Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q4 FY2008 Earnings Presentation
34 slides from Tata Consultancy Services's earnings presentation, Apr 21, 2008
Slide 1: Results for Quarter IV FY 2007 - 08
Results for Quarter IV FY 2007 - 08 21 April 2008
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 21 April 2008
Slide 4: Indian GAAP Growth Summary - Annual
Indian GAAP Growth Summary - Annual Consolidated Indian GAAP (INR Crore) FY 2008 FY 2007 Income from IT & Consultancy Services 21,681 17,807 % Growth Y-o-Y 21.76% Total Income 22,863 18,685 % Growth Y-o-Y 22.36% PBIDT (before Other Income) 5,954 5,139 % Growth Y-o-Y 15.85% Profit After Tax 5,026 4,2
Slide 5: Indian GAAP Growth Summary – Quarterly
Indian GAAP Growth Summary – Quarterly Consolidated Indian GAAP (INR Crore) Q4 FY08 Q3 FY08 Q4 FY07 Income from IT & Consultancy Services 5,807 5,560 4,950 % Growth Q-o-Q 4.45% % Growth Y-o-Y 17.31% Total Income 6,098 5,923 5,162 % Growth Q-o-Q 2.95% % Growth Y-o-Y 18.13% PBIDT (before Other Income)
Slide 6: US GAAP Revenue Growth – Annual
US GAAP Revenue Growth – Annual Consolidated US GAAP (INR Million) FY 2008 FY 2007 Revenue from International Business 208,117 169,530 % Growth Y-o-Y 22.76% Revenue from Indian Business 20,497 16,802 % Growth Y-o-Y 21.99% Total Revenue 228,614 186,332 % Growth Y-o-Y 22.69% 21 April 2008 6
Slide 7: US GAAP Growth Summary – Annual
US GAAP Growth Summary – Annual Consolidated US GAAP (INR Million) FY 2008 FY 2007 Gross Margin 102,420 82,206 % Growth Y-o-Y 24.59% EBIDTA 59,397 50,740 % Growth Y-o-Y 17.06% Operating Income 53,651 46,444 % Growth Y-o-Y 15.52% Net Income 50,191 41,315 % Growth Y-o-Y 21.48% 21 April 2008 7
Slide 8: US GAAP Revenue Growth – Quarterly
US GAAP Revenue Growth – Quarterly 21 April 2008 8
Slide 9: US GAAP Growth Summary – Quarterly
US GAAP Growth Summary – Quarterly 21 April 2008 9
Slide 10: Operational Performance
Operational Performance 21 April 2008
Slide 11: Growth by Market
Growth by Market 5.1% 1.4% North America • UK crossed revenues of $ 1B 9.2% Ibero America and Continental Europe $ 500M 50.4% 9.7% UK • Asia Pacific, Latin America and 19.4% Continental Europe Middle East Africa continue to 4.8% India grow faster. Asia Pacific MEA • Key clients in our major markets
Slide 12: Growth by Domain
Growth by Domain 2.8% 5.7% BFSI • All our industry verticals Manufacturing 8.2% 4.1% 43.8% registered higher revenue Telecom 5.1% during FY08 Life Sciences & Healthcare Retail & Distribution • BFSI segment registered a 17.3% Transportation growth of 40% in a 13.0% Energy & Utilities challenging envi
Slide 13: Growth by Service Line
Growth by Service Line 6.3% • Our new growth services BPO, 4.3% 3.6% Application Development & Maint. 6.7% Business Intelligence 5.3% Enterprise Solutions Infrastructure, Global Consulting 4.2% Assurance Services and Assurance Services have Engineering & Industrial Services 46.2% Infrastructure Serv
Slide 14: Client Parameters
Client Parameters Q4 FY08 Q3 FY08 FY08 FY07 Clients Contribution * Revenue % Top 1 6.5 6.9 6.5 6.6 Top 5 18.9 19.1 18.9 18.5 Top 10 29.1 29.7 29.1 28.4 US$ 1 mln Clients 358 347 358 297 US$ 5 mln Clients 143 138 143 119 US$ 10 mln Clients 100 97 100 75 US$ 20 mln Clients 56 53 56 39 US$ 50 mln Clien
Slide 15: Operational Parameters
Operational Parameters Revenue % Q4 FY08 Q3 FY08 FY08 FY07 Delivery Location* Onsite 53.2 54.3 53.9 55.7 GDC/RDC 4.7 4.3 4.2 3.8 Offshore 42.1 41.4 41.9 40.5 Contract Type Time & Material 55.8 54.6 55.9 58.7 Fixed Price & Time 44.2 45.4 44.1 41.3 * Excluding Domestic Clients 21 April 2008 15
Slide 16: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q4 FY08 Q3 FY08 FY08 FY07 Active Clients 904 857 929 920 New Clients 53 54 212 218 Revenue % from Repeat Business 94.3 94.9 96.4 96.8 Revenue % from New Business * 5.7 5.1 3.6 3.2 * Reset at the beginning of Financial Year 21 April 2008 16
Slide 17: Representative Wins
Representative Wins Client Services Contract Value UK Insurance Services IT Services, Systems Transformation $300 million UK Retailer IT Services $100 million UK Water Utility Company IT Services $100 million Communications Serivces Co. Product Engineering, R&D $70 million UK Investment Advisor Cons
