Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 FY2005 Earnings Presentation
23 slides from Tata Consultancy Services's earnings presentation, Oct 13, 2004
Slide 1: Quarterly Results Announcement FY 2004-05 Quarter II
Quarterly Results Announcement FY 2004-05 Quarter II 13th October 2004 Confidential . 1
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future growth prospects are forward- looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rel
Slide 3: Q2 - Highlights
Q2 - Highlights Confidential . 3
Slide 4: Superior financial results
Superior financial results § Revenues for the quarter at Rs. 24,307 million grew 43.58% over the corresponding quarter during the previous year and 13.93% over the previous quarter § The Net Income(excluding exceptional items) at Rs. 5,764 million grew 51.81% over the corresponding quarter during th
Slide 5: Outstanding business performance
Outstanding business performance § The company continues to see robust growth in all geographies. We added 50+ new customers during this quarter. § All our GDCs – specifically those at Uruguay, Brasil, Hungary and China are gaining momentum. We are serving 35 customers in these GDCs with each of the
Slide 6: Q2 - Operations Update
Q2 - Operations Update Confidential . 6
Slide 7: Q2 Revenues
Q2 Revenues Y-on-Y Q-on-Q 24,307 24,307 13.93% 43.58% 21,335 16,929 Q2 Q2 Q1 Q2 FY04 FY05 FY05 FY05 All financial numbers are are in Rs. Million and as per consolidated US GAAP Confidential . 7
Slide 8: Q2 Profit Before Tax
Q2 Profit Before Tax Y-on-Y Q-on-Q 6,678 6,678 13.17% 53.17% 5,901 4,360 Q2 Q2 Q1 Q2 FY04 FY05 FY05 FY05 All financial numbers are are in Rs. Million and as per consolidated US GAAP Confidential . 8
Slide 9: Q2 Profit After Tax (before exceptional items)
Q2 Profit After Tax(before exceptional items) Y-on-Y Q-on-Q 5,764 5,764 14.10% 51.81% 5,051 3,796 Q2 Q2 Q1 Q2 FY04 FY05 FY05 FY05 All financial numbers are are in Rs. Million and as per consolidated US GAAP Confidential . 9
Slide 10: Robust growth across geographies
Robust growth across geographies 5.74% • Healthy mix of revenues (Others) across geographies, with 11.72% (India) Americas contributing 59.7% and Europe 22.8%. • Each of the geographies achieve double digit growth rate over the previous 22.79% (Europe) 59.74% quarter (Q1). (Americas) • New customers
Slide 11: Focus on domain competency leading to greater customer penetration
Focus on domain competency leading to greater customer penetration 7.70% 3.10% (Others) Energy 4.10% & Utilities • The company is seeing growth in (Transportation) all Industry segments – Holistic 6.80% growth (Retail 37.30% & Distribution) (BFSI) 4.10% • New customers have been added (Life Sciences
Slide 12: Broad portfolio of services delivering higher value to customers
Broad portfolio of services delivering higher value to customers 2.60% (Asset Leveraged • Revenues from Package Implementation Solutions) 1.70% solutions and Asset leveraged solutions are (Others) 22.50% continuing to grow. (Enterprise Solutions) • The company acquired three(3) new clients for Remot
Slide 13: Operational Excellence
Operational Excellence FY 2004-05 • The project execution has moved Delivery Location Q1 Q2 towards offshore marginally. Onsite 63.10% 62.50% • As the company completes transition Offshore 36.90% 37.50% in large contracts, the shift towards offshore is expected to continue, albeit marginally. FY 200
Slide 14: Client Concentration – Well Balanced
Client Concentration – Well Balanced Clients Q1 FY 2005 Q2 FY 2005 Top 1 5.30% 5.10% Top 5 22.20% 21.20% Top 10 35.20% 33.60% US $ 1 mm Clients 166 177 US $ 5 mm Clients 59 65 US $ 10 mm Clients 31 34 US $ 20 mm Clients 18 19 US $ 50 mm Clients 4 5 The revenues from GE contributed to 15.9% of the ov
Slide 15: Healthy mix of repeat and new business
Healthy mix of repeat and new business FY 2004-05 Q1 Q2 Active Clients 444 490 New Clients 69 52 Revenue from Repeat Business 98.10% 96.10% Revenue from New Business 1.90% 3.90% • New clients have been added in all Geographies – North America, Latin America, Europe and Asia. • The revenue contributi
Slide 16: Key Achievements
Key Achievements § Major deployment of CRM solution was completed for a large Retailer in North America. § “Quartz”, the company’s flagship banking product went “live” successfully for a bank in Latin America. § An End-to-End solution comprising budgeting, planning, procurement and logistics for a m
Slide 17: HR Update
HR Update q@ip TATA TATA CONSULTANCY SERVICES LTD.
Slide 18: No of employees
Employee Growth in TCS (Q2 FY 05) 40000 74 36696 39 35000 32722 30121 30000 28797 26745 No of employees 25514 25000 20000 15000 10000 5000 0 FY 04 Q1 FY 04 Q2 FY 04 Q3 FY 04 Q4 FY 05 Q1 FY 05 Q2 Does not include employees of Indian subsidiary companies Confidential . 18
Slide 19: Distribution of Employees (Q2 FY 05)
Distribution of Employees (Q2 FY 05) 1267 2985 (Others) (CMC) 36696 (TCS) TCS CMC Others Total Employees 40,948 Confidential . 19
Slide 20: Human Resources (Q2 FY 05)
Human Resources (Q2 FY 05) § The total number of associates in TCS as of end Q2 FY 05 is 40,948 including all subsidiaries. § During the quarter we have added 2542 trainees and 1955 experienced professionals resulting in a gross addition of 4497 associates. 795 associates have left us resulting in a
Slide 21: Human Resources (Q2 FY 05)
Human Resources (Q2 FY 05) § For the second quarter we have distributed 999 million rupees as Variable compensation. For Q1 we had distributed 722 million rupees. The total variable compensation distributed for the first half of the year is 1721 million rupees. (Based on our EVA model of compensatio
Slide 22: Human Resources (Q2 FY 05)
Human Resources (Q2 FY 05) § We continue to invest in our competency building programs through initial learning, continuous learning and management development programs. During the quarter 2476 associates completed their initial training program, 3275 associates were trained in hot skills and the to
Slide 23: TCS rated Best Employer amongst IT companies in India
TCS was rated the Best Employer amongst IT companies in India by the DataQuest survey for the FY 04. Confidential . 23
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