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COMPANY FINALYTICS
HCL Technologies Ltd
Exclusive Financial Analysis of Indian Companies
Prepared and Edited By‐
Tanay Roy, CFA
Peu Karak, MBA
Disclaimer
The information, opinions, estimates and forecasts contained in this document have been arrived at or obtained from public sources believed
to be reliable and in good faith which has not been independently verified and no warranty, express or implied, is made as to their accuracy,
completeness or correctness.
For more information about this sample and our other services, please write to tanay.roy2008@gmail.com
Monday, September 19, 2011
2. Description Page
Summary 3
Latest Result 3
Valuation Matrix 3
ROE Analysis 3
Income Statement 4
Balance Sheet 5
Cashflow Statement 6
Quarterly Result 6
Growth Analysis 7
Comparative Analysis 8
Income Statement 8
Balance Sheet 8
Index Analysis 9
Income Statement 9
Balance Sheet 9
Ratio Analysis 10
Annual 10
Quarterly 11
TTM Analysis 11
Technical Analysis 12
CONTENT
About Tanay & Peu
Our passion lies in the field of financial research & Investment management and we intend to apply
our knowledge gained over a period of years through intense study and keen observation of the
nuances of financial markets and instruments to real life scenarios. We possess expert knowledge of
financial products and markets as evidenced by top notch qualifications earned by us , all in the first
attempt and keep ourselves abreast with the latest happenings and innovations taking place in
financial landscape.
1. Expertise in Portfolio Management, Product optimization, Product performance Analysis, Financial
Reporting/ Planning, Cash Flow Analysis, Ratio Analysis, Budgeting, Forecasting, Mergers &
Acquisition and knowledge of GAAP/ IFRS
2. Possess Strong Financial Modeling skills including DCF, LBO and other techniques. Possess ability to
research all asset classes in a broad range of industries and geographies.
3. Strong equity research, finance, accounting and advisory and assurance experience
4. Expertise in Technical analysis, fundamental analysis, developing trading systems.
5. Conduct in‐depth financial analysis of company financials.
6. Write analytical or trend based reports on companies, sectors or markets.
7. Expert level application in Bloomberg, Thomson Banker, Factset, Datastream, StockVal, Merger
markets, Reuters Knowledge, Haver Analytics, Factiva, PackHedge,
8. Building Excel/VBA based customized tools to perform detailed analysis.
Contact Us: tanay.roy2008@gmail.com
Page 2
3. Summary
At a Glance
Latest Results Industry Computers ‐ Software
Yearly Quarterly TTM Business Group HCL Group
June ' 10 Growth June ' 11 Growth June ' 11 Growth Face Value 2
Latest Results
Number of Equity shares 6787.84
EBDITA 1568.91 1.33 549.95 14.82 1682.63 13.59
Reported Net
Profit 1056.24 5.91 385.59 48.29 1126.46 15.10 Price 388.1
Adjusted PAT 1093.51 13.23 385.59 104.85 NA NA
Market Cap(Rs. In Cr) 12552.78
Valuation Matrix Share Holding
Annual TTM Ratio General
Particulars June ' 10 March ' 11 Other Public
5% 3%
Reported P/E 24.93 27.31
FII
Price/Sales Per Share 5.19 4.33 21%
Price/ Book Value 5.34 NA BFI
Dividend Yield 0.01 NA 3%
Earning Yield 0.04 0.04 MF Promote
Market Cap(Rs. In Cr) 12552.78 3% r
65%
ROE Analysis