Slide 18: Representative Wins
Representative Wins Client Services Automotive OEM IT Services India Ministry of Finance, Creation & running of data center Infrastructure Management Large BFS client in US Maintain & enhance core mainframe systems 21 April 2008 18
Slide 19: Human Resources
Human Resources 21 April 2008
Slide 20: Largest IT Employer in India: 111,407 employees
Largest IT Employer in India: 111,407 employees Total Employees: 111,407 TCS : 107,698 Indian subsidiaries: 3,709 Overseas Subsidiaries and Branches : 10,005 Global Delivery Centers : 4,316 3,830 3,709 3,985 3,837 3,808 107,698 104,399 100,362 91,094 85,582 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 21
Slide 21: FY 08 Gross additions 35,672 & Net additions 22,116
FY 08 Gross additions 35,672 & Net additions 22,116 FY08 at a Glance TCS added, 14,349 Trainees and 16,893 Experienced Professionals in India TCS added 4,869 employees in Overseas Subsidiaries and Branches FY 08 Gross Additions : 35,672 16,893 14,349 4,869 -439 Experienced Trainees Overseas Dive
Slide 22: Lowest Attrition in the Industry
Lowest Attrition in the Industry. • Attrition: 12.6%(LTM), including BPO • IT Services: 12.0% (LTM), BPO: 18.7 % (LTM) •Q4 Additions: 2,174 Trainees & 2,779 Laterals in India;1,968 in Overseas Subs & Branches • Utilization Rate was 79.1% (excluding trainees), 75.8% (including trainees) 12,523 Gross
Slide 23: Diverse Workforce
Diverse Workforce • 28% of our workforce are women • 49.7% of our associates have more than 3 years of work experience. • Associates from 62 Nationalities Indian Others 90.9% 9.1% 21 April 2008 23
Slide 24: 22,451 offers made for FY’09
22,451 offers made for FY’09 94.1% Day 1 slots achieved Day 1 Others 91.2% 94.1% •272 Institutes visited Total Offers made: 22,451 66.7% B.Sc hiring – 4,809 offers 33.3% Total Institutes Accredited: 433 8.8% 5.9% FY06 FY07 FY08 21 April 2008 24
Slide 25: 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 21 April 2008
Slide 26: Indian GAAP Income Statement - Annual
Indian GAAP Income Statement - Annual INR Crore % of Total Income Consolidated Indian GAAP FY 2008 FY 2007 FY 2008 FY 2007 INCOME a) IT & Consultancy Services 21,681.30 17,806.60 94.83 95.30 b) Manufacturing, Sale of equipment and Licences 1,182.09 878.61 5.17 4.70 Total Income 22,863.39 18,685.21 1
Slide 27: Indian GAAP Income Statement – Consolidated – Q4 FY08
Indian GAAP Income Statement – Consolidated – Q4 FY08 INR Crore % of Total Income Consolidated Indian GAAP Q4 FY08 Q3 FY08 Q4 FY07 Q4 FY08 Q3 FY08 Q4 FY07 INCOME a) IT & Consultancy Services 5,807.43 5,560.24 4,950.29 95.24 93.88 95.90 b) Manufacturing, Sale of equipment and Licences 290.37 362.73 2
Slide 28: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated INR Crore % Consolidated Indian GAAP 31-Mar-08 31-Mar-07 31-Mar-08 31-Mar-07 Source of Funds Shareholders' Funds 11,956.73 8,850.10 93.66 91.80 Minority Interest 212.73 211.80 1.67 2.20 Loan Funds 455.02 506.75 3.57 5.26 Deferred Tax Liability 140.22 71.70 1.
Slide 29: US GAAP Income Statement - Annual
US GAAP Income Statement - Annual INR numbers of FY2008 are converted to USD on convenience translation basis @ Rupees 40.105 per USD 21 April 2008 29
Slide 30: COR – SG&A Details - Annual
COR – SG&A Details - Annual 21 April 2008 30
Slide 31: US GAAP Income Statement - Quarterly
US GAAP Income Statement - Quarterly INR numbers of Q4 FY08 are converted to USD on convenience translation basis @ Rupees 40.105 per USD 21 April 2008 31
Slide 32: COR – SG&A Details - Quarterly
COR – SG&A Details - Quarterly 21 April 2008 32
Slide 33: US GAAP Balance Sheet
US GAAP Balance Sheet 31-Mar-08 31-Mar-07 Consolidated US GAAP INR Million % INR Million % Assets Cash and Cash equivalents 10,351.69 5.89 12,291.40 9.41 Accounts Receivable 53,898.57 30.66 43,090.44 32.98 Unbilled Revenues 13,525.01 7.69 7,834.80 5.99 Other Current assets 17,552.48 9.98 11,636.23 8
Slide 34: 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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