Tcs Result Update

1QFY2011 Result Update | IT
July 16, 2010

TCS ACCUMULATE
CMP Rs832
Performance Highlights Target Price Rs920
(Rs cr) 1QFY11 4QFY10 %chg (qoq) 1QFY10 %chg (yoy) Investment Period 12 Months
Net revenue 8,217 7,737 6.2 7,207 14.0
EBIT margin (%) 27.1 27.5 (0.4) 24.8 2.3
Stock Info
PAT 1,844 1,948 (5.3) 1,520 21.3
Source: Company, Angel Research; US GAAP financials in INR terms Sector IT

Outstanding performance assures strong business pipeline: TCS reported strong Market Cap (Rs cr) 162,917
performance in 1QFY2011, which was well ahead of our as well as consensus Beta 0.9
estimates. In INR terms, TCS reported top-line growth of 6.2% qoq (14% yoy);
while in USD terms, it reported growth of 6.4% qoq (21.2% yoy). Growth was 52 Week High / Low 844/420
backed by 8.1% growth in volumes, which combated the cross-currency and
Avg. Daily Volume 399477
pricing impact of negative ~190bp. Growth was broad-based, led by North
America and Asia Pacific markets. Despite the 215bp and 32bp negative impacts Face Value (Rs) 1
of wage hikes and adverse currency movement, respectively, the company
BSE Sensex 17,956
witnessed a slight dip of only 36bp qoq in EBIT margin mainly due to rate
productivity improvement and lower selling and general administration (SG&A) Nifty 5,394
costs. Other income was down by 49% qoq on account of Forex loss, while the
higher tax rate moved up from 14.8% to 19% qoq. Thus, TCS recorded a 5.3% Reuters Code TCS.BO
qoq decline in bottom line to Rs1,844cr mainly because of higher Forex loss and Bloomberg Code TCS@IN
tax rate.

Outlook & Valuation: Despite a weaker macro-economic scenario, TCS continued
Shareholding Pattern (%)
to perform well in 1QFY2011. TCS has a strong deal pipeline, including large
transformational deals with an uptick in discretionary spends. The company also Promoters 74.1
raised its gross employee-hiring target to 40,000 for FY2011 from the earlier
30,000, exhibiting a positive demand environment. We expect the company to MF / Banks / Indian Fls 8.5
deliver a top-line CAGR of 17.9% over FY2010–12E, backed by a 19% CAGR in FII / NRIs / OCBs 12.3
volumes. However, EPS is likely to register an 11.7% CAGR during the same
period because of increased tax rate. The stock is currently trading at 20.7x Indian Public /
5.0
Others
FY2011E EPS of Rs40.3 and 19x FY2012E EPS of Rs43.8. Although the ongoing
crisis in Europe and adverse cross-currency movements are causes for concern for
IT companies, we believe growth will be sustained through volumes with stable
Abs. (%) 3m 1yr 3yr
pricing. We have valued the stock at 21x FY2012E earnings, similar to its
historical average of 21x during FY2007–10 and at par with our target P/E Sensex 2.1 26.0 17.3
multiple of 21x for Infosys. We recommend an Accumulate rating on the stock
with a Target Price of Rs920. TCS 2.1 98.0 47.6

Key Financials (Consolidated US GAAP)
Y/E March (Rs cr) FY2009 FY2010 FY2011E FY2012E
Net Sales 27,813 30,029 35,940 41,710
% chg 23.0 8.0 19.7 16.1
Net Profit 5,172 6,873 7,889 8,571
% chg 3.0 32.9 14.8 8.6
EBIT Margin (%) 25.8 28.9 29.2 29.0
FDEPS (Rs) 26.4 35.1 40.3 43.8
P/E (x) 15.8 23.7 20.7 19.0
P/BV (x) 5.1 7.6 6.3 5.3
RoE (%) 36.2 36.8 33.6 30.4
RoCE (%) 47.4 48.5 50.8 53.2
Vibha Salvi
EV/Sales (x) 3.0 5.5 4.3 3.6
022 – 4040 3800 Ext: 329
EV/EBITDA (x) 11.1 18.3 14.8 12.6 vibhas.salvi@angeltrade.com
Source: Company, Angel Research

