Tata Consultancy Services, Inc.

Wednesday, 25 January, 2023

Financial Projection for 2023E - 30E

Index:

1 #VALUE!
2 #VALUE!
3 #VALUE!
4 #VALUE!
5 #VALUE!
6 #VALUE!
7 #VALUE!
8 #VALUE!
9 #VALUE!

Notes:
This Excel model is for educational purposes only and should not be used for any other reason.

Page 1 TCS Financial Model

 Tata Consultancy Services, Inc. Target Price: 3463.69
Valuation Date: 8/14/2022 Recommendation: Hold

Company Overview: Current Market Capitalization ( ₹ Cr's ) Historical Share Price Performance:

TCS is an IT services, consulting and business solutions organization

partnering many of the world’s largest businesses in their transformational Current Share Price (₹ / Per share) 3,401.6
journeys for the last 54 years. Operators among 45+ countries Market Capitalization 1,244,967.3
Our Operations consists of Five Segments: Banking, Financial Services and Total Debt 28,956.0
Insurance, Retail and Consumer Business, Communications, Media and Cash Balance 12,488.0
Technology, Manufacturing, Life Sciences and Healthcare, Other. Enterprise Value 1,261,435.3
TCS was founded in 1968. Nearly 5Lakhs + Em'ees working in Tata
- helps in spot trends early, embrace business opportunities by making the F2023E F2024E
right investments and mitigating risks.
- continually looking for new opportunities and newer areas in their EV / Revenue 6.0x 5.5x
businesses to add value EV / EBITDA 17.5x 14.3x
-
P/E 25.3x 20.9x

Financial Performance: Valuation Summary:

Revenue for F2017E - F2030E EBITDA vs Net Income Target

Average 2,808.8 4,618.3

52 Week Range 2,953.0 4,043.0

DCF 2,651.4 4,028.3

Comp's Analysis 2,321.4 6,667.9

F2017A

F2018A

F2019A

F2020A

F2021A

F2022A

F2023A

F2024A

F2025A

F2026A

F2027A

F2028A

F2029A

F2030A

Analyst Target 3,309.3 3,733.9

F2017A

F2018A

F2020A

F2021A

F2022A

F2023A

F2024A

F2026A

F2027A

F2028A

F2029A

F2030A
F2019A

F2025A
This chart isn't available in your version of Excel.
F2023E Revenue Breakup Valuation Table
Editing this shape or saving this workbook into a different file format
will permanently break the chart.
Min Diff Max
19% Banking, Financial Services & Average 2,808.8 1,809.5 4,618.3
Insurance
52 Week Range 2,953.0 1,090.0 4,043.0
39% Manufacturing DCF 2,651.4 1,376.9 4,028.3
Comp's Analysis 2,321.4 4,346.5 6,667.9
17% Retail and Consumer Business
Analyst Target 3,309.3 424.5 3,733.9
Communication, Media &
Technology

16% 10% Life Science & Healthcare & Other.

Page 2 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

General Assumptions Capital Assets Schedule

First Financial Forecasting Year Yr's F2023E Additions % of Rev Disp Op % of Gross Disp Clg % of Disp Op
Lastest Annual Report DD-MMM-YYYY 31st March 2022 Freehold land - - -
Recent Report DD-MMM-YYYY Jun/2022 Buildings 0.2% 0.1% 83.8%
Leasehold improvements 0.2% 4.2% 88.0%
Scenario Analysis Plant and equipment 0.1% 0.2% 66.7%
Segmts Grwth Em'ee Grwth Exp per Em'ee Grwth Computer equipment 0.7% 4.9% 96.1%
Best Case 1.0% ( 1.0%) ( 1.0%) Vehicles 0.0% 5.7% 90.0%
Base Case As per Sch As per Sch As per Sch Office equipment 0.1% 2.9% 97.9%
Worst Case ( 1.0%) 1.0% 1.0% Electrical installations 0.1% 2.1% 97.7%
Furniture and fixtures 0.1% 3.3% 92.6%
Revenue Schedule
F2023E - 30E Depreciation: Method Existing New
Banking, Financial Services & Insurance 9.8% Buildings Straight line 15.0 20.0
Manufacturing 8.6% Leasehold improvements Straight line 10.0 20.0
Retail and Consumer Business 8.9% Plant and equipment Straight line 10.0 20.0
Communication, Media & Technology 10.4% Computer equipment Straight line 10.0 12.0
Life Science & Healthcare & Other. 14.7% Vehicles Straight line 10.0 12.0
Growth Tapper 15.0% Office equipment Straight line 13.0 15.0
* As per comp's business life cycle. Comp right now is in early maturity stage. So expecting after F2023E to Electrical installations Straight line 10.0 15.0
F2027E the growth tappered by 15% & from F2029E - F2030 10% Furniture and fixtures Straight line 10.0 12.0

Cost Schedule Financial Assets

F2023E - 27E F2028E - 30E Non-Current Current
Employee benefit expenses Security deposits 0.7% 6.8%
No of Em'ee Growth 3.0% 4.0% Earmarked balances with banks -
Average Exp on Each Em'ee Growth ( 2.5%) ( 3.0%) Interest receivable - 1.6%
* Em'ee benefit exp includes salarys, PF, walfare exp. I feel per Em'ee cost growth would be best pratice for proj Others 6.0% 10.0%
Cost of equipment and software licences Fair value of foreign exchange derivative assets -
Raw materials, sub-assemblies and components consumed ( 6.4%)
Equipment and software licences purchased ( 3.8%) Working Capital & Bank Schedules
* The cost is dereasing YOY. Considered trend follows into future on average basis. Avg Days Doutful TR % Receiavbles in Yr %
Other operating expenses: Trade Receivables 67.0 4.1% 99.7%
Fees to external consultants 12.0% Trade Payable 28.2
Facility expenses ( 8.5%) Inventory Days 140.9
Travel expenses ( 0.2%)
Communication expenses 14.3% Other balances with banks
Bad debts and advances written off, allowance for doubtful trade receivables 7.9% Earmarked balances with banks % 17.1%
Other expenses 8.1% Short-term bank deposits % 12.0%

Page 3 TCS Financial Model

Page 4 TCS Financial Model
 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's
Based on: Base Case Senario

Lease Schedule Intangible assets

Capex Additions % of Rev Disp Op % of Gross Disp Clg % of Disp Op
Leasehold land % Of Revenue 0.1% Acquired contract rights - - -
Buildings % Of Revenue 0.6% Licensing & software 0.2% 4.0% 69.0%
Leasehold improvements % Of Revenue 0.0% Customer - intangibles - - -
Computer equipment % Of Revenue 0.0% Amortization: Method Existing New
Software licences % Of Revenue 0.0% Acquired contract rights Straight line - -
Vehicles % Of Revenue 0.0% Licensing & software Straight line 3.0 5.0
Office equipment % Of Revenue 0.0% Customer - intangibles Straight line 2.0 3.0

Depreciation: Method: Existing New Equity Schedule

Leasehold land Straight line 10.0 20.0 Non-controlling interests - Profit % 0.3%
Buildings Straight line 15.0 20.0 Dividend Paid for Per Share
Leasehold improvements Straight line 10.0 20.0 Equity Dividend Per Share 51.4
Computer equipment Straight line 10.0 12.0 Equity Buyback Year after Year (4.0)
Software licences Straight line 10.0 12.0 Cost for Buyback (20,000.0) (25,000.0)
Vehicles Straight line 10.0 12.0 * 1st 2yr's cost will 18K cr's & remaining yr's cost would will be 20K cr's
Office equipment Straight line 13.0 15.0
Interest rate Exp % 12.9% Income Tax

Investments Indian statutory income tax rate 34.9%

Investments - Non-current: Financial assets Growth (%) Tax holidays 2.9%
Mozido LLC 3.3% Income exempt from tax 12.0%
FCM LLC 3.1% Undistributed earnings in branches and subsidiaries 12.0%
Philippine Dealing System Holdings Corporation 7.3% Tax on income at different rates 12.0%
- Impairment in value of investments 10.5% Tax pertaining to prior years 12.0%
Government securities 7.8% Others (net) 12.0%
Investments - Current: Financial assets
Mutual fund units ( 7.8%) Other Assets
Government securities 3.4% Non-Current Current
Corporate debentures and bonds ( 25.0%) Contract assets ( 0.3%) 10.0%
Certificate of deposits 1.0% Prepaid expenses 12.0% 12.0%
Corporate bonds 1.0% Prepaid rent - ( 1.8%)
Commercial papers 5.0% Contract fulfillment costs 12.0% 12.0%
Capital advances 12.0%
Loans Advances to related parties 12.0% 12.0%
Non-Current Current Others 12.0% 12.0%
Loans and advances to employees 43.3% 4.5% Advance to suppliers 3.0%

Page 5 TCS Financial Model

Inter-corporate deposits - 35.9% Indirect tax recoverable 12.0%

Page 6 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's
Based on: Base Case Senario

Financial Liabilities Employee benefit obligations

Non-Current Current Non-Current Current
Accrued payroll 12.0% Gratuity liability 12.0%
Current maturities of finance lease obligations - Foreign defined benefit plans 12.0%
Unclaimed dividends 12.0% Other employee benefit obligations 12.0% 15.8%
Fair value of foreign exchange derivative liabilities 12.0% Compensated absences 12.0%
Capital creditors ( 44.4%) 12.0%
Liabilities towards customer contracts 1.9% Provisions
Others ( 9.7%) 12.0% Non-Current Current
Provision towards legal claim 3.1%
Other liabilities Provision for foreseeable loss - 12.0%
Non-Current Current Other provisions 5.0%
Advance received from customers 12.0%
Indirect taxes payable and other statutory liabilities 12.0% Other Income
Tax liability on buy-back of equity shares -
Others - 10.0% Implied Int rate 15.2%
Operating lease liabilities - Implied Dvdt rate 0.0%
* Other income excluding int, divident, will be constant growth

Valuation Assumptions

Capital Structure Cost of Equity

Proportion of Debt Target 3.0% Risk free rate As per Tradingview.com 7.3%
Interest rate % 12.9% Equity risk premium stern.nyu.edu 6.9%
Tax rate % 34.9% Country risk premium stern.nyu.edu 2.2%

Terminal Value Assumptions

Long term Growth rate % 6.5%

Exist Multiple 0.0x EV/FCFF 18.0x
https://www2.deloitte.com/us/en/insights/economy/asia-pacific/india-economic-outlook.html

Page 7 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

2 Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Live Case
Segments Growth
Banking, Financial Services & Insurance 9.8% 8.3% 7.1% 6.0% 5.1% 4.3% 3.7% 3.1%
Manufacturing 8.6% 7.3% 6.2% 5.3% 4.5% 3.8% 3.2% 2.8%
Retail and Consumer Business 8.9% 7.5% 6.4% 5.4% 4.6% 3.9% 3.3% 2.8%
Communication, Media & Technology 10.4% 8.8% 7.5% 6.4% 5.4% 4.6% 3.9% 3.3%
Life Science & Healthcare & Other. 14.7% 12.5% 10.6% 9.0% 7.7% 6.5% 5.5% 4.7%
Employee benefit expenses
No of Em'ee Growth (%) 3.0% 3.0% 3.0% 3.0% 3.0% 4.0% 4.0% 4.0%
Average Expense on each Em'ee ( 2.5%) ( 2.5%) ( 2.5%) ( 2.5%) ( 2.5%) ( 3.0%) ( 3.0%) ( 3.0%)

Best Case
Segments Growth
Banking, Financial Services & Insurance 1.0% 10.8% 9.3% 8.1% 7.0% 6.1% 5.3% 4.7% 4.1%
Manufacturing 1.0% 9.6% 8.3% 7.2% 6.3% 5.5% 4.8% 4.2% 3.8%
Retail and Consumer Business 1.0% 9.9% 8.5% 7.4% 6.4% 5.6% 4.9% 4.3% 3.8%
Communication, Media & Technology 1.0% 11.4% 9.8% 8.5% 7.4% 6.4% 5.6% 4.9% 4.3%
Life Science & Healthcare & Other. 1.0% 15.7% 13.5% 11.6% 10.0% 8.7% 7.5% 6.5% 5.7%
Employee benefit expenses
No of Em'ee Growth (%) ( 1.0%) 2.0% 2.0% 2.0% 2.0% 2.0% 3.0% 3.0% 3.0%
Average Expense on each Em'ee ( 1.0%) ( 3.5%) ( 3.5%) ( 3.5%) ( 3.5%) ( 3.5%) ( 4.0%) ( 4.0%) ( 4.0%)
Base Case
Segments Growth
Banking, Financial Services & Insurance 9.8% 8.3% 7.1% 6.0% 5.1% 4.3% 3.7% 3.1%
Manufacturing 8.6% 7.3% 6.2% 5.3% 4.5% 3.8% 3.2% 2.8%
Retail and Consumer Business 8.9% 7.5% 6.4% 5.4% 4.6% 3.9% 3.3% 2.8%
Communication, Media & Technology 10.4% 8.8% 7.5% 6.4% 5.4% 4.6% 3.9% 3.3%
Life Science & Healthcare & Other. 14.7% 12.5% 10.6% 9.0% 7.7% 6.5% 5.5% 4.7%
Employee benefit expenses
No of Em'ee Growth (%) 3.0% 3.0% 3.0% 3.0% 3.0% 4.0% 4.0% 4.0%
Average Expense on each Em'ee ( 2.5%) ( 2.5%) ( 2.5%) ( 2.5%) ( 2.5%) ( 3.0%) ( 3.0%) ( 3.0%)
Worst Case
Segments Growth
Banking, Financial Services & Insurance ( 1.0%) 8.8% 7.3% 6.1% 5.0% 4.1% 3.3% 2.7% 2.1%
Manufacturing ( 1.0%) 7.6% 6.3% 5.2% 4.3% 3.5% 2.8% 2.2% 1.8%
Retail and Consumer Business ( 1.0%) 7.9% 6.5% 5.4% 4.4% 3.6% 2.9% 2.3% 1.8%
Communication, Media & Technology ( 1.0%) 9.4% 7.8% 6.5% 5.4% 4.4% 3.6% 2.9% 2.3%
Life Science & Healthcare & Other. ( 1.0%) 13.7% 11.5% 9.6% 8.0% 6.7% 5.5% 4.5% 3.7%
Employee benefit expenses
No of Em'ee Growth (%) 1.0% 4.0% 4.0% 4.0% 4.0% 4.0% 5.0% 5.0% 5.0%
Average Expense on each Em'ee 1.0% ( 1.5%) ( 1.5%) ( 1.5%) ( 1.5%) ( 1.5%) ( 2.0%) ( 2.0%) ( 2.0%)

