4QFY2012 Result Update | IT

April 23, 2012

Tata Consultancy Services (TCS)

Performance highlights
(` cr) Net revenue EBITDA EBITDA margin (%) PAT 4QFY12 13,259 3,912 29.5 2,932 3QFY12 13,204 4,092 31.0 2,887 % chg (qoq) 0.4 (4.4) (149)bp 1.6 4QFY11 10,158 3,089 30.4 2,381 % chg (yoy) 30.5 26.7 (90)bp 23.2

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code IT 207,316 0.9 1,279/903 202,784 1 17,097 5,201 TCS.BO TCS@IN

`1,059 `1,276
12 months

Source: Company, Angel Research

For 4QFY2012, TCS reported a modest set of numbers, in-line with streets expectations on the revenue and operating fronts. Management sounded confident of growing higher than the industry and expects FY2013 to be a normal year (as against Infosys, the guidance numbers of which indicated growth to be higher in 2HFY2012). Also, management indicated that revenue from BFSI will pick up from 1QFY2013 and signed three of the six large deals in the BFSI industry during the quarter. TCS continues to remain our preferred pick along with HCL Tech in the IT pack. We maintain our Buy rating on the stock. Quarterly highlights: For 4QFY2012, TCS posted revenue of US$2,648mn, up 2.4% qoq, on the back of volume growth of 3.2% qoq. However, the companys pricing declined by 1.9% qoq. In INR terms, revenue came in at `13,259cr, up 0.4% qoq. EBITDA and EBIT margin declined by 149bp qoq and 155bp qoq to 29.5% and 27.7%, respectively, due to increased SG&A expenses and INR appreciation against USD, which overshadowed the positive impact due to higher productivity. PAT for the quarter came in at `2,932cr, aided by other income of `108cr vs. `92cr loss in 3QFY2012. Outlook and valuation: Management indicated that it will hire 50,000 gross employees in FY2013 and has already extended offers to 43,600 campus graduates, which is a healthy number and gives confidence about the demand environment being witnessed by the company. TCS bagged six large deals in 4QFY2012. Management sounded confident of surpassing Nasscoms industry growth guidance of 11-14% yoy for FY2013. Over FY2012-14E, we expect TCSs revenue to post a 15.4% (USD terms) and 16.5% (INR terms) CAGR. The company has announced wage hike of 6-8% for offshore employees and 2-4% for onsite employees. On the EBITDA and PAT front, we expect the company to post 14.9% and 14.2% CAGR over FY2012-14E. At the CMP, the stock is trading at 14.9x FY2014E EPS. We value TCS at 18x FY2014E EPS of `70.9 with a target price of `1,276 and maintain our Buy rating on the stock. Key financials (Consolidated, IFRS)
Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2010* 30,028 8.0 6,873 32.9 28.9 35.1 30.2 9.9 32.8 28.8 6.6 22.9 FY2011 37,324 24.3 8,715 26.8 30.0 44.5 23.8 8.2 34.3 32.0 5.4 17.9 FY2012 48,891 31.0 10,636 22.0 29.5 54.3 19.5 6.4 32.7 32.8 4.0 13.7 FY2013E 57,189 17.0 12,359 16.2 29.3 63.1 16.8 5.1 30.5 31.0 3.4 11.5 FY2014E 66,329 16.0 13,871 12.2 28.7 70.9 14.9 4.1 27.7 28.8 2.8 9.9

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 74.0 7.2 14.0 4.8

Abs. (%) Sensex TCS

3m 2.1 (1.8)

1yr (12.8) (11.1)

3yr 53.5 273.0

Ankita Somani
+91 22 3935 7800 Ext: 6819 ankita.somani@angelbroking.com

Source: Company, Angel Research; Note: * In US GAAP

Please refer to important disclosures at the end of this report

TCS | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 performance (Consolidated, IFRS)

(` cr) Net revenue Cost of revenue Gross profit SG& A expenses EBITDA Dep. and amortisation EBIT Other income PBT Income tax PAT Earnings in affiliates Minority interest Adjusted PAT EPS (`) Gross margin (%) EBITDA margin (%) EBIT margin (%) PAT margin (%)
Source: Company, Angel Research