ROE
Particulars June ' 06 June ' 07 June ' 08 June ' 09 June ' 10 40%
Reported PAT / PBT 0.97 1.46 0.75 0.79 0.88 30%
Adjusted PAT / PBT 0.98 0.90 0.91 0.84 0.92 20%
PBT / PBIT 0.97 0.97 0.98 0.97 0.92 10%
PBIT / Sales 0.22 0.21 0.23 0.28 0.25 0%
Sales / Total Assets 0.81 0.77 0.80 0.71 0.60 June ' June ' June ' June ' June '
06 07 08 09 10
Total Assets / Net Worth 1.45 1.43 1.80 1.89 1.72
Reported ROE 24% 33% 24% 29% 21% Reported ROE Adjusted ROE
Adjusted ROE 25% 20% 30% 31% 22%
ROE Factors
2.00 35%
1.80
30%
1.60
1.40 25%
1.20 20%
1.00
0.80 15%
0.60 10%
0.40
5%
0.20
0.00 0%
June ' 06 June ' 07 June ' 08 June ' 09 June ' 10
Reported ROE Reported PAT / PBT PBT / PBIT
PBIT / Sales Sales / Total Assets Total Assets / Net Worth
Page 3
4. Income Statement
Particulars (Rs. In Cr) June ' 06 June ' 07 June ' 08 June ' 09 June ' 10
Net Sales 3032.92 3768.62 4615.39 4675.09 5078.76
Operating Expenses
Material Consumed 0.00 0.00 0.00 0.00 85.47
Manufacturing Expenses 476.97 577.24 746.92 592.67 521.70
Personnel Expenses 1123.51 1322.59 1621.35 1874.10 2137.82 Operating Income
Selling Expenses 11.09 17.82 29.68 14.83 19.85
6000.00
Adminstrative Expenses 611.59 913.89 990.48 803.82 900.27
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 5000.00
Total Operating Expenses 2223.16 2831.54 3388.43 3285.42 3665.11
4000.00
Operating Profit 809.76 937.08 1226.96 1389.67 1413.65
Other Income 6.55 16.07 62.85 158.67 155.26 3000.00
EBDITA 816.31 953.15 1289.81 1548.34 1568.91
2000.00
Depreciation 138.80 178.21 217.87 251.89 274.03
Other Write offs 0.00 0.00 0.00 0.00 0.00
1000.00
EBIT 677.51 774.94 1071.94 1296.45 1294.88
Interest 17.81 20.60 24.93 35.35 101.36 0.00
EBT 659.70 754.34 1047.01 1261.10 1193.52 June ' June ' June ' June ' June '
06 07 08 09 10
Income Tax 15.45 75.87 94.60 196.61 100.01
Adjusted PAT 644.25 678.47 952.41 1064.49 1093.51 Net Sales Operating Profit EBDITA
Non Recurring Items (5.87) 423.35 (171.76) (67.18) (40.70)
Other Non Cash adjustments 0.00 0.00 0.00 0.00 3.43
Reported Net Profit 638.38 1101.82 780.65 997.31 1056.24
Equity Dividend 516.10 525.59 598.58 469.61 270.20
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Dividend Tax 72.38 81.60 101.72 79.73 45.40
Retained Earnings 49.90 494.63 80.35 447.97 740.64
Profit Levels Total Income Break‐up
1800.00
Total Operating Expenses Depreciation
1600.00 Other Write offs Interest
1400.00 Income Tax Adjusted PAT
1200.00
1000.00
800.00
21%
600.00
400.00 2%
2%
0%
200.00 5%
0.00
70%
June ' 06 June ' 07 June ' 08 June ' 09 June ' 10
Operating Profit EBDITA EBIT
EBT Adjusted PAT
Page 4
5. Balance Sheet
Particulars (Rs. In Cr) June ' 06 June ' 07 June ' 08 June ' 09 June ' 10
SOURCES OF FUNDS
Owner's Fund
Equity Share Capital 64.69 132.74 133.27 134.05 135.76
Share Application Money 1.33 0.00 1.71 0.47 2.01
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves & Surplus 2511.18 3292.28 3079.85 3353.72 4798.09
Total Owners fund 2577.20 3425.02 3214.83 3488.24 4935.86
Loan Funds
Secured Loans 13.17 40.77 25.24 123.81 1030.51
Unsecured Loans 0.21 0.12 0.09 389.92 366.88
Total Loan fund 13.38 40.89 25.33 513.73 1397.39
Capital Structure
Total 2590.58 3465.91 3240.16 4001.97 6333.25
6000.00
USES OF FUNDS
Fixed Assets
Gross Block 1014.08 1332.67 1599.61 1957.86 2293.37 5000.00