Page 8 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Revenue from operations 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5
Other income 2,819.7 3,411.2 4,180.9 5,189.2 6,517.3 8,275.5 10,612.9 13,731.9
Total Income 214,755.6 234,375.9 252,828.6 270,063.2 286,119.5 301,120.7 315,269.4 328,849.4
Growth (%) 9.7% 9.1% 7.9% 6.8% 5.9% 5.2% 4.7% 4.3%

Expenses
Employee benefit expenses 108,011.1 108,470.2 108,931.1 109,394.1 109,859.0 110,825.8 111,801.1 112,784.9
Cost of equipment and software licences 1,118.4 1,078.6 1,037.4 997.8 959.7 923.1 887.9 854.0
Finance costs 821.5 925.0 1,035.5 1,150.8 1,268.9 1,387.7 1,505.1 1,619.4
Depreciation and amortisation expense 4,153.6 4,559.1 4,995.7 4,895.2 5,386.2 5,817.0 6,261.2 6,716.7
Other expenses 32,725.9 35,823.8 39,312.2 43,234.3 47,638.7 52,580.2 58,120.3 64,328.3
Total Expenses 146,830.5 150,856.7 155,312.0 159,672.2 165,112.5 171,533.7 178,575.6 186,303.4
Growth (%) 1.9% 2.7% 3.0% 2.8% 3.4% 3.9% 4.1% 4.3%

Profit Before Exceptional Item And Tax 67,925.1 83,519.2 97,516.6 110,391.0 121,007.0 129,587.0 136,693.9 142,546.0
Exceptional item
Provision towards legal claim 39.2 40.4 41.7 43.0 44.3 45.7 47.2 48.7
Profit Before Tax 67,886.0 83,478.8 97,474.9 110,348.0 120,962.7 129,541.2 136,646.7 142,497.3

Tax expense 18,710.8 24,002.3 28,732.3 33,065.7 36,606.5 39,431.9 41,738.0 43,600.8
Total Tax Expense 18,710.8 24,002.3 28,732.3 33,065.7 36,606.5 39,431.9 41,738.0 43,600.8

Profit For The Year 49,175.2 59,476.5 68,742.6 77,282.3 84,356.2 90,109.4 94,908.7 98,896.5
Profit Margin ( % ) 22.9% 25.4% 27.2% 28.6% 29.5% 29.9% 30.1% 30.1%

Non-controlling interests 156.0 188.7 218.1 245.2 267.7 285.9 301.1 313.8
Shareholders of the Company 49,019.1 59,287.7 68,524.5 77,037.0 84,088.5 89,823.4 94,607.5 98,582.7

Earnings per equity share

Basic EPS 134.0 162.0 189.4 212.9 235.0 251.0 267.3 281.8
Diluted EPS 134.0 162.0 189.4 212.9 235.0 251.0 267.3 281.8

Weighted average number of equity shares

Basic outstanding shares 365.9 365.9 361.9 361.9 357.9 357.9 353.9 349.9
Diluted outstanding shares 365.9 365.9 361.9 361.9 357.9 357.9 353.9 349.9

Page 9 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Cash Flows From Operating Activities

Profit For The Year 49,175.2 59,476.5 68,742.6 77,282.3 84,356.2 90,109.4 94,908.7 98,896.5

Adjustments for:
Depreciation and amortisation expense 4,153.6 4,559.1 4,995.7 4,895.2 5,386.2 5,817.0 6,261.2 6,716.7
Bad debts and advances written off 262.8 138.5 137.9 122.2 110.9 93.7 95.0 78.8
Provision towards legal claim (Refer note 20)
Tax expense
Net gain on lease modification
Net loss on sub-lease
Unrealised foreign exchange gain
Net gain on disposal of property, plant and equipment
Net gain on disposal / fair valuation of investments
Interest income (2,811.1) (3,402.4) (4,172.0) (5,180.0) (6,507.9) (8,265.8) (10,603.0) (13,721.7)
Dividend income (8.6) (8.8) (9.0) (9.2) (9.4) (9.6) (9.9) (10.2)
Finance costs
Operating profit before working capital changes 50,771.9 60,763.0 69,695.3 77,110.5 83,336.0 87,744.6 90,651.9 91,960.0
Net change in
Inventories 9.5 0.7 0.6 0.6 0.6 0.5 0.5 0.5
Trade receivables
Billed (3,296.3) (3,377.1) (3,361.7) (2,978.5) (2,703.5) (2,284.0) (2,315.0) (1,920.2)
Unbilled
Loans and other financial assets (2,767.9) (3,681.0) (4,857.6) (6,404.2) (8,462.5) (11,222.8) (14,942.2) (19,969.0)
Other assets / Capital WP (643.2) (1,383.4) (1,614.8) (1,802.5) (2,011.7) (2,244.9) (2,504.7) (2,794.4)
Trade payables 379.6 9.3 55.5 32.7 33.0 48.2 96.1 73.3
Unearned and deferred revenue
Other financial liabilities 644.8 809.9 956.7 1,099.7 1,247.8 1,406.8 1,580.9 1,773.5
Other liabilities and provisions 1,098.8 1,227.2 1,370.9 1,531.8 1,711.8 1,913.4 2,139.2 2,391.9
Cash generated from operations 46,197.3 54,368.5 62,244.8 68,589.9 73,151.4 75,361.9 74,706.6 71,515.7
Taxes paid (net of refunds)
Net cash generated from operating activities 46,197.3 54,368.5 62,244.8 68,589.9 73,151.4 75,361.9 74,706.6 71,515.7

Cash Flows From Investing Activities

Bank deposits placed (699.4) (785.3) (881.8) (990.3) (1,112.2) (1,249.4) (1,403.6) (1,577.0)
Inter-corporate deposits placed
Purchase of investments
Payment for purchase of PP&E (2,981.2) (3,248.9) (3,497.6) (3,725.9) (3,933.1) (4,119.3) (4,285.5) (4,432.6)
Payment including advances for acquiring right-of use assets (1,515.5) (1,651.5) (1,778.0) (1,894.0) (1,999.3) (2,094.0) (2,178.5) (2,253.3)
Payment / Proceeds for purchase of intangible assets (416.8) (454.2) (489.0) (520.9) (549.8) (575.9) (599.1) (619.7)
Purchase of subsidiary, net of cash of NIL and `16 crore respectively

Page 10 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Earmarked deposits / proceeds placed with banks

Proceeds from bank deposits
Proceeds from inter-corporate deposits
Proceeds from disposal / redemption of investments
Proceeds from sub-lease
disposal ofreceivable
PP&E &
Right to use of asset 66.4 74.3 82.8 91.9 101.5 111.4 121.5 131.8
Interest received 2,811.1 3,402.4 4,172.0 5,180.0 6,507.9 8,265.8 10,603.0 13,721.7
Dividend received 8.6 8.8 9.0 9.2 9.4 9.6 9.9 10.2
Net cash used in investing activities (2,726.8) (2,654.4) (2,382.6) (1,849.9) (975.7) 348.2 2,267.8 4,981.2

Cash Flows From Financing Activities

Repayment of lease liabilities (2,162.6) (795.1) (884.0) (978.7) (1,078.7) (1,183.4) (1,292.3) (1,405.0)
Interest paid
Dividend paid (18,598.1) (18,598.1) (18,392.6) (18,392.6) (18,187.1) (18,187.1) (17,981.6) (17,776.1)
Dividend paid to non-controlling interests (58.0) (58.0) (58.0) (58.0) (58.0) (58.0) (58.0) (58.0)
Transfer of funds to buy-back escrow account
Transfer of funds from buy-back escrow account
Expenses for buy-back of equity shares
Short-term borrowings (net)
Tax on buy-back of equity shares
Buy-back of equity shares (20,004.0) - (20,004.0) - (25,004.0) - (25,004.0) (25,004.0)
Other Lease Adjustments 1,515.5 1,651.5 1,778.0 1,894.0 1,999.3 2,094.0 2,178.5 2,253.3
Advance / purchase towards of non-controlling interests
Net cash used in financing activities (39,307.3) (17,799.8) (37,560.7) (17,535.4) (42,328.5) (17,334.5) (42,157.5) (41,989.9)

Net change in cash and cash equivalents 4,163.2 33,914.3 22,301.5 49,204.6 29,847.1 58,375.6 34,816.9 34,507.0

Opening Cash Balance 12,488.0 16,651.2 50,565.5 72,867.1 122,071.7 151,918.8 210,294.4 245,111.3
Exchange diff on translation of foreign currency cash & cash equivalents

Closing Cash Balance 16,651.2 50,565.5 72,867.1 122,071.7 151,918.8 210,294.4 245,111.3 279,618.3

Page 11 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Assets

Non-current assets
Property, plant and equipment 10,827.7 10,916.3 11,002.9 11,050.8 11,023.8 10,888.0 10,611.1 10,163.8
Capital work-in-progress 514.0 412.0 373.0 334.0 295.0 256.0 217.0 178.0
Right-of-use assets 8,529.0 9,472.6 10,450.5 11,446.3 12,443.9 13,427.7 14,383.1 15,296.5
Goodwill 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0
Other intangible assets 847.8 536.8 158.3 268.2 292.2 305.1 307.0 297.9
Financial assets
Investments 229.3 235.6 241.8 247.8 253.5 259.0 264.1 268.6
Trade receivables
Billed 125.9 136.8 147.7 157.4 166.1 173.5 181.0 187.2
Unbilled / Unearned Revenue - - - - - - - -
Loans 314.5 319.4 326.6 336.8 351.4 372.4 402.4 445.5
Other financial assets 2,333.7 2,418.8 2,508.8 2,603.9 2,704.4 2,810.6 2,922.8 3,041.5
Income tax assets (net) 1,983.0 1,983.0 1,983.0 1,983.0 1,983.0 1,983.0 1,983.0 1,983.0
Deferred tax assets (net) 3,708.0 3,708.0 3,708.0 3,708.0 3,708.0 3,708.0 3,708.0 3,708.0
Other assets 2,244.7 2,493.0 2,771.2 3,082.9 3,432.0 3,823.1 4,261.2 4,751.9
Total Non-Current Assets 33,444.5 34,419.4 35,458.8 37,006.0 38,440.3 39,793.3 41,027.6 42,108.9

Current assets
Inventories 10.5 9.8 9.2 8.6 8.0 7.5 7.0 6.6
Financial assets
Investments 30,700.7 31,259.1 31,918.0 32,663.1 33,483.8 34,372.6 35,323.7 36,333.4
Trade receivables
Billed 37,181.6 40,409.2 43,622.2 46,468.9 49,052.8 51,235.7 53,448.2 55,283.5
Unbilled 7,736.0 7,736.0 7,736.0 7,736.0 7,736.0 7,736.0 7,736.0 7,736.0
Cash and cash equivalents 16,651.2 50,565.5 72,867.1 122,071.7 151,918.8 210,294.4 245,111.3 279,618.3
Other balances with banks 6,432.4 7,217.7 8,099.4 9,089.7 10,201.9 11,451.3 12,854.9 14,431.9
Loans 8,643.6 11,627.0 15,676.6 21,175.3 28,643.6 38,788.6 52,571.8 71,299.8
Other financial assets 1,430.1 1,473.0 1,518.8 1,567.9 1,620.4 1,676.8 1,737.3 1,802.4
Income tax assets (net) 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0
Other assets 11,263.5 12,500.5 13,876.2 15,406.0 17,107.6 19,000.3 21,106.0 23,448.6
Total Current Assets 120,060.6 162,808.8 195,334.4 256,198.1 299,784.0 374,574.3 429,907.3 489,971.4

Total Assets 153,505.1 197,228.2 230,793.1 293,204.1 338,224.3 414,367.5 470,934.9 532,080.4

Page 12 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Equity And Liabilities