4QFY12 13,259 6,924 6,336 2,424 3,912 240 3,672 108 3,780 817 2,962 30 2,932 15.0 47.8 29.5 27.7 21.9

3QFY12 13,204 6,860 6,344 2,252 4,092 230 3,862 (92) 3,770 854 2,916 29 2,887 14.7 48.0 31.0 29.2 22.0

% chg (qoq) 0.4 0.9 (0.1) 7.7 (4.4) 4.1 (4.9) 0.3 (4.3) 1.6 1.4 1.6 1.6 (26)bp (149)bp (155)bp (8)bp

4QFY11 10,158 5,378 4,779 1,691 3,089 212 2,876 224 3,100 677 2,423 42 2,381 12.2 47.1 30.4 28.3 22.9

% chg (yoy) 30.5 28.7 32.6 43.3 26.7 13.0 27.7 21.9 20.7 22.3 (29.2) 23.2 23.2 73bp (90)bp (62)bp (100)bp

FY2012 48,891 25,877 23,014 8,599 14,415 904 13,511 404 13,915 3,169 10,747 111 10,636 54.3 47.1 29.5 27.6 21.6

FY2011 37,324 19,937 17,387 6,189 11,198 721 10,477 532 11,009 2,174 8,835 120 8,715 44.5 46.6 30.0 28.1 23.0

% chg (yoy) 31.0 29.8 32.4 38.9 28.7 25.3 29.0 26.4 45.8 21.6 (7.3) 22.0 22.0 49bp (52)bp (44)bp (145)bp

Exhibit 2: Actual vs. Angel estimates

(` cr) Net revenue EBITDA margin (%) PAT
Source: Company, Angel Research

Actual 13,259 29.5 2,932

Estimate 13,438 30.8 2,952

Var. (%) (1.3) (130)bp (0.7)

Growth ahead of peers

For 4QFY2012, TCS reported a modest performance, with USD revenue at US$2,648mn, up 2.4% qoq, on the back of volume growth of 3.26% qoq. USD revenue was negatively impacted by the 1.87% qoq and 0.97% qoq decline in price realization due to negative cross-currency movement. Going ahead, the company expects pricing to remain stable. In INR terms, revenue came in at `13,259cr, up merely 0.4% qoq, impacted by qoq INR appreciation against USD in 4QFY2012. TCS has closed six large deals in 4QFY2012. These deals span across industry segments as well as geographies.

April 23, 2012

TCS | 4QFY2012 Result Update

Exhibit 3: Trend in volume and revenue growth (qoq)

8 7.5 7.4 6 6.3

(%)

4.7 4 4.7 3.2 2.4 1QFY12 Volume growth 2QFY12 3QFY12

3.3 2.4 4QFY12

2.9 4QFY11

Revenue growth (USD terms)

Source: Company, Angel Research

Pricing decline and cross currency negative impact of 1.87% qoq and 0.97% qoq, respectively, partially offsetted the positive impact of volume growth of 3.26% qoq, which led to INR revenue growth of 0.42% qoq.

Exhibit 4: Revenue drivers for 4QFY2012

4 3.26

2 0.42
(%)

0 (0.97) (1.87)

(2)

(4)

Volume

CC realization

Pricing

Total revenue growth

Source: Company, Angel Research

April 23, 2012

TCS | 4QFY2012 Result Update

Exhibit 5: Revenue drivers for FY2012

35 28 21
(%)

31.0 23.1

29.7 24.3

14 7 0 (7) Volume

8.0 1.1 (1.2) FY2012 Forex movement (0.3) (4.2) Effort mix shift onsite FY2011 Total revenue growth (0.9)

Pricing

Source: Company, Angel Research

TCSs performance during the quarter was backed by healthy demand seen across industry segments such as retail and distribution, manufacturing and hi-tech, revenue of which grew by 4.1%, 3.7% and 4.1% qoq, respectively. Revenue of BFSI, TCSs anchor industry segment, remained almost flat qoq due to delays in ramp-ups of discretionary spending, but management expects this to pick up from 1QFY2013. The company signed three large deals in BFSI during 4QFY2012. Other segments such as telecom, media and entertainment and lifesciences and healthcare registered revenue growth of 2.4% qoq each. Revenue from telecom has started to pick up and management has indicated that it is witnessing transformation deals in the telecom industry, majorly in emerging economies, and expects revenue from this segment to pick up from now on.

