Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q3 FY2015 Earnings Presentation

27 slides from Tata Consultancy Services's earnings presentation, Jan 15, 2015

  1. Slide 1: TCS Financial Results Quarter III FY 2014-15

    TCS Financial Results Quarter III FY 2014 - 15 January 15, 2015 Copyright © 2014 Tata Consultancy Services Limited 1

  2. Slide 2: Disclaimer

    Disclaimer Certain statements in this release concerning our future prospects are forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These risks and uncertai

  3. Slide 3: Q3 FY15 Performance Highlights

    Q3 FY15 Performance Highlights  Revenue: - INR Revenue of `245,011 Mn, growth of 2.9% QoQ and 15.1% YoY - USD Revenue of $3,931 Mn, flat QoQ and 14.3% YoY - Constant currency revenue growth of 2.5%  Profit: - Operating Income at ` 66,241 Mn, Operating Margin of 27.0% - Net Income at ` 54,441 Mn, N

  4. Slide 4: Financial Performance

    Financial Performance Click to edit Master title style 4

  5. Slide 5: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 238,165 245,011 212,940 215,511 221,110 32.5% 31.2% ` Million 22.9% 15.1% 13.5% 1.5% 1.2% 2.6% 2.9% 7.7% Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Operating Income Y-o-Y Growth Q-o-Q Growth 63,347 63,942 66,

  6. Slide 6: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 3,929 3,931 3,694 17.7% 3,438 3,503 16.6% 15.2% 16.7% 14.3% $ Million 5.5% 6.4% 3.0% 1.9% 0.0% Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Y-o-Y Growth Q-o-Q Growth Operating Income 1,055 1,063 1,023 1,021 27.

  7. Slide 7: Operational Performance

    Click to edit Performance Operational Master title style 7

  8. Slide 8: Growth by Market

    Growth by Market 2.0% 9.7% North America 6.5% 51.9% Latin America 11.7% UK Continental Europe India 16.1% Asia Pacific MEA 2.1% Q-o-Q Y-o-Y Geography (%) Q3 FY14 Q2 FY15 Q3 FY15 ` Growth ` Growth Americas North America 52.7 51.0 51.9 4.7 13.3 Latin America 2.3 1.9 2.1 10.3 4.2 Europe UK 17.5 17.1 16

  9. Slide 9: Growth by Domain

    Growth by Domain BFSI 4.4% 4.2% 2.7% 3.5% Telecom 6.4% Retail & Distribution 40.5% 5.9% Manufacturing Hi-Tech Life Sciences & Healthcare 10.1% Travel & Hospitality Energy & Utilities Media & Entertainment 13.4% 8.9% Others Q-o-Q Y-o-Y IP Revenue (%) Q3 FY14 Q2 FY15 Q3 FY15 ` Growth ` Growth BFSI 42.

  10. Slide 10: Growth by Service Line

    Growth by Service Line 11.7% Application Development & Maint. 2.4% 39.5% 3.7% Enterprise Solutions Assurance Services Engineering & Industrial Services 14.3% Infrastructure Services 4.5% Global Consulting Asset Leveraged Solutions 8.5% 15.4% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q3 FY

  11. Slide 11: Client Parameters

    Client Parameters Clients Contribution * Q3 FY14 Q2 FY15 Q3 FY15 US$ 1m+ Clients 711 743 764 US$ 5m+ Clients 333 367 387 US$ 10m+ Clients 224 247 249 US$ 20m+ Clients 129 153 159 US$ 50m+ Clients 55 62 65 US$ 100m+ Clients 22 24 25 *Last Twelve Months' services revenues 11

  12. Slide 12: Operational Parameters

    Operational Parameters Revenue % Q3 FY14 Q2 FY15 Q3 FY15 Delivery Location Local Delivery 46.8 48.9 48.2 Remote Delivery 53.2 51.1 51.8 Global DC 5.4 5.4 5.8 India DC 47.8 45.7 46.0 Contract Type Time & Material 48.3 48.7 48.3 Fixed Price & Time 51.7 51.3 51.7 12

  13. Slide 13: Key Wins

    Key Wins  Selected by a leading beverages company to manage and build a private Cloud for their global Infrastructure operations  Chosen as preferred technology partner by a leading British mutual financial institution to manage their applications portfolio  Chosen as the strategic partner by a l