Equity
Share capital 362.0 362.0 358.0 358.0 354.0 354.0 350.0 346.0
Otherattributable
Equity equity to shareholders of the 99,194.0 139,883.6 170,015.5 228,659.9 269,561.3 341,197.6 392,823.5 448,630.1
Company 99,556.0 140,245.6 170,373.5 229,017.9 269,915.3 341,551.6 393,173.5 448,976.1
Non-controlling interests 805.0 935.8 1,095.9 1,283.1 1,492.8 1,720.7 1,963.8 2,219.6
Total equity 100,361.0 141,181.4 171,469.3 230,301.0 271,408.0 343,272.3 395,137.3 451,195.7

Liabilities

Non-current liabilities
Financial liabilities
Lease liabilities 5,320.9 6,409.3 7,854.2 8,769.4 9,690.0 10,600.6 11,486.7 12,386.0
Other financial liabilities 399.0 294.8 229.8 187.2 157.8 136.2 119.5 105.9
Employee benefit obligations 758.2 849.2 951.1 1,065.3 1,193.1 1,336.3 1,496.6 1,676.2
Deferred tax liabilities (net) 590.0 590.0 590.0 590.0 590.0 590.0 590.0 590.0
Unearned and deferred revenue 1,110.0 1,110.0 1,110.0 1,110.0 1,110.0 1,110.0 1,110.0 1,110.0
Provisions - - - - - - - -
Other liabilities - - - - - - - -
Total non-current liabilities 8,178.1 9,253.3 10,735.1 11,721.9 12,740.9 13,773.1 14,802.8 15,868.1

Current liabilities
Financial liabilities
Borrowings - - - - - - - -
Lease liabilities 1,850.0 1,618.0 1,067.0 1,067.0 1,067.0 1,067.0 1,067.0 1,016.0
Trade payables 8,424.6 8,433.9 8,489.4 8,522.1 8,555.0 8,603.3 8,699.4 8,772.8
Other financial liabilities 8,504.8 9,418.8 10,440.5 11,582.7 12,859.9 14,288.3 15,885.9 17,673.0
Unearned and deferred revenue 3,635.0 3,635.0 3,635.0 3,635.0 3,635.0 3,635.0 3,635.0 3,635.0
Other liabilities 8,894.0 9,456.0 10,085.3 10,789.8 11,578.7 12,461.8 13,450.7 14,557.8
Provisions 1,467.5 1,527.1 1,590.2 1,657.1 1,728.1 1,803.5 1,883.8 1,969.4
Employee benefit obligations 4,269.1 4,783.6 5,360.2 6,006.4 6,730.6 7,542.3 8,452.0 9,471.6
Income tax liabilities (net) 7,921.0 7,921.0 7,921.0 7,921.0 7,921.0 7,921.0 7,921.0 7,921.0
Total current liabilities 44,966.0 46,793.5 48,588.7 51,181.2 54,075.3 57,322.2 60,994.8 65,016.5

Total Equity And Liabilities 153,505.1 197,228.2 230,793.1 293,204.1 338,224.3 414,367.5 470,934.9 532,080.4

Check 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Page 13 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Segments:
Banking, Financial Services & Insurance 82,477.0 89,336.7 95,652.4 101,400.3 106,579.6 111,206.9 115,310.8 118,927.9
Manufacturing 20,207.6 21,682.1 23,026.9 24,240.9 25,327.2 26,291.9 27,143.2 27,890.2
Retail and Consumer Business 33,434.3 35,950.3 38,249.8 40,329.5 42,193.3 43,850.8 45,314.9 46,601.0
Communication, Media & Technology 35,188.7 38,299.3 41,176.9 43,806.7 46,184.8 48,315.9 50,211.0 51,884.9
Life Science & Healthcare & Other. 40,628.3 45,696.3 50,541.5 55,096.5 59,317.3 63,179.8 66,676.6 69,813.5
Revenue from operations 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5
Growth (%) 10.5% 9.0% 7.7% 6.5% 5.6% 4.7% 4.0% 3.4%

Other income:
Interest income 2,811.1 3,402.4 4,172.0 5,180.0 6,507.9 8,265.8 10,603.0 13,721.7
Dividend income 8.6 8.8 9.0 9.2 9.4 9.6 9.9 10.2
Net gain on investments carried at fair value through profit or loss
Net gain on sale of investments carried at amortised cost
Net gain on sale of investments other than equity shares carried at fair value th
Net gain on disposal of property, plant and equipment
Net foreign exchange gains
Rent income
Net gain on lease modification
Other Income
Other income 2,819.7 3,411.2 4,180.9 5,189.2 6,517.3 8,275.5 10,612.9 13,731.9

Banking, Financial Services & Insurance 9.8% 8.3% 7.1% 6.0% 5.1% 4.3% 3.7% 3.1%
Manufacturing 8.6% 7.3% 6.2% 5.3% 4.5% 3.8% 3.2% 2.8%
Retail and Consumer Business 8.9% 7.5% 6.4% 5.4% 4.6% 3.9% 3.3% 2.8%
Communication, Media & Technology 10.4% 8.8% 7.5% 6.4% 5.4% 4.6% 3.9% 3.3%
Life Science & Healthcare & Other. 14.7% 12.5% 10.6% 9.0% 7.7% 6.5% 5.5% 4.7%

Loan & Bank Deposits Int receive 18,495.8 22,386.7 27,450.2 34,082.6 42,819.5 54,386.1 69,764.1 90,284.2
Dividend On Invest 30,930.0 31,494.7 32,159.8 32,910.8 33,737.3 34,631.5 35,587.8 36,602.0
Implied Int % 15.2% 15.2% 15.2% 15.2% 15.2% 15.2% 15.2% 15.2%
Implied Dvdt % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Page 14 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Expenses
Employee benefit expenses 108,011.1 108,470.2 108,931.1 109,394.1 109,859.0 110,825.8 111,801.1 112,784.9
Cost of equipment and software licences 1,118.4 1,078.6 1,037.4 997.8 959.7 923.1 887.9 854.0
Finance costs 821.5 925.0 1,035.5 1,150.8 1,268.9 1,387.7 1,505.1 1,619.4
Depreciation and amortisation expense
Other expenses 32,725.9 35,823.8 39,312.2 43,234.3 47,638.7 52,580.2 58,120.3 64,328.3
Total Expenses 142,676.9 146,297.6 150,316.3 154,777.0 159,726.3 165,716.7 172,314.4 179,586.7

Employee benefit expenses

Salaries, incentives and allowances

Contributions to provident and other funds
Staff welfare expenses
Employee benefit expenses 108,011.1 108,470.2 108,931.1 109,394.1 109,859.0 110,825.8 111,801.1 112,784.9
Growth (%) 0.4% 0.4% 0.4% 0.4% 0.4% 0.9% 0.9% 0.9%

No of Employees as on 31st Mar 608,381.9 626,633.3 645,432.3 664,795.3 684,739.1 712,128.7 740,613.9 770,238.4
Growth (%) 3.0% 3.0% 3.0% 3.0% 3.0% 4.0% 4.0% 4.0%
Average Expense on each Em'ee In lakhs 1,775,383.4 1,730,998.8 1,687,723.8 1,645,530.7 1,604,392.5 1,556,260.7 1,509,572.9 1,464,285.7
Growth (%) ( 2.5%) ( 2.5%) ( 2.5%) ( 2.5%) ( 2.5%) ( 3.0%) ( 3.0%) ( 3.0%)

Cost of equipment and software licences

Raw materials, sub-assemblies and components consumed 27.1 25.4 23.8 22.2 20.8 19.5 18.2 17.1
Equipment and software licences purchased 1,094.3 1,053.2 1,013.6 975.5 938.9 903.6 869.7 837.0
1,121.4 1,078.6 1,037.4 997.8 959.7 923.1 887.9 854.0
Finished goods and work-in-progress
Opening stock (3.0)
Less: Closing stock
(3.0) - - - - - - -
Cost of equipment and software licences 1,118.4 1,078.6 1,037.4 997.8 959.7 923.1 887.9 854.0

Raw materials, sub-assemblies and components consumed ( 6.4%) ( 6.4%) ( 6.4%) ( 6.4%) ( 6.4%) ( 6.4%) ( 6.4%) ( 6.4%)
Equipment and software licences purchased ( 3.8%) ( 3.8%) ( 3.8%) ( 3.8%) ( 3.8%) ( 3.8%) ( 3.8%) ( 3.8%)

Page 15 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Other operating expenses:

Fees to external consultants 19,498.1 21,837.8 24,458.4 27,393.4 30,680.6 34,362.3 38,485.8 43,104.0
Facility expenses 1,958.2 1,792.7 1,641.1 1,502.4 1,375.4 1,259.1 1,152.7 1,055.2
Travel expenses 1,586.2 1,583.4 1,580.5 1,577.7 1,574.9 1,572.1 1,569.3 1,566.5
Communication expenses 2,343.8 2,679.6 3,063.6 3,502.7 4,004.6 4,578.5 5,234.6 5,984.8
Bad debts and advances written off, allowance for doubtful trade receivables 145.6 157.1 169.4 182.8 197.1 212.6 229.4 247.4
Other expenses 7,194.1 7,773.3 8,399.1 9,075.3 9,806.0 10,595.5 11,448.6 12,370.4
Other expenses 32,725.9 35,823.8 39,312.2 43,234.3 47,638.7 52,580.2 58,120.3 64,328.3
Growth (%) 9.2% 9.5% 9.7% 10.0% 10.2% 10.4% 10.5% 10.7%

Fees to external consultants 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Facility expenses ( 8.5%) ( 8.5%) ( 8.5%) ( 8.5%) ( 8.5%) ( 8.5%) ( 8.5%) ( 8.5%)
Travel expenses ( 0.2%) ( 0.2%) ( 0.2%) ( 0.2%) ( 0.2%) ( 0.2%) ( 0.2%) ( 0.2%)
Communication expenses 14.3% 14.3% 14.3% 14.3% 14.3% 14.3% 14.3% 14.3%
Bad debts and advances written off, allowance for doubtful trade receivables 7.9% 7.9% 7.9% 7.9% 7.9% 7.9% 7.9% 7.9%
Other expenses 8.1% 8.1% 8.1% 8.1% 8.1% 8.1% 8.1% 8.1%

Finance costs:

Interest on lease liabilities 821.5 925.0 1,035.5 1,150.8 1,268.9 1,387.7 1,505.1 1,619.4
Interest on tax matters
Other interest costs
Total Finance Cost 821.5 925.0 1,035.5 1,150.8 1,268.9 1,387.7 1,505.1 1,619.4

Page 16 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Property, plant and equipment 10,827.7 10,916.3 11,002.9 11,050.8 11,023.8 10,888.0 10,611.1 10,163.8
Capital work-in-progress 514.0 412.0 373.0 334.0 295.0 256.0 217.0 178.0
Right-of-use assets 8,529.0 9,472.6 10,450.5 11,446.3 12,443.9 13,427.7 14,383.1 15,296.5
Capital Assets 19,870.7 20,800.9 21,826.4 22,831.1 23,762.7 24,571.6 25,211.2 25,638.3

Property, plant and equipment:

Freehold land:
Gross Opening Balance 352.0 352.0 352.0 352.0 352.0 352.0 352.0 352.0
Additions - - - - - - - -
Disposals - - - - - - - -
Exchange Diff
Gross Closing Balance 352.0 352.0 352.0 352.0 352.0 352.0 352.0 352.0
Accumulated depreciation as at Previous Year - - - - - - - -
Disposals - - - - - - - -
Depreciation for the year Not Dep - - - - - - - -
Exchange Diff
Accumulated depreciation as at Current Year - - - - - - - -
Net Carrying Amount 352.0 352.0 352.0 352.0 352.0 352.0 352.0 352.0

Buildings:
Gross Opening Balance 7,829.0 8,162.6 8,526.4 8,918.3 9,336.0 9,776.9 10,238.8 10,719.2
Additions 340.5 371.1 399.5 425.6 449.3 470.5 489.5 506.3
Disposals (7.0) (7.3) (7.6) (7.9) (8.3) (8.7) (9.1) (9.6)
Exchange Diff
Gross Closing Balance 8,162.6 8,526.4 8,918.3 9,336.0 9,776.9 10,238.8 10,719.2 11,215.9
Accumulated depreciation as at Previous Year (3,343.0) (3,876.1) (4,427.5) (4,998.7) (5,590.8) (6,205.0) (6,842.5) (7,504.1)
Disposals 83.8% 5.8 6.1 6.4 6.7 7.0 7.3 7.6 8.0
Depreciation for the year 15.0 20.0 (539.0) (557.5) (577.5) (598.8) (621.2) (644.8) (669.2) (694.6)
Exchange Diff
Accumulated depreciation as at Current Year (3,876.1) (4,427.5) (4,998.7) (5,590.8) (6,205.0) (6,842.5) (7,504.1) (8,190.6)
Net Carrying Amount 4,286.5 4,098.9 3,919.7 3,745.2 3,571.9 3,396.3 3,215.1 3,025.3

Additions Freehold land % of Revenue - - - - - - - -

Disposals Freehold land % of Gross Op - - - - - - - -
Additions Buildings % of Revenue 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
Disposals Buildings % of Gross Op 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Revenue 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5