Exhibit 6: Revenue growth (Industry wise)

% to revenue BFSI Manufacturing Telecom Lifesciences and healthcare Retail and distribution Travel and hospitality Energy and utilities Media and entertainment Hi-tech
Source: Company, Angel Research

% chg (qoq) (0.2) 3.7 2.4 2.4 4.1 (0.3) (5.1) 2.4 4.1

% chg (yoy) 13.2 24.3 7.3 18.0 31.7 11.9 (2.5) 12.9 31.1

42.2 7.9 10.0 5.3 12.5 3.7 3.8 2.2 6.0

Service line wise, BPO and asset leveraged solutions emerged as the primary growth drivers for the company by posting 9.0% qoq and 5.1% qoq growth in revenue, respectively. Revenue from application development and maintenance (ADM), engineering and industrial services and infrastructure services grew by 3.3%, 2.4% and 0.5% qoq, respectively.

April 23, 2012

TCS | 4QFY2012 Result Update

Exhibit 7: Revenue growth (Service wise)

% to revenue IT solutions and services ADM Business intelligence Enterprise solutions Assurance services Engg. and industrial services Infrastructure services Global consulting Asset-leveraged solutions BPO
Source: Company, Angel Research

% chg (qoq) 3.3 (2.3) (1.2) (1.6) 2.4 0.5 (1.3) 5.1 9.0

% chg (yoy) 13.6 1.1 20.2 23.0 13.1 34.8 51.7 27.8 17.0

44.4 4.2 11.0 7.3 4.6 10.4 2.7 3.9 11.5

Geography wise, growth was witnessed across all geographies, except Continental Europe. Revenue from developed economies such as U.S., Latin America and U.K. grew by 3.0%, 2.4% and 3.8% qoq, respectively. Emerging economies such as India and Asia Pacific posted 3.6% qoq and 3.7% qoq growth in revenue, respectively.

Exhibit 8: Revenue growth (Geography wise)

% of revenue U.S. Latin America U.K. Continental Europe India Asia Pacific MEA
Source: Company, Angel Research

% chg (qoq) 3.0 2.4 3.8 (4.4) 3.6 3.7 2.4

% chg (yoy) 18.4 14.3 15.7 16.8 14.0 26.2 23.9

53.6 3.1 15.2 9.8 8.5 7.7 2.1

Hiring spree continues

TCS has been on the hiring spree since 2HFY2010. In 4QFY2012, TCS added whopping 19,156 gross employees and 11,832 net employees, taking its total employee base to 238,583. During the quarter, attrition rate (LTM basis) declined to 12.2% (lowest in last eight quarters) from 12.8% in 3QFY2012. For FY2013, management has guided for gross hiring of 50,000 employees, which is encouraging. Further, the company has given offers to 43,600 campus graduates for FY2013 and expects 70% conversion ratio. These employees are expected to start joining from June 2012.

April 23, 2012

TCS | 4QFY2012 Result Update

Exhibit 9: Hiring and attrition trend

Particulars Gross addition Net addition Total employee base Attrition (%) - LTM basis
Source: Company, Angel Research

4QFY11 19,324 11,700 198,614 14.4

1QFY12 11,988 3,576 202,190 14.8

2QFY12 20,349 12,580 214,770 13.7

3QFY12 18,907 11,981 226,751 12.8

4QFY12 19,156 11,832 238,583 12.2

Exhibit 10: Trend in utilization

84 82 80
(%)

82.4

83.2

83.1

82.0 80.6

78 76 74 72 70 4QFY11 1QFY12 Including trainees 2QFY12 3QFY12 Excluding trainees 4QFY12 76.2 75.1 76.4 74.0 71.3

Source: Company, Angel Research

For 4QFY2012, utilization level including and excluding trainees declined by 270bp and 140bp qoq to 71.3% and 80.6%, respectively, due to strong hiring done in 2HFY2012. Improvement in utilization level from here on is an important margin lever for TCS now as utilization level (including trainees) is off ~550bp from its peak level.

Margins decline
TCSs EBITDA and EBIT margin declined by 149bp qoq and 155bp qoq to 29.5% and 27.7%, respectively, due to increased SG&A expenses and INR appreciation against USD, which overshadowed the positive impact due to higher productivity.

April 23, 2012

TCS | 4QFY2012 Result Update

Exhibit 11: Margin profile

32 31 30 29
(%)

30.4 29.1 28.1 28.3 27.1 26.2

31.0 29.5 29.2 27.7

28 27 26 25 24

4QFY11

1QFY12
EBITDA margin

2QFY12

3QFY12
EBIT margin

4QFY12

Source: Company, Angel Research

EBIT margin witnessed a 120bp and 71bp qoq negative impact due to increased SG&A expenses and INR appreciation, respectively. These negative impacts offsetted the positive gains of 36bp qoq on account of increased productivity. All in all, the companys EBIT margin declined by 155bp qoq during the quarter.