Please refer to important disclosures at the end of this report 1

TCS | 1QFY2011Result Update

Exhibit 1: 1QFY2011 performance (Consolidated, US GAAP)
Y/E March (Rs cr) FY2011 FY2010 % chg FY2010 % chg FY2010 FY2009 %chg
1Q 4Q (qoq) 1Q (yoy) (yoy)
Net revenue 8,217 7,737 6.2 7,207 14.0 30,029 27,813 8.0
Cost of revenue 4,398 3994 10.1 3,821 15.1 15,724 15,075 4.3
Gross profit 3,820 3,743 2.0 3,386 12.8 14,305 12,738 12.3
SG&A expenses 1,411 1,431 (1.4) 1,424 (1.0) 5,625 5,561 1.1
EBITDA 2,409 2,312 4.2 1,962 22.8 8,680 7,178 20.9
Other income 83 163 (48.9) 19 226 (467)
Depreciation 178 184 (3.2) 173 3.1 721 576 25.1
Income before income taxes 2,314 2,291 1.0 1,808 27.9 8,185 6,134 33.4
Minority interest 27 3 750.0 23 20.4 103 61 68.4
Tax 442 340 30.2 266 66.6 1,209 901 34.1
Net income 1,844 1,948 (5.3) 1,520 21.3 6,873 5,172 32.9
Diluted EPS (Rs) 9.4 10.0 (5.3) 7.8 21.2 35.1 26.4 32.9
Gross profit margin (%) 46.5 48.4 47.0 47.6 45.8
EBITDA margin (%) 29.3 29.9 27.2 28.9 25.8
EBIT margin (%) 27.1 27.5 24.8 26.5 23.7
Net profit margin (%) 22.4 25.2 21.1 22.9 18.6

Exhibit 2: 1QFY2011 – Actual v/s Angel estimates
(Rs cr) Estimates Actual Variation (%)
Net revenue 7,890 8,217 4.1
EBIT margin (%) 25.5 27.1 1.6
PAT 1,809 1,844 1.9

Strong volumes combated adverse cross-currency impact

Exhibit 3: INR revenue growth break-up (%)
1QFY11
(A) Positive factors
Volume growth 8.10
Total (A) 8.10
(B) Negative factors
Pricing & productivity 0.32
Offshore shift 0.48
Cross currency impact 1.09
Total (B) 1.89
(C) Revenue growth (A) - (B) 6.21

For 1QFY2011, TCS recorded top-line growth of 6.2% qoq (14% yoy), backed by
volume growth of 8.1% qoq. However, this positive impact on growth was largely
curtailed by the 1.1% qoq impact of cross-currency movement as the INR
continued to appreciate even against the euro and GBP by 8.6% and 5.1%,
respectively, during the quarter.

July 16, 2010 2


In 1QFY2011, the company’s international revenue grew by 6.3% qoq (14.4%
yoy) to Rs7,492.0cr. Domestic revenue during the quarter grew by 5.3% qoq
(9.8% yoy) to Rs725.2cr, sustaining the strong growth momentum.

TCS closed 10 large deals across the BFSI, hi-tech, manufacturing and lifesciences
verticals and added 36 new clients during the quarter. A large deal was also
closed in Europe during the quarter, despite the unstable environment. The
company’s Bancs product performed extremely well with eight implementations
going live in 1QFY2011 and 13 new large deals being signed for the same.

Amongst service lines, except for global consulting and asset leveraged solutions,
all services witnessed strong growth. Among verticals, except for manufacturing,
all verticals witnessed strong growth.

During the quarter, TCS added gross of 10,849 employees (net addition was
3,271), taking the total headcount (including subsidiaries) to 1,63,700 employees.
The total headcount excluding subsidiaries stood at 1,42,939, up 2,320 on a net
basis.

