptional Income - post-tax
Profit After Tax	470,570	515,737	574,276	634,303
Minority Interests	(1,910)	(2,600)	(2,600)	(2,600)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	468,660	513,137	571,676	631,703
Recurring Net Profit	468,660	513,137	571,676	631,703
Fully Diluted Recurring Net Profit	468,660	513,137	571,676	631,703

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	642,960	705,805	784,246	864,874
Cash Flow from Invt. & Assoc.
Change In Working Capital	(68,820)	(22,777)	(38,247)	(45,525)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(1,910)	(2,600)	(2,600)	(2,600)
Other Operating Cashflow
Net Interest (Paid)/Received
Tax Paid	(124,890)	(175,644)	(195,581)	(216,024)
Cashflow From Operations	447,340	504,785	547,819	600,725
Capex	(22,020)	(22,020)	(22,020)	(22,020)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	82,280	43,110	46,324	50,550
Cash Flow From Investing	60,260	21,090	24,304	28,530
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased	(210,050)
Dividends Paid	(251,370)	(434,123)	(485,925)	(536,948)
Preferred Dividends
Other Financing Cashflow	(23,940)	(6,920)	(6,920)	(6,920)
Cash Flow From Financing	(485,360)	(441,043)	(492,845)	(543,868)
Total Cash Generated	22,240	84,832	79,278	85,387
Free Cashflow To Equity	425,320	482,765	525,799	578,705
Free Cashflow To Firm	507,600	525,874	572,122	629,255

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	447,670	532,502	611,779	697,166
Total Debtors	535,770	567,968	619,403	680,626
Inventories	280	280	280	280
Total Other Current Assets	146,120	146,120	146,120	146,120
Total Current Assets	1,129,840	1,246,869	1,377,582	1,524,193
Fixed Assets	188,260	159,665	127,892	91,736
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	306,055	274,282	238,126
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	99,810	106,689	116,351	127,852
Other Current Liabilities	361,230	363,772	367,298	371,496
Total Current Liabilities	461,040	470,461	483,649	499,347
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	560,721	573,909	589,607
Shareholders Equity	904,890	983,892	1,069,643	1,164,399
Minority Interests	8,300	8,300	8,300	8,300
Total Equity	913,190	992,192	1,077,943	1,172,699

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	6.8%	7.8%	9.1%	9.9%
Operating EBITDA Growth	8.5%	9.8%	11.1%	10.3%
Operating EBITDA Margin	26.7%	27.2%	27.7%	27.8%
Net Cash Per Share (Rs)	104.89	129.18	151.10	174.70
BVPS (Rs)	248.14	271.97	295.67	321.86
Gross Interest Cover	76.24	94.68	105.56	116.57
Effective Tax Rate	25.3%	25.4%	25.4%	25.4%
Net Dividend Payout Ratio	56.7%	84.6%	85.0%	85.0%
Accounts Receivables Days	78.43	77.59	76.54	76.26
Inventory Days	0.07	0.07	0.06	0.06
Accounts Payables Days	26.99	25.30	25.18	25.13
ROIC (%)	90.1%	94.2%	106.2%	115.8%
ROCE (%)	45.4%	48.0%	49.5%	50.5%
Return On Average Assets	30.6%	32.4%	34.0%	35.3%

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

(91) 02241611554 smit.gosrani@incredresearch.com

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Market Data

Source: Bloomberg