Exhibit 12: Factors affecting EBIT margin of 4QFY2012

75 36

(bp)

(75)

(71) (120) (155)

(150)

(225)

Rupee dep/(app)

Productivity

SG&A increase

Total impact

Source: Company, Angel Research

April 23, 2012

TCS | 4QFY2012 Result Update

Exhibit 13: Factors affecting EBIT margin of FY2012

300 200 100 218 133 58 39 252 134

(BP)

0 (100) (200) (300) (400) FY2012 (289) Rupee dep/(app) Effort shift offshore Pricing and productivity SG&A efficiency Higher wage Total impact (106) (215) (44) FY2011

Source: Company, Angel Research

Client pyramid enhances

Client pyramid during the quarter witnessed qualitative improvement, with client additions on the higher side of the revenue brackets. TCS added four clients in the US$50mn-100mn bracket and five in the US$10mn-20mn bracket. Also, one client was added in the US$5mn-10mn bracket. In total, 10 clients were added to the US$1mn+ brackets, which is a noteworthy improvement. Overall, client addition stood robust at 42 in 4QFY2012.

Exhibit 14: Client pyramid

4QFY11 US$1mn5mn US$5mn10mn US$10mn20mn US$20mn50mn US$50mn100mn US$100mn plus Number of active clients Clients added
Source: Company, Angel Research

1QFY12 254 71 57 58 23 10 959 24

2QFY12 265 75 61 58 24 12 1,010 35

3QFY12 277 74 66 56 25 14 1,003 40

4QFY12 277 75 71 56 29 14 1,037 42

250 65 62 54 19 8 969 39

Outlook and valuation

Management indicated that it will hire 50,000 gross employees in FY2013 and has already extended offers to 43,600 campus graduates, which is a healthy number and gives confidence about the demand environment being witnessed by the company. TCS witnessed an all-time high gross addition of 70,400 employees in FY2012 (initial guidance was 60,000), taking its total employee base to 238,583 employees. Even with aggressive hiring plans, management targets to maintain its utilization levels excluding trainees at 82-84% in FY2013. The company bagged six large deals in 4QFY2012. The companys revenue from BFSI was largely flat qoq due to delays in ramp-up in discretionary projects; but going ahead, management indicated that revenue from the BFSI industry will pick up.

April 23, 2012

TCS | 4QFY2012 Result Update

Management sounded confident of surpassing Nasscoms industry growth guidance of 11-14% yoy for FY2013. Thus, growth momentum for the company is expected to remain intact. Accordingly, over FY2012-14E, we expect TCSs revenue to post a 15.4% (USD terms) and 16.5% (INR terms) CAGR. The company has announced wage hike of 6-8% for offshore employees and 2-4% for onsite employees, which will be a major headwind for the companys operating margin in FY2013, but management indicated that EBIT margin would remain flat yoy in FY2013. On account of tailwinds such as 1) healthy USD revenue growth, 2) headroom to scale up utilization levels and 3) SG&A expense optimization, we expect the company to absorb the impact of wage hikes gradually. We expect EBIT margin to be at 27.4% for FY2013 from 27.6% in FY2012. On the EBITDA and PAT front, we expect the company to post 14.9% and 14.2% CAGR over FY2012-14E, respectively. At the CMP, the stock is trading at 14.9x FY2014E EPS. We value TCS at 18x FY2014E EPS of `70.9 with a target price of `1,276 and maintain our Buy rating on the stock.

Exhibit 15: Key assumptions

FY2013 Revenue growth (USD) USD-INR rate (realized) Revenue growth (`) EBITDA margin (%) Tax rate (%) EPS growth (%)
Source: Company, Angel Research

FY2012 16.0 49.0 16.0 28.7 27.0 12.2

14.8 49.0 17.0 29.3 26.0 16.2

Exhibit 16: Change in estimates

FY2013E Parameter (` cr) Net revenue EBITDA Other income PBT Tax PAT Earlier estimates 57,294 16,895 993 16,742 4,353 12,241 Revised estimates 57,189 16,758 1,232 16,904 4,395 12,359 Variation (%) (0.2) (0.8) 24.1 1.0 1.0 1.0 Earlier estimates 66,696 19,260 1,267 19,193 5,374 13,653 FY2014E Revised estimates 66,329 19,045 1,447 19,232 5,193 13,871 Variation (%) (0.6) (1.1) 14.2 0.2 (3.4) 1.6