Exhibit 4: Service line break-up
Service line 1QFY11 4QFY10 1QFY10 %chg %chg
(Rs cr) (qoq) (yoy)
Application dvlpt.
3,936 3,683 3,510 6.9 12.1
& maintenance
Business intelligence 444 418 440 6.2 0.9
Enterprise solutions 805 781 786 3.1 2.5
Assurance services 526 449 317 17.2 65.8
Engineering
394 371 375 6.2 5.2
& industrial services
Infrastructure services 715 642 670 11.3 6.7
Global consulting 173 193 101 (10.8) 71.0
Asset leveraged solutions 304 309 187 (1.8) 62.3
BPO 920 890 822 3.4 12.0
Total revenue 8,217 7,737 7,207 6.2 14.0

Exhibit 5: Verticals split
Verticals 1QFY11 4QFY10 1QFY10 %chg %chg
(Rs cr) (qoq) (yoy)
BFSI 3,673 3,528 3,157 4.1 16.4
Telecom 1,044 944 951 10.6 9.7
Manufacturing 608 603 627 0.8 (3.0)
Retail & distribution 904 843 764 7.2 18.3
Hi-Tech 378 340 310 11.0 22.0
Lifesciences
427 402 353 6.2 21.0
& healthcare
Travel & hospitality 255 248 238 2.9 7.1
Energy & utilities 271 232 180 16.8 50.5
Media & entertainment 156 139 144 12.1 8.3
Others 501 456 483 9.8 3.8
Total revenue 8,217 7,737 7,207 6.2 14.0

July 16, 2010 3


Exhibit 6: Client contribution
% chg % chg
Client 1QFY11 4QFY10 1QFY10
(qoq) (yoy)
Top client 666 634 411 4.9 62.0
% of revenue 8.1 8.2 5.7
Top 5 clients 1,808 1,687 1,398 7.2 29.3
% of revenue 22.0 21.8 19.4
Top 10 clients 2,506 2,336 2,018 7.3 24.2
% of revenue 30.5 30.2 28.0

In terms of geography, growth was on the back of continued strong recovery in
North America, up 8.2% qoq (19.9% yoy), and robust growth in emerging
markets. In Europe, growth was led by 5.5% qoq growth in the UK; however,
Continental Europe witnessed a 5.5% qoq decline on account of the ongoing
crisis.

Exhibit 7: Geographical break-up
Geographies 1QFY11 4QFY10 1QFY10 % chg % chg
(Rs cr) (qoq) (yoy)
America
North America 4,520 4,178 3,769 8.2 19.9
Latin America 353 340 332 3.8 6.6
Europe
UK 1,241 1,176 1,218 5.5 1.9
Continental Europe 731 774 793 (5.5) (7.7)
Emerging Markets
India 723 689 656 5.0 10.3
Asia Pacific 485 433 310 11.9 56.4
MEA 164 147 130 11.8 26.7
Total revenue 8,217 7,737 7,207 6.2 14.0

SG&A leverage and improved productivity prevented margin erosion

Exhibit 8: Factors impacting EBIT margin
(A) Positive factors 1QFY11
Rate productivity improvement 0.57
Offshore shift 0.15
SG&A leverage 1.39
Total (A) 2.11
(B) Negative factors
Wage Hike 2.15
Cross currency impact 0.32
Total (B) 2.47
(C) Change in EBIT margin (A) - (B) (0.36)

July 16, 2010 4


The company provided offshore wage hike of around 10% and onsite hike of 2–
4%, which contracted EBIT margin by 215bp and 32bp on account of adverse
currency movements, respectively. This resulted in a slight dip of 36bp qoq in EBIT
margin, much lower than expected. Further margin erosion was mainly due to
improvement in rate productivity, lower SG&A costs and offshore shift.

Lower other income and higher taxes impact bottom line

The company’s other income declined by 49% qoq to Rs83.1cr in 1QFY2011 on
account of Forex loss of Rs47cr versus Forex gain witnessed in 4QFY2010. The tax
rate also moved up from 14.8% to 19% qoq. Thus, TCS recorded a decline of
5.3% qoq in bottom line to Rs1,844cr.

July 16, 2010 5


Investment Arguments

Strong deal pipeline and uptick in discretionary spends exhibit strong business
prospectus: Though Europe continues to be a spoilsport for the Indian IT industry,
TCS’s current bottom’s up statistics are in disconnect with the weak macro-
economic indicators, as the company is witnessing strong IT spends from the US,
UK and emerging markets. Though there are concerns related to business
prospects from Continental Europe, the same had witnessed growth of 1.2% qoq
in constant currency terms in 1QFY2011. Further, the company’s demand pipeline
is quite robust, comprising large transformational deals, and is witnessing an
uptick in discretionary IT spends with 15 such critical deals coming from new
clients, exhibiting strong improvement in the company’s business prospects.
Moreover, the company’s UK government’s pension-related project seems to be
on track with no major concerns seen in its ramp up. The company has also raised
its gross employee-hiring target to 40,000 for FY2011 from the earlier 30,000,
exhibiting a positive demand environment. Though TCS does not give direct
guidance, based on the current cues from the management and our analysis, we
believe TCS will witness strong volume-backed performance in FY2011. The
pricing for the company is expected to remain stable with an upward bias on
account of key transformational deals in the pipeline.

