Horizontal analysis

for

Tata Consultancy Services Ltd.

Horizontal analysis expresses change between periods as percentages for each account in the financial
statements. The basic formula for horizontal analysis is:
% change = (most recent period previous period)/ previous period.

Income Statement of ABC Ltd. for the year ending March 31, 2006 to 2010 Rs. In Crores
Mar ' 06

Mar ' 07

Mar ' 08

Mar ' 09

Mar ' 10

Income
Operating
income
Expenses
Material
consumed
Manufacturing
expenses
Personnel
expenses
Selling expenses
Adminstrative
expenses
Expenses
capitalised
Cost of sales
Operating profit
Other recurring
income
Adjusted PBDIT
Financial
expenses
Depreciation
Other write offs
Adjusted PBT
Tax charges
Adjusted PAT

11,230.50

14,939.97

18,533.72

22,401.92

23,044.45

157.36

24.81

45.85

51.94

25.13

859.86

3,189.71

5,823.39

7,111.94

6,630.61

5,113.96
11.67

6,186.85
31.05

6,015.19
27.63

7,370.09
21.35

7,882.43
7.27

1,750.24

1,206.07

1,596.05

1,825.77

1,831.84

7,893.09
3,337.41

10,638.49
4,301.48

13,508.11
5,025.61

16,381.09
6,020.83

16,377.28
6,667.17

64.55
3,401.96

86.38
4,387.86

165.01
5,190.62

232.62
6,253.45

236.27
6,903.44

4.49
257.38

3.43
343.41

3.42
458.78

7.44
417.46

9.54
469.35

3,140.09
319.45
2,820.64

4,041.02
410.8
3,630.22

4,728.42
457.58
4,270.84

5,828.55
340.37
5,488.18

6,424.55
737.89
5,686.66

Reported net
profit
Earnigs before
appropriation
Equity dividend
Dividend tax
Retained
earnings

2,716.87

3,757.29

4,508.76

4,696.21

5,618.51

3,858.50
660.56
92.64

6,590.59
1,125.39
169.48

9,428.75
1,370.05
232.85

12,071.10
1,370.05
234.02

15,608.92
3,914.43
657.51

3,105.30

5,295.72

7,825.77

10,460.03

11,019.98

Income Statement of ABC Ltd. for the year ending March 31, 2006 to 2010 Rs. As % 2006
level
Mar ' 06

Mar ' 07

Mar ' 08

Mar ' 09

Mar ' 10

Operating income
Expenses

100

133.03

165.2

199.47

205.2

Material consumed
Manufacturing
expenses
Personnel expenses
Selling expenses
Adminstrative
expenses
Cost of sales
Operating profit
Other recurring
income
Adjusted PBDIT
Financial expenses
Depreciation
Adjusted PBT
Tax charges
Adjusted PAT
Reported net profit
Earnigs before
appropriation
Equity dividend
Dividend tax
Retained earnings

100

15.76

29.13

33

15.96

100
100
100

371.24
120.98
266.06

677.88
117.64
236.76

827.82
144.14
182.94

771.82
154.15
62.29

100
100
100

68.91
134.77
128.88

91.2
171.13
150.58

114.28
207.53
180.4

114.62
207.48
199.79

100
100
100
100
100
100
100
100

133.81
142.22
137.75
133.46
128.69
128.52
128.72
138.32

255.63
152.6
76.16
178.21
150.57
143.26
151.41
165.97

363.37
183.85
165.7
162.25
185.6
106.58
194.6
172.9

366.02
202.96
212.47
182.49
204.58
231.03
201.63
206.84

100
100
100
100

170.81
170.45
183.69
170.53

88.85
207.57
252.17
252.01

312.88
207.57
254.34
336.87

404.56
593.03
714.13
354.87

Income

1.Operating Income :
Operating Income has consistently incresed over the years.So the company is in a very good situation.
25,000.00

20,000.00

Mar ' 06

15,000.00

Mar ' 07
Mar ' 08
10,000.00

Mar ' 09
Mar ' 10

5,000.00

0.00
Operating Income

2.Selling Expenses : Selling Expenses though jumped in the peroid 2006-2007 but later it declined quiet sharply.
35
30
25
Mar ' 06
20

Mar ' 07
Mar ' 08

15

Mar ' 09
Mar ' 10

10
5
0
Selling Expenses

Material Consumed:
Materials Consumed have decreased steeply from 2006 to 2007 ,increased after that but stil decreased in
2010
This shows that companys eficiency is increasing that is even after reducing their materials consumed its overalll
income has increased .
180
160
140
120

Mar ' 06

100

Mar ' 07
Mar ' 08

80

Mar ' 09
60

Mar ' 10

40
20
0
Material Consumed

Manufatured Expenses:
Manufacturing Expenses have increased considerably from Rs. 859.86 cores to RS. 7111.94 crores
and but decreased to Rs. 6630.61crores till 2008 but remained constant after that.

8000
7000
6000
Mar ' 06

5000

Mar ' 07
4000

Mar ' 08
Mar ' 09

3000

Mar ' 10
2000
1000
0
Manufacturing Expenses