Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q4 FY2016 Earnings Presentation

37 slides from Tata Consultancy Services's earnings presentation, Apr 18, 2016

  1. Slide 1: TCS Financial Results Quarter IV & Year Ended FY 2015-16

    TCS Financial Results Quarter IV & Year Ended FY 2015 - 16 April 18, 2016 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: Highlights

    Click to edit Master title style Highlights 3

  4. Slide 4: FY16 Performance Highlights

    FY16 Performance Highlights  Revenue: - INR Revenue of ` 1.086 Tn, growth of 14.8% YoY - USD Revenue of $ 16,545 Mn, growth of 7.1% YoY - Constant currency revenue growth of 11.9%  Profit: - Operating Income at ` 287,901 Mn, Operating Margin of 26.5% - Net Income at ` 242,149 Mn, Net Margin of 22.

  5. Slide 5: Q4 FY16 Performance Highlights

    Q4 FY16 Performance Highlights  Revenue: - INR Revenue of ` 284,486 Mn, 4% QoQ and 17.5% YoY - USD Revenue of $ 4,207 Mn, 1.5% QoQ and 7.9% YoY - Constant currency revenue growth of 2.1%, Volume growth of 3.2% QoQ  Profit: - Operating Income at ` 74,119 Mn, Operating Margin of 26.1% - Net Income a

  6. Slide 6: Annual Financial Performance

    Click to edit Annual MasterPerformance Financial title style 6

  7. Slide 7: Growth Summary (INR)

    Growth Summary (INR) Revenue 1,086,462 Y-0-Y Growth 946,484 818,094 31.0% 28.8% 29.9% ` Million 629,895 488,938 15.7% 14.8% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Operating Income Operating margin (%) 287,901 29.1% 238,080 254,244 27.6% 27.0% 26.9% 26.5% 170,080 ` Million 135,168 FY12 FY1

  8. Slide 8: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 16,545 15,454 24.2% 13,442 11,568 23.0% 10,171 17.3% 17.0% 16.2% $ Million 11.9% 16.2% 15.0% 13.7% 7.1% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Operating Income Operating margin (%) 4,385 4,151 29.1% 3,906 27.6% 3,124 27.0% 26.9% 2,

  9. Slide 9: Quarterly Financial Performance

    Quarterly Financial Click to edit MasterPerformance title style 9

  10. Slide 10: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-o-Y Growth Q-o-Q Growth 17.5% 271,655 273,640 284,486 16.1% 14.1% 256,681 12.4% 11.7% 242,198 ` Million 6.0% 5.8% 4.0% 0.7% -1.1% Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Operating Income Operating margin (%) 73,536 72,762 74,119

  11. Slide 11: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 4,156 4,145 4,207 11.4% 3,900 4,036 9.3% 7.9% $ Million 5.8% 5.5% 3.5% 1.5% 3.0% -0.3% -0.8% Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Operating Income Operating margin (%) 1,125 1,102 1,096 1,061 1,061 27.2

  12. Slide 12: Operational Parameters

    Click to edit Master Operational title style Parameters 12

  13. Slide 13: Growth by Market

    Growth by Market Q4 FY16 Mix 2.4% 9.6% North America 5.9% 54.0% Latin America 11.2% UK Continental Europe India 14.9% Asia Pacific 2.0% MEA Q-o-Q Y-o-Y YoY Geography (%) Q3 FY16 Q4 FY16 FY15 FY16 CC Growth CC Growth CC Growth Americas North America 53.5 54.0 2.4 11.7 51.9 53.3 10.8 Latin America 2.1

  14. Slide 14: Growth by Domain

    Growth by Domain Q4 FY16 Mix BFSI 3.7% 2.5% 3.1% 4.1% Retail & Distribution 5.6% Manufacturing 40.9% 7.3% Telecom Life Sciences & Healthcare 8.3% Hi-Tech Energy & Utilities Travel & Hospitality 10.4% Media & Entertainment 14.1% Others Q-o-Q Y-o-Y YoY IP Revenue (%) Q3 FY16 Q4 FY16 FY15 FY16 CC Growt

