Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — USA Conference (February 2005)
29 slides from Tata Consultancy Services's conference presentation, February 2005
Slide 1: Presentation by S. Mahalingam, Chief Financial Officer
Presentation by S. Mahalingam Chief Financial Officer
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future growth prospects are forward- looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rel
Slide 3: Company Overview
Company Overview TATA CONSULTANCY SERVICES
Slide 4: TCS – An Overview
TCS – An Overview • Established in 1968 • Over 39,200 Associates • 2003-2004 revenues of $1.56 Billion (Rs 71.2 bn.) • World's first organization to achieve an enterprise-wide Maturity Level 5 on both the Capability Maturity Model-Integrated (CMMi®) and the People-Capability Maturity Model (P-CMM®)
Slide 5: Pioneers of the Indian IT Services Industry
Pioneers of the Indian IT Services Industry Creation of Industry Enhancing Profile and Visibility • Commenced as division of Tata Sons • First Billion Dollar IT Services Player in India • Creation of Indian IT Services • Operational efficiency by Enterprise Industry in India Digitization • First Ass
Slide 6: Our Business: End-to-End IT Consulting and Services
Our Business: End-to-End IT Consulting and Services Consulting Technology Services Asset Based Offerings IT Consulting Embedded Systems Products Domain Consulting R&D Services Product based Services Core IT Services Custom Applications Packaged Software Implementation Application Outsourcing Systems
Slide 7: Our Global Delivery Capabilities
Our Global Delivery Capabilities Global Delivery Centers overseas Delivery Centers in India Hangzhou, China Yokohama, Japan • Serving China Ahmedabad • Serving Japan Bangalore Montevideo, Uruguay Chandigarh Sao Paulo, Brazil • Serving North/Latin America Chennai • Serving Brazil Coimbatore
Slide 8: Enduring Customer Relationships
Enduring Customer Relationships Solid client base – 506 active clients 7 of the US Fortune Top 10 are our clients; several from the Fortune and Global 500 also find a place on our client roster 72 new clients added in the last quarter; new wins in all geographies High customer loyalty – 94.2
Slide 9: Our People make the Difference
Our People make the Difference • 52 days initial training and 20 Total Associates in TCS* days continuing education per 39,217 year 30,121 • 17,250+ people trained at the 24,168 Corporate Training Center since 19,978 1998 • 5,000+ Project Managers • 3,500+ IEEE members including 23 Senior Members an
Slide 10: People - Our Chief Strength
People - Our Chief Strength Our Consultants Profile Others CA 220 PHD 2300 150 Top Graduates MBA 2500 Multi Disciplinary Industry Experience Masters 10600 Over 30 % with Master’s BE/ Btech 20800 Degree or PhDs 10
Slide 11: Ability to Deliver Large Scale System Integration Projects Globally
Ability to Deliver Large Scale System Integration Projects Globally System Integration Asset Leveraged Solutions Canadian Depository for Securities Standard Chartered Bank National Stock Exchange Rabobank National Securities Depository National Grid Limited End to End Solutions Global Pa
Slide 12: Ability to Scale
Ability to Scale Breadth and depth of technology capability • Global Fortune 100- Ability to hire, train and integrate over 10,000 employees per year American Financial Dedicated training centre with capability to train over 1,000 employees at a time Services Company Ability to handle dedica
Slide 13: Contribution to Society
Contribution to Society Developing inexpensive rural technology Supporting educational infrastructure • Adult literacy • Educational institutions Child welfare Addressing environment and civic problems Increasing employee participation in social causes Providing support to local governme
Slide 14: Multi-Dimensional Growth Strategy
Multi-Dimensional Growth Strategy Leverage global presence to win large deals Cross-sell and up-sell to existing customers Partnerships & alliance approach for project wins Build and leverage assets to penetrate more customers Leverage Indian experience in global engagements Expand into
Slide 15: Financial Performance Summary
Financial Performance Summary 15
Slide 16: Robust Growth
Robust Growth Consolidated US GAAP Q3 FY 05 Q2 FY 05 Q-O-Q Growth % (based on INR) Revenue 6.08 13.93 Operating Income 9.12 12.89 Net Income 23.06 14.10 Y-O-Y Growth % (based on INR) Revenue 38.18 43.58 Operating Income 49.38 54.83 Net Income 54.05 50.42 16