Page 17 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Plant and equipment

Gross Opening Balance 770.0 878.2 996.1 1,122.8 1,257.7 1,400.0 1,548.7 1,703.3
Additions 110.0 119.8 129.0 137.4 145.1 152.0 158.1 163.5
Disposals (1.7) (2.0) (2.3) (2.5) (2.9) (3.2) (3.5) (3.9)
Exchange Diff
Gross Closing Balance 878.2 996.1 1,122.8 1,257.7 1,400.0 1,548.7 1,703.3 1,862.9
Accumulated depreciation as at Previous Year (377.0) (458.3) (545.5) (638.9) (739.0) (846.2) (960.8) (1,083.0)
Disposals 66.7% 1.2 1.3 1.5 1.7 1.9 2.1 2.3 2.6
Depreciation for the year 10.0 20.0 (82.5) (88.5) (94.9) (101.8) (109.1) (116.7) (124.6) (132.7)
Exchange Diff
Accumulated depreciation as at Current Year (458.3) (545.5) (638.9) (739.0) (846.2) (960.8) (1,083.0) (1,213.2)
Net Carrying Amount 419.9 450.6 483.9 518.7 553.7 588.0 620.3 649.8

Computer equipment
Gross Opening Balance 12,087.0 12,957.9 13,917.5 14,952.2 16,048.2 17,192.1 18,371.2 19,573.9
Additions 1,466.8 1,598.5 1,720.9 1,833.2 1,935.1 2,026.8 2,108.5 2,180.9
Disposals (595.9) (638.9) (686.2) (737.2) (791.2) (847.6) (905.8) (965.1)
Exchange Diff
Gross Closing Balance 12,957.9 13,917.5 14,952.2 16,048.2 17,192.1 18,371.2 19,573.9 20,789.8
Accumulated depreciation as at Previous Year (8,563.0) (9,321.2) (10,171.4) (11,119.5) (12,171.3) (13,332.5) (14,608.4) (16,004.1)
Disposals 96.1% 572.7 614.0 659.4 708.5 760.4 814.6 870.5 927.5
Depreciation for the year 10.0 12.0 (1,330.9) (1,464.1) (1,607.5) (1,760.3) (1,921.6) (2,090.5) (2,266.2) (2,447.9)
Exchange Diff
Accumulated depreciation as at Current Year (9,321.2) (10,171.4) (11,119.5) (12,171.3) (13,332.5) (14,608.4) (16,004.1) (17,524.6)
Net Carrying Amount 3,636.6 3,746.1 3,832.7 3,876.8 3,859.5 3,762.8 3,569.8 3,265.2

Additions Plant & Eq % of Revenue 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Disposals Plant & Eq % of Gross Op 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
Additions Computer Eq % of Revenue 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7%
Disposals Computer Eq % of Gross Op 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9%
Revenue 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5

Page 18 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Vehicles
Gross Opening Balance 39.0 42.0 45.2 48.7 52.4 56.3 60.2 64.2
Additions 5.2 5.6 6.1 6.5 6.8 7.2 7.5 7.7
Disposals (2.2) (2.4) (2.6) (2.8) (3.0) (3.2) (3.4) (3.7)
Exchange Diff
Gross Closing Balance 42.0 45.2 48.7 52.4 56.3 60.2 64.2 68.3
Accumulated depreciation as at Previous Year (35.0) (37.3) (40.0) (43.0) (46.3) (50.0) (54.2) (58.7)
Disposals 90.0% 2.0 2.2 2.3 2.5 2.7 2.9 3.1 3.3
Depreciation for the year 10.0 12.0 (4.3) (4.8) (5.3) (5.8) (6.4) (7.0) (7.6) (8.3)
Exchange Diff
Accumulated depreciation as at Current Year (37.3) (40.0) (43.0) (46.3) (50.0) (54.2) (58.7) (63.7)
Net Carrying Amount 4.6 5.2 5.7 6.1 6.2 6.0 5.5 4.6

Office equipment
Gross Opening Balance 2,686.0 2,857.1 3,045.5 3,249.3 3,466.3 3,694.2 3,931.1 4,175.0
Additions 249.6 272.0 292.8 311.9 329.2 344.8 358.7 371.1
Disposals (78.5) (83.5) (89.0) (95.0) (101.3) (108.0) (114.9) (122.0)
Exchange Diff
Gross Closing Balance 2,857.1 3,045.5 3,249.3 3,466.3 3,694.2 3,931.1 4,175.0 4,424.0
Accumulated depreciation as at Previous Year (2,315.0) (2,461.4) (2,621.0) (2,794.8) (2,983.5) (3,187.9) (3,408.9) (3,646.9)
Disposals 97.9% 76.9 81.8 87.2 93.0 99.2 105.7 112.5 119.5
Depreciation for the year 13.0 15.0 (223.3) (241.4) (260.9) (281.7) (303.6) (326.6) (350.6) (375.3)
Exchange Diff
Accumulated depreciation as at Current Year (2,461.4) (2,621.0) (2,794.8) (2,983.5) (3,187.9) (3,408.9) (3,646.9) (3,902.7)
Net Carrying Amount 395.7 424.5 454.6 482.8 506.3 522.2 528.1 521.3

Additions Vehicles % of Revenue 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Disposals Vehicles % of Gross Op 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7%
Additions Office equip % of Revenue 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Disposals Office equip % of Gross Op 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9%
Revenue 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5

Page 19 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Electrical installations
Gross Opening Balance 2,062.0 2,240.0 2,434.1 2,642.7 2,863.7 3,095.5 3,336.2 3,584.1
Additions 222.1 242.0 260.6 277.6 293.0 306.9 319.2 330.2
Disposals (44.1) (47.9) (52.0) (56.5) (61.2) (66.2) (71.3) (76.6)
Exchange Diff
Gross Closing Balance 2,240.0 2,434.1 2,642.7 2,863.7 3,095.5 3,336.2 3,584.1 3,837.7
Accumulated depreciation as at Previous Year (1,503.0) (1,680.9) (1,871.3) (2,074.9) (2,292.7) (2,525.4) (2,773.8) (3,038.3)
Disposals 97.7% 43.1 46.8 50.9 55.2 59.8 64.7 69.7 74.9
Depreciation for the year 10.0 15.0 (221.0) (237.1) (254.5) (273.0) (292.5) (313.0) (334.3) (356.3)
Exchange Diff
Accumulated depreciation as at Current Year (1,680.9) (1,871.3) (2,074.9) (2,292.7) (2,525.4) (2,773.8) (3,038.3) (3,319.8)
Net Carrying Amount 559.1 562.9 567.7 571.0 570.1 562.4 545.8 517.9

Furniture and fixtures

Gross Opening Balance 1,906.0 2,100.6 2,311.8 2,537.6 2,775.6 3,023.5 3,279.4 3,541.0
Additions 258.2 281.4 303.0 322.7 340.7 356.8 371.2 384.0
Disposals (63.7) (70.2) (77.2) (84.8) (92.7) (101.0) (109.5) (118.3)
Exchange Diff
Gross Closing Balance 2,100.6 2,311.8 2,537.6 2,775.6 3,023.5 3,279.4 3,541.0 3,806.7
Accumulated depreciation as at Previous Year (1,654.0) (1,802.8) (1,964.4) (2,139.6) (2,329.4) (2,534.5) (2,755.8) (2,993.8)
Disposals 92.6% 59.0 65.0 71.5 78.5 85.9 93.6 101.5 109.6
Depreciation for the year 10.0 12.0 (207.8) (226.6) (246.8) (268.3) (291.0) (314.8) (339.5) (365.1)
Exchange Diff
Accumulated depreciation as at Current Year (1,802.8) (1,964.4) (2,139.6) (2,329.4) (2,534.5) (2,755.8) (2,993.8) (3,249.4)
Net Carrying Amount 297.7 347.4 397.9 446.1 489.0 523.6 547.2 557.3

Additions Electric instal % of Revenue 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Disposals Electric instal % of Gross Op 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1%
Additions Furni & fix's % of Revenue 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Disposals Furni & fix's % of Gross Op 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3%
Revenue 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5

Page 20 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Leasehold improvements
Gross Opening Balance 2,569.0 2,790.5 3,032.2 3,291.3 3,564.7 3,849.6 4,143.1 4,442.7
Additions 328.8 358.4 385.8 411.0 433.8 454.4 472.7 488.9
Disposals (107.4) (116.6) (126.7) (137.5) (149.0) (160.9) (173.1) (185.7)
Exchange Diff
Gross Closing Balance 2,790.5 3,032.2 3,291.3 3,564.7 3,849.6 4,143.1 4,442.7 4,746.0
Accumulated depreciation as at Previous Year (1,736.0) (1,914.9) (2,103.6) (2,302.7) (2,512.8) (2,734.5) (2,968.5) (3,215.4)
Disposals 88.0% 94.4 102.6 111.5 121.0 131.0 141.5 152.3 163.3
Depreciation for the year 10.0 20.0 (273.3) (291.3) (310.6) (331.1) (352.8) (375.5) (399.1) (423.6)
Exchange Diff
Accumulated depreciation as at Current Year (1,914.9) (2,103.6) (2,302.7) (2,512.8) (2,734.5) (2,968.5) (3,215.4) (3,475.6)
Net Carrying Amount 875.6 928.7 988.7 1,052.0 1,115.1 1,174.6 1,227.3 1,270.3

Additions Furni & fix's % of Revenue 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
Disposals Furni & fix's % of Gross Op 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2%
Revenue 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5

Total Depreciation 2,882.1 3,111.3 3,358.0 3,620.9 3,898.3 4,188.9 4,491.2 4,803.8
Disposals Sold 900.5 968.7 1,043.6 1,124.2 1,209.6 1,298.7 1,390.7 1,484.7
Disposals Dep Adjust (855.1) (919.7) (990.7) (1,067.0) (1,147.9) (1,232.4) (1,319.5) (1,408.6)
Total Capex on PP&E (2,981.2) (3,248.9) (3,497.6) (3,725.9) (3,933.1) (4,119.3) (4,285.5) (4,432.6)
Capital work-in-progress 691.0 102.0 39.0 39.0 39.0 39.0 39.0 39.0
Total Capex (2,290.2) (3,146.9) (3,458.6) (3,686.9) (3,894.1) (4,080.3) (4,246.5) (4,393.6)

Capital work-in-progress

Opening Balance 1,205.0 514.0 412.0 373.0 334.0 295.0 256.0 217.0
- Current Year Adjustment (691.0) (102.0) (39.0) (39.0) (39.0) (39.0) (39.0) (39.0)
Closing Balance 514.0 412.0 373.0 334.0 295.0 256.0 217.0 178.0

Page 21 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Other intangible assets 847.8 536.8 158.3 268.2 292.2 305.1 307.0 297.9

Acquired contract rights:

Gross Opening Balance 372.0 372.0 372.0 372.0 372.0 372.0 372.0 372.0
Additions - - - - - - - -
Disposals - - - - - - - -
Exchange Diff
Gross Closing Balance 372.0 372.0 372.0 372.0 372.0 372.0 372.0 372.0
Accumulated Amortisation as at Previous Year (372.0) (372.0) (372.0) (372.0) (372.0) (372.0) (372.0) (372.0)
Disposals - - - - - - - - -
Amortisation for the year - - - - - - - - - -
Exchange Diff
Accumulated depreciation as at Current Year (372.0) (372.0) (372.0) (372.0) (372.0) (372.0) (372.0) (372.0)
Net Carrying Amount - - - - - - - -

Rights under licensing agreement and software licences:

Gross Opening Balance 1,697.0 2,046.0 2,418.5 2,810.9 3,219.6 3,640.9 4,071.4 4,508.0
Additions 416.8 454.2 489.0 520.9 549.8 575.9 599.1 619.7
Disposals (67.7) (81.7) (96.6) (112.2) (128.5) (145.4) (162.5) (180.0)
Exchange Diff
Gross Closing Balance 2,046.0 2,418.5 2,810.9 3,219.6 3,640.9 4,071.4 4,508.0 4,947.7
Accumulated Amortisation as at Previous Year (596.0) (1,198.2) (1,881.7) (2,652.7) (2,951.4) (3,348.7) (3,766.3) (4,201.0)
Disposals 69.0% 46.8 56.4 66.7 77.5 88.8 100.4 112.2 124.3
Amortisation for the year 3.0 5.0 (649.0) (739.9) (837.7) (376.2) (486.1) (517.9) (546.9) (573.1)
Exchange Diff
Accumulated depreciation as at Current Year (1,198.2) (1,881.7) (2,652.7) (2,951.4) (3,348.7) (3,766.3) (4,201.0) (4,649.8)
Net Carrying Amount 847.8 536.8 158.3 268.2 292.2 305.1 307.0 297.9

Amortization Schedule:
Old Asset (565.7) (565.7) (565.7)
F2023E 416.8 (83.4) (83.4) (83.4) (83.4) (83.4)
F2024E 454.2 (90.8) (90.8) (90.8) (90.8) (90.8)
F2025E 489.0 (97.8) (97.8) (97.8) (97.8) (97.8)
F2026E 520.9 (104.2) (104.2) (104.2) (104.2) (104.2)
F2027E 549.8 (110.0) (110.0) (110.0) (110.0)
F2028E 575.9 (115.2) (115.2) (115.2)
F2029E 599.1 (119.8) (119.8)
F2030E 619.7 (123.9)

Page 22 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Customer - related intangibles

