Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q3 FY2024 Earnings Presentation

25 slides from Tata Consultancy Services's earnings presentation, Jan 11, 2024

  1. Slide 1: TCS Financial Results

    TCS Financial Results Quarter III Ended FY 2023-24 Jan 11, 2024

  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 FY24 Performance Highlights

    Q3 FY24 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 605,830 Mn, up 4.0% YoY - USD Revenue of $ 7,281 Mn, up 2.9% YoY - Constant currency revenue up 1.7% YoY ➢ Profit: - Operating Margin at 25.0%* - Net Margin at 19.4%* - Cash flow from operations at 102.0% of net profit ➢ Demand: - Clients

  4. Slide 4: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 19.1% 591,620 593,810 596,920 605,830 16.9% 582,290 12.6% ` Million 13.5% 7.9% 10.7% 4.0% 7.0% 2.8% 1.7% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Operating Income Operating margin (%) 144,830 151,550 142

  5. Slide 5: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 7,075 7,195 7,226 7,210 7,281 13.5% $ Million 10.7% 7.0% 4.8% 2.9% 8.4% 7.4% 6.6% 2.8% 1.7% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Operating Income Operating margin (%) 1,736 1,761 1,749 1,821 1,674 24

  6. Slide 6: Operational Parameters

    qe TATA wip t ( K CONSULTANCY TATA SERVICES Operational Parameters Building on belief

  7. Slide 7: Growth by Market

    Growth by Market Y-o-Y Geography (%) Q3 FY23 Q3 FY24 CC Growth Americas North America 53.7 50.6 - 3.0 Latin America 1.8 2.1 13.2 Europe UK 14.9 16.4 8.1 Continental Europe 14.8 15.0 0.5 Asia Pacific 7.9 7.8 3.9 India 5.1 6.1 23.4 MEA 1.8 2.0 16.0 Total 100.0 100.0 1.7 7

  8. Slide 8: Growth by Domain

    Growth by Domain Y-o-Y Vertical (%) Q3 FY23 Q3 FY24 CC Growth BFSI 33.1 31.7 - 3.0 Consumer Business 16.0 15.7 - 0.3 Life Sciences & Healthcare 10.8 10.9 3.1 Technology & Services 9.0 8.4 - 5.0 Manufacturing 8.2 8.6 7.0 Communication & Media 7.2 6.7 - 4.9 Energy, Resources and Utilities 5.2 5.7 11.8

  9. Slide 9: Service Lines Commentary

    Service Lines Commentary AI.Cloud Enterprise Solutions During this quarter, we saw significant demand for migration, Clients continued to expand their investments in digital core by modernization, and business transformation opportunities on cloud modernizing their ERP. They also partnered with TCS

  10. Slide 10: Client Parameters

    Client Parameters Clients Contribution Q3 FY23 Q3 FY24 US$ 1m+ Clients 1217 1288 US$ 5m+ Clients 658 693 US$ 10m+ Clients 456 480 US$ 20m+ Clients 290 299 US$ 50m+ Clients 130 137 US$ 100m+ Clients 59 61 *Last Twelve Months' services revenues 10

  11. Slide 11: Key Highlights

    Key Highlights • A leading UK Bank selected TCS as its strategic partner for the end-to-end transformation of its motor • Selected by a US based healthcare company to reimagine its current operating model, by finance and leasing business. TCS will deliver a modern mobility platform by combining its

  12. Slide 12: Human Resources

    TATA <p [CS CONSULTANCY TATA SERVICES Human Resources Building on belief

  13. Slide 13: Total Employee Base

    Total Employee Base Attrition*: • 13.3% (LTM), IT Services 614,795 615,318 613,974 Diversity: 608,985 • 35.7% Women employees • 153 Nationalities 603,305 *Excluding Subsidiaries Talent Development: • 39.7 Mn Learning Hrs YTD (FY24) • 3.7 Mn competencies acquired YTD (FY24) Q3-23 Q4-23 Q1-24 Q2-24 Q3