Source: Company, Angel Research

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TCS | 4QFY2012 Result Update

Exhibit 17: One-year forward PE chart

2,100 1,800 1,500
(` )

1,200 900 600 300 0

Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12

Price

25x

21x

16x

11x

6x

Source: Company, Angel Research

Exhibit 18: Recommendation summary

Company HCL Tech Hexaware Infosys Infotech Enterprises KPIT Cummins Mahindra Satyam Mindtree Mphasis NIIT Persistent TCS Tech Mahindra Wipro Reco Accumulate Neutral Buy Accumulate Buy Buy Accumulate Buy Buy Accumulate Buy Accumulate Accumulate CMP (`) 495 125 2,312 160 82 76 545 372 46 335 1,059 696 424 Tgt. price (`) 560 2,792 177 98 89 585 433 61 361 1,276 750 463 Upside (%) 13.1 20.8 10.9 18.9 16.7 7.4 16.3 34.1 7.6 20.5 7.7 9.3 FY2014E EBITDA (%) 17.4 18.3 30.6 16.6 14.9 15.0 15.5 17.9 16.9 22.4 28.7 15.7 19.3 FY2014E P/E (x) 11.5 12.1 13.2 8.6 7.6 9.2 9.3 9.0 5.0 8.4 14.9 8.0 14.0 FY2011-14E EPS CAGR (%) 17.0 53.4 13.4 13.9 (1.4) 25.3 32.9 1.7 18.0 4.7 16.8 20.8 11.8 FY2014E RoCE (%) 20.4 24.1 22.8 16.9 20.0 11.4 19.8 14.1 11.5 17.0 28.8 12.9 14.1 FY2014E RoE (%) 21.3 21.6 20.8 13.2 18.0 13.0 17.0 13.7 19.0 14.5 27.7 18.0 19.3

Source: Company, Angel Research

April 23, 2012

10

TCS | 4QFY2012 Result Update

Profit & Loss statement (Consolidated, IFRS)

Y/E March (` cr) Net sales Cost of revenues Gross profit % of net sales SGA expenses % of net sales EBITDA % of net sales Dep. and amortization % of net sales EBIT % of net sales Other income, net Profit before tax Provision for tax % of PBT PAT Earnings in affiliates Minority interest Adj. PAT Fully diluted EPS (`) FY2010* 30,028 15,724 14,303 47.6 5,625 18.7 8,679 28.9 721 2.4 7,958 26.5 226 8,184 1,209 14.8 6,975 (0) 102 6,873 35.1 FY2011 37,324 19,937 17,387 46.6 6,189 16.6 11,198 30.0 721 1.9 10,477 28.1 532 11,009 2,174 19.7 8,835 120 8,715 44.5 FY2012 48,891 25,877 23,014 47.1 8,599 17.6 14,415 29.5 904 1.8 13,511 27.6 404 13,915 3,169 22.8 10,747 111 10,636 54.3 FY2013E 57,189 31,083 26,106 45.6 9,348 16.3 16,758 29.3 1087 1.9 15,672 27.4 1232 16,904 4,395 26.0 12,509 150 12,359 63.1 FY2014E 66,329 36,876 29,453 44.4 10,409 15.7 19,045 28.7 1260 1.9 17,784 26.8 1447 19,232 5,193 27.0 14,039 168 13,871 70.9

Note:* in US GAAP

April 23, 2012

11

TCS | 4QFY2012 Result Update

Balance sheet (Consolidated, IFRS)

Y/E March (` cr) Assets Cash and cash equivalents Other current financial assets Accounts receivable Unbilled revenues Other current assets Property and equipment Intangible assets and goodwill Investments Other non-current assets Total assets Liabilities Current liabilities Short term borrowings Redeemable preference shares Long term debt Other non-current liabilities Minority interest Shareholders funds Total liabilities 5,289 231 100 11 673 377 20,940 27,621 5,834 33 100 6 1,097 315 25,404 32,788 6,806 11 100 115 1,115 528 32,523 41,199 8,090 11 100 115 1,235 528 40,531 50,611 9,598 11 100 115 1,313 528 50,051 61,717 1,025 3,653 5,810 1,201 2,127 4,171 3,242 3,784 2,610 27,621 1,554 3,934 8,201 1,349 1,449 5,200 3,379 1,839 2,575 32,788 1,984 6,509 11,499 2,248 6,455 3,493 1,478 41,199 2,499 9,530 13,475 2,820 7,873 3,380 2,000 50,611 3,338 13,945 15,628 3,271 9,137 3,380 2,300 61,717 FY2010* FY2011 FY2012 FY2013E FY2014E

