Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q3 FY2016 Earnings Presentation

27 slides from Tata Consultancy Services's earnings presentation, Jan 12, 2016

  1. Slide 1: TCS Financial Results Quarter III FY 2015-16

    TCS Financial Results Quarter III FY 2015 - 16 Jan 12, 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: Q3 FY16 Performance Highlights

    Q3 FY16 Performance Highlights  Revenue: - INR Revenue of ` 273,640 Mn, 0.7% QoQ and 11.7% YoY - USD Revenue of $ 4,145 Mn, (0.3)% QoQ and 5.5% YoY - Constant currency revenue growth of 0.5% QoQ and 9.9% YoY;  Profit: - Operating Income at ` 72,762 Mn, Operating Margin of 26.6% - Net Income at ` 6

  4. Slide 4: Financial Performance

    Financial Performance Click to edit Master title style 4

  5. Slide 5: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 256,681 271,655 273,640 245,011 242,198 ` Million 16.1% 15.1% 12.4% 14.1% 11.7% 6.0% 5.8% 2.9% -1.1% 0.7% Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Operating Income Operating margin (%) 73,536 72,762 27.2% 2

  6. Slide 6: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 4,036 4,156 4,145 3,931 3,900 14.3% 11.4% $ Million 9.3% 5.8% 5.5% 3.5% 0.0% -0.8% 3.0% -0.3% Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Operating Income Operating margin (%) 1,125 1,102 1,063 1,061 1,061 27.

  7. Slide 7: Operational Parameters

    Click to edit Parameters Operational Master title style 7

  8. Slide 8: Growth by Market

    Growth by Market 2.2% 9.4% North America 6.0% 53.5% Latin America 10.9% UK Continental Europe India 15.9% Asia Pacific 2.1% MEA Q-o-Q Y-o-Y Geography (%) Q3 FY15 Q2 FY16 Q3 FY16 CC Growth CC Growth Americas North America 51.9 52.7 53.5 1.4 9.7 Latin America 2.1 1.8 2.1 13.3 20.4 Europe UK 16.1 16.4

  9. Slide 9: Growth by Domain

    Growth by Domain BFSI 3.6% 2.5% 3.9% 4.1% Retail & Distribution 6.0% Manufacturing 40.5% 7.3% Telecom Life Sciences & Healthcare Hi-Tech 8.4% Energy & Utilities Travel & Hospitality 9.9% Media & Entertainment 13.8% Others Q-o-Q Y-o-Y IP Revenue (%) Q3 FY15 Q2 FY16 Q3 FY16 CC Growth CC Growth BFSI 40

  10. Slide 10: Growth by Service Line

    Growth by Service Line 11.8% Application Development & Maint. 39.7% 2.8% Enterprise Solutions & Consulting 15.2% Assurance Services Engineering & Industrial Services 4.5% Infrastructure Services Asset Leveraged Solutions 8.6% 17.4% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q3 FY15 Q2 FY16

  11. Slide 11: Client Parameters

    Client Parameters Clients Contribution* Q3 FY15 Q2 FY16 Q3 FY16 US$ 1m+ Clients 764 819 838 US$ 5m+ Clients 387 404 413 US$ 10m+ Clients 249 274 281 US$ 20m+ Clients 159 171 173 US$ 50m+ Clients 65 65 65 US$ 100m+ Clients 25 33 34 *Last Twelve Months' services revenues 11

  12. Slide 12: Key Wins

    Key Wins • Selected by a large Global Bank for a multi-year Application Management and Service Delivery transformation to optimize operations • Chosen as a strategic partner by a leading European manufacturer for Application Support across Sales, HR, Finance & Operations applications in North Americ

  13. Slide 13: Key Wins in Digital Services and Solutions

    Key Wins in Digital Services and Solutions  Engaged by an automobile manufacturer for their digital journey to transform customer experience in its connected cars  Selected by a leading insurance company to transform the customer and agent experience by creating a compelling multi-channel solution

  14. Slide 14: Human Resources

    Click to Resources Human edit Master title style 14

  15. Slide 15: Total Employee Base

    Total Employee Base Total Employees : 344,691 344,691 335,620 324,935 318,625 319,656 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 15