  14. Slide 14: Human Resources

    Click to Resources Human edit Master title style 14

  15. Slide 15: Total Employee Base

    Total Employee Base Total Employees : 318,625 318,625 313,757 305,431 300,464 290,713 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 15

  16. Slide 16: Q3 Consolidated - Gross Additions 16,561 & Net Additions 4,868

    Q3 Consolidated - Gross Additions 16,561 & Net Additions 4,868 Gross Additions: • 5,529 Trainees & 6,129 Laterals in India Attrition*: • 4,903 employees overseas • 13.4% (LTM), including BPS 20,350 Utilization Rate*: 18,564 • 86.7% (excluding Trainees) 16,561 15,817 14,663 • 82.1% (including Trainee

  17. Slide 17: Annexure

    Click to edit Master title style Annexure 17

  18. Slide 18: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q3 FY14 Q2 FY15 Q3 FY15 Q3 FY14 Q2 FY15 Q3 FY15 Revenue 212,940 238,165 245,011 100.00 100.00 100.00 Cost of revenue 110,257 132,405 135,159 51.78 55.59 55.16 Gross margin 102,683 105,760 109,852 48.22 44.41 44.84 SG & A expenses 39,336

  19. Slide 19: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q3 FY14 Q2 FY15 Q3 FY15 Q3 FY14 Q2 FY15 Q3 FY15 Employee cost 78,287 91,549 93,242 36.77 38.44 38.06 Fees to external consultants 13,427 16,113 16,473 6.31 6.77 6.72 Equipment & software 3,224 3,794 5,440 1.51 1.59 2.22 Depreciation 2,264 2,876 2,998 1.0

  20. Slide 20: IFRS Balance Sheet

    IFRS Balance Sheet 31-Mar-14 31-Dec-14 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 103,644 15.04 114,739 16.17 Intangible assets and Goodwill 41,568 6.03 40,163 5.66 Accounts Receivable 182,304 26.46 207,124 29.19 Unbilled Revenues 40,056 5.81 41,752 5.89 Investments 34,6

  21. Slide 21: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q3 FY14 Q2 FY15 Q3 FY15 Q3 FY14 Q2 FY15 Q3 FY15 Revenue 3,438 3,929 3,931 100.00 100.00 100.00 Cost of revenue 1,780 2,184 2,168 51.78 55.59 55.16 Gross margin 1,658 1,745 1,763 48.22 44.41 44.84 SG & A expenses 635 690 700 18.4

  22. Slide 22: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q3 FY14 Q2 FY15 Q3 FY15 Q3 FY14 Q2 FY15 Q3 FY15 Employee cost 1,264 1,510 1,496 36.77 38.44 38.06 Fees to external consultants 217 266 264 6.31 6.77 6.72 Equipment & software 52 63 87 1.51 1.59 2.22 Depreciation 36 47 48 1.06 1.21 1.22 Travel 44

  23. Slide 23: IFRS Balance Sheet in USD

    IFRS Balance Sheet in USD 31-Mar-14 31-Dec-14 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,726 15.04 1,815 16.17 Intangible assets and Goodwill 692 6.03 635 5.66 Accounts Receivable 3,035 26.46 3,276 29.19 Unbilled Revenues 667 5.81 660 5.89 Investments 576 5.02 495 4.41

  24. Slide 24: Indian GAAP Income Statement - Consolidated

    Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q3 FY14 Q2 FY15 Q3 FY15 Q3 FY14 Q2 FY15 Q3 FY15 Income 21,294 23,816 24,501 100.00 100.00 100.00 Expenditure a) Salaries & Wages 7,704 9,056 9,336 36.18 38.03 38.10 b) Overseas business expenditure 3,039 3,396

  25. Slide 25: Indian GAAP Balance Sheet - Consolidated

    Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Mar-14 31-Dec-14 31-Mar-14 31-Dec-14 EQUITY AND LIABILITIES Shareholders' Funds 49,195 52,819 73.27 75.74 Minority Interest 708 1,121 1.06 1.61 Short term and long term borrowings 254 283 0.38 0.41 Deferred tax liabilitie

  26. Slide 26: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q2 FY15 Q3 FY15 Q2 FY15 Q3 FY15 USD 60.62 62.33 54.33% 55.34% GBP 100.64 98.17 15.29% 14.38% EUR 79.49 77.45 8.51% 8.57% Others 21.87% 21.70% Total 100.00% 100.00% 26

  27. Slide 27: Thank You

    Thank You IT Services Business Solutions Consulting

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