  15. Slide 15: Growth by Service Line

    Growth by Service Line Q4 FY16 Mix 11.6% Application Development & Maint. 39.4% 3.2% Enterprise Solutions & Consulting 15.2% Assurance Services Engineering & Industrial Services 4.7% Infrastructure Services Asset Leveraged Solutions 8.8% 17.1% Business Process Services Q-o-Q Y-o-Y YoY SP Revenue (%)

  16. Slide 16: Client Parameters

    Client Parameters Clients Contribution* Q4 FY15 Q3 FY16 Q4 FY16 FY15 FY16 US$ 1m+ Clients 791 838 829 791 829 US$ 5m+ Clients 389 413 429 389 429 US$ 10m+ Clients 261 281 298 261 298 US$ 20m+ Clients 162 173 173 162 173 US$ 50m+ Clients 68 65 73 68 73 US$ 100m+ Clients 29 34 37 29 37 *Last Twelve Mo

  17. Slide 17: Key Wins

    Key Wins  Selected by large UK bank as their strategic IT partner for Information Management including Big Data and Analytics  Selected by major Commercial Insurer for infrastructure transformation and support.  Selected by large Personal Lines Insurer to modernize Policy Administration through t

  18. Slide 18: Key Wins in Digital Services and Solutions

    Key Wins in Digital Services and Solutions  Chosen by global logistics provider to enable real time monitoring of port equipment using an IoT Platform incorporating the TCS Sensor Data Analytics framework  Chosen by UK Utilities Company as a strategic consultant to create the roadmap, operating mo

  19. Slide 19: Human Resources

    Click to Resources Human edit Master title style 19

  20. Slide 20: Total Employee Base

    Total Employee Base Total Employees : 353,843 353,843 Attrition*: 344,691 • 14.7% (LTM), IT Services 335,620 • 15.5% (LTM), including BPS 324,935 Diversity: 319,656 • Women employees: 33.8% • Nationalities: 129 * Excluding Diligenta Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 20

  21. Slide 21: Employee Addition

    Employee Addition Q4 FY 2016 FY 2016 • Gross additions: 22,576 employees • Gross additions: 90,182 employees • India: • India: • 8,623 Trainees • 32,584 Trainees • 10,659 Laterals • 41,425 Laterals • 3,294 employees overseas • 16,173 employees overseas Net additions: 9,152 employees • Net additions:

  22. Slide 22: Annexure

    Click to edit Master title style Annexure 22

  23. Slide 23: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS FY15 FY15 FY16 FY16 Reported Ex Adj Reported Ex Adj Revenue 946,484 946,484 1,086,462 100.00 100.00 100.00 Cost of revenue 544,992 525,283 608,997 57.58 55.50 56.05 Gross margin 401,492 421,201 477,465 42.42 44.50 43.95 SG & A expenses 1

  24. Slide 24: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR FY15 FY15 FY16 FY16 Reported Ex Adj Reported Ex Adj Employee cost 382,553 362,844 418,829 40.42 38.34 38.55 Fees to external consultants 61,165 61,165 78,228 6.46 6.46 7.20 Equipment & software 18,601 18,601 25,711 1.97 1.97 2.37 Depreciation 12,719 12,7

  25. Slide 25: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q4 FY15 Q4 FY15 Q3 FY16 Q4 FY16 Q3 FY16 Q4 FY16 Reported Ex Adj Reported Ex Adj Revenue 242,198 242,198 273,640 284,486 100.00 100.00 100.00 100.00 Cost of revenue 154,996 135,287 152,194 160,622 64.00 55.86 55.62 56.46 Gross margin 87,2

  26. Slide 26: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q4 FY15 Q4 FY15 Q3 FY16 Q4 FY16 Q3 FY16 Q4 FY16 Reported Ex Adj Reported Ex Adj Employee cost 111,294 91,585 104,907 109,282 45.95 37.81 38.34 38.41 Fees to external consultants 15,335 15,335 19,877 20,999 6.33 6.33 7.27 7.38 Equipment & software 6,103 6