Less : Revaluation Reserve 0.00 0.00 0.00 0.00 0.00
Less : Accumulated 4000.00
Depreciation 488.40 662.58 874.32 1100.88 1349.54
Net Block 525.68 670.09 725.29 856.98 943.83
Capital Work‐in‐progress 163.63 212.86 419.03 417.56 477.20 3000.00
Investments 1907.76 1988.86 1797.34 562.75 2233.20
Net Current Assets 2000.00
Current Assets, Loans &
Advances 1128.61 2027.86 2850.89 4760.07 4836.63
Less : Current Liabilities & 1000.00
Provisions 1135.10 1433.76 2552.39 2595.39 2157.61
Total Net Current Assets (6.49) 594.10 298.50 2164.68 2679.02
0.00
Miscellaneous expenses not
written 0.00 0.00 0.00 0.00 0.00 June ' June ' June ' June ' June '
Total 2590.58 3465.91 3240.16 4001.97 6333.25 06 07 08 09 10
Note :
Total Owners fund Total Loan fund
Book Value of Unquoted
Investments 1323.33 1988.86 1797.34 562.75 2233.20
Market Value of Quoted
Investments 10.11 0.00 0.00 0.00 0.00
Contingent liabilities 331.01 418.65 469.36 3317.46 2505.21
Number of Equity shares
outstanding (in Lacs) 3234.42 6636.83 6663.40 6702.57 6787.84
Sources of Capital Application of capital
Total Loan
fund
22% Capital Work‐
Net Block
in‐progress
Total Net 15%
8%
Current Assets
42%
Total Owners Investments
fund 35%
78%
Page 5
6. Cash Flow Statement
Particulars (Rs. In Cr) June ' 06 June ' 07 June ' 08 June ' 09 June ' 10
Profit Before Tax 653.83 1177.69 875.25 1193.92 1152.82
Net CashFlow‐Operating
Net Cash Flow
Activity 774.04 997.93 1056.84 587.94 739.26
Net Cash Used In Investing
Activity (133.33) (341.46) (148.53) 306.83 (1399.11)
306.83
NetCash Used in Fin. Activity
(641.79) (381.57) (602.26) (215.82) 583.38
Net Inc/Dec In Cash And 583.38
774.04 997.93 1056.84 587.94
Equivlnt (1.08) 274.90 305.94 678.95 (79.16) 739.26
Cash And Equivalnt Begin of (133.33) (148.53) (215.82)
Year 107.30 106.22 380.94 686.88 144.00 (341.46)
Cash And Equivalnt End Of (641.79) (381.57) (602.26) (1399.11)
Year 106.22 380.94 686.88 1365.83 64.84
Net CashFlow‐Operating Activity
Net Cash Used In Investing Activity
NetCash Used in Fin. Activity
Quarterly Result
September '
Particulars (Rs. In Cr) June ' 10 10 December ' 10 March ' 11 June ' 11
Sales 1,330.61 1,498.32 1,649.06 1,697.73 1,949.36
Less: Excise 0.00 0.00 0.00 0.00 0.00
Net Sales 1,330.61 1,498.32 1,649.06 1,697.73 1,949.36
Profit Levels
Other Income 35.61 42.02 38.53 37.86 47.12
Total Income 1,366.22 1,540.34 1,687.59 1,735.59 1,996.48
Stock Adjustment 0.00 0.00 0.00 0.00 0.00
Raw Material 0.00 0.00 0.00 0.00 0.00
Power And Fuel 0.00 0.00 0.00 0.00 0.00
Employee Expenses 619.88 766.82 830.23 830.92 831.12
Admin And Selling Expenses 0.00 0.00 0.00 0.00 0.00
Research And Devlopment Expe 0.00 0.00 0.00 0.00 0.00
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00
Other Expeses 397.76 453.18 451.11 498.58 615.41
Total Expenses 1,017.64 1,220.00 1,281.34 1,329.50 1,446.53
EBDITA 348.58 320.34 406.25 406.09 549.95
Provisions Made 0.00 0.00 0.00 0.00 0.00
Depreciation 73.43 73.43 72.15 69.54 76.25
EBIT 275.15 246.91 334.10 336.55 473.70
Interest 25.45 26.29 25.41 24.51 25.19
EBT 249.70 220.62 308.69 312.04 448.51
Taxation 11.88 25.74 22.72 52.02 62.92
Net Profit / Loss 237.82 194.88 285.97 260.02 385.59
Extra Ordinary Item 0.00 0.00 0.00 0.00 0.00 EBDITA EBIT
Prior Year Adjustments 0.00 0.00 0.00 71.79 0.00
EBT Net Profit / Loss
Page 6