Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q4 FY2009 Earnings Presentation
37 slides from Tata Consultancy Services's earnings presentation, Apr 20, 2009
Slide 1: Results for Quarter IV FY 2008 - 09
Results for Quarter IV FY 2008 - 09 20th April 2009
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
Slide 3: Financial Performance
Financial Performance 20th April 2009
Slide 4: Indian GAAP Growth Summary - Annual
Indian GAAP Growth Summary - Annual Consolidated Indian GAAP (INR Crore) FY 2009 FY 2008 Income from IT & Consultancy Services 26,782 21,437 % Growth Y-o-Y 24.93% Total Income 27,813 22,619 % Growth Y-o-Y 22.96% PBIDT (before Other Income) 7,170 5,711 % Growth Y-o-Y 25.54% Profit After Tax 5,256 5,0
Slide 5: Indian GAAP Growth Summary - Quarterly
Indian GAAP Growth Summary - Quarterly Consolidated Indian GAAP (INR Crore) Q4 FY09 Q3 FY09 Q4 FY08 Income from IT & Consultancy Services 6,954 7,063 5,760 % Growth Q-o-Q -1.54% % Growth Y-o-Y 20.73% Total Income 7,172 7,277 6,050 % Growth Q-o-Q -1.45% % Growth Y-o-Y 18.54% PBIDT (before Other Incom
Slide 6: US GAAP Revenue Growth - Annual
US GAAP Revenue Growth - Annual Consolidated US GAAP (INR Million) FY 2009 FY 2008 Revenue from International Business 256,307 205,678 % Growth Y-o-Y 24.62% Revenue from Indian Business 21,821 20,497 % Growth Y-o-Y 6.46% Total Revenue 278,129 226,175 % Growth Y-o-Y 22.97% 20th April 2009 6
Slide 7: US GAAP Growth Summary - Annual
US GAAP Growth Summary - Annual Consolidated US GAAP (INR Million) FY 2009 FY 2008 Gross Margin 123,709 99,981 % Growth Y-o-Y 23.73% EBIDTA 71,779 56,959 % Growth Y-o-Y 26.02% Operating Income 66,015 51,212 % Growth Y-o-Y 28.90% Net Income 51,721 50,190 % Growth Y-o-Y 3.05% 20th April 2009 7
Slide 8: US GAAP Revenue Growth - Quarterly
US GAAP Revenue Growth - Quarterly 20th April 2009 8
Slide 9: US GAAP Growth Summary - Quarterly
US GAAP Growth Summary - Quarterly 20th April 2009 9
Slide 10: Operational Performance
Operational Performance 20th April 2009
Slide 11: Growth by Market
Growth by Market 3.9% 2.0% 8.2% North America • Strong client base, and focus protects 10.8% 52.4% Ibero America North America share of TCS revenues. UK Continental Europe • UK experienced good business growth, India in spite of weakness from the telecom 17.9% Asia Pacific sector MEA 4.8% • Europe c
Slide 12: Growth by Domain
Growth by Domain 2.1% • Positive revenue growth across all 3.8% 2.7% 2.5% BFSI 5.7% our industry verticals from FY08 to 42.8% Telecom 5.5% Retail & Distribution FY09. Manufacturing 9.8% Hi-Tech • Despite a very challenging demand Life Sciences & Healthcare environment, net growth in BFSI 12.0% Trave
Slide 13: Growth by Service Line
Growth by Service Line 11.1% 48.6% Application Development & Maint. • TCS’ full services strategy 2.1% 1.7% Business Intelligence significantly contributed to overall 8.3% Enterprise Solutions company performance. 5.8% Assurance Services 3.8% Engineering & Industrial Services • BPO and IT IS grew by