Adverse cross-currency and higher attrition impacts to be mitigated by other
operational levers: The adverse cross-currency movement remains a concern as
TCS has higher dependence on Europe. However, we believe the same would be
combated through hedges and strong growth in other markets. TCS’s total
outstanding hedge position as in 1QFY2011 stands at around US $455mn, at an
INR/USD strike rate of 46.3. TCS now focuses on smaller-tenure hedges in view of
volatile currency, which would prove helpful in the current business environment.

The higher attrition rate of 13.1% observed in 1QFY2011 was mainly on account
of overall buoyancy in the job market, driven by strong economic recovery and
employees leaving for higher studies, which generally happens in first quarter of a
financial year. However, the company’s promotional drives and focus on talent
retention are expected to restrain growth in attrition rate going forward. Though
we expect employee costs to increase going forward, management’s focus would
remain on capping non-employee costs through better managerial efficiency and
by growing its offshore leverage the way it did during 1QFY2011.

Outlook & Valuation: Despite a weaker macro-economic scenario, TCS continued
to perform well during the quarter. The company has a strong deal pipeline,
including large transformational deals with an uptick in discretionary spends. The
company also raised its gross employee-hiring target to 40,000 for FY2011 from
the earlier 30,000, exhibiting a positive demand environment.

July 16, 2010 6


We expect the company to deliver a top-line CAGR of 17.9% over FY2010–12E,
backed by a 19% CAGR in volumes. However, EPS is likely to register an 11.7%
CAGR during the same period on account of increased tax rate. The stock is
currently trading at 20.7x FY2011E EPS of Rs40.3 and 19x FY2012E EPS of
Rs43.8. Although the ongoing crisis in Europe and adverse cross-currency
movements are causes for concern for IT companies, we believe growth will be
sustained through volumes with stable pricing. We have valued the stock at 21x
FY2012E earnings, similar to its historical average of 21x during FY2007–10 and
at par with our target PE multiple of 21x for Infosys. We recommend an
Accumulate rating on the stock with a Target Price of Rs920

Exhibit 9: Key assumptions
FY2011E FY2012E
Volume growth 21.4 16.3
Pricing growth 0.7 2.2
Revenue growth (in USD terms) 22.2 14.7
USD-INR rate (realised) 46.5 47.0
Revenue growth (in INR terms) 19.7 16.1
EBIT margin (%) 27.0 26.8
Tax rate (%) 19.0 24.0
EPS growth (%) 14.8 8.6

Exhibit 10: Change in estimates
FY2011E FY2012E
Parameter Earlier Revised Var. Earlier Revised Var.
(Rs cr) estimates estimates (%) estimates estimates (%)
Net revenue 33,351 35,940 7.8 38,821 41,710 7.4
EBIT (ex. other
8,391 9,695 15.5 9,442 11,196 18.6
income)
PBT 9,064 9,865 8.8 10,533 11,455 8.8
Tax 1,541 1,861 20.7 2,212 2,749 24.3
PAT 7,413 7,889 6.4 8,200 8,571 4.5

We have upgraded our FY2011E and FY2012E top-line estimates, in line with
strong cues from the management and the expected higher infusion of gross
manpower. However, we expect other income to be lower on account of the
expected unfavorable cross-currency movement. We estimate PAT to be higher
in FY2011E and FY2012E, compared to the earlier estimates, on the back of
upgraded growth in volumes and better margins.