Slide 17: Key Financials
Key Financials Consolidated US GAAP Quarterly Q3 FY 05 Q2 FY 05 Q1 FY 05 Q3 FY 04 USD Million Rs Million Rs Million Rs Million Rs Million Revenue 596 25,784 24,307 21,335 18,660 Operating Income 171 7,385 6,767 5,994 4,943 Net Income 164 7,093 5,764 5,052 4,605 17
Slide 18: US GAAP Income Statement - Quarterly
US GAAP Income Statement - Quarterly Consolidated US GAAP Q3 FY 05 Q2 FY 05 Q3 FY 04 USD Millions Rs. Millions % Rs. Millions % Rs. Millions % Revenue 595.89 25,784.35 100.00 24,307.34 100.00 18,660.44 100.00 Cost of revenue 312.57 13,524.77 52.45 13,368.69 55.00 10,047.11 53.84 Gross margin 283.33
Slide 19: US GAAP Common Size Statement
US GAAP Common Size Statement Particulars Q1 Q2 Q3 Rs. Million % Rs. Million % USD Million Rs. Million % Employee Cost 9,426.43 44.18 10,904.13 44.86 252.69 10,934.07 42.41 Other Costs 864.92 4.05 1,003.84 4.13 26.48 1,145.65 4.44 Depreciation 221.23 1.04 236.22 0.97 6.52 282.13 1.09 Equipment & Sof
Slide 20: US GAAP Balance Sheet
US GAAP Balance Sheet Consolidated US GAAP December-04 December-03 USD Million Rs. Million % Rs. Million % Source of Funds Shareholders Funds 675.97 29,249.37 62.19 14,903.37 38.13 Long term debt 1.56 67.63 0.14 70.20 0.18 Short term borrowings 87.33 3,778.77 8.03 6,444.83 16.49 Current liabilities
Slide 21: Revenue Distribution by Geography
Revenue Distribution by Geography 6.07% ¾ Healthy mix of revenues 10.93% across geographies, with Americas contributing 59.5% and Europe 23.5%. ¾ Robust growth in all geographies – Continental Europe has seen significant growth on a sequential quarter basis ¾ The global development centers are conti
Slide 22: Revenue Distribution by Industry Practice
Revenue Distribution by Industry Practice 7.10% ¾ New customers have been added 2.70% in BFS, Insurance, Telecom, 4.20% Manufacturing, Retail, Utilities, Government, Media, Pharma and 6.60% Hospitality industries. 39.60% ¾ End-to-End engagement wins in 3.90% different vertical segments: - Total SI a
Slide 23: Revenue Distribution by Service Practice
Revenue Distribution by Service Practice 2.60% 3.20% ¾ The company is continuing to see growth in new offerings. We added four(4) new clients in the 22.10% Remote Infrastructure Management services and one (1) new client in BPO transaction services during this quarter. ¾ The Enterprise Solutions bus
Slide 24: Revenue Distribution by Delivery Location and Contract Type
Revenue Distribution by Delivery Location and Contract Type ¾ The project execution has FY 2004-05 moved 2.5% towards offshore marginally. This Delivery Location* Q3 Q2 has contributed to the margin improvement. Onsite 60.00% 62.50% ¾ As the company completes transition in large contracts, Offshore
Slide 25: Strong Financial Performance
Strong Financial Performance Revenue Operating Income Net Income % .6% Rs mm .7% Rs mm = 27.5 = 26 Rs mm R = 32 R CAG R 80,000 CAG 20,000 CAG 18,097 18,000 71,277 16,125 18,000 16,000 70,000 16,000 14,000 60,000 55,179 14,000 12,531 12,424 12,000 11,042 10,939 50,000 43,706 12,000 10,000 40,000 10,0
Slide 26: Consistent Quarterly Performance
Consistent Quarterly Performance Revenues Operating Income 6.1% 25,784 Rs mm Rs mm % 28,000 13 .9 % 8,000 3 .1 % 10.6 7,385 4.7% 1 24,307 % 6,678 24,000 20,375 21,335 7,000 11.2 5,902 20,000 6,000 5,308 5,000 16,000 4,000 12,000 3,000 8,000 2,000 4,000 1,000 0 0 FY04-Q4 FY05-Q1 FY05-Q2 FY05-Q3 FY04-
Slide 27: Vision, Mission and Values
Vision, Mission and Values Vision Global Top 10 by 2010 Mission To help Customers achieve their business objectives, by providing Innovative, Best-in-class Consulting, IT solutions and services. We shall make it a joy for all stakeholders to work with us. Values Integrity, Leading change, Excellence
Slide 28: In Summary…TCS’ Key Differentiators
In Summary…TCS’ Key Differentiators #1 Truly Global #2 Superior Execution #3 Ability to Deliver Large Scale System Integration Projects Globally #4 Ability to Scale #5 Strong People Management #6 Superior Client Relationships #7 Continuous Investment in R&D 28
Slide 29: Discussions
Discussions For further information please contact S. Mahalingam Chief Financial Officer Cfo.office@tcs.com Or Arjun C. Marphatia Head – Investor Relations Arjun.marphatia@tcs.com 29
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