Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q3 FY2019 Earnings Presentation
25 slides from Tata Consultancy Services's earnings presentation, Jan 10, 2019
Slide 1: TCS Financial Results Quarter III FY 2018-19
TCS Financial Results Quarter III FY 2018 - 19 January 10, 2019 | Copyright © 2018 Tata Consultancy Services Limited 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: Q3 FY19 Performance Highlights
Q3 FY19 Performance Highlights Revenue: - INR Revenue of ` 373,380 Mn, 20.8% YoY - USD Revenue of $ 5,250 Mn, 9.7% YoY - Constant currency revenue growth of 1.8% QoQ and 12.1% YoY Profit: - Operating Income at ` 95,640 Mn, Operating Margin of 25.6% - Net Income at ` 81,050 Mn, $ 1,140 Mn, Net Ma
Slide 4: Growth Summary (INR)
Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 373,380 20.7% 20.8% 368,540 342,610 15.8% ` Million 320,750 309,040 11.5% 12.1% 8.2% 9.3% 6.2% 7.2% 3.9% Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Operating Income Operating margin (%) 97,710 26.5% 95,640
Slide 5: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 5,215 5,250 4,972 5,051 11.7% 12.1% 4,787 10.0% 11.5% $ Million 9.1% 7.2% 9.3% 10.0% 9.7% 6.2% Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Operating Income Operating margin (%) 1,383 1,345 26.5% 1,263 1,264
Slide 6: Operational Parameters
Operational Parameters
Slide 7: Growth by Market
Growth by Market Y-o-Y Geography (%) Q3 FY18 Q3 FY19 CC Growth Americas North America 52.0 51.2 8.2 Latin America 2.2 2.0 7.6 Europe UK 14.1 15.5 25.1 Continental Europe 13.5 14.1 17.6 India 6.3 5.7 9.7 Asia Pacific 9.5 9.4 12.6 MEA 2.4 2.1 -3.3 Total 100.0 100.0 12.1 7
Slide 8: Growth by Domain
Growth by Domain Y-o-Y Vertical (%) Q3 FY18 Q3 FY19 CC Growth BFSI 31.6 30.8 8.6 Retail & CPG 16.7 16.5 10.5 Communication & Media 7.1 6.9 10.8 Manufacturing 7.5 7.2 6.7 Life Sciences & Healthcare 7.3 7.6 15.7 Energy & Utilities 4.5 4.7 18.1 Technology & Services 7.9 7.6 5.8 Regional Markets & Other
Slide 9: Service Lines Commentary
Service Lines Commentary Simplification & automation of Martech Strong growth for IoT services and stacks, seamless integration across the contract wins, as adoption in facilities marketing ecosystem, and marketing • Strong revenue growth led by UK, and management, fleet management, digital analytic
Slide 10: Client Parameters
Client Parameters Clients Contribution Q3 FY18 Q3 FY19 US$ 1m+ Clients 941 996 US$ 5m+ Clients 485 519 US$ 10m+ Clients 337 370 US$ 20m+ Clients 203 211 US$ 50m+ Clients 94 99 US$ 100m+ Clients 37 45 *Last Twelve Months' services revenues 10
Slide 11: Key Highlights
Key Highlights Consulting & Services Integration, IoT & Blockchain Automation, Analytics & Insights • Selected by a global leader in pool equipment and solutions for • Selected by a global Aluminum manufacturing firm to optimize TCS Interactive, Banking Platforms creating IoT-enabled pool equipment
Slide 12: Human Resources
Human Resources
Slide 13: Total Employee Base
Total Employee Base Total Employees : 417,929 Attrition*: 417,929 • 11.2% (LTM), IT Services 411,102 Diversity: 400,875 • Women employees: 35.8% 394,998 • Nationalities: 151 389,213 390,880 * Excluding Subsidiaries Talent Development: • 14.2m Learning hours Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 • 292k
Slide 14: Annexure
Annexure
Slide 15: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Revenue 309,040 373,380 100.00 100.00 Cost of revenue 178,620 217,350 57.80 58.21 Gross margin 130,420 156,030 42.20 41.79 SG & A expenses 52,610 60,390 17.02 16.17 Operating income 77,810 95,640 25.18 25.
Slide 16: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Employee cost 125,560 154,440 40.63 41.36 Fees to external consultants 20,860 28,220 6.75 7.56 Equipment and software 7,490 5,400 2.42 1.45 Facility expenses 6,670 7,470 2.16 2.00 Depreciation 4,010 4,150 1.30 1.11 Travel
Slide 17: Cash Flow Summary
Cash Flow Summary IFRS in ` Mn Q3 FY18 Q3 FY19 Net Cash from Operations 77,880 86,820 Capital Expenditure 3,770 5,360 Free Cash Flow 74,110 81,460 Dividends Paid 16,110 16,090 Operating Cash Flow to Sales (%) 25.2 23.3 Operating Cash Flow to Net Profit (%) 119.2 107.1 Total Cash and Investments 405,
Slide 18: IFRS Statement of Financial Position
IFRS Statement of Financial Position 31-Mar-18 31-Dec-18 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 116,000 10.70 114,560 10.44 Intangible assets and Goodwill 38,960 3.59 39,760 3.62 Accounts Receivable 250,370 23.09 273,490 24.92 Unbilled Revenues 69,130 6.38 83,890 7.6
Slide 19: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Revenue 4,787 5,250 100.00 100.00 Cost of revenue 2,767 3,056 57.80 58.21 Gross margin 2,020 2,194 42.20 41.79 SG & A expenses 815 849 17.02 16.17 Operating income 1,205 1,345 25.18 25.62 Other in
Slide 20: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Employee cost 1,945 2,172 40.63 41.36 Fees to external consultants 323 397 6.75 7.56 Equipment and software 116 76 2.42 1.45 Facility expenses 103 105 2.16 2.00 Depreciation 62 58 1.30 1.11 Travel 70 79 1.46 1.50
Slide 21: IFRS Statement of Financial Position in USD
IFRS Statement of Financial Position in USD 31-Mar-18 31-Dec-18 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,784 10.70 1,642 10.44 Intangible assets and Goodwill 599 3.59 569 3.62 Accounts Receivable 3,849 23.09 3,920 24.92 Unbilled Revenues 1,063 6.38 1,203 7.64 Investm
Slide 22: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Revenue 30,904 37,338 100.00 100.00 Expenditure a) Employee Costs 16,458 19,994 53.25 53.55 b) Cost of equipment and software licences 749 540 2.42 1.45 c) Other Operating expenses 5,410 6
Slide 23: Ind AS Balance Sheet - Consolidated
Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-18 31-Dec-18 31-Mar-18 31-Dec-18 ASSETS Property, plant and equipment 11,506 11,467 10.82 10.66 Investments 36,008 29,804 33.88 27.70 Deferred tax assets (net) 3,449 2,207 3.24 2.05 Goodwill (on consolidation) 1,745 1,726 1.64
Slide 24: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY18 Q3 FY19 YoY Q3 FY18 Q3 FY19 USD 64.56 71.12 10.16% 54.79% 53.73% GBP 85.87 90.84 5.79% 12.28% 13.91% EUR 76.22 81.31 6.67% 9.52% 9.97% Others 23.41% 22.39% Total 100.00% 100.00% 24
Slide 25: Thank You
a TATA TATA CONSULTANCY SERVICES tcs50 Experience energy Thank You
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