InCred Equities - Tata Consultancy Services

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	2,408,930	2,565,443	2,705,182	2,909,863
Operating EBITDA (Rsm)	642,960	684,943	746,630	808,942
Net Profit (Rsm)	468,660	495,763	542,827	591,538
Core EPS (Rs)	128.5	137.0	150.0	163.5
Core EPS Growth	11.6%	6.6%	9.5%	9.0%
FD Core P/E (x)	27.58	25.86	23.62	21.68
DPS (Rs)	73.0	128.0	135.0	147.1
Dividend Yield	2.06%	3.78%	3.81%	4.15%
EV/EBITDA (x)	19.52	18.11	16.53	15.16
P/FCFE (x)	30.43	27.20	24.77	22.84
Net Gearing	(41.9%)	(45.1%)	(49.3%)	(53.3%)
P/BV (x)	14.28	13.68	12.93	12.20
ROE	51.8%	53.8%	56.3%	57.9%
% 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	2,565,443	2,705,182	2,909,863
Gross Profit	1,022,830	1,056,503	1,136,176	1,222,142
Operating EBITDA	642,960	684,943	746,630	808,942
Depreciation And Amortisation	(49,850)	(51,441)	(52,751)	(55,287)
Operating EBIT	593,110	633,502	693,879	753,654
Financial Income/(Expense)	36,440	34,075	36,770	42,272
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	629,550	667,577	730,649	795,926
Exceptional Items
Pre-tax Profit	629,550	667,577	730,649	795,926
Taxation	(158,980)	(169,425)	(185,431)	(201,998)
Exceptional Income - post-tax
Profit After Tax	470,570	498,153	545,217	593,928
Minority Interests	(1,910)	(2,390)	(2,390)	(2,390)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	468,660	495,763	542,827	591,538
Recurring Net Profit	468,660	495,763	542,827	591,538
Fully Diluted Recurring Net Profit	468,660	495,763	542,827	591,538

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	642,960	684,943	746,630	808,942
Cash Flow from Invt. & Assoc.
Change In Working Capital	(68,820)	(17,788)	(19,027)	(21,059)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(1,910)	(2,390)	(2,390)	(2,390)
Other Operating Cashflow
Net Interest (Paid)/Received
Tax Paid	(124,890)	(169,425)	(185,431)	(201,998)
Cashflow From Operations	447,340	495,341	539,782	583,495
Capex	(22,020)	(22,020)	(22,020)	(22,020)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	82,280	42,105	46,130	51,632
Cash Flow From Investing	60,260	20,085	24,110	29,612
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased	(210,050)
Dividends Paid	(251,370)	(463,127)	(488,545)	(532,384)
Preferred Dividends
Other Financing Cashflow	(23,940)	(8,030)	(9,360)	(9,360)
Cash Flow From Financing	(485,360)	(471,157)	(497,905)	(541,744)
Total Cash Generated	22,240	44,269	65,987	71,362
Free Cashflow To Equity	425,320	473,321	517,762	561,475
Free Cashflow To Firm	507,600	515,426	563,891	613,106

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	447,670	491,939	557,926	629,288
Total Debtors	535,770	561,259	588,125	620,665
Inventories	280	280	280	280
Total Other Current Assets	146,120	146,120	146,120	146,120
Total Current Assets	1,129,840	1,199,598	1,292,450	1,396,353
Fixed Assets	188,260	158,839	128,108	94,840
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	305,229	274,498	241,230
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	99,810	105,429	111,172	119,583
Other Current Liabilities	361,230	363,312	365,408	368,478
Total Current Liabilities	461,040	468,741	476,580	488,061
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	559,001	566,840	578,321
Shareholders Equity	904,890	937,526	991,808	1,050,962
Minority Interests	8,300	8,300	8,300	8,300
Total Equity	913,190	945,826	1,000,108	1,059,262

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	6.8%	6.5%	5.4%	7.6%
Operating EBITDA Growth	8.5%	6.5%	9.0%	8.3%
Operating EBITDA Margin	26.7%	26.7%	27.6%	27.8%
Net Cash Per Share (Rs)	104.89	117.95	136.19	155.91
BVPS (Rs)	248.14	259.12	274.12	290.47
Gross Interest Cover	76.24	78.89	74.13	80.52
Effective Tax Rate	25.3%	25.4%	25.4%	25.4%
Net Dividend Payout Ratio	56.7%	97.8%	90.0%	90.0%
Accounts Receivables Days	78.43	78.04	77.54	75.81
Inventory Days	0.07	0.07	0.07	0.06
Accounts Payables Days	26.99	24.82	25.19	24.95
ROIC (%)	90.1%	91.1%	102.1%	113.5%
ROCE (%)	45.4%	47.5%	49.9%	51.4%
Return On Average Assets	30.6%	31.8%	33.7%	35.1%

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

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

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Market Data

Source: Bloomberg