  14. Slide 14: Annexure

    TATA <p [CS CONSULTANCY TATA SERVICES Annexure Building on belief

  15. Slide 15: IFRS Income Statement

    IFRS Income Statement ₹ M illion % of Revenue Consolidated IFRS Q3 FY24 Q3 FY24 Q3 FY23 Q3 FY23 Ex Adj* Reported Ex Adj* Reported Revenue 582,290 605,830 605,830 100.00 100.00 100.00 Cost of revenue 349,080 358,710 358,710 59.96 59.21 59.21 Gross margin 233,210 247,120 247,120 40.04 40.79 40.79 SG &

  16. Slide 16: COR – SG&A Details

    COR – SG&A Details ₹ Million % of Revenue COR Q3 FY24 Q3 FY24 Q3 FY23 Q3 FY23 Ex Adj* Reported Ex Adj* Reported Employee cost 251,940 269,500 269,500 43.27 44.48 44.48 Fees to external consultants 53,470 37,200 37,200 9.19 6.14 6.14 Equipment and software 6,430 11,730 11,730 1.10 1.94 1.94 Facility

  17. Slide 17: Cash Flow Summary

    Cash Flow Summary IFRS in ₹ Mn Q3 FY23 Q3 FY24 Net Cash from Operations 111,540 112,760 Capital Expenditure 9,390 9,240 Free Cash Flow 102,150 103,520 Dividends Paid 29,270 32,930 Buy Back (incl. expenses) - 210,050 Operating Cash Flow to Sales (%) 19.2 18.6 Operating Cash Flow to Net Profit (%) 102

  18. Slide 18: IFRS Statement of Financial Position

    IFRS Statement of Financial Position ₹ Million Consolidated IFRS 31-Mar-23 31-Dec-23 Assets Property and equipment 115,950 110,830 Right-of-use Assets 75,600 74,190 Intangible assets and Goodwill 48,730 46,260 Accounts Receivable 411,980 444,330 Unbilled Revenues 149,350 140,670 Invested Funds 498,2

  19. Slide 19: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q3 FY24 Q3 FY24 Q3 FY23 Q3 FY23 Ex Adj* Reported Ex Adj* Reported Revenue 7,075 7,281 7,281 100.00 100.00 100.00 Cost of revenue 4,241 4,311 4,311 59.96 59.21 59.21 Gross margin 2,834 2,970 2,970 40.04 40.79 40.79 SG & A expense

  20. Slide 20: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q3 FY24 Q3 FY24 Q3 FY23 Q3 FY23 Ex Adj* Reported Ex Adj* Reported Employee cost 3,061 3,239 3,239 43.27 44.48 44.48 Fees to external consultants 650 447 447 9.19 6.14 6.14 Equipment and software 78 141 141 1.10 1.94 1.94 Facility expenses 50 58

  21. Slide 21: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD $ Million Consolidated IFRS 31-Mar-23 31-Dec-23 Assets Property and equipment 1,410 1,333 Right-of-use Assets 919 892 Intangible assets and Goodwill 593 557 Accounts Receivable 5,010 5,344 Unbilled Revenues 1,816 1,691 Invested Funds 6,058 5,498 Other curr

  22. Slide 22: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS Q3 FY24 Q3 FY24 Q3 FY23 Q3 FY23 Ex Adj* Reported Ex Adj* Reported Revenue 58,229 60,583 60,583 100.00 100.00 100.00 Expenditure a) Employee Costs 32,467 34,722 34,722 55.76 57.31 57.31 b) Cost of equipment and software l

  23. Slide 23: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ₹ Crore Consolidated Ind AS 31-Mar-23 31-Dec-23 Assets Property and equipment 11,464 10,834 Right-of-use Assets 7,560 7,419 Intangible assets and Goodwill 2,725 2,475 Accounts Receivable 41,198 44,433 Unbilled Revenues 14,935 14,067 Invested Funds 49,824 45,731 Ot

  24. Slide 24: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 USD 82.30 83.21 56.37% 52.91% GBP 98.05 104.24 12.69% 14.35% EUR 85.06 90.06 10.64% 11.14% Others 20.30% 21.60% Total 100.00% 100.00% 24

  25. Slide 25: Thank you

    Thank you Copyright © 2023 Tata Consultancy Services Limited

Tata Consultancy Services — Q3 FY2024 Earnings Presentation on 6ix