Gross Opening Balance 121.0 121.0 121.0 121.0 121.0 121.0 121.0 121.0
Additions - - - - - - - -
Disposals - - - - - - - -
Exchange Diff
Gross Closing Balance 121.0 121.0 121.0 121.0 121.0 121.0 121.0 121.0
Accumulated Amortisation as at Previous Year (121.0) (121.0) (121.0) (121.0) (121.0) (121.0) (121.0) (121.0)
Disposals - - - - - - - - -
Amortisation for the year 2.0 3.0 - - - - - - - -
Exchange Diff
Accumulated depreciation as at Current Year (121.0) (121.0) (121.0) (121.0) (121.0) (121.0) (121.0) (121.0)
Net Carrying Amount - - - - - - - -

Additions Acq contract % of Revenue - - - - - - - -

Disposals Acq contract % of Gross Op - - - - - - - -
Additions Licsng & Soft % of Revenue 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
Disposals Licsng & Soft % of Gross Op 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Additions Customer % of Revenue - - - - - - - -
Disposals Customer % of Gross Op - - - - - - - -
Revenue 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5

Total Depreciation PP&E 2,882.1 3,111.3 3,358.0 3,620.9 3,898.3 4,188.9 4,491.2 4,803.8
Total Amortization Intangibles 649.0 739.9 837.7 376.2 486.1 517.9 546.9 573.1
Total Depreciation Lease 622.4 708.0 800.1 898.2 1,001.7 1,110.2 1,223.1 1,339.8
Total 4,153.6 4,559.1 4,995.7 4,895.2 5,386.2 5,817.0 6,261.2 6,716.7

Total Capex Amortisation (416.8) (454.2) (489.0) (520.9) (549.8) (575.9) (599.1) (619.7)
Disposals Sold 67.7 81.7 96.6 112.2 128.5 145.4 162.5 180.0
Disposals Dep Adjust (46.8) (56.4) (66.7) (77.5) (88.8) (100.4) (112.2) (124.3)

Goodwill:
Balance at the beginning of the year 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0
Additional amount recognised from business combination during the year
Translation exchange difference
Balance at the end of the year 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0 1,787.0

Page 23 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Right-of-use assets 8,529.0 9,472.6 10,450.5 11,446.3 12,443.9 13,427.7 14,383.1 15,296.5

Leasehold land
Opening Balance 774.0 839.2 909.7 984.0 1,060.3 1,137.2 1,213.0 1,286.5
+ Additions 150.1 163.6 176.1 187.6 198.0 207.4 215.8 223.2
- Exchange Diff
- Depreciation on Existing Assets 10.0 (77.4) (77.4) (77.4) (77.4) (77.4) (77.4) (77.4) (77.4)
- Depreciation on New Assets 20.0
F2023E 150.1 (7.5) (7.5) (7.5) (7.5) (7.5) (7.5) (7.5) (7.5)
F2024E 163.6 (8.2) (8.2) (8.2) (8.2) (8.2) (8.2) (8.2)
F2025E 176.1 (8.8) (8.8) (8.8) (8.8) (8.8) (8.8)
F2026E 187.6 (9.4) (9.4) (9.4) (9.4) (9.4)
F2027E 198.0 (9.9) (9.9) (9.9) (9.9)
F2028E 207.4 (10.4) (10.4) (10.4)
F2029E 215.8 (10.8) (10.8)
F2030E 223.2 (11.2)
Total Depreciation (84.9) (93.1) (101.9) (111.3) (121.2) (131.5) (142.3) (153.5)

Closing Balance 839.2 909.7 984.0 1,060.3 1,137.2 1,213.0 1,286.5 1,356.2

Buildings
Opening Balance 6,586.0 7,359.4 8,177.8 9,027.9 9,895.9 10,768.4 11,632.5 12,476.0
+ Additions 1,276.3 1,390.9 1,497.4 1,595.1 1,683.8 1,763.5 1,834.6 1,897.6
- Disposals
- Depreciation on Existing Assets 15.0 (439.1) (439.1) (439.1) (439.1) (439.1) (439.1) (439.1) (439.1)
- Depreciation on New Assets 20.0
F2023E 1,276.3 (63.8) (63.8) (63.8) (63.8) (63.8) (63.8) (63.8) (63.8)
F2024E 1,390.9 (69.5) (69.5) (69.5) (69.5) (69.5) (69.5) (69.5)
F2025E 1,497.4 (74.9) (74.9) (74.9) (74.9) (74.9) (74.9)
F2026E 1,595.1 (79.8) (79.8) (79.8) (79.8) (79.8)
F2027E 1,683.8 (84.2) (84.2) (84.2) (84.2)
F2028E 1,763.5 (88.2) (88.2) (88.2)
F2029E 1,834.6 (91.7) (91.7)
F2030E 1,897.6 (94.9)
Total Depreciation (502.9) (572.4) (647.3) (727.0) (811.2) (899.4) (991.1) (1,086.0)

Closing Balance 7,359.4 8,177.8 9,027.9 9,895.9 10,768.4 11,632.5 12,476.0 13,287.6

Page 24 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Leasehold improvements
Opening Balance 23.0 26.1 29.5 32.9 36.5 40.0 43.6 47.0
+ Additions 5.7 6.2 6.7 7.1 7.5 7.9 8.2 8.5
- Disposals
- Exchange Diff
- Depreciation on Existing Assets 10.0 (2.3) (2.3) (2.3) (2.3) (2.3) (2.3) (2.3) (2.3)
- Depreciation on New Assets 20.0
F2023E 5.7 (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3)
F2024E 6.2 (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3)
F2025E 6.7 (0.3) (0.3) (0.3) (0.3) (0.3) (0.3)
F2026E 7.1 (0.4) (0.4) (0.4) (0.4) (0.4)
F2027E 7.5 (0.4) (0.4) (0.4) (0.4)
F2028E 7.9 (0.4) (0.4) (0.4)
F2029E 8.2 (0.4) (0.4)
F2030E 8.5 (0.4)
Total Depreciation (2.6) (2.9) (3.2) (3.6) (4.0) (4.4) (4.8) (5.2)

Closing Balance 26.1 29.5 32.9 36.5 40.0 43.6 47.0 50.3

Computer equipment
Opening Balance 81.0 99.6 118.1 136.3 153.6 169.8 184.4 197.1
+ Additions 29.1 31.7 34.2 36.4 38.4 40.2 41.8 43.3
- Exchange Diff
- Depreciation on Existing Assets 10.0 (8.1) (8.1) (8.1) (8.1) (8.1) (8.1) (8.1) (8.1)
- Depreciation on New Assets 12.0
F2023E 29.1 (2.4) (2.4) (2.4) (2.4) (2.4) (2.4) (2.4) (2.4)
F2024E 31.7 (2.6) (2.6) (2.6) (2.6) (2.6) (2.6) (2.6)
F2025E 34.2 (2.8) (2.8) (2.8) (2.8) (2.8) (2.8)
F2026E 36.4 (3.0) (3.0) (3.0) (3.0) (3.0)
F2027E 38.4 (3.2) (3.2) (3.2) (3.2)
F2028E 40.2 (3.4) (3.4) (3.4)
F2029E 41.8 (3.5) (3.5)
F2030E 43.3 (3.6)
Total Depreciation (10.5) (13.2) (16.0) (19.0) (22.2) (25.6) (29.1) (32.7)

Closing Balance 99.6 118.1 136.3 153.6 169.8 184.4 197.1 207.7
Page 25 TCS Financial Model
 Tata Consultancy Services, Inc.
#VALUE!

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Software licences
Opening Balance 133.0 155.2 177.4 199.1 219.6 238.6 255.6 270.1
+ Additions 38.8 42.2 45.5 48.4 51.1 53.6 55.7 57.6
- Exchange Diff
- Depreciation on Existing Assets 10.0 (13.3) (13.3) (13.3) (13.3) (13.3) (13.3) (13.3) (13.3)
- Depreciation on New Assets 12.0
F2023E 38.8 (3.2) (3.2) (3.2) (3.2) (3.2) (3.2) (3.2) (3.2)
F2024E 42.2 (3.5) (3.5) (3.5) (3.5) (3.5) (3.5) (3.5)
F2025E 45.5 (3.8) (3.8) (3.8) (3.8) (3.8) (3.8)
F2026E 48.4 (4.0) (4.0) (4.0) (4.0) (4.0)
F2027E 51.1 (4.3) (4.3) (4.3) (4.3)
F2028E 53.6 (4.5) (4.5) (4.5)
F2029E 55.7 (4.6) (4.6)
F2030E 57.6 (4.8)
Total Depreciation (16.5) (20.1) (23.8) (27.9) (32.1) (36.6) (41.2) (46.1)

Closing Balance 155.2 177.4 199.1 219.6 238.6 255.6 270.1 281.7

Vehicles
Opening Balance 32.0 40.4 48.7 56.9 64.8 72.1 78.8 84.6
+ Additions 12.6 13.8 14.8 15.8 16.7 17.5 18.2 18.8
- Depreciation on Existing Assets 10.0 (3.2) (3.2) (3.2) (3.2) (3.2) (3.2) (3.2) (3.2)
- Depreciation on New Assets 12.0
F2023E 12.6 (1.1) (1.1) (1.1) (1.1) (1.1) (1.1) (1.1) (1.1)
F2024E 13.8 (1.1) (1.1) (1.1) (1.1) (1.1) (1.1) (1.1)
F2025E 14.8 (1.2) (1.2) (1.2) (1.2) (1.2) (1.2)
F2026E 15.8 (1.3) (1.3) (1.3) (1.3) (1.3)
F2027E 16.7 (1.4) (1.4) (1.4) (1.4)
F2028E 17.5 (1.5) (1.5) (1.5)
F2029E 18.2 (1.5) (1.5)
F2030E 18.8 (1.6)
Total Depreciation (4.3) (5.4) (6.6) (8.0) (9.3) (10.8) (12.3) (13.9)

Closing Balance 40.4 48.7 56.9 64.8 72.1 78.8 84.6 89.5

Page 26 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Office equipment
Opening Balance 7.0 9.1 11.3 13.5 15.6 17.8 19.8 21.7
+ Additions 2.8 3.1 3.3 3.6 3.8 3.9 4.1 4.2
- Exchange Diff
- Depreciation on Existing Assets 13.0 (0.5) (0.5) (0.5) (0.5) (0.5) (0.5) (0.5) (0.5)
- Depreciation on New Assets 15.0
F2023E 2.8 (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2)
F2024E 3.1 (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2)
F2025E 3.3 (0.2) (0.2) (0.2) (0.2) (0.2) (0.2)
F2026E 3.6 (0.2) (0.2) (0.2) (0.2) (0.2)
F2027E 3.8 (0.3) (0.3) (0.3) (0.3)
F2028E 3.9 (0.3) (0.3) (0.3)
F2029E 4.1 (0.3) (0.3)
F2030E 4.2 (0.3)
Total Depreciation (0.7) (0.9) (1.2) (1.4) (1.6) (1.9) (2.2) (2.5)

Closing Balance 9.1 11.3 13.5 15.6 17.8 19.8 21.7 23.5

Total Depreciation 622.4 708.0 800.1 898.2 1,001.7 1,110.2 1,223.1 1,339.8
Total Capex (1,515.5) (1,651.5) (1,778.0) (1,894.0) (1,999.3) (2,094.0) (2,178.5) (2,253.3)

Capex as % of Revenue

Leasehold land 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Buildings 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6%
Leasehold improvements 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Computer equipment 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Software licences 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Vehicles 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Office equipment 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Revenue 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5

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#VALUE!

