Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 FY2013 Earnings Presentation
31 slides from Tata Consultancy Services's earnings presentation, Oct 19, 2012
Slide 1: Results for Quarter II FY 2012 - 13
Results for Quarter II FY 2012 - 13 19th Oct 2012 Copyright © 2012 Tata Consultancy Services Limited 19th Oct 2012 1
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: Highlights
Ig TATA Highlights TATA CONSULTANCY SERVICES Experience certainty.
Slide 4: Q2 FY13 Performance Highlights
Q2 FY13 Performance Highlights Revenue: - INR Revenue of `156,208 Mn, growth of 5.1% QoQ and 34.3% YoY - USD Revenue of $2,853 Mn, growth of 4.6% QoQ and 13.0% YoY - Constant currency revenue growth of 4.8%, volume growth of 4.9% QoQ Profit: - Operating Income at ` 41,789 Mn, Operating Margin of
Slide 5: Financial Performance
Ig TATA Financial Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 6: IFRS Revenue Growth
IFRS Revenue Growth Revenue Mix Revenue Growth 148,687 156,208 132,040 132,593 10,488 11,712 116,335 36.6% 37.7% 34.3% 30.5% ` Million 11,070 11,245 9,646 25.3% 138,199 144,495 12.1% 106,689 120,970 121,349 13.5% 7.7% 5.1% 0.4% Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13
Slide 7: IFRS Income Summary (INR)
IFRS Income Summary (INR) Operating Income Y-o-Y Growth Q-o-Q Growth 41,789 41.3% 44.7% 38,618 40,897 27.7% 32.5% 36,747 20.8% ` Million 31,543 11.3% 11.6% 22.4% 2.2% -4.8% Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 EBITDA Y-o-Y Growth Q-o-Q Growth 43,328 44,404
Slide 8: IFRS Summary (USD)
IFRS Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 2,728 2,853 2,525 2,586 2,648 26.0% 20.6% 18.0% $ Million 13.1% 13.0% 4.7% 2.4% 2.4% 3.0% 4.6% Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Operating Income Y-o-Y Growth Q-o-Q Growth 756 734 750 763 684 21.5% 24.
Slide 9: Operational Performance
Ig TATA Operational Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 10: Growth by Market
Growth by Market North America 7.6% 2.1% 7.5% Latin America 9.5% UK Continental Europe 52.8% India 17.1% Asia Pacific 3.4% MEA Q-o-Q Y-o-Y Geography (% ) Q2 FY13 Q1 FY13 Q2 FY12 Growth Growth Americas North America 52.8 53.5 3.6 53.4 32.7 Latin America 3.4 3.3 8.3 3.0 51.1 Europe UK 17.1 17.0 5.7 15
Slide 11: Growth by Domain
Growth by Domain 2.2% 4.8% BFSI 3.6% 3.6% Telecom 5.2% Retail & Distribution 5.9% 42.8% Manufacturing Hi-Tech 8.2% Life Sciences & Healthcare Travel & Hospitality Energy & Utilities 13.4% Media & Entertainment 10.3% Others Q-o-Q Y-o-Y IP Revenue (%) Q2 FY13 Q1 FY13 Q2 FY12 Growth Growth BFSI 42.8 43
Slide 12: Growth by Service Line
Growth by Service Line 12.6% Application Development & Maint. 2.7% 43.1% 3.0% Enterprise Solutions* 11.4% Assurance Services Engineering & Industrial Services Infrastructure Services 4.6% Global Consulting 7.7% Asset Leverage Solutions 14.9% Business Process Outsourcing Q-o-Q Y-o-Y SP Revenue (%) Q2
Slide 13: Client Parameters
Client Parameters Q2 FY13 Q1 FY13 Clients Contribution * Revenue % Top 1 6.5 6.7 Top 5 18.4 18.8 Top 10 25.6 26.5 US$ 1 mln Clients 538 527 US$ 5 mln Clients 269 259 US$ 10 mln Clients 182 175 US$ 20 mln Clients 108 105 US$ 50 mln Clients 45 46 US$ 100 mln Clients 14 14 * Last Twelve Months 19th Oct
Slide 14: Operational Parameters
Operational Parameters Revenue % Q2 FY13 Q1 FY13 Delivery Location* Onsite 45.8 44.7 GDC/RDC 5.1 4.8 Offshore 49.1 50.5 Contract Type Time & Material 53.2 53.2 Fixed Price & Time 46.8 46.8 * Excluding Domestic Clients 19th Oct 2012 14
Slide 15: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q2 FY13 Q1 FY13 Active Clients 1,041 1,032 New Clients 41 29 Revenue % from Repeat Business 99.0 99.7 Revenue % from New Business * 1.0 0.3 * Reset at the beginning of Financial Year 19th Oct 2012 15
Slide 16: Key Wins
Key Wins • TCS has signed a managed services contract with a US based largest electronic retailer to outsource their infrastructure services covering Data Center (DC), Distributed Network Services (DNS), Monitoring & Event Management (MEM) and User Communication Services (UCS) across USA, Canada and
Slide 17: Human Resources
Ig TATA Human Resources TATA CONSULTANCY SERVICES Experience certainty.
