InCred Equities - Tata Consultancy Services

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	2,553,240	2,605,676	2,785,889	2,988,730
Operating EBITDA (Rsm)	674,070	701,003	760,548	815,923
Net Profit (Rsm)	485,521	511,391	557,910	599,918
Core EPS (Rs)	134.2	141.4	154.2	165.8
Core EPS Growth	4.4%	5.3%	9.1%	7.5%
FD Core P/E (x)	23.35	22.17	20.32	18.90
DPS (Rs)	128.0	109.8	138.8	149.2
Dividend Yield	4.21%	3.50%	4.43%	4.76%
EV/EBITDA (x)	16.26	15.45	14.17	13.14
P/FCFE (x)	24.75	22.92	22.18	20.66
Net Gearing	(40.0%)	(48.4%)	(50.7%)	(52.9%)
P/BV (x)	11.96	10.68	10.14	9.63
ROE	52.4%	50.9%	51.2%	52.3%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Net Revenues	2,553,240	2,605,676	2,785,889	2,988,730
Gross Profit	1,045,720	1,079,952	1,156,144	1,240,323
Operating EBITDA	674,070	701,003	760,548	815,923
Depreciation And Amortisation	(52,420)	(52,050)	(54,325)	(58,280)
Operating EBIT	621,650	648,952	706,223	757,643
Financial Income/(Expense)	31,660	38,370	43,335	48,114
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	653,310	687,322	749,558	805,757
Exceptional Items
Pre-tax Profit	653,310	687,322	749,558	805,757
Taxation	(165,349)	(173,571)	(189,287)	(203,479)
Exceptional Income - post-tax
Profit After Tax	487,961	513,751	560,270	602,278
Minority Interests	(2,440)	(2,360)	(2,360)	(2,360)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	485,521	511,391	557,910	599,918
Recurring Net Profit	485,521	511,391	557,910	599,918
Fully Diluted Recurring Net Profit	485,521	511,391	557,910	599,918

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	674,070	701,003	760,548	815,923
Cash Flow from Invt. & Assoc.
Change In Working Capital	(33,590)	(1,205)	(28,515)	(32,095)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	4,460	(2,360)	(2,360)	(2,360)
Other Operating Cashflow
Net Interest (Paid)/Received
Tax Paid	(155,860)	(173,571)	(189,287)	(203,479)
Cashflow From Operations	489,080	523,867	540,386	577,989
Capex	(29,170)	(29,170)	(29,170)	(29,170)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	5,990	46,170	51,135	55,914
Cash Flow From Investing	(23,180)	17,000	21,965	26,744
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(448,640)	(397,317)	(502,119)	(539,926)
Preferred Dividends
Other Financing Cashflow	(25,740)	(7,800)	(7,800)	(7,800)
Cash Flow From Financing	(474,380)	(405,117)	(509,919)	(547,726)
Total Cash Generated	(8,480)	135,750	52,431	57,007
Free Cashflow To Equity	459,910	494,697	511,216	548,819
Free Cashflow To Firm	465,900	540,867	562,350	604,733

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	461,520	597,270	649,701	706,707
Total Debtors	590,460	558,463	597,087	640,561
Inventories	210	210	210	210
Total Other Current Assets	177,920	177,920	177,920	177,920
Total Current Assets	1,230,110	1,333,862	1,424,917	1,525,398
Fixed Assets	217,990	195,110	169,955	140,844
Total Investments	31,600	31,600	31,600	31,600
Intangible Assets	28,000	28,000	28,000	28,000
Total Other Non-Current Assets	88,590	88,590	88,590	88,590
Total Non-current Assets	366,180	343,300	318,145	289,034
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	139,090	107,083	114,489	122,825
Other Current Liabilities	390,920	389,725	392,428	395,471
Total Current Liabilities	530,010	496,808	506,917	518,295
Total Long-term Debt
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	108,570	108,570	108,570	108,570
Total Non-current Liabilities	108,570	108,570	108,570	108,570
Total Provisions
Total Liabilities	638,580	605,378	615,487	626,865
Shareholders Equity	947,560	1,061,634	1,117,425	1,177,417
Minority Interests	10,150	10,150	10,150	10,150
Total Equity	957,710	1,071,784	1,127,575	1,187,567

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	6.0%	2.1%	6.9%	7.3%
Operating EBITDA Growth	4.8%	4.0%	8.5%	7.3%
Operating EBITDA Margin	26.4%	26.9%	27.3%	27.3%
Net Cash Per Share (Rs)	105.90	143.42	157.92	173.67
BVPS (Rs)	261.91	293.44	308.86	325.44
Gross Interest Cover	78.10	83.20	90.54	97.13
Effective Tax Rate	25.3%	25.3%	25.3%	25.3%
Net Dividend Payout Ratio	98.2%	77.7%	90.0%	90.0%
Accounts Receivables Days	80.50	80.47	75.70	75.57
Inventory Days	0.06	0.05	0.05	0.04
Accounts Payables Days	28.92	29.45	24.81	24.77
ROIC (%)	89.5%	84.6%	95.7%	102.1%
ROCE (%)	46.1%	44.4%	44.8%	45.8%
Return On Average Assets	30.3%	29.6%	30.9%	31.8%

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

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Source: Bloomberg