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Total Lease
Opening Balance 6,368.0 5,731.2 5,094.4 4,457.6 3,820.8 3,184.0 2,547.2 1,910.4
+ Interest Amount 12.9% 821.5 739.3 657.2 575.0 492.9 410.7 328.6 246.4
- Lease Payments 10.0 (1,458.3) (1,376.1) (1,294.0) (1,211.8) (1,129.7) (1,047.5) (965.4) (883.2)
Closing Balance 5,731.2 5,094.4 4,457.6 3,820.8 3,184.0 2,547.2 1,910.4 1,273.6

New Lease Liability

Beginning Balance - 1,439.7 2,932.9 4,463.6 6,015.6 7,573.0 9,120.4 10,643.3
+ Additions 1,515.5 1,651.5 1,778.0 1,894.0 1,999.3 2,094.0 2,178.5 2,253.3
+ Interest 12.9% - 185.7 378.3 575.8 776.0 976.9 1,176.5 1,373.0
Principal Payments 20.0
F2023E 1,515.5 (75.8) (75.8) (75.8) (75.8) (75.8) (75.8) (75.8) (75.8)
F2024E 1,651.5 (82.6) (82.6) (82.6) (82.6) (82.6) (82.6) (82.6)
F2025E 1,778.0 (88.9) (88.9) (88.9) (88.9) (88.9) (88.9)
F2026E 1,894.0 (94.7) (94.7) (94.7) (94.7) (94.7)
F2027E 1,999.3 (100.0) (100.0) (100.0) (100.0)
F2028E 2,094.0 (104.7) (104.7) (104.7)
F2029E 2,178.5 (108.9) (108.9)
F2030E 2,253.3 (112.7)
Total Principal Payments (75.8) (158.3) (247.2) (341.9) (441.9) (546.6) (655.5) (768.2)

- Lease Payments 75.8 344.1 625.6 917.7 1,217.9 1,523.5 1,832.1 2,141.2
Closing Balance of New Lease 1,439.7 2,932.9 4,463.6 6,015.6 7,573.0 9,120.4 10,643.3 12,128.4

Closing Balance of PV Long term Lease 7,170.9 8,027.3 8,921.2 9,836.4 10,757.0 11,667.6 12,553.7 13,402.0
- Current Maturity (1,850.0) (1,618.0) (1,067.0) (1,067.0) (1,067.0) (1,067.0) (1,067.0) (1,016.0)
Closing Balance of Long term Lease 5,320.9 6,409.3 7,854.2 8,769.4 9,690.0 10,600.6 11,486.7 12,386.0

Lease Payments Old + New (712.6) (795.1) (884.0) (978.7) (1,078.7) (1,183.4) (1,292.3) (1,405.0)
Current Maturity Repayment Previous Yr's (1,450.0)
Total Lease Payments (2,162.6) (795.1) (884.0) (978.7) (1,078.7) (1,183.4) (1,292.3) (1,405.0)

Lease Liability Addition 1,515.5 1,651.5 1,778.0 1,894.0 1,999.3 2,094.0 2,178.5 2,253.3

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 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Investments - Non-current: Financial assets

Mutual fund units - - - - - - - -

Fully paid equity shares (unquoted)
Mozido LLC 78.5 81.0 83.7 86.4 89.2 92.1 95.1 98.2
FCM LLC 58.8 60.6 62.5 64.4 66.4 68.5 70.6 72.8
Taj Air Limited 19.0 19.0 19.0 19.0 19.0 19.0 19.0 19.0
Philippine Dealing System Holdings Corporation 7.5 8.1 8.7 9.3 10.0 10.7 11.5 12.3
KOOH Sports Private Limited - - - - - - - -
- Impairment in value of investments (135.9) (150.3) (166.1) (183.5) (202.9) (224.2) (247.8) (273.9)
Government securities 201.5 217.2 234.0 252.2 271.8 292.9 315.6 340.1
Corporate debentures and bonds - - - - - - - -
Investments - Non-current: Financial assets 229.3 235.6 241.8 247.8 253.5 259.0 264.1 268.6

Mozido LLC 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3%
FCM LLC 3.1% 3.1% 3.1% 3.1% 3.1% 3.1% 3.1% 3.1%
Philippine Dealing System Holdings Corporation 7.3% 7.3% 7.3% 7.3% 7.3% 7.3% 7.3% 7.3%
- Impairment in value of investments 10.5% 10.5% 10.5% 10.5% 10.5% 10.5% 10.5% 10.5%
Government securities 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8%

Investments - Current: Financial assets

Mutual fund units 1,728.5 1,594.2 1,470.4 1,356.3 1,250.9 1,153.8 1,064.2 981.6
Government securities 26,541.6 27,446.0 28,381.2 29,348.3 30,348.3 31,382.4 32,451.8 33,557.6
Corporate debentures and bonds 931.5 698.6 524.0 393.0 294.7 221.0 165.8 124.3
Certificate of deposits 100.0 101.0 102.0 103.0 104.0 105.1 106.1 107.2
Corporate bonds 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8
Commercial papers 400.1 420.1 441.1 463.1 486.3 510.6 536.1 562.9
Treasury bills 989.0 989.0 989.0 989.0 989.0 989.0 989.0 989.0
Investments - Current: Financial assets 30,700.7 31,259.1 31,918.0 32,663.1 33,483.8 34,372.6 35,323.7 36,333.4

Mutual fund units ( 7.8%) ( 7.8%) ( 7.8%) ( 7.8%) ( 7.8%) ( 7.8%) ( 7.8%) ( 7.8%)
Government securities 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4%
Corporate debentures and bonds ( 25.0%) ( 25.0%) ( 25.0%) ( 25.0%) ( 25.0%) ( 25.0%) ( 25.0%) ( 25.0%)
Certificate of deposits 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Corporate bonds 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Commercial papers 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Page 29 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Other financial assets:

Non-Current
Security deposits 830.9 836.8 842.7 848.7 854.8 860.8 867.0 873.1
Earmarked balances with banks 183.0 183.0 183.0 183.0 183.0 183.0 183.0 183.0
Interest receivable - - - - - - - -
Others 1,319.8 1,399.1 1,483.1 1,572.2 1,666.6 1,766.8 1,872.9 1,985.4
Non-Current - Total 2,333.7 2,418.8 2,508.8 2,603.9 2,704.4 2,810.6 2,922.8 3,041.5

Current
Security deposits 190.0 202.8 216.5 231.2 246.8 263.4 281.2 300.2
Fair value of foreign exchange derivative assets 388.0 388.0 388.0 388.0 388.0 388.0 388.0 388.0
Interest receivable 658.5 669.2 680.0 691.0 702.2 713.6 725.2 736.9
Others 193.6 213.0 234.3 257.7 283.4 311.8 343.0 377.3
Current - Total 1,430.1 1,473.0 1,518.8 1,567.9 1,620.4 1,676.8 1,737.3 1,802.4

Non-Current
Security deposits 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7%
Earmarked balances with banks - - - - - - - -
Interest receivable - - - - - - - -
Others 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%

Current
Security deposits 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8%
Fair value of foreign exchange derivative assets - - - - - - - -
Interest receivable 1.6% 1.6% 1.6% 1.6% 1.6% 1.6% 1.6% 1.6%
Others 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%

Investments 30,930.0 31,494.7 32,159.8 32,910.8 33,737.3 34,631.5 35,587.8 36,602.0

Financial Assets 3,763.8 3,891.8 4,027.6 4,171.8 4,324.8 4,487.4 4,660.2 4,843.9
Loan 8,958.1 11,946.4 16,003.1 21,512.1 28,995.0 39,161.0 52,974.2 71,745.3
Change in Investment (2,767.9) (3,681.0) (4,857.6) (6,404.2) (8,462.5) (11,222.8) (14,942.2) (19,969.0)

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 Tata Consultancy Services, Inc.
Financial Liabilities
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Financial liabilities:

Non-Current
Capital creditors 188.6 104.9 58.4 32.5 18.1 10.1 5.6 3.1
Others 210.3 189.9 171.4 154.8 139.7 126.1 113.9 102.8
Non-Current 399.0 294.8 229.8 187.2 157.8 136.2 119.5 105.9
Current
Accrued payroll 6,240.6 6,989.5 7,828.3 8,767.6 9,819.8 10,998.1 12,317.9 13,796.1
Current maturities of finance lease obligations - - - - - - - -
Unclaimed dividends 51.5 57.7 64.6 72.4 81.1 90.8 101.7 113.9
Fair value of foreign exchange derivative liabilities 143.4 160.6 179.8 201.4 225.6 252.6 283.0 316.9
Capital creditors 863.5 967.1 1,083.2 1,213.2 1,358.8 1,521.8 1,704.4 1,909.0
Liabilities towards customer contracts 1,053.5 1,073.3 1,093.5 1,114.1 1,135.1 1,156.4 1,178.2 1,200.4
Others 152.3 170.6 191.1 214.0 239.7 268.4 300.7 336.7
Current 8,504.8 9,418.8 10,440.5 11,582.7 12,859.9 14,288.3 15,885.9 17,673.0

Change in Financial Liabilities 644.8 809.9 956.7 1,099.7 1,247.8 1,406.8 1,580.9 1,773.5

Non-Current
Capital creditors ( 44.4%) ( 44.4%) ( 44.4%) ( 44.4%) ( 44.4%) ( 44.4%) ( 44.4%) ( 44.4%)
Others ( 9.7%) ( 9.7%) ( 9.7%) ( 9.7%) ( 9.7%) ( 9.7%) ( 9.7%) ( 9.7%)
Current
Accrued payroll 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Current maturities of finance lease obligations - - - - - - - -
Unclaimed dividends 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Fair value of foreign exchange derivative liabilities 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Capital creditors 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Liabilities towards customer contracts 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9%
Others 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%

Page 31 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Trade Receivables:

Receivables outstanding for the year 38,903.3 42,280.4 45,642.2 48,620.7 51,324.2 53,608.3 55,923.2 57,843.5
- Allowance for doubtful trade receivables 1,595.8 1,734.4 1,872.3 1,994.5 2,105.4 2,199.1 2,294.0 2,372.8
Considered as Good 37,307.5 40,546.0 43,769.9 46,626.2 49,218.9 51,409.2 53,629.2 55,470.7
- Receivables within year 37,181.6 40,409.2 43,622.2 46,468.9 49,052.8 51,235.7 53,448.2 55,283.5
Non - Current 125.9 136.8 147.7 157.4 166.1 173.5 181.0 187.2

Unbilled / Unearned Revenue - Non Current Asset - - - - - - - -

Unbilled / Unearned Revenue - Current Asset 7,736.0 7,736.0 7,736.0 7,736.0 7,736.0 7,736.0 7,736.0 7,736.0
Unearned and deferred revenue - Non Current Liability 1,110.0 1,110.0 1,110.0 1,110.0 1,110.0 1,110.0 1,110.0 1,110.0
Unearned and deferred revenue - current Liability 3,635.0 3,635.0 3,635.0 3,635.0 3,635.0 3,635.0 3,635.0 3,635.0
Trade payables 8,424.6 8,433.9 8,489.4 8,522.1 8,555.0 8,603.3 8,699.4 8,772.8
Inventory 10.5 9.8 9.2 8.6 8.0 7.5 7.0 6.6

Receivables Days 67.0 67.0 67.0 67.0 67.0 67.0 67.0 67.0
Doubtful TR % 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1%
Receiavbles in Yr % 99.7% 99.7% 99.7% 99.7% 99.7% 99.7% 99.7% 99.7%
Payable Days 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2
Inventory Days 140.9 140.9 140.9 140.9 140.9 140.9 140.9 140.9

Days in Year 365.0 366.0 365.0 365.0 365.0 366.0 365.0 365.0
Revenue 211,935.9 230,964.7 248,647.6 264,874.0 279,602.2 292,845.2 304,656.5 315,117.5
Cost of Goods Sold 109,129.5 109,548.7 109,968.5 110,391.9 110,818.7 111,748.9 112,688.9 113,639.0
Raw materials, sub-assemblies and components consumed 27.1 25.4 23.8 22.2 20.8 19.5 18.2 17.1

Page 32 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Income Tax

Profit Before Tax 67,886.0 83,478.8 97,474.9 110,348.0 120,962.7 129,541.2 136,646.7 142,497.3
Indian statutory income tax rate 34.9% 34.9% 34.9% 34.9% 34.9% 34.9% 34.9% 34.9%
Expected Tax Expense 23,677.3 29,115.7 33,997.3 38,487.2 42,189.4 45,181.4 47,659.6 49,700.2
Tax holidays (4,930.6) (5,073.3) (5,220.1) (5,371.1) (5,526.5) (5,686.4) (5,850.9) (6,020.2)
Income exempt from tax (443.5) (496.7) (556.4) (623.1) (697.9) (781.6) (875.4) (980.5)
Undistributed earnings in branches and subsidiaries (52.6) (59.0) (66.0) (74.0) (82.8) (92.8) (103.9) (116.4)
Tax on income at different rates 1,097.6 1,229.3 1,376.8 1,542.0 1,727.1 1,934.3 2,166.5 2,426.4
Tax pertaining to prior years (853.4) (955.9) (1,070.6) (1,199.0) (1,342.9) (1,504.1) (1,684.5) (1,886.7)
Others (net) 216.2 242.1 271.2 303.7 340.1 380.9 426.7 477.9
Total income tax expense 18,710.8 24,002.3 28,732.3 33,065.7 36,606.5 39,431.9 41,738.0 43,600.8

Indian statutory income tax rate 34.9% 34.9% 34.9% 34.9% 34.9% 34.9% 34.9% 34.9%
Tax holidays 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9%
Income exempt from tax 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Undistributed earnings in branches and subsidiaries 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Tax on income at different rates 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Tax pertaining to prior years 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Others (net) 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%

Income tax assets (net) 1,983.0 1,983.0 1,983.0 1,983.0 1,983.0 1,983.0 1,983.0 1,983.0
Deferred tax assets (net) 3,708.0 3,708.0 3,708.0 3,708.0 3,708.0 3,708.0 3,708.0 3,708.0
Income tax assets (net) 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0
Deferred tax liabilities (net) 590.0 590.0 590.0 590.0 590.0 590.0 590.0 590.0
Income tax liabilities (net) 7,921.0 7,921.0 7,921.0 7,921.0 7,921.0 7,921.0 7,921.0 7,921.0

Page 33 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Loan
Loans - Non-current
Loans and advances to employees 11.5 16.4 23.6 33.8 48.4 69.4 99.4 142.5
Inter-corporate deposits 303.0 303.0 303.0 303.0 303.0 303.0 303.0 303.0
Loans - Non-current 314.5 319.4 326.6 336.8 351.4 372.4 402.4 445.5

Loans - Current
Loans and advances to employees 387.6 404.9 422.9 441.8 461.5 482.1 503.6 526.1
Inter-corporate deposits 8,256.1 11,222.1 15,253.6 20,733.5 28,182.1 38,306.5 52,068.1 70,773.7
Loans - Current 8,643.6 11,627.0 15,676.6 21,175.3 28,643.6 38,788.6 52,571.8 71,299.8