Slide 18: Total Employee Base
Total Employee Base Total Employees : 254,076 254,076 238,583 243,545 226,751 214,770 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Including Subsidiaries 19th Oct 2012 18
Slide 19: Q2 Consolidated - Gross Additions 18,654 & Net Additions 10,531
Q2 Consolidated - Gross Additions 18,654 & Net Additions 10,531 Gross Additions: • 10,205 Trainees & 5,764 Laterals in India • 2,685 employees overseas Attrition*: 20,349 • 11.4% (LTM), including BPO 18,907 19,156 18,654 • IT Services: 10.2% (LTM) 13,831 • BPO: 20.9% (LTM) 12,580 11,981 11,832 10,53
Slide 20: Diversity
Diversity 31.7% of our workforce are women 60% of our associates have more than 3 years of work experience Associates from 108 nationalities Composition of International Workforce (Consolidated) Others Mexican 17.7% 9.4% British Indians 21.3% 92.3% American Others 16.2% 7.7% Chilean 6.2% Chine
Slide 21: Annexure
Ig TATA Annexure TATA CONSULTANCY SERVICES Experience certainty.
Slide 22: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q2 FY13 Q1 FY13 Q2 FY12 Q2 FY13 Q1 FY13 Q2 FY12 INCOME a) IT & Consultancy Services 15,188 14,521 11,296 97.23 97.66 97.10 b) Manufacturing, Sale of equipment and Licences 433 348 337 2.77 2.34 2.90 Total Incom
Slide 23: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 30-Sep-12 31-Mar-12 30-Sep-12 31-Mar-12 Source of Funds Shareholders' Funds 35,176 29,579 95.32 95.59 Minority Interest 616 559 1.67 1.81 Loan Funds 287 116 0.78 0.38 Deferred Tax Liability 212 173 0.58 0.56 Non Current Liab
Slide 24: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q2 FY13 Q1 FY13 Q2 FY12 Q2 FY13 Q1 FY13 Q2 FY12 Revenue 156,208 148,687 116,335 100.00 100.00 100.00 Cost of revenue 85,377 80,012 63,716 54.66 53.81 54.77 Gross margin 70,831 68,675 52,619 45.34 46.19 45.23 SG & A expenses 29,042 27,778
Slide 25: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q2 FY13 Q1 FY13 Q2 FY12 Q2 FY13 Q1 FY13 Q2 FY12 Employee cost 60,008 57,014 45,574 38.42 38.34 39.17 Fees to external consultants 8,321 7,778 5,166 5.33 5.23 4.44 Equipment & software 3,741 2,901 2,807 2.39 1.95 2.41 Depreciation 1,622 1,524 1,575 1.04 1
Slide 26: IFRS Balance Sheet
IFRS Balance Sheet 30-Sep-12 31-Mar-12 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 71,550 15.91 64,549 15.67 Intangible assets and Goodwill 35,015 7.79 34,973 8.49 Accounts Receivable 126,031 28.03 115,023 27.91 Unbilled Revenues 31,323 6.97 22,478 5.46 Investments 19,337
Slide 27: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q2 FY13 Q1 FY13 Q2 FY12 Q2 FY13 Q1 FY13 Q2 FY12 Revenue 2,853 2,728 2,525 100.00 100.00 100.00 Cost of revenue 1,559 1,468 1,383 54.66 53.81 54.77 Gross margin 1,294 1,260 1,142 45.34 46.19 45.23 SG & A expenses 531 510 458 18.5
Slide 28: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q2 FY13 Q1 FY13 Q2 FY12 Q2 FY13 Q1 FY13 Q2 FY12 Employee cost 1,096 1,046 989 38.42 38.34 39.17 Fees to external consultants 152 143 112 5.33 5.23 4.44 Equipment & software 68 53 61 2.39 1.95 2.41 Depreciation 29 28 34 1.04 1.02 1.35 Travel 41 4
Slide 29: IFRS Balance Sheet in USD
IFRS Balance Sheet in USD 30-Sep-12 31-Mar-12 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,361 15.91 1,267 15.67 Intangible assets and Goodwill 666 7.79 687 8.49 Accounts Receivable 2,397 28.03 2,258 27.92 Unbilled Revenues 596 6.97 441 5.46 Investments 368 4.30 290 3.59
Slide 30: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q2 FY13 Q1 FY13 Q2 FY13 Q1 FY13 USD 54.76 54.50 58.88% 59.36% GBP 87.04 85.89 14.94% 14.65% EUR 68.84 69.92 6.25% 6.96% Others 19.93% 19.03% 100.00% 100.00% 19th Oct 2012 30
Slide 31: Thank You
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