Slide 14: Client Parameters
Client Parameters Q4 FY09 Q3 FY09 FY09 FY08 Clients Contribution * Revenue % Top 1 4.7 5.1 4.7 6.5 Top 5 18.6 17.3 18.6 18.9 Top 10 26.9 26.3 26.9 29.1 US$ 1 mln Clients 405 395 405 358 US$ 5 mln Clients 172 166 172 143 US$ 10 mln Clients 111 112 111 100 US$ 20 mln Clients 62 59 62 56 US$ 50 mln Cli
Slide 15: Operational Parameters
Operational Parameters Revenue % Q4 FY09 Q3 FY09 FY09 FY08 Delivery Location* Onsite 48.2 51.0 51.2 53.9 GDC/RDC 4.1 5.4 4.6 4.2 Offshore 47.7 43.6 44.2 41.9 Contract Type Time & Material 52.9 54.5 55.2 55.9 Fixed Price & Time 47.1 45.5 44.8 44.1 * Excluding Domestic Clients 20th April 2009 15
Slide 16: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q4 FY09 Q3 FY09 FY09 FY08 Active Clients 985 965 1014 929 New Clients 36 41 163 212 Revenue % from Repeat Business 95.6 96.3 97.1 96.4 Revenue % from New Business * 4.4 3.7 2.9 3.6 * Reset at the beginning of Financial Year 20th April 2009 16
Slide 17: Key Wins
Key Wins TCS won a multi million multi year deal to help a global car rental company transform its accounts payable, insurance and collections process. TCS solution will optimize the process across the value chain from client receivables, insurance claims and payables. A UK Public Services agenc
Slide 18: Human Resources
Human Resources 20th April 2009
Slide 19: Largest IT Employer in India: 143,761 employees
Largest IT Employer in India: 143,761 employees TCS Employees : 126,150 Overseas branches & subsidiaries: 10,508 Global/Regional Delivery Centers : 4,795 Subsidiaries* : 17,611 17,611 4,698 4,714 4,473 4,729 116,912 125,629 126,150 106,934 111,579 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Employees in T
Slide 20: TCS: Q4-09 Gross Additions 3,522 & Net Additions 521
TCS: Q4 - 09 Gross Additions 3,522 & Net Additions 521 • Additions : • 2,227 Trainees & 522 Laterals in India; 773 in Overseas Branches • Attrition : 11.4% (LTM), including BPO • IT Services: 10.5% (LTM), BPO: 21.6% (LTM) • Utilization Rate : 79.7 % (excluding trainees), 69.4 % (including trainees)
Slide 21: Diverse Workforce
Diverse Workforce • 30% of our workforce are women • 54% of our associates have more than 3 years of work experience. • Associates from 67 Nationalities Indian 91.7% Others 8.3% 20th April 2009 21
Slide 22: Campus Update - 24,885 offers made for FY'10
Campus Update - 24,885 offers made for FY’10 91.2% 94.1% 95.4% 66.7% 95.4% Day 1 Slots Achieved. Campus Offers 33.3% Q1 – 22,148 8.8% Q2 – 2,641 5.9% 4.6% Q3 – 96 FY06 FY07 FY08 FY09 YTD Q4 – 0 Day 1 Others 20th April 2009 22
Slide 23: Annexure
id TATA CONSULTANCY SERVICES TATA IVANNTP/NGTVANGTV/ANYEYV/NVEG/NNTO NST V/NGTV/ANGE/ANYET/ AVEO NNO NST P/NGTV/ANGTV/ANNET/ANVEP/NNIG/NNTP/NNTV/ANSI/A NEPAL ZAUE/ANEZANLENLEZNLEASUP ALENT PN LEAL ALENT PZNLESLP LENE Annexure 20¢ April 2009
Slide 24: Indian GAAP Income Statement – FY09 Consolidated