Other assets
Non-current
Contract assets 170.4 169.8 169.3 168.7 168.1 167.6 167.0 166.4
Prepaid expenses 1,445.9 1,619.4 1,813.8 2,031.4 2,275.2 2,548.2 2,854.0 3,196.5
Prepaid rent - - - - - - - -
Contract fulfillment costs 168.0 188.2 210.7 236.0 264.4 296.1 331.6 371.4
Capital advances 87.4 97.8 109.6 122.7 137.5 154.0 172.4 193.1
Advances to related parties 25.8 28.9 32.3 36.2 40.5 45.4 50.8 56.9
Others 347.2 388.9 435.5 487.8 546.3 611.9 685.3 767.5
Considered good 2,244.7 2,493.0 2,771.2 3,082.9 3,432.0 3,823.1 4,261.2 4,751.9

Current
Contract assets 4,672.8 5,140.1 5,654.1 6,219.5 6,841.4 7,525.6 8,278.2 9,106.0
Prepaid expenses 3,353.3 3,755.7 4,206.4 4,711.1 5,276.5 5,909.6 6,618.8 7,413.0
Prepaid rent 17.7 17.4 17.0 16.7 16.4 16.1 15.8 15.5
Contract fulfillment costs 1,202.9 1,347.2 1,508.9 1,690.0 1,892.8 2,119.9 2,374.3 2,659.2
Advance to suppliers 208.1 214.4 220.8 227.5 234.3 241.4 248.7 256.2
Advance to related parties 9.0 10.0 11.2 12.6 14.1 15.8 17.7 19.8
Indirect tax recoverable 1,467.2 1,643.3 1,840.5 2,061.3 2,308.7 2,585.7 2,896.0 3,243.5
Other advances 332.6 372.6 417.3 467.3 523.4 586.2 656.6 735.4
Considered good 11,263.5 12,500.5 13,876.2 15,406.0 17,107.6 19,000.3 21,106.0 23,448.6

Total Loan 8,958.1 11,946.4 16,003.1 21,512.1 28,995.0 39,161.0 52,974.2 71,745.3
Total Other Assets 13,508.2 14,993.5 16,647.4 18,488.9 20,539.6 22,823.4 25,367.1 28,200.5
Change in Other assets (1,334.2) (1,485.4) (1,653.8) (1,841.5) (2,050.7) (2,283.9) (2,543.7) (2,833.4)
Capital work-in-progress 691.0 102.0 39.0 39.0 39.0 39.0 39.0 39.0
Change in Other assets / WIP (643.2) (1,383.4) (1,614.8) (1,802.5) (2,011.7) (2,244.9) (2,504.7) (2,794.4)

Page 34 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Other balances with banks

Earmarked balances with banks 264.6 309.7 362.5 424.3 496.7 581.5 680.7 796.8
Short-term bank deposits 6,167.8 6,908.0 7,736.9 8,665.4 9,705.2 10,869.8 12,174.2 13,635.1
Other balances with banks 6,432.4 7,217.7 8,099.4 9,089.7 10,201.9 11,451.3 12,854.9 14,431.9

Loans - Non-current
Loans and advances to employees 43.3% 43.3% 43.3% 43.3% 43.3% 43.3% 43.3% 43.3%
Inter-corporate deposits - - - - - - - -

Loans - Current
Loans and advances to employees 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%
Inter-corporate deposits 35.9% 35.9% 35.9% 35.9% 35.9% 35.9% 35.9% 35.9%

Non-current
Contract assets ( 0.3%) ( 0.3%) ( 0.3%) ( 0.3%) ( 0.3%) ( 0.3%) ( 0.3%) ( 0.3%)
Prepaid expenses 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Prepaid rent - - - - - - - -
Contract fulfillment costs 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Capital advances 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Advances to related parties 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Others 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%

Current
Contract assets 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Prepaid expenses 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Prepaid rent ( 1.8%) ( 1.8%) ( 1.8%) ( 1.8%) ( 1.8%) ( 1.8%) ( 1.8%) ( 1.8%)
Contract fulfillment costs 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Advance to suppliers 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Advance to related parties 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Indirect tax recoverable 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%
Other advances 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%

Other balances with banks

Earmarked balances with banks 17.1% 17.1% 17.1% 17.1% 17.1% 17.1% 17.1% 17.1%
Short-term bank deposits 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%

Page 35 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Employee benefit obligations

Non-Current
Gratuity liability 14.6 16.3 18.3 20.5 22.9 25.7 28.7 32.2
Foreign defined benefit plans 548.8 614.7 688.4 771.0 863.5 967.2 1,083.2 1,213.2
Other employee benefit obligations 194.9 218.3 244.5 273.8 306.6 343.4 384.7 430.8
Non-Current 758.2 849.2 951.1 1,065.3 1,193.1 1,336.3 1,496.6 1,676.2
Current
Compensated absences 4,211.2 4,716.5 5,282.5 5,916.4 6,626.4 7,421.6 8,312.2 9,309.6
Other employee benefit obligations 57.9 67.1 77.7 90.0 104.2 120.7 139.8 162.0
Current 4,269.1 4,783.6 5,360.2 6,006.4 6,730.6 7,542.3 8,452.0 9,471.6
Change in Employee benefit obligations 540.4 605.5 678.5 760.3 852.0 954.8 1,070.1 1,199.2

Other liabilities
Non-Current
Others - - - - - - - -
Operating lease liabilities - - - - - - - -
Non-Current - - - - - - - -
Current
Advance received from customers 524.2 587.1 657.5 736.4 824.8 923.7 1,034.6 1,158.8
Indirect taxes payable and other statutory liabilities 4,067.8 4,556.0 5,102.7 5,715.0 6,400.8 7,168.9 8,029.2 8,992.7
Tax liability on buy-back of equity shares 4,192.0 4,192.0 4,192.0 4,192.0 4,192.0 4,192.0 4,192.0 4,192.0
Others 110.0 121.0 133.1 146.4 161.1 177.2 194.9 214.4
Current 8,894.0 9,456.0 10,085.3 10,789.8 11,578.7 12,461.8 13,450.7 14,557.8
Change in Other liabilities 502.0 562.0 629.3 704.5 788.8 883.2 988.8 1,107.1

Provisions
Non-Current
Provision for foreseeable loss - - - - - - - -
Non-Current - - - - - - - -
Current
Provision towards legal claim 1,288.2 1,328.6 1,370.3 1,413.3 1,457.7 1,503.4 1,550.6 1,599.2
Provision for foreseeable loss 146.7 164.3 184.0 206.1 230.9 258.6 289.6 324.4
Other provisions 32.6 34.2 35.9 37.7 39.6 41.5 43.6 45.8
Current 1,467.5 1,527.1 1,590.2 1,657.1 1,728.1 1,803.5 1,883.8 1,969.4
Change in Provisions 56.5 59.7 63.1 66.9 71.0 75.4 80.3 85.6

Borrowings
Long-term maturities of finance lease obligations - - - - - - - -

Page 36 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Equity
Share capital 362.0 362.0 358.0 358.0 354.0 354.0 350.0 346.0
Other equity 99,194.0 139,883.6 170,015.5 228,659.9 269,561.3 341,197.6 392,823.5 448,630.1
Non-controlling interests 805.0 935.8 1,095.9 1,283.1 1,492.8 1,720.7 1,963.8 2,219.6

Profit For The Year 49,175.2 59,476.5 68,742.6 77,282.3 84,356.2 90,109.4 94,908.7 98,896.5
Non-controlling interests Profit 156.0 188.7 218.1 245.2 267.7 285.9 301.1 313.8
Buyback of Shares (4.0) (4.0) (4.0) (4.0) (4.0)
Portion ( % ) 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%

Dividend paid (18,598.1) (18,598.1) (18,392.6) (18,392.6) (18,187.1) (18,187.1) (17,981.6) (17,776.1)
Dividend paid to non-controlling interests (58.0) (58.0) (58.0) (58.0) (58.0) (58.0) (58.0) (58.0)

Dividend paid Per Share 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4
Dividend paid to non-controlling interests Per Share 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Other equity
Opening Balance 88,773.0 99,194.0 139,883.6 170,015.5 228,659.9 269,561.3 341,197.6 392,823.5
- Current Year Profit 49,019.1 59,287.7 68,524.5 77,037.0 84,088.5 89,823.4 94,607.5 98,582.7
- Dividend paid (18,598.1) (18,598.1) (18,392.6) (18,392.6) (18,187.1) (18,187.1) (17,981.6) (17,776.1)
- Buyback of Shares (20,000.0) (20,000.0) (25,000.0) (25,000.0) (25,000.0)
Other equity 99,194.0 139,883.6 170,015.5 228,659.9 269,561.3 341,197.6 392,823.5 448,630.1

Non-controlling interests
Opening Balance 707.0 805.0 935.8 1,095.9 1,283.1 1,492.8 1,720.7 1,963.8
Current Year Profit 156.0 188.7 218.1 245.2 267.7 285.9 301.1 313.8
Dividend paid (58.0) (58.0) (58.0) (58.0) (58.0) (58.0) (58.0) (58.0)
Non-controlling interests 805.0 935.8 1,095.9 1,283.1 1,492.8 1,720.7 1,963.8 2,219.6

Cost of Buyback of Shares (20,004.0) - (20,004.0) - (25,004.0) - (25,004.0) (25,004.0)

Page 37 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Free Cash Flows:

Profit Before Tax 67,886.0 83,478.8 97,474.9 110,348.0 120,962.7 129,541.2 136,646.7 142,497.3
+ Depreciation & Amortization 4,153.6 4,559.1 4,995.7 4,895.2 5,386.2 5,817.0 6,261.2 6,716.7
EBITDA 72,039.5 88,037.9 102,470.6 115,243.2 126,348.8 135,358.2 142,907.9 149,214.0
Growth (%) 28.0% 22.2% 16.4% 12.5% 9.6% 7.1% 5.6% 4.4%
- Tax Payable 18,710.8 24,002.3 28,732.3 33,065.7 36,606.5 39,431.9 41,738.0 43,600.8
NOPAT 53,328.7 64,035.6 73,738.4 82,177.5 89,742.4 95,926.4 101,169.8 105,613.2
Non-Cash Expenses
Depreciation and amortisation expense 4,153.6 4,559.1 4,995.7 4,895.2 5,386.2 5,817.0 6,261.2 6,716.7
Bad debts and advances written off 262.8 138.5 137.9 122.2 110.9 93.7 95.0 78.8
Working Capital Adjustments
Inventories 9.5 0.7 0.6 0.6 0.6 0.5 0.5 0.5
Trade receivables - - - - - - - -
Loans and other financial assets (2,767.9) (3,681.0) (4,857.6) (6,404.2) (8,462.5) (11,222.8) (14,942.2) (19,969.0)
Other assets / Capital WP (643.2) (1,383.4) (1,614.8) (1,802.5) (2,011.7) (2,244.9) (2,504.7) (2,794.4)
Trade payables 379.6 9.3 55.5 32.7 33.0 48.2 96.1 73.3
Operating Free Cash Flows 54,723.2 63,678.9 72,455.7 79,021.4 84,798.8 88,418.3 90,175.6 89,719.1
- Capex (4,496.7) (4,900.4) (5,275.6) (5,619.9) (5,932.4) (6,213.3) (6,464.0) (6,685.9)
Free Cash Flows to Firm Calculated 50,226.5 58,778.5 67,180.1 73,401.5 78,866.4 82,204.9 83,711.7 83,033.2

Discounted Cash Flow Analysis

Time Period:
Valuation Date / Financial Closing Date 3/31/2023 3/31/2024 3/31/2025 3/31/2026 3/31/2027 3/31/2028 3/31/2029 3/31/2030
Date of NPV Calculation 11/14/2022 9/30/2023 9/29/2024 9/29/2025 9/29/2026 9/30/2027 9/29/2028 9/29/2029
Year Fraction 0.8 1.0 1.0 1.0 1.0 1.0 1.0 1.0

EBITDA 72,039.5 88,037.9 102,470.6 115,243.2 126,348.8 135,358.2 142,907.9 149,214.0

Free Cash Flows to Firm Calculated 50,226.5 58,778.5 67,180.1 73,401.5 78,866.4 82,204.9 83,711.7 83,033.2

Terminal Value Calculation:

Terminal Value - Exist Multiple 2,685,852.8
Terminal Value - Perpetual Growth 1,006,132.2
Terminal Value - Average 1,845,992.5

Page 38 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Forecasted
F2023E F2024E F2025E F2026E F2027E F2028E F2029E F2030E

Date of NPV Calculation 11/14/2022 9/30/2023 9/29/2024 9/29/2025 9/29/2026 9/30/2027 9/29/2028 9/29/2029
Year Fraction 0.8 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Free Cash Flows to Firm Calculated 50,226.5 58,778.5 67,180.1 73,401.5 78,866.4 82,204.9 83,711.7 83,033.2

Free Cash Flows Valuation 37,669.9 58,778.5 67,180.1 73,401.5 78,866.4 82,204.9 83,711.7 83,033.2
Terminal Value - - - - - - - 1,845,992.5
Total Free Cash Flows 37,669.9 58,778.5 67,180.1 73,401.5 78,866.4 82,204.9 83,711.7 1,929,025.7

