Balance Sheet of TM & TCS

Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities

------------------- in Rs. Cr. ------------------TM - Mar '14 TCS- Mar'14 TM -Mar '13
12 mths
12 mths
12 mths
233.5
233.5
1231.9
0
8,355.10
9,820.50
5
0
5
9,825.50

195.87
195.87
0
0
43,856.01
44,051.88
88.64
1.05
89.69
44,141.57

128.1
128.1
0.3
0
4,054.40
4,182.80
354.4
750.1
1104.5
5,287.30

TM - Mar '14 TCS- Mar'14 TM -Mar '13

12 mths
12 mths
12 mths
Application Of Funds
Gross Block
Less: Revaluation Reserves
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deferred Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)

4116
0
2282.4
1833.6
264
2,294.00
0
3927.8
2826.3
6754.1
3,593.50
0
10,347.60
0
3504
1409.7
4913.7
5,433.90
0
9,825.50

11220.11
0
5290.92
5929.19
3047.53
5,832.42
8.57
14471.89
12566.26
27046.72
15,748.33
0
42,795.05
0
7355.18
6107.44
13,462.62
29332.43
0
44,141.57

1559.2
0
839.1
720.1
28.4
3,807.50
0
1372.5
271.1
1643.6
1,058.90
0
2,702.50
0
1596
375.2
1,971.20
731.3
0
5,287.30

2,385.10
367.86

10880.43
224.9

558.9
326.45

------------------TCS-Mar'13
12 mths
295.72
195.72
0
100
32,266.53
32,562.25
161.6
1.52
163.12
32,725.37
TCS-Mar'13
12 mths
9152.32
0
4048.04
5104.28
1763.85
6,324.38
6.34
11,202.32
4054.16
15,262.82
14,556.81
0
29,819.63
0
6121.11
4165.66
10,286.77
19,532.86
0
32,725.37
10984.51
165.86

Balance Sheet of TM & TCS

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Of
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

------------------- in Rs. Cr. ------------------TM - Mar '14 TCS - Mar '14 TM - Mar '13
12 mths
12 mths
12 mths
16,295.10
0
16,295.10
190.3
0
16,485.40

64,672.93
0
64,672.93
3114.71
0
67,787.64

6,001.90
0
6,001.90
-95.2
0
5,906.70

0
120.4
6,971.50
3280.8
0
2,361.10
0
12,733.80

0.02
0
21,466.56
0
0
21,672.63
0
43,139.21

0
60
2,513.80
1614.3
0
635.40
0
4,823.50

TM - Mar '14 TCS - Mar '14 TM - Mar '13

12 mths
12 mths
12 mths
3561.3
21533.72
1178.4
3751.6
24648.43
1083.2
86.8
23.41
109
3664.8
24625.02
974.2
427
1080.55
157
0
0
0
3237.8
23544.47
817.2
226.6
0
0
3464.4
23544.47
817.2
778.9
5069.55
164.7
2685.5
18474.92
652.5
12,733.80
43,139.19
4,823.50
0
28.76
0
467
6267.33
64.1
79.4
788.96
10.9
2,334.73
115.02
200
367.86

19,587.28
94.17
3200
224.9

1,281.19
50.93
50
326.45

------------------TCS - Mar '13

12 mths
48,426.14
0
48,426.14
2230.39
0
50,656.53
25.04
0
17,081.72
0
0
17,013.11
0
34,119.87
TCS - Mar '13
12 mths
14306.27
16536.66
30.62
16506.04
802.86
0
15703.18
0
15703.18
2916.84
12786.34
34,094.83
19
4305.88
712.18
19,572.21
65.23
2200
165.86

Ratio Analysis - Tech Mahindra - "TM"

-SathishKumar Kalaimani
14020848018
Ratios
Short-Term Solvency or Liquidity Ratios

Current Ratio

Quick Ratio
Cash Ratio
Long-Term Solvency or Financial Leverage

Total Debt Ratio

Debt-Equity Ratio

Equity Multiplier

Times Interest Earned Ratio

Cash Coverage Ratio

Asset Utilization or Turnover Ratios

Inventory Turnover

Days sales in inventory

Receivables Turnover

Days sales in receivables

Total Asset turnover

Capital intensity
Profitability Ratios
Profit Margin

Return on Assets

Return on Equity

Peer Compared - Tata Consultancy Service - "TCS"

Definition

atios

ratio that measures whether or not a firm has enough resources to pay its debts
over the next 12 months. It compares a firm's current assets to its current liabilities.
is used to gauge a company's liquidity. The quick ratio is also known as the acid
test ratio. The quick ratiocompares the total amount of cash + marketable
securities + accounts receivable to the amount of current liabilities.
the ratio of the liquid assets of a company to its current liabilities.