Exhibit 11: Angel EPS forecast v/s consensus
Bloomberg Variation
Year (%) Angel forecast
consensus (%)
FY2011E 40.3 40.0 0.8

FY2012E 43.8 45.0 (2.7)

July 16, 2010 7


Exhibit 12: One-year forward P/E band

1,200
1,100 30x
1,000
900 25x

Share Price (Rs)
800
700
600
15x
500
400
300
200
100

Jun-05

Jun-06

Jun-07

Jun-08

Jun-09

Jun-10
Apr-05

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10
Aug-05

Aug-06

Aug-07

Aug-08

Aug-09
Feb-06

Feb-07

Feb-08

Feb-09

Feb-10
Dec-05

Dec-06

Dec-07

Dec-08

Dec-09
Oct-05

Oct-06

Oct-07

Oct-08

Oct-09

Exhibit 13: Premium/discount in TCS P/E versus Infosys P/E

30
20
10
(%)

0
(10)
(20)
(30)
Jul-06

Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10
Apr-07

Apr-08

Apr-09

Apr-10
Oct-06

Oct-07

Oct-08

Oct-09
Mar-06

Premium/Discount to Infosys Avg. Historical Discount to Infosys


Exhibit 14: Recommendation summary
Company Reco. CMP Tgt. price Upside FY2012E FY2012E FY2010-12E FY2012E FY2012E
(Rs) (Rs) (%) P/BV (x) P/E (x) EPS CAGR (%) RoCE (%) RoE (%)
3iInfotech Buy 66 129 95.9 0.6 3.7 218.4 15.0 16.5
Educomp Buy 630 734 16.6 2.8 13.7 26.9 21.0 22.3
HCL Tech Accumulate 373 420 12.5 3.0 13.9 17.9 40.9 24.1
Infosys Accumulate 2,778 3037 9.3 4.6 20.1 12.6 33.1 25.0
Mphasis Buy 617 872 41.3 2.5 9.6 14.9 41.6 29.2
NIIT Buy 70 83 18.4 1.8 12.1 16.6 12.1 15.8
TCS Accumulate 832 921 10.6 5.3 19.0 11.7 53.2 30.4
Tech Mahindra Buy 770 1,168 51.7 2.2 11.5 11.8 73.4 22.0
Wipro Buy 402 475 18.1 3.7 17.0 12.0 27.9 23.6

July 16, 2010 8


Profit & Loss Statement (Consolidated US GAAP)
Gross sales 27,813 29,085 35,940 41,710
Less: Excise duty - 944 - -
Net Sales 27,813 30,029 35,940 41,710
Other operating income - - - -
Total operating income 27,813 30,029 35,940 41,710
% chg 23.0 8.0 19.7 16.1
Total Expenditure 20,635 21,349 25,444 29,614
Cost of Equipment 894 812 19,182 22,523
SGA 5,513 5,540 6,262 7,091
Cost of IT 14,181 14,912 - -
Other 47 85 - -
EBITDA 7,178 8,680 10,496 12,096
% chg 26.0 20.9 20.9 15.2
(% of Net Sales) 25.8 28.9 29.2 29.0
Depreciation& Amortisation 577 721 801 900
EBIT 6,601 7,959 9,695 11,196
% chg 28.9 20.6 21.8 15.5
(% of Net Sales) 23.7 26.5 27.0 26.8
Interest & other Charges 54 54 - -
Other Income (414) 278 170 259
(% of PBT) (6.8) 3.4 1.7 2.3
Share in profit of Associates - - - -
Recurring PBT 6,133 8,184 9,865 11,455
% chg 5.6 33.4 20.5 16.1
Extraordinary Expense/(Inc.) - - - -
PBT (reported) 6,133 8,184 9,865 11,455
Tax 901 1,209 1,861 2,749
(% of PBT) 14.7 14.8 18.9 24.0
PAT (reported) 5,232 6,975 8,005 8,706
Add: Share of earnings of associate - - - -
Less: Minority interest (MI) (60.4) (101.9) (115.9) (135.0)
Prior period items - - - -
PAT after MI (reported) 5,172 6,873 7,889 8,571
ADJ. PAT 5,172 6,873 7,889 8,571
% chg 3.0 32.9 14.8 8.6
(% of Net Sales) 18.6 22.9 21.9 20.5
Basic EPS (Rs) 52.8 35.1 40.3 43.8
Fully Diluted EPS (Rs) 52.8 35.1 40.3 43.8
% chg 3.0 32.9 14.8 8.6