  16. Slide 16: Q3 Consolidated - Gross Additions & Net Additions

    Q3 Consolidated - Gross Additions 22,118 & Net Additions 9,071 Gross Additions: • 7,593 Trainees & 10,451 Laterals in India Attrition*: • 4,074 employees overseas • 15.3% (LTM), IT Services • 15.9% (LTM), including BPS 25,186 22118 Utilization Rate*: 20,302 20,000 • 84.9.% (excluding Trainees) 16,56

  17. Slide 17: Annexure

    Click to edit Master title style Annexure 17

  18. Slide 18: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q3 FY15 Q2 FY16 Q3 FY16 Q3 FY15 Q2 FY16 Q3 FY16 Revenue 245,011 271,655 273,640 100.00 100.00 100.00 Cost of revenue 135,159 151,501 152,194 55.16 55.77 55.62 Gross margin 109,852 120,154 121,446 44.84 44.23 44.38 SG & A expenses 43,611

  19. Slide 19: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q3 FY15 Q2 FY16 Q3 FY16 Q3 FY15 Q2 FY16 Q3 FY16 Employee cost 93,242 103,964 104,907 38.06 38.27 38.34 Fees to external consultants 16,473 20,114 19,877 6.72 7.41 7.27 Equipment & software 5,440 5,606 5,594 2.22 2.07 2.05 Depreciation 2,998 3,344 3,366 1

  20. Slide 20: IFRS Statement of Financial Position

    IFRS Statement of Financial Position 31-Mar-15 31-Dec-15 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 115,716 15.41 116,813 13.88 Intangible assets and Goodwill 39,308 5.23 39,154 4.65 Accounts Receivable 204,399 27.22 228,654 27.17 Unbilled Revenues 38,271 5.10 40,664 4.8

  21. Slide 21: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q3 FY15 Q2 FY16 Q3 FY16 Q3 FY15 Q2 FY16 Q3 FY16 Revenue 3,931 4,156 4,145 100.00 100.00 100.00 Cost of revenue 2,168 2,318 2,305 55.16 55.77 55.62 Gross margin 1,763 1,838 1,840 44.84 44.23 44.38 SG & A expenses 700 713 738 17.8

  22. Slide 22: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q3 FY15 Q2 FY16 Q3 FY16 Q3 FY15 Q2 FY16 Q3 FY16 Employee cost 1,496 1,591 1,589 38.06 38.27 38.34 Fees to external consultants 264 308 301 6.72 7.41 7.27 Equipment & software 87 86 85 2.22 2.07 2.05 Depreciation 48 51 51 1.22 1.23 1.23 Travel 53

  23. Slide 23: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD 31-Mar-15 31-Dec-15 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,849 15.41 1,765 13.88 Intangible assets and Goodwill 628 5.23 592 4.65 Accounts Receivable 3,266 27.22 3,455 27.17 Unbilled Revenues 612 5.10 615 4.83 Investments

  24. Slide 24: Indian GAAP Income Statement - Consolidated

    Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q3 FY15 Q2 FY16 Q3 FY16 Q3 FY15 Q2 FY16 Q3 FY16 Income 24,501 27,165 27,364 100.00 100.00 100.00 Expenditure a) Salaries & Wages 9,336 10,284 10,599 38.10 37.86 38.73 b) Overseas business expenditure 3,344 3,68

  25. Slide 25: Indian GAAP Balance Sheet - Consolidated

    Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Mar-15 31-Dec-15 31-Mar-15 31-Dec-15 EQUITY AND LIABILITIES Shareholders' Funds 50,634 65,233 68.74 79.18 Minority Interest 1,128 472 1.53 0.57 Short term and long term borrowings 300 124 0.41 0.15 Deferred tax liabilitie

  26. Slide 26: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q2 FY16 Q3 FY16 Q2 FY16 Q3 FY16 USD 65.36 66.01 56.55% 57.13% GBP 100.91 99.62 14.51% 14.15% EUR 73.18 71.78 7.56% 7.53% Others 21.38% 21.19% Total 100.00% 100.00% 26

  27. Slide 27: Thank You

    Thank You IT Services Business Solutions Consulting

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