Note:* in US GAAP

April 23, 2012

12

TCS | 4QFY2012 Result Update

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr) Pre-tax profit from oper. Depreciation Exp. (deferred)/written off Pre tax cash from oper Other inc./prior period ad Net cash from operations Tax Cash profits (Inc)/dec in acc. recv. (Inc)/dec in unbilled rev. (Inc)/dec in oth. current asst. Inc/(dec) in current liab. Net trade working capital Cashflow from opert. actv. (Inc)/dec in fixed assets (Inc)/dec in investments (Inc)/dec in intangible asst. (Inc)/dec in non-cur.asst. Cashflow from invt. actv. Inc/(dec) in debt Inc/(dec) in equity Inc/(dec) in minority int. Dividends Cashflow from finan. actv. Cash generated/(utilized) Cash at start of the year Cash at end of the year FY2010* 7,958 721 103 8,576 226 8,802 1,209 7,593 343 280 1,077 (212) 1,489 9,081 (1,142) (5,709) 177 (925) (7,600) (397) 571 64 (2,158) (1,920) (438) 1,463 1,025 FY2011 10,477 721 120 11,078 532 11,611 2,174 9,437 (2,391) (148) (3,255) 347 (5,448) 3,989 (1,750) 5,597 (138) (3,275) 435 419 328 (62) (4,580) (3,895) 529 1,025 1,554 FY2012 13,511 904 112 14,303 404 14,707 3,169 11,538 (3,298) (899) (1,127) 951 (4,373) 7,166 (2,159) 361 (114) (1,649) (3,561) 128 1,979 213 (5,496) (3,176) 430 1,554 1,984 FY2013E 15,672 1,087 150 16,608 1,232 17,841 4,395 13,446 (1,976) (573) (3,022) 1,284 (4,286) 9,159 (2,504) (522) 113 (1,500) (4,413) 120 (0) (4,351) (4,231) 515 1,984 2,499 FY2014E 17,784 1,260 168 18,876 1,447 20,324 5,193 15,131 (2,153) (451) (4,415) 1,508 (5,511) 9,620 (2,524) (300) (1,684) (4,508) 79 (0) (4,351) (4,272) 839 2,499 3,338

Note:* in US GAAP

April 23, 2012

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TCS | 4QFY2012 Result Update

Key ratios
Y/E March Valuation ratio(x) P/E (on FDEPS) P/CEPS P/BVPS Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS Cash EPS Dividend Book value Dupont analysis Tax retention ratio (PAT/PBT) Cost of debt (PBT/EBIT) EBIT margin (EBIT/Sales) Asset turnover ratio (Sales/Assets) Leverage ratio (Assets/Equity) Operating ROE Return ratios (%) RoCE (pre-tax) Angel RoIC RoE Turnover ratios(x) Asset turnover (fixed assets) Receivables days 7.2 71 7.2 80 7.6 86 7.3 86 7.3 86 28.8 41.5 32.8 32.0 41.1 34.3 32.8 43.3 32.7 31.0 42.8 30.5 28.8 42.2 27.7 0.9 1.0 0.3 1.1 1.3 33.3 0.8 1.1 0.3 1.1 1.3 34.8 0.8 1.0 0.3 1.2 1.3 33.0 0.7 1.1 0.3 1.1 1.2 30.9 0.7 1.1 0.3 1.1 1.2 28.0 35.1 38.8 11.0 107.0 44.5 48.2 23.4 129.8 54.3 59.0 28.1 166.2 63.1 68.7 22.2 207.1 70.9 77.3 22.2 255.7 30.2 27.3 9.9 1.0 6.6 22.9 7.2 23.8 22.0 8.2 2.2 5.4 17.9 6.1 19.5 18.0 6.4 2.7 4.0 13.7 4.8 16.8 15.4 5.1 2.1 3.4 11.5 3.8 14.9 13.7 4.1 2.1 2.8 9.9 3.0 FY2010* FY2011 FY2012 FY2013E FY2014E

Note:* in US GAAP

April 23, 2012

14

TCS | 4QFY2012 Result Update

Research Team Tel: 022 - 3935 7800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

TCS No No No No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

April 23, 2012

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