The debt ratio is defined as the ratio of total debt to total assets, expressed in
percentage, and can be interpreted as the proportion of a company's assets that
are financed by debt. The higher this ratio, the more leveraged the company and
the greater its financial risk.

A measure of a company's financial leverage calculated by dividing its total

liabilities by stockholders' equity. It indicates what proportion of equity and debt the
company is using to finance its assets. Note: Sometimes only interest-bearing,
long-term debt is used instead of total liabilities in the calculation

The equity multiplier is a measurement of a company's financial leverage.

Companies finance the purchase of assets either through equity or debt, so a
high equity multiplier indicates that a larger portion of asset financing is being done
through debt. The multiplier is a variation of the debt ratio
Times Interest Earned or Interest Coverage is a great tool when measuring a
company's ability to meet its debt obligations. When theinterest coverage ratio is
smaller than 1, the company is not generating enough cash from its operations
EBIT to meet its interest obligations.
The cash coverage ratio is useful for determining the amount of cash available to
pay for a borrower's interest expense, and is expressed as a ratio of
the cash available to the amount of interest to be paid.

Inventory turnover is a measure of the number of times inventory is sold or used in

a time period such as a year. The equation for inventory turnover equals the Cost
of goods sold divided by the average inventory.

the number of daysin a year (365 or 360 days) divided by the inventory turnover
ratio. For example, if a company had an inventory turnover ratio of 9, the
company's inventory turned over 9 times during the year.
to quantify a firm's effectiveness in extending credit as well as collecting debts.
The receivables turnoverratio is an activity ratio, measuring how efficiently a firm
uses its assets.
is a calculation used by a company to estimate their average collection period. It is
a financial ratio that illustrates how well a company's accounts receivables are
being managed.
The amount of sales or revenues generated per dollar of assets. The
Asset Turnover ratio is an indicator of the efficiency with which a company is
deploying itsassets.
Capital intensity is the amount of fixed or real capital present in relation to other
factors of production, especially labor.

the amount by which revenue from sales exceeds costs in a business.

ROA gives an idea as to how efficient management is at using itsassets to
generate earnings. Calculated by dividing a company's annual earnings by its
total assets, ROA is displayed as a percentage.

The amount of net income returned as a percentage of shareholders equity. Return

on equitymeasures a corporation's profitability by revealing how much profit a
company generates with the money shareholders have invested.

Formulae

2014
TM
TCS
Mar '14 Mar '14

2.11

3.18

2.11

3.18

0.58

0.93

0.98

1.00

0.02

0.46

42.08

225.36

Current Assets / Current Liabilities

(Current Assets - Inventory) / Current

Liabilities
Cash / Current Liabilities

(Total Assets - Total Equity) / Total

Assets

Total Debt / Total Equity

Total Assets / Total Equity

48.14 1099.06
EBIT / Interest
43.22 1052.90
EBITDA / Interest

NA
COGS / Inventory

NA

NA

NA

4.15

4.47

87.98

81.68

1.66

1.47

0.60

0.68

16%

29%

27%

42%

11.50

94.32

365 Days / Inventory Turnover

Sales / Accounts Receivable

365 Days / Receivables Turnover

Sales / Total Assets

Total Assets / Sales

Net Income / Sales

Net Income / Total Assets

Net Income / Total Equity

2013
Comment
TM's current ratio is slightly above industry
average.However lesser than peer TCS, due to higher
Receivables

TM
Mar '13

1.37

1.37

0.14

Since TM & TCS are cash-rich companies, all the

assets are financed by internal accruals and not by
external borrowings

0.98

TM & TCS has values less than '1' since they are
dependent on Debts

8.62

41.27

TM 's Times Interest ratio is healthy but very low

when compared to TCS, because TCS has very high
Operarting profit and low borrowings

11.38

9.94

Generally IT firms do not have inventory(unlike

Manufacturing Companies)

NA

Generally IT firms do not have inventory(unlike

Manufacturing Companies)

NA

4.37
Traditionally IT companies work on 30- 45 Days
Billing Cycle,However 80 + days seem to be an higher
number.

83.47

Perfoming better than its peer groups

1.14
0.88

16 % is below the average as IT firms operates at 20

to 25 % margin.Reason could be higher expenses

11%

TM is able to generate better income with the

invested assets

12%

TM has higher equity base compared to TCS

5.09

2013
TCS
Mar '13

2.90

2.90

0.39

0.99

0.83

167.21

566.28

540.06

NA

NA

4.32

84.43

1.48
0.68

26%

39%

65.33