Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q3 FY2023 Earnings Presentation

26 slides from Tata Consultancy Services's earnings presentation, Jan 9, 2023

  1. Slide 1: TCS Financial Results Quarter III FY 2022-23

    TCS Financial Results Quarter III FY 2022-23 Jan 9, 2023

  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 FY23 Performance Highlights

    Q3 FY23 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 582,290 Mn, up 19.1% YoY - USD Revenue of $ 7,075 Mn, up 8.4% YoY - Constant currency revenue up 13.5% YoY ➢ Profit: - Operating Margin at 24.5% - Net Margin at 18.6% - Cash flow from operations at 102.8% of net profit ➢ Demand: - Clients

  4. Slide 4: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 582,290 18.0% 19.1% 527,580 553,090 16.3% 15.8% 16.2% ` Million 488,850 505,910 15.4% 14.3% 15.5% 15.4% 13.5% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Operating Income Operating margin (%) 142,840 132,79

  5. Slide 5: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 6,780 6,877 7,075 6,524 6,696 15.4% 14.3% 15.5% 15.4% $ Million 13.5% 14.4% 11.8% 10.2% 8.6% 8.4% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Operating Income Operating margin (%) 1,633 1,671 1,736 1,566 1,

  6. Slide 6: Operational Parameters

    TATA CONSULTANCY SERVICES Building on belief Operational Parameters

  7. Slide 7: Growth by Market

    Growth by Market Y-o-Y Geography (%) Q3 FY22 Q3 FY23 CC Growth Americas North America 50.7 53.7 15.4 Latin America 1.7 1.8 14.6 Europe UK 15.6 14.9 15.4 Continental Europe 16.0 14.8 9.7 Asia Pacific 8.6 7.9 9.5 India 5.5 5.1 9.1 MEA 1.9 1.8 8.6 Total 100.0 100.0 13.5 7

  8. Slide 8: Growth by Domain

    Growth by Domain Y-o-Y Vertical (%) Q3 FY22 Q3 FY23 CC Growth BFSI 32.0 31.5 11.1 Retail & CPG 15.1 15.7 18.7 Life Sciences & Healthcare 9.9 10.3 14.4 Manufacturing 9.9 9.9 12.5 Technology & Services 8.7 8.9 13.6 Communication & Media 6.7 6.6 13.5 Regional Markets & Others 17.7 17.1 13.3 Total 100.0

  9. Slide 9: Service Lines Commentary

    Service Lines Commentary Cloud Enterprise Application Services We are seeing the next wave of Cloud adoption by enterprises as they We are seeing increased SaaS adoption to improve the experience → Overall demand outlook for technology seek to leverage the Cloud as a strong innovation enabler. Our C

  10. Slide 10: Client Parameters

    Client Parameters Clients Contribution Q3 FY22 Q3 FY23 US$ 1m+ Clients 1175 1217 US$ 5m+ Clients 619 658 US$ 10m+ Clients 426 456 US$ 20m+ Clients 255 290 US$ 50m+ Clients 118 130 US$ 100m+ Clients 58 59 *Last Twelve Months' services revenues 10

  11. Slide 11: Key Highlights (1/2)

    Key Highlights (1/2) • AGL, Australia’s largest energy provider, is transforming into a multi-service retailer. • Having become a preferred transformation partner of choice to a leading US-based media AGL has selected TCS as the partner for the Retail Next Program, which lays the and entertainment c

  12. Slide 12: Key Highlights (2/2)

    Key Highlights (2/2) • TCS has expanded its decade-long partnership with Marks & Spencer plc as they • Chosen by a leading Brazilian energy provider to modernize and transform its core continue to transform their business. TCS will work with the M&S Tech team to enterprise applications. TCS will lev

  13. Slide 13: Human Resources

    TATA CONSULTANCY . SERVICES Building on belief Human Resources

  14. Slide 14: Total Employee Base

    Total Employee Base Attrition*: 616,171 • 21.3% (LTM), IT Services 613,974 606,331 592,195 Diversity: • Women employees: 35.7% 556,986 • Nationalities: 153 *Excluding Subsidiaries 528,748 Talent Development: • 11.4 Mn Learning Hrs in Q3’23 • 498K Digital Trained Associates Q2-22 Q3-22 Q4-22 Q1-23 Q2