Implied Market Capitalization Calculation: Sensitivity Input: ( Only affect Valuation section )

NPV - FCFF 325,827.2 Discount rate

NPV - Terminal Value 657,609.2 Terminal Value / EBITDA Multiple
Implied Enterprise Value 983,436.4
- Total Debt (29,996.0) Sensitivity Table
+ Cash Balance 16,651.2 Exist Multiple
Implied Market Capitalization Value 970,091.6 16.0x 17.0x 18.0x 19.0x 20.0x
Fully Diluted Outstanding Shares 365.9 14.3%

Discount Rate
Implied Equity Share Price 2,651.4 14.8%
15.3%
15.8%
16.3%

* Sensitivity Table is hardcorded. While changing any multiple pls make change table to see effect

Page 39 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Comparable Companies Beta Walmart WACC Calculation

Total Mkt. Val. Debt / 5-yr's Avg Levered Unlevered Target Capital Structure:
Name Ticker Debt Equity Equity Tax rate Beta (5yr's) Beta F2022A F2023E
Infosys INFY.NS 76.7 667,927.9 0.0x 48.3% 0.7x 0.7x Proportion of Debt 2.3% 3.0%
Tech Mahindra TECHM.NS 2,618.0 103,692.9 0.0x 48.3% 0.9x 0.8x Proportion of Equity 97.7% 97.0%
L&T Infotech LTI.NS 835.0 86,106.7 0.0x 48.3% 0.9x 0.8x Debt / Equity 0.0x 0.0x
Mindtree MINDTREE.NS 580.0 58,295.9 0.0x 48.3% 0.8x 0.8x
Oracle Fin Serv OFSS.NS 83.4 29,166.4 0.0x 48.3% 0.5x 0.5x Cost of Debt:
Persistent PERSISTENT.NS 578.0 28,454.2 0.0x 48.3% 1.0x 1.0x Interest on Debt 12.9%
Coforge Ltd. COFORGE.NS 602.0 23,107.7 0.0x 48.3% 0.8x 0.8x Effective Tax rate 34.9%
Affle India AFFLE.NS 149.0 15,572.9 0.0x 48.3% 1.7x 1.7x Kd 8.4%
Route ROUTE.NS 16.2 9,183.1 0.0x 48.3% 0.0x 0.0x
Mphasis MPHASIS.NS 1,160.0 44,654.0 0.0x 48.3% 0.9x 0.9x Cost of Equity:
Mastek MASTEK.NS 203.0 5,999.1 0.0x 48.3% 1.9x 1.9x Risk free rate 7.3%
Expleo Solution EXPLEOSOL.NS - 1,480.7 0.0x 48.3% 0.0x 0.0x Equity risk premium 6.9%
Wipro WIPRO.NS 19,788.0 238,546.7 0.1x 48.3% 0.8x 0.7x Country risk premium 2.2%
Hcl Tech HCLTECH.NS 80.9 259,184.4 0.0x 48.3% 0.8x 0.8x Levered Beta 0.9x
Cyient CYIENT.NS 579.0 9,116.6 0.1x 48.3% 1.2x 1.2x Ke 15.5%

Average 0.8x WACC 15.3%

Data Source:
https://finance.yahoo.com/
https://worldpopulationreview.com/country-rankings/effective-corporate-tax-rate-by-country

WACC as per Regression Analysis

Cost of Debt: Target Capital Structure:

Interest on Debt 12.9% F2022A F2023E
Effective Tax rate 34.9% Proportion of Debt 2.3% 3.0%
Kd 8.4% Proportion of Equity 97.7% 97.0%
Debt / Equity ratio 0.0x
Cost of Equity:
Risk free rate 7.3% WACC 12.6%
Equity risk premium 6.9%
Country risk premium 2.2%
Beta as per Regression 0.5x
Ke 12.8%

Page 40 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's expect Share Price Based on: Base Case Senario

Company Names Mrkt Cap Net Debt Enterprise Value EV / Revenue EV / EBITDA EV / Net Income Mrkt Cap / NI Markt Cap / FCFF

Tata Consultancy Services 1,244,967.3 (32,664.0) 1,212,303.3 6.1x 23.2x 31.2x 32.1x 39.7x

Infosys 667,927.9 (203.3) 667,724.6 393.5x 1609.0x 2263.5x 2264.2x 3092.3x

Tech Mahindra 103,692.9 (5,672.0) 98,020.9 2.1x 13.2x 18.3x 19.4x
L&T Infotech 86,106.7 (3,047.0) 83,059.7 5.0x 27.2x 34.1x 35.4x 166.9x
Mindtree 58,295.9 (3,139.0) 55,156.9 4.9x 24.2x 31.0x 32.7x 42.8x
Oracle Fin Serv 29,166.4 (4,934.6) 24,231.8 4.6x 10.2x 13.1x 15.7x
Persistent 28,454.2 (771.0) 27,683.2 4.4x 26.3x 36.9x 37.9x
Coforge Ltd. 23,107.7 267.0 23,374.7 3.4x 20.9x 34.0x 33.6x
Affle India 15,572.9 (456.0) 15,116.9 11.8x 60.2x 64.9x 66.8x
Route 9,183.1 (982.8) 8,200.3 3.5x 31.9x 40.6x 45.5x
Mphasis 44,654.0 (1,489.0) 43,165.0 3.4x 21.0x 28.9x 29.9x 30.6x
Mastek 5,999.1 (579.0) 5,420.1 2.4x 11.2x 17.9x 19.8x
Expleo Solution 1,480.7 - 1,480.7 3.4x 18.4x 25.4x 25.4x
Wipro 238,546.7 (11,085.0) 227,461.7 2.8x 14.5x 19.7x 20.7x 71.1x
Hcl Tech 259,184.4 (105.1) 259,079.3 219.7x 996.5x 1439.3x 1439.9x 1825.2x
Cyient 9,116.6 (723.0) 8,393.6 1.8x 10.6x 16.0x 17.4x

849,632.7 (32,664.0) 816,968.7 4.1x

1,197,497.5 (32,664.0) 1,164,833.5 22.3x
1,168,990.5 (32,664.0) 1,136,326.5 29.3x
1,194,359.1 30.8x
2,440,438.5 77.8x

Range as per Comp's 2,321.4 3,271.9 3,194.0 3,263.3 6,667.9

Page 41 TCS Financial Model

 Tata Consultancy Services, Inc.
#VALUE!
₹ in Cr's Based on: Base Case Senario

Date Analyst Name LTP Low High Type

4/12/2022 Arihant Capital 3,401.6 3,528.1 3,720.0 Buy
4/12/2022 Axis Direct 3,401.6 3,691.1 4,200.0 Buy
4/14/2022 Anand Rathi 3,401.6 3,556.8 4,350.0 Buy
4/20/2022 Geojit BNP Paribas 3,401.6 3,612.6 3,718.0 Hold
6/16/2022 Emkay 3,401.6 3,223.0 4,000.0 Buy
6/16/2022 ICICI Securities 3,401.6 3,168.0 3,206.3 Sell
6/21/2022 IDBI Capital 3,401.6 3211.95 3,410.0 Hold
7/9/2022 HDFC Securities 3,401.6 3,265.5 3,620.0 Buy
7/9/2022 Motilal Oswal 3,401.6 3,113.8 3,730.0 Buy
7/10/2022 Prabhudas Lilladhar 3,401.6 3,113.8 3,607.0 Buy
7/11/2022 Axis Direct 3,401.6 3,113.8 3,460.0 Hold
7/11/2022 ICICI Direct 3,401.6 3,113.8 3,785.0 Buy

Average 3,401.6 3,309.3 3,733.9

Page 42 TCS Financial Model

 Tata Consultancy Services, Inc.
Income Statement

Horizontal Analysis
F2017A F2018A F2019A F2020A F2021A F2022A F2017A F2018A

Revenue from operations 4.4% 19.0% 7.2% 4.6% 16.8% 96.5% 97.1%
Other income ( 13.7%) 18.4% 6.5% ( 31.8%) 28.2% 3.5% 2.9%
Total Income
0
Growth (%) 3.7% 19.0% 7.1% 3.6% 17.0% 100.0% 100.0%
0
Expenses
Employee benefit expenses 7.7% 17.8% 9.8% 6.8% 17.1% 50.4% 52.4%
Cost of equipment and software licences ( 3.8%) ( 15.9%) ( 16.1%) ( 23.3%) ( 20.5%) 2.3% 2.1%
Finance costs 62.5% 280.8% 366.7% ( 31.1%) 23.1% 0.0% 0.0%
Depreciation and amortisation expense 1.4% 2.1% 71.6% 15.2% 13.3% 1.6% 1.6%
Other expenses 1.3% 23.0% 2.0% ( 9.7%) 23.1% 17.4% 17.0%
Total Expenses

Growth (%) 5.7% 17.9% 9.2% 2.5% 17.8% 71.8% 73.1%

Profit Before Exceptional Item And Tax ( 1.2%) 21.9% 1.6% 6.5% 14.9% 28.2% 26.9%
Exceptional item
Provision towards legal claim
Profit Before Tax ( 1.2%) 21.9% 1.6% 3.6% 18.1% 28.2% 26.9%

Tax expense
Total Tax Expense 0.7% 21.8% ( 2.0%) 14.3% 18.2% 6.7% 6.5%

Profit For The Year ( 1.8%) 22.0% 2.8% 0.4% 18.1% 21.6% 20.4%

Profit Margin ( % )

Non-controlling interests ( 20.6%) 66.7% 18.9% 23.4% ( 7.6%) 0.1% 0.0%

Shareholders of the Company ( 1.8%) 21.9% 2.8% 0.3% 18.2% 21.5% 20.4%

Segments:

Banking, Financial Services & Insurance 1.9% 19.7% 5.4% 7.4% 14.5% 40.3% 39.3%
Manufacturing 7.0% 17.4% 5.0% ( 3.1%) 16.7% 10.6% 10.9%
Retail and Consumer Business 2.9% 19.5% 4.4% ( 2.6%) 20.0% 17.3% 17.1%
Communication, Media & Technology 8.2% 13.2% 8.6% 4.2% 17.7% 16.5% 17.2%
Other. 6.4% 24.1% 14.2% 10.3% 18.4% 15.3% 15.5%
4.4% 19.0% 7.2% 4.6% 16.8% 100.0% 100.0%
Page 43 TCS Financial Model
* API fication -> A technology that allows org to interact & share information with other firms at an unprecedented scale

Page 44 TCS Financial Model

tancy Services, Inc.
me Statement

Vertical Analysis
F2019A F2020A F2021A F2022A

97.1% 97.2% 98.1% 97.9%

2.9% 2.8% 1.9% 2.1%

100.0% 100.0% 100.0% 100.0%

51.9% 53.2% 54.9% 54.9%

1.5% 1.2% 0.9% 0.6%
0.1% 0.6% 0.4% 0.4%
1.4% 2.2% 2.4% 2.4%
17.5% 16.7% 14.6% 15.3%

72.4% 73.8% 73.1% 73.6%

27.6% 26.2% 26.9% 26.4%

27.6% 26.2% 26.2% 26.4%

6.6% 6.1% 6.7% 6.8%

20.9% 20.1% 19.5% 19.6%

0.1% 0.1% 0.1% 0.1%

20.9% 20.0% 19.4% 19.6%

Detail Breakup

39.6% 38.9% 40.0% 39.2%

10.7% 10.5% 9.7% 9.7%
17.2% 16.7% 15.6% 16.0%
16.3% 16.6% 16.5% 16.6%
16.2% 17.3% 18.2% 18.5%
100.0% 100.0% 100.0% 100.0%
Page 45 TCS Financial Model
Page 46 TCS Financial Model
 Tata Consultancy Services, Inc.
#VALUE!

An IT services, consulting and business solutions organization offering transformational as well as outsourcing services to global enterprises

Global Presence:

Consulting and service integration

Digital transformation services + Industry leading suite of products & plantforms to deliver high quality, high impact solutions
Cognitive business operations – targeting every C-suite stakeholder leveringing the lastest technologies to customers across the world.

Our geographic footprint: TCS Business Segments:

1 North America 1 Banking, Financial Services & Insurance

2 Latin America 2 Manufacturing
3 The united kingdom 3 Retail and Consumer Business
4 Continental Europe 4 Communication, Media & Technology
5 Asia-Pacific 5 Other.
6 India
7 Middle-East & Africa

Business Life Cycle:

F2004A F2005A F2006A F2007A F2008A F2009A F2010A F2011A F2012A F2013A
Revenue - 9,748.5 13,264.0 18,685.2 22,619.5 27,812.9 30,028.9 37,324.5 48,893.8 62,989.5
Profit 15.6 1,977.5 4,223.0 7,399.2 10,747.1 13,944.6 18,835.7 9,068.0 10,413.5 13,917.3
Cash 27.8 274.7 432.4 1,396.5 1,223.4 2,698.1 4,718.6 4,700.9 5,813.1 6,769.2

250000
Business Life Cycle:
200000 191,754.0

150000

100000

50000 38,449.0
18,556.0

0
F2004A F2005A F2006A F2007A F2008A F2009A F2010A F2011A F2012A F2013A F2014A F2015A F2016A F2017A F2018A F2019A F2020A F2021A F2022A

Revenue Profit Cash

Page 47 TCS Financial Model