Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q1 FY2023 Earnings Presentation

25 slides from Tata Consultancy Services's earnings presentation, Jul 8, 2022

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

    TCS Financial Results Quarter I FY 2022-23 July 08, 2022

  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: Q1 FY23 Performance Highlights

    Q1 FY23 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 527,580 Mn, up 16.2% YoY - USD Revenue of $ 6,780 Mn, up 10.2% YoY - Constant currency revenue up 15.5% YoY ➢ Profit: - Operating Margin at 23.1% - Net Margin at 18.0% - Cash flow from operations at 114.1% of net profit ➢ Demand: - Clients

  4. Slide 4: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 18.5% 505,910 527,580 16.8% 16.3% 15.8% 16.2% 468,670 488,850 454,110 ` Million 16.4% 15.5% 15.4% 15.5% 14.3% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Operating Income Operating margin (%) 122,370 126,28

  5. Slide 5: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 6,696 6,780 21.6% 6,333 6,524 6,154 16.8% 15.5% $ Million 15.4% 14.3% 16.4% 15.5% 14.4% 11.8% 10.2% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Operating Income Operating margin (%) 1,570 1,622 1,633 1,671

  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 (%) Q1 FY22 Q1 FY23 CC Growth Americas North America 49.4 53.2 19.1 Latin America 1.6 1.8 21.6 Europe UK 16.3 14.9 12.6 Continental Europe 16.7 15.2 12.1 Asia Pacific 9.3 8.3 6.2 India 4.6 4.8 20.8 MEA 2.1 1.8 3.2 Total 100.0 100.0 15.5 7

  8. Slide 8: Growth by Domain

    Growth by Domain Y-o-Y Vertical (%) Q1 FY22 Q1 FY23 CC Growth BFSI 32.4 32.1 13.9 Retail & CPG 14.7 15.9 25.1 Life Sciences & Healthcare 10.2 10.1 11.9 Manufacturing 9.8 9.9 16.4 Technology & Services 8.6 8.8 16.4 Communication & Media 6.6 6.8 19.6 Regional Markets & Others 17.7 16.4 9.8 Total 100.0

  9. Slide 9: Service Lines Commentary – Q1 FY23

    Service Lines Commentary – Q1 FY23 Cloud Consulting & Services Integration Strong growth as our clients are actively investing in Hybrid IT Strong growth led by Finance & Shared Services, Supply Chain, strategies and multi-horizon cloud transformation initiatives. Our NextGen Enterprise Transformati

  10. Slide 10: Client Parameters

    Client Parameters Clients Contribution Q1 FY22 Q1 FY23 US$ 1m+ Clients 1118 1196 US$ 5m+ Clients 586 650 US$ 10m+ Clients 405 446 US$ 20m+ Clients 241 272 US$ 50m+ Clients 105 124 US$ 100m+ Clients 50 59 *Last Twelve Months' services revenues 10

  11. Slide 11: Key Highlights

    Key Highlights • Selected Cloudby a leading US based freight railroad operator, as a strategic partner to transform • Selected by Scottish Power Energy Retail Limited, part of the Iberdrola group, to help bring their complete IT landscape & support their operations, locomotives, and assets to enhanc

  12. Slide 12: Human Resources

    TATA CONSULTANCY ; ; SERVICES Building on belief Human Resources

  13. Slide 13: Total Employee Base

    Total Employee Base Attrition*: • 19.7 % (LTM), IT Services 592,195 606,331 556,986 509,058 528,748 Diversity: 488,649 • Women employees: 35.5% • Nationalities: 153 *Excluding Subsidiaries Talent Development: • ~12Mn Learning Hrs in Q1’23 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 • 497K Digital Trained As

  14. Slide 14: Annexure

    TATA CONSULTANCY ; ; SERVICES Building on belief Annexure

  15. Slide 15: IFRS Income Statement

    IFRS Income Statement ₹ M illion % of Revenue Consolidated IFRS Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Revenue 454,110 527,580 100.00 100.00 Cost of revenue 270,800 324,890 59.63 61.58 Gross margin 183,310 202,690 40.37 38.42 SG & A expenses 67,430 80,830 14.85 15.32 Operating income 115,880 121,860 25.52

  16. Slide 16: COR – SG&A Details

    COR – SG&A Details ₹ Million % of Revenue COR Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Employee cost 201,570 236,850 44.39 44.89 Fees to external consultants 37,470 51,000 8.25 9.67 Equipment and software 2,580 2,170 0.57 0.41 Facility expenses 3,340 3,880 0.73 0.74 Depreciation 8,400 9,360 1.85 1.77 Travel

  17. Slide 17: Cash Flow Summary

    Cash Flow Summary IFRS in ₹ Mn Q1 FY22 Q1 FY23 Net Cash from Operations 102,960 108,100 Capital Expenditure 5,460 7,420 Free Cash Flow 97,500 100,680 Dividends Paid 55,870 80,910 Buy Back (incl. expenses) - 41,920 Operating Cash Flow to Sales (%) 22.7 20.5 Operating Cash Flow to Net Profit (%) 114.3

  18. Slide 18: IFRS Statement of Financial Position

    IFRS Statement of Financial Position 31-Mar-22 30-Jun-22 Consolidated IFRS ₹ Million % ₹ Million % Assets Property and equipment 120,800 8.41 119,860 8.40 Right-of-use Assets 76,360 5.32 75,510 5.29 Intangible assets and Goodwill 50,360 3.51 48,720 3.41 Accounts Receivable 342,190 23.82 358,620 25.1

  19. Slide 19: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Revenue 6,154 6,780 100.00 100.00 Cost of revenue 3,670 4,175 59.63 61.58 Gross margin 2,484 2,605 40.37 38.42 SG & A expenses 914 1,039 14.85 15.32 Operating income 1,570 1,566 25.52 23.10 Other

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

    COR – SG&A Details – In USD $ Million % of Revenue COR Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Employee cost 2,732 3,044 44.39 44.89 Fees to external consultants 508 655 8.25 9.67 Equipment and software 35 28 0.57 0.41 Facility expenses 45 50 0.73 0.74 Depreciation 114 120 1.85 1.77 Travel 37 55 0.61 0.81 C

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

    IFRS Statement of Financial Position in USD 31-Mar-22 30-Jun-22 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,596 8.41 1,518 8.40 Right-of-use Assets 1,009 5.32 956 5.29 Intangible assets and Goodwill 665 3.51 617 3.41 Accounts Receivable 4,520 23.82 4,543 25.14 Unbilled

  22. Slide 22: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Revenue 45,411 52,758 100.00 100.00 Expenditure a) Employee Costs 25,649 30,327 56.48 57.48 b) Cost of equipment and software licences 258 217 0.57 0.41 c) Other Operating expenses 6,841 8

  23. Slide 23: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ₹ Crore % Consolidated Ind AS 31-Mar-22 30-Jun-22 31-Mar-22 30-Jun-22 ASSETS Property, plant and equipment 13,080 12,888 9.24 9.17 Right-of-use assets 7,636 7,551 5.40 5.37 Investments 30,485 32,712 21.54 23.27 Deferred tax assets (net) 3,708 3,498 2.62 2.49 Goodw

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

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 USD 73.79 77.81 51.69% 55.59% GBP 103.13 96.68 14.02% 12.76% EUR 89.10 82.38 12.52% 11.03% Others 21.77% 20.62% Total 100.00% 100.00% 24

  25. Slide 25: Thank you

    Thank you Copyright © 2022 Tata Consultancy Services Limited

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