Financial Model of Tata Technologies
Tata Technologies Financial Model 2021A 2022A
(amount in INR crore)
Balance Sheet 2021A 2022A
ASSETS
Non-Current Assets
Property, Plant and Equipment ₹ 50.98
Capital Work-in-Progress ₹ 0.04
Right-of-use Asset ₹ 81.50
Intangible Assets ₹ 27.32
Intangible Assets under Development ₹ 0.07
Investments in Subsidiaries and Joint Venture ₹ 218.91
Financial Assets:
Loans ₹ 0.25
Other Financial Assets ₹ 7.46
Income Tax Assets (Net) ₹ 21.97
Deferred Tax Assets ₹ 19.04
Other Non-Current Assets ₹ 8.47
Total Non-Current Assets ₹ 436.01
Current Assets
Financial Assets:
Investments
Trade Receivables
Billed
Unbilled
Cash and Cash Equivalents
Other bank balances
Loans
Other Financial Assets
Other Current Assets
Total Current Assets
EQUITY AND LIABILITIES
Equity
Equity Share Capital
Other Equity
Liabilities
Non-Current Liabilities
Financial Liabilities
Lease Liabilities
Other Financial Liabilities
Provisions
Total Non-Current Liabilities
Current Liabilities
Financial Liabilities
Lease Liabilities
Trade Payables:
Micro and Small Enterprises
Other Trade Payables
Provisions
Current Tax Liabilities
Other Current Liabilities
Total Current Liabilities
Total Liabilities
Total Equity and Liabilities
Forecasted Period
2023E 2024E 2025E 2026E 2027E 2028E 2029E
2023E 2024E 2025E 2026E 2027E 2028E 2029E
2030E 2031E Terminal Year
2030E 2031E Terminal Year
Income Statement 2021A 2022A 2023E 2024E
Revenue from Operations
Other Income
Total Income
Expenses:
Purchases of Technology Solutions
Outsourcing and Consultancy Charges
Employee benefit expense
Finance Cost
Depreciation and Amortisation Expense
Other Expenses
Total Expenses
Profit before Exceptional Items and Tax
Exceptional Items
Profit Before Tax
Tax Expense:
Current Tax
Deferred Tax
Profit for the Year
Other Comprehensvie Income/(Loss)
Total Comprehensive Income for the Year
Earnings per Equity Share
Basic
Diluted
2025E 2026E 2027E 2028E 2029E 2030E 2031E Terminal Year
Cash Flow Statement 2021A 2022A
Cash Flow From Operating Activities
Profit for the Year
Adjustments for:
Depreciation and Amortisation
Export Incentive Written Off
Current Tax
Deferred Tax
(Profit)/Loss on Derognition of Right of Use Asset
Profit on Sale of Investments (Net)
(Profit)/Loss on Sale of Tangible and Intangible Fixed Assets
Interest Income
Finance Costs
Unrealised Exhange Loss/(Gain)
Effect of Exchange Differences on Translation of Foreign
Current cash and cash equivalent
Allowance for expected credit loss (net)
Change in Fair Value of Investments
Operating Profit before Working Capital changes
Working Capital Adjustments
Decrease in Trade Receivables - Current
Decrease in trade Receivables - Non-Current
Decrease in Other Current Assets
Decrease in Other Current Financial Assets
Decrease in Current Loans
Decrease in Non-Current Loans
Decrease in Other Non-Current Assets
Increase in Trade Payables
Increase in Other Financial Liabilities
Increase in Current Provisions
Increase in Non-Current Provisions
Income Taxes Paid (Net)
Net Cash Flow From Operating Activities - A
Cash Flow From Investing Activities
Deposits/Restricted Deposits with Banks
Interest Received on Bank Deposit
Inter Corporate Deposits Placed
Inter Corporate Deposits Refunded
Interest received from bonds and inter-corporate deposits
Payment for purchase of mutual funds
Proceeds from sale of mutual funds
Redemption of bonds
Proceeds from sale of tangible and intangible fixed assets
