Company Overview:

Tata Consultancy Services [TCS] is an IT Services & IT Consulting Company Founded in 1968 by the Founder J.R.D Tata and the company quarters situated in Mumbai and TCS had 183 offices across 43 countries and 117 delivery centers across Twenty One countries. At the same date TCS had a total of Fifty Eight subsidiary companies. The Key Persons were Mr. Cyrus Mistry, Chairman and Mr. N. Chandra sekaran, C.E.O & Managing Director.

Company Revenue Back-Ground:

Tata Consultancy Services has for the first time crossed the USD 3 billion mark in its quarterly revenues and the growth has been pretty extensive based.

Tata Consultancy Services has position decent numbers for the quarter ending by March 2013. The Revenues from operations on consolidated basis increased by around 24% at Rs.16431 crores vs Rs.13259.33 crores YoY. A huge chunk of growth is driven by Sale of tackle and software licenses which grew sharply by 61% at Rs.580 cr from Rs.361 cr YoY. Tcs has spectator strong volume growth of 4.4% q-o-q. Operating profit jumped 17.66% at about Rs.4618 crores as against Rs.4661 crores in the like period last year. Tata Consultancy Services has reported 25% rise in its net profit at Rs.3616 crore for the quarter as compared to Rs. 2895 crore for the same quarter in the previous year. EPS stood at Rs.18.47. On the margin front; in service profit margin has dipped by 150 bps at 28.10% from 29.60% YoY due to two headwinds. One is the one-time-settlement costing Rs.1.61 billion and the other is currency headwind which is roughly about Rs.1 billion.

On the geographical revenues front; TCS has delivered strong growth in India as well as in US. India grew sharply at 17.2% and North America revenues rose 1.4% and Latin America by 9.1% qo- q. Continental Europe too has been standing out at 2.5% Deal wins has been very good during this quarter. It has win 11 deals across the geographies and industry segments and added 52 new customers.

Company Valuation:

By way of healthy deal pipeline, increasing discretionary spends management positive outlook, low attrition, stable pricing environment and strong growth in all business verticals across geographies; Tata Consultancy Services growth prospects looks promising. We suppose TCS Ltd. is trading at an attractive valuation at 17.65x and 15.86x of FY14EPS of Rs.80.37 and FY15EPS of Rs.89.43. We Bet to Grab Share Near Rs. 1425 for Target of Rs. 1700 in Time Period of 6-9 Months.