Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 FY2020 Earnings Presentation
28 slides from Tata Consultancy Services's earnings presentation, Oct 10, 2019
Slide 1: TCS Financial Results Quarter II FY 2019-20
TCS Financial Results Quarter II FY 2019 - 20 October 10, 2019 1 | Copyright © 2019 Tata Consultancy Services Limited
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: Quarterly Financial Performance
Quarterly Click to editFinancial Performance Master title style 3
Slide 4: Q2 FY20 Performance Highlights
Q2 FY20 Performance Highlights ➢ Revenue: - INR Revenue of ` 389,770 Mn, up 5.8% YoY - USD Revenue of $ 5,517 Mn, up 5.8% YoY - Constant currency revenue up 8.4% YoY - Digital revenue of 33.2%, up 27.9% YoY ➢ Profit: - Operating Margin at 24.0% - Net Margin at 20.6%; EPS up 3.8% YoY - Cash flow from
Slide 5: Growth Summary (INR)
Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 380,100 381,720 389,770 20.8% ` Million 368,540 373,380 20.7% 18.5% 11.4% 8.4% 11.5% 12.1% 12.7% 10.6% 5.8% Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Operating Income Operating margin (%) 97,710 95,640 95
Slide 6: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 5,397 5,485 5,517 5,215 5,250 12.7% 11.5% 12.1% 10.6% $ Million 8.4% 10.0% 9.7% 8.6% 8.5% 5.8% Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Operating Income Operating margin (%) 1,383 26.5% 1,345 1,354 1,325
Slide 7: Operational Parameters
Operational Parameters Click to edit Master title style 7
Slide 8: Growth by Market
Growth by Market Y-o-Y Geography (%) Q2 FY19 Q2 FY20 CC Growth Americas North America 51.1 50.6 5.3 Latin America 2.0 1.9 7.3 Europe UK 15.6 15.6 13.3 Continental Europe 14.0 14.6 16.0 India 5.6 5.7 7.7 Asia Pacific 9.6 9.4 6.5 MEA 2.1 2.2 7.3 Total 100.0 100.0 8.4 8
Slide 9: Growth by Domain
Growth by Domain Y-o-Y Vertical (%) Q2 FY19 Q2 FY20 CC Growth BFSI 31.2 31.0 8.0 Retail & CPG 15.4 14.8 4.8 Communication & Media 6.8 7.0 11.8 Manufacturing 9.8 9.8 7.8 Life Sciences & Healthcare 7.5 8.1 16.0 Technology & Services 8.9 8.7 5.6 Regional Markets & Others 20.4 20.6 9.3 Total 100.0 100.0
Slide 10: Service Lines Commentary
Service Lines Commentary • Our Modern offerings continue to lead our TCS Enterprise Cloud Platform and Cloud customers in their digital transformation journey & Growth led by demand for Hybrid Cloud migration & modernization services saw evolve as Business 4.0 enterprises in a state of transformatio
Slide 11: Client Parameters
Client Parameters Clients Contribution Q2 FY19 Q2 FY20 US$ 1m+ Clients 989 1032 US$ 5m+ Clients 513 554 US$ 10m+ Clients 365 398 US$ 20m+ Clients 213 225 US$ 50m+ Clients 98 101 US$ 100m+ Clients 44 47 *Last Twelve Months' services revenues 11
Slide 12: Key Highlights (1/3)
Key Highlights (1/3) Multi-Practice, Consulting & Services Integration, Analytics & Insights • TCS and General Motors establish a strategic partnership for future global vehicle design and development • Engaged by a premier brand in the hospitality industry to improve business user satisfaction with
Slide 13: Key Highlights (2/3)
Key Highlights (2/3) Quality Engineering & Cognitive Business Operations Internet of Things Transformation, Blockchain • Selected by a US-based global consumer products leader, to drive • Engaged by one of UK's largest water and wastewater services companies, for • Selected by a British multinationa
Slide 14: Key Highlights (3/3)
Key Highlights (3/3) Enterprise Cloud and Cyber Security Interactive, Enterprise Applications • Chosen by a US-based engineered products and solutions company, to leverage TCS Digital • Selected by a leading European logistics and postal services company as its 'Design Agency of Business Experience
Slide 15: Human Resources
Human Resources Click to edit Master title style 15
Slide 16: Total Employee Base
Total Employee Base Total Employees : 450,738 Attrition*: • 11.6% (LTM), IT Services 450,738 436,641 Diversity: 424,285 • Women employees: 36.3% 417,929 411,102 • Nationalities: 146 * Excluding Subsidiaries 400,875 Talent Development: • 10m Learning hours Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 • 322k+
Slide 17: Annexure
Annexure Click to edit Master title style 17
Slide 18: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Revenue 368,540 389,770 100.00 100.00 Cost of revenue 212,000 230,630 57.52 59.17 Gross margin 156,540 159,140 42.48 40.83 SG & A expenses 58,830 65,530 15.96 16.81 Operating income 97,710 93,610 26.52 24.
Slide 19: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Employee cost 151,770 164,200 41.18 42.13 Fees to external consultants 25,810 31,480 7.00 8.08 Equipment and software 5,220 4,650 1.42 1.19 Facility expenses 7,760 4,730 2.11 1.21 Depreciation 4,050 6,530 1.10 1.67 Travel
Slide 20: Cash Flow Summary
Cash Flow Summary IFRS in ` Mn Q2 FY19 Q2 FY20 Net Cash from Operations 73,630 86,860 Capital Expenditure 4,910 7,380 Free Cash Flow 68,720 79,480 Dividends Paid 18,380 22,640 Buy Back (incl. expenses) 160,450 - Operating Cash Flow to Sales (%) 20.0 22.3 Operating Cash Flow to Net Profit (%) 93.2 10
Slide 21: IFRS Statement of Financial Position
IFRS Statement of Financial Position 31-Mar-19 30-Sep-19 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 116,500 9.95 114,940 8.88 Right-of-use Assets - - 63,520 4.91 Intangible assets and Goodwill 40,130 3.43 40,470 3.13 Accounts Receivable 274,410 23.44 277,070 21.40 Unbill
Slide 22: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Revenue 5,215 5,517 100.00 100.00 Cost of revenue 3,000 3,264 57.52 59.17 Gross margin 2,215 2,253 42.48 40.83 SG & A expenses 832 927 15.96 16.81 Operating income 1,383 1,326 26.52 24.02 Other in
Slide 23: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Employee cost 2,148 2,324 41.18 42.13 Fees to external consultants 365 445 7.00 8.08 Equipment and software 74 66 1.42 1.19 Facility expenses 110 67 2.11 1.21 Depreciation 57 92 1.10 1.67 Travel 89 84 1.71 1.52 Co
Slide 24: IFRS Statement of Financial Position in USD
IFRS Statement of Financial Position in USD 31-Mar-19 30-Sep-19 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,685 9.95 1,625 8.88 Right-of-use Assets - - 898 4.91 Intangible assets and Goodwill 581 3.43 573 3.13 Accounts Receivable 3,969 23.44 3,918 21.40 Unbilled Revenue
Slide 25: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Revenue 36,854 38,977 100.00 100.00 Expenditure a) Employee Costs 19,525 21,470 52.98 55.08 b) Cost of equipment and software licences 522 465 1.42 1.19 c) Other Operating expenses 6,529 6
Slide 26: Ind AS Balance Sheet - Consolidated
Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-19 30-Sep