July 16, 2010 9


Balance Sheet (Consolidated US GAAP)
SOURCES OF FUNDS
Equity Share Capital 98 196 196 196
Preference Capital - - - -
Reserves& Surplus 15,557 20,743 25,046 30,027
Shareholders Funds 15,654 20,938 25,242 30,223
Minority Interest 313 406 421 441
Total Loans 1,181 1,011 911 911
Deferred Tax Liability - - - -
Total Liabilities 17,149 22,355 26,574 31,574
APPLICATION OF FUNDS
Net Block 6,262 7,128 7,527 7,977
Capital Work-in-Progress - - - -
Goodwill 2,591 2,533 2,533 2,533
Investments 1,727 3,782 6,282 8,782
Current Assets 12,300 14,012 15,932 18,608
Cash 1,463 1,025 1,765 3,160
Loans & Advances 3,167 5,958 6,158 6,358
Other 7,671 7,029 8,009 9,089
Current liabilities 5,731 5,100 5,700 6,325
Net Current Assets 6,569 8,912 10,232 12,283
Total Assets 17,149 22,355 26,574 31,574

Cash flow statement (Consolidated US GAAP)
Profit before tax 6,133 8,184 9,865 11,455
Depreciation 577 721 801 900
Change in Working Capital 133 (2,967) (696) (790)
Less: Other income 244 278 170 259
Direct taxes paid 1,212 1,209 1,861 2,749
Cash Flow from Operations 5,386 4,450 7,940 8,557
Inc./ (Dec.) in Fixed Assets 1,047 1,000 1,200 1,350
Inc./ (Dec.) in Investments 1,373 2,055 2,500 2,500
Inc./ (Dec.) in loans and advances - - - -
Other income (1,013) 278 170 259
Cash Flow from Investing 3,433 2,777 3,530 3,591
Issue of Equity - - - -
Inc./(Dec.) in loans (13) (350) (100) -
Dividend Paid (Incl. Tax) 1,643 3,124 3,570 3,570
Others - - - -
Cash Flow from Financing (1,656) (3,474) (3,670) (3,570)
Inc./(Dec.) in Cash 298 (1,800) 740 1,396
Opening Cash balances 1,199 2,825 1,025 1,765
Closing Cash balances 1,497 1,025 1,765 3,160

July 16, 2010 10


Key Ratios
Y/E March FY2009 FY2010 FY2011E FY2012E
Valuation Ratio (x)
P/E (on FDEPS) 15.8 23.7 20.7 19.0
P/CEPS 7.4 11.2 9.8 9.0
P/BV 5.1 7.6 6.3 5.3
Dividend yield (%) 1.7 1.7 1.9 1.9
EV/Sales 3.0 5.5 4.3 3.6
EV/EBITDA 11.1 18.3 14.8 12.6
EV / Total Assets 3.5 5.8 4.8 4.0
Per Share Data (Rs)
EPS (Basic) 52.8 35.1 40.3 43.8
EPS (fully diluted) 52.8 35.1 40.3 43.8
Cash EPS 112.2 74.4 85.3 92.9
DPS 14.0 14.0 16.0 16.0
Book Value 163.2 109.1 131.1 156.7
Dupont Analysis
EBIT margin 23.7 26.5 27.0 26.8
Tax retention ratio 85.3 85.2 81.1 76.0
Asset turnover (x) 1.4 1.3 1.5 1.6
ROIC (Post-tax) 43.3 40.3 39.6 38.5
Cost of Debt (Post Tax) 4.7 4.2 0.0 0.0
Leverage (x) 0.1 0.0 0.0 0.0
Operating ROE 36.2 35.5 38.0 36.5
Returns (%)
ROCE (Pre-tax) 47.4 48.5 50.8 53.2
Angel ROIC (Pre-tax) 58.9 55.1 57.4 58.9
ROE 36.2 36.8 33.6 30.4
Turnover ratios (x)
Asset Turnover (Gross Block) 4.9 4.5 4.7 4.7
Inventory / Sales (days) - - - -
Receivables (days) 104 88 80 77
Payables (days) 95 102 84 73
Working capital cycle (ex-cash) (days) 41 99 86 80
Solvency ratios (x)
Net debt to equity (0.03) - - -
Net debt to EBITDA (0.08) - - -
Interest Coverage (EBIT / Interest) 123.3 148.6 - -

July 16, 2010 11


Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com

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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 (Company name) TCS
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock Yes
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No

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

Ratings (Returns) : Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)

July 16, 2010 12

Tcs Result Update

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Tcs Result Update