  15. Slide 15: Annexure

    TATA CONSULTANCY . SERVICES Building on belief Annexure

  16. Slide 16: IFRS Income Statement

    IFRS Income Statement ₹ M illion % of Revenue Consolidated IFRS Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Revenue 488,850 582,290 100.00 100.00 Cost of revenue 293,320 349,080 60.00 59.96 Gross margin 195,530 233,210 40.00 40.04 SG & A expenses 73,160 90,370 14.97 15.51 Operating income 122,370 142,840 25.03

  17. Slide 17: COR – SG&A Details

    COR – SG&A Details ₹ Million % of Revenue COR Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Employee cost 211,620 251,940 43.29 43.27 Fees to external consultants 43,770 53,470 8.95 9.19 Equipment and software 4,320 6,430 0.88 1.10 Facility expenses 3,610 4,110 0.74 0.71 Depreciation 9,310 9,660 1.90 1.66 Travel

  18. Slide 18: Cash Flow Summary

    Cash Flow Summary IFRS in ₹ Mn Q3 FY22 Q3 FY23 Net Cash from Operations 108,530 111,540 Capital Expenditure 9,100 9,390 Free Cash Flow 99,430 102,150 Dividends Paid 25,890 29,270 Operating Cash Flow to Sales (%) 22.2 19.2 Operating Cash Flow to Net Profit (%) 111.1 102.8 Total Cash and Investments 6

  19. Slide 19: IFRS Statement of Financial Position

    IFRS Statement of Financial Position Consolidated IFRS (₹ Million) 31-Mar-22 31-Dec-22 Assets Property and equipment 120,800 117,710 Right-of-use Assets 76,360 73,880 Intangible assets and Goodwill 50,360 49,180 Accounts Receivable 342,190 410,040 Unbilled Revenues 122,100 144,320 Invested Funds 560

  20. Slide 20: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Revenue 6,524 7,075 100.00 100.00 Cost of revenue 3,915 4,241 60.00 59.96 Gross margin 2,609 2,834 40.00 40.04 SG & A expenses 976 1,098 14.97 15.51 Operating income 1,633 1,736 25.03 24.53 Other

  21. Slide 21: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Employee cost 2,824 3,061 43.29 43.27 Fees to external consultants 584 650 8.95 9.19 Equipment and software 58 78 0.88 1.10 Facility expenses 48 50 0.74 0.71 Depreciation 124 117 1.90 1.66 Travel 62 55 0.94 0.78 C

  22. Slide 22: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD Consolidated IFRS ($ Million) 31-Mar-22 31-Dec-22 Assets Property and equipment 1,596 1,423 Right-of-use Assets 1,009 893 Intangible assets and Goodwill 665 595 Accounts Receivable 4,520 4,955 Unbilled Revenues 1,613 1,745 Invested Funds 7,405 8,089 Other

  23. Slide 23: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Revenue 48,885 58,229 100.00 100.00 Expenditure a) Employee Costs 27,168 32,467 55.58 55.76 b) Cost of equipment and software licences 432 643 0.88 1.10 c) Other Operating expenses 7,852 9

  24. Slide 24: Ind AS Balance Sheet – Consolidated

    Ind AS Balance Sheet – Consolidated ₹ Crore Consolidated Ind AS 31-Mar-22 31-Dec-22 Assets Property and equipment 11,979 11,634 Right-of-use Assets 7,636 7,388 Intangible assets and Goodwill 2,888 2,770 Accounts Receivable 34,219 41,004 Unbilled Revenues 12,210 14,432 Invested Funds 56,053 66,924 Ot

  25. Slide 25: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 USD 74.93 82.30 53.12% 56.37% GBP 100.90 98.05 13.40% 12.69% EUR 85.38 85.06 11.80% 10.64% Others 21.68% 20.30% Total 100.00% 100.00% 25

  26. Slide 26: Thank you

    Thank you Copyright © 2022 Tata Consultancy Services Limited

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