Indian GAAP Income Statement – FY09 Consolidated INR Crore % of Total Income Consolidated Indian GAAP FY 2009 FY 2008 FY 2009 FY 2008 INCOME a) IT & Consultancy Services 26,782 21,437 96.29 94.78 b) Manufacturing, Sale of equipment and Licences 1,031 1,182 3.71 5.22 Total Income 27,813 22,619 100.00
Slide 25: Indian GAAP Income Statement – Q4 FY09 Consolidated
Indian GAAP Income Statement – Q4 FY09 Consolidated INR Crore % of Total Income Consolidated Indian GAAP Q4 FY09 Q3 FY09 Q4 FY08 Q4 FY09 Q3 FY09 Q4 FY08 INCOME a) IT & Consultancy Services 6,954 7,063 5,760 96.96 97.06 95.20 b) Manufacturing, Sale of equipment and Licences 218 214 290 3.04 2.94 4.80
Slide 26: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated INR Crore % Consolidated Indian GAAP 31-Mar-09 31-Mar-08 31-Mar-09 31-Mar-08 Source of Funds Shareholders' Funds 15,708 12,300 93.81 93.84 Minority Interest 277 212 1.66 1.62 Loan Funds 564 455 3.37 3.47 Deferred Tax Liability 196 141 1.17 1.07 Total Liabilit
Slide 27: US GAAP Income Statement - Annual
US GAAP Income Statement - Annual 20th April 2009 27
Slide 28: Annual COR – SG&A Details
Annual COR – SG&A Details 20th April 2009 28
Slide 29: US GAAP Income Statement
US GAAP Income Statement INR Million % of Revenue Consolidated US GAAP Q4 FY09 Q3 FY09 Q4 FY08 Q4 FY09 Q3 FY09 Q4 FY08 Revenue 71,718 72,770 60,469 100.00 100.00 100.00 Cost of revenue 39,217 40,304 33,650 54.68 55.39 55.65 Gross margin 32,501 32,466 26,819 45.32 44.61 44.35 SG & A expenses 15,501 1
Slide 30: COR – SG&A Details
COR – SG&A Details 20th April 2009 30
Slide 31: US GAAP Balance Sheet
US GAAP Balance Sheet 31-Mar-09 31-Mar-08 Consolidated US GAAP INR Million % INR Million % Assets Cash and Cash equivalents 13,440 5.92 10,352 5.91 Accounts Receivable 60,463 26.65 53,903 30.80 Unbilled Revenues 14,814 6.53 13,525 7.73 Other Current assets 21,037 9.27 15,390 8.79 Property & Equipmen
Slide 32: US GAAP Income Statement – Annual in USD
US GAAP Income Statement – Annual in USD 20th April 2009 32
Slide 33: COR – SG&A Details - Annual in USD
COR – SG&A Details - Annual in USD 20th April 2009 33
Slide 34: US GAAP Income Statement - Quarterly in USD
US GAAP Income Statement - Quarterly in USD 20th April 2009 34
Slide 35: COR – SG&A Details - Quarterly in USD
COR – SG&A Details - Quarterly in USD 20th April 2009 35
Slide 36: US GAAP Balance Sheet in USD
US GAAP Balance Sheet in USD 31-Mar-09 31-Mar-08 Consolidated US GAAP USD Million % USD Million % Assets Cash and Cash equivalents 265 5.94 258 5.91 Accounts Receivable 1,192 26.72 1,344 30.80 Unbilled Revenues 292 6.54 337 7.73 Other Current assets 415 9.30 384 8.79 Property & Equipment 739 16.57 7
Slide 37: Thank You
Thank You SUZANUZAN LU ZAN ZA U ZA ZAN ZAZA ZA ZAZA ZA ZA ZA ZAZA ZA ZA ZA ANZA PANNTVANNTVANNTV NNT YANNI YANNI YANNI YANNI PANNE PANNE PANNE P ANNE PANNE /ANNEP/ANNOP ANNE /ANNIP ANNO PANNE PANN ANNO ZN UNEP ANGHVANGHY/NGHYANGHV/NGHY/NGHV/NGEV/NGHY/NGHV/NGHPANNEY/ANEP/NNEP/ANEY/ANEP/ANEPANEPAANEP/
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