Payment for purchase of tangible and intangible fixed assets
Net Cash Flow From Investing Activities - B
Cash Flow From Financing Activities
Interest Paid
Dividends Paid
Expenditure for buy-back of equity shares
Share Application Money Received
Repayment of Lease Liabilities
Net Cash Flow From Financing Activities - C
Net Increase In Cash and Cash Equivalents (A+B+C)
2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031ETerminal Year
erminal Year
Discounted Cash Flow Valuation
Historical Period
2019 2020
EBIT $ 46,374.00 $ 55,627.00
Less: Taxes $ 4,730.15 $ 9,178.46
NOPAT $ 41,643.85 $ 46,448.55
Add: Depreciation and Amortization $ 11,682.00 $ 12,796.00
EBITDA $ 53,325.85 $ 59,244.55
Less: Capital Expenditure $ 24,606.00 $ 19,748.00
Less: Changes in Net Working Capital $ - $ 3,473.00
Unlevered Free Cash Flows
WACC 8.88%
Discount Period 9
Discount Factor 0.47
Enterprise Value
Cumulative Present Value of FCF $ 909,420.43
Terminal Value
Terminal Year EBITDA $ 323,463.25
Exit Multiple 17.35
Discount Factor 0.47
Terminal Value $ 5,208,231.78
Present Value of Terminal Value $ 2,421,875.02
% of enterprise value 72.70%
Enterprise Value $ 3,331,295.45
cal Period CAGR
2021 ('19-'21) 2022 2023 2024
$ 73,448.00 16.57% $ 83,955.30 $ 96,598.81 $ 111,816.68
$ 10,135.82 $ 12,987.88 $ 14,853.41 $ 16,894.02
$ 63,312.18 14.99% $ 70,967.41 $ 81,745.40 $ 94,922.65
$ 11,686.00 $ 19,074.88 $ 21,023.63 $ 23,108.63
$ 74,998.18 12.04% $ 90,042.29 $ 102,769.03 $ 118,031.28
$ 16,111.00 $ 31,209.13 $ 21,318.15 $ 21,100.32
$ (13,856.00) $ 12,523.23 $ 4,237.74 $ 3,355.03
$ 0.12 $ 46,309.94 $ 77,213.15 $ 93,575.93
$ 42,532.94 $ 65,131.91 $ 72,496.65
Implied Equity Value and Share Price
Enterprise Value
Less: Total Debt
Less: Preferred Securities
Less: Non-Controlling Interest
Plus: Cash and Cash Equivalents
Implied Equity Value
Fully Diluted Shares Outstanding
Implied Share Price
16.75 17
7.50% $ 2,825,944.14 $ 2,868,122.41
8.00% $ 2,710,353.59 $ 2,750,806.63
8.50% $ 2,599,992.57 $ 2,638,798.43
9.00% $ 2,494,602.02 $ 2,531,834.89
9.50% $ 2,393,936.79 $ 2,429,667.19
Projection Period
2025 2026 2027 2028 2029
$ 129,982.75 $ 151,231.54 $ 176,513.38 $ 206,955.18 $ 242,947.22
$ 20,482.45 $ 24,029.04 $ 28,444.37 $ 34,174.71 $ 39,639.87
$ 109,500.30 $ 127,202.49 $ 148,069.02 $ 172,780.47 $ 203,307.35
$ 25,632.61 $ 28,447.38 $ 31,266.48 $ 34,117.49 $ 37,183.11
$ 135,132.91 $ 155,649.87 $ 179,335.50 $ 206,897.96 $ 240,490.46
$ 27,534.79 $ 30,154.07 $ 29,564.77 $ 35,043.52 $ 42,785.73
$ 4,135.38 $ 2,423.14 $ (3,044.57) $ (8,591.17) $ (20,142.49)
$ 103,462.74 $ 123,072.66 $ 152,815.29 $ 180,445.61 $ 217,847.23
$ 73,618.86 $ 80,429.98 $ 91,722.19 $ 99,473.00 $ 110,296.62
lue and Share Price
$ 3,331,295.45
$ 91,371.07
$ 32,538.47
$ 14,224.00
$ 3,221,609.90
7608
$ 423.45
Terminal Value
Exit Multiple
17.35 17.75 18
$ 2,927,171.99 $ 2,994,657.22 $ 3,036,835.49
$ 2,807,440.88 $ 2,872,165.74 $ 2,912,618.78
$ 2,693,126.64 $ 2,755,216.01 $ 2,794,021.87
$ 2,583,960.90 $ 2,643,533.48 $ 2,680,766.35
$ 2,479,689.75 $ 2,536,858.39 $ 2,572,588.79
CAGR
2030 2031 (Terminal Year) (2022-2031)
$ 285,861.72 $ 337,137.53 14.91%
$ 46,863.27 $ 55,183.19
$ 238,998.46 $ 281,954.34 14.79%
$ 39,766.79 $ 41,508.90
$ 278,765.25 $ 323,463.25 13.64%
$ 46,584.32 $ 53,392.13
$ (41,418.76) $ (72,934.38)
$ 273,599.69 $ 343,005.49
$ 127,226.34 $ 146,491.95
Implied Perpetuity Growth Rate
Terminal Year FCF $ 343,005.49
WACC 8.88%
Terminal Value $ 5,510,534.27
Average Terminal Value $ 5,359,383.03
A
B
B