  27. Slide 27: IFRS Statement of Financial Position

    IFRS Statement of Financial Position 31-Mar-15 31-Mar-16 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 115,716 15.41 117,900 12.93 Intangible assets and Goodwill 39,308 5.23 39,463 4.32 Accounts Receivable 204,399 27.22 240,728 26.39 Unbilled Revenues 38,271 5.10 39,917 4.3

  28. Slide 28: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS FY15 FY15 FY16 FY16 Reported Ex Adj Reported Ex Adj Revenue 15,454 15,454 16,545 100.00 100.00 100.00 Cost of revenue 8,894 8,577 9,274 57.55 55.50 56.05 Gross margin 6,560 6,877 7,271 42.45 44.50 43.95 SG & A expenses 2,833 2,7

  29. Slide 29: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR FY15 FY15 FY16 FY16 Reported Ex Adj Reported Ex Adj Employee cost 6,243 5,926 6,379 40.40 38.35 38.56 Fees to external consultants 998 998 1,191 6.46 6.46 7.20 Equipment & software 303 303 391 1.96 1.96 2.37 Depreciation 208 208 206 1.34 1.34 1.

  30. Slide 30: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q4 FY15 Q4 FY15 Q3 FY16 Q4 FY16 Q3 FY16 Q4 FY16 Reported Ex Adj Reported Ex Adj Revenue 3,900 3,900 4,145 4,207 100.00 100.00 100.00 100.00 Cost of revenue 2,496 2,179 2,305 2,375 64.00 55.86 55.62 56.46 Gross margin 1,404 1,721

  31. Slide 31: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY15 Q4 FY15 Q3 FY16 Q4 FY16 Q3 FY16 Q4 FY16 Reported Ex Adj Reported Ex Adj Employee cost 1,792 1,475 1,589 1,616 45.95 37.81 38.34 38.41 Fees to external consultants 247 247 301 311 6.33 6.33 7.27 7.38 Equipment & software 98 98 85 117 2.52

  32. Slide 32: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD 31-Mar-15 31-Mar-16 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,849 15.41 1,780 12.93 Intangible assets and Goodwill 628 5.23 595 4.32 Accounts Receivable 3,266 27.22 3,634 26.39 Unbilled Revenues 612 5.10 603 4.38 Investments

  33. Slide 33: Indian GAAP Income Statement - Consolidated

    Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP FY15 FY15 FY16 FY16 Reported Ex Adj Reported Ex Adj Income 94,648 94,648 108,646 100.00 100.00 100.00 Expenditure a) Salaries & Wages 38,701 36,073 41,769 40.89 38.12 38.44 b) Overseas business expenditure 13,3

  34. Slide 34: Indian GAAP Income Statement - Consolidated

    Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q4 FY15 Q4 FY15 Q3 FY16 Q4 FY16 Q3 FY16 Q4 FY16 Reported Ex Adj Reported Ex Adj Income 24,220 24,220 27,364 28,449 100.00 100.00 100.00 100.00 Expenditure a) Salaries & Wages 11,777 9,149 10,599 10,910 48.63 37

  35. Slide 35: Indian GAAP Balance Sheet - Consolidated

    Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Mar-15 31-Mar-16 31-Mar-15 31-Mar-16 EQUITY AND LIABILITIES Shareholders' Funds 50,634 65,361 68.74 73.12 Minority Interest 1,128 502 1.53 0.56 Short term and long term borrowings 300 195 0.41 0.22 Deferred tax liabilitie

  36. Slide 36: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY16 Q4 FY16 Q3 FY16 Q4 FY16 USD 66.01 67.63 57.13% 57.35% GBP 99.62 96.00 14.15% 13.16% EUR 71.78 74.78 7.53% 7.87% Others 21.19% 21.62% Total 100.00% 100.00% 36

  37. Slide 37: Thank You

    Thank You IT Services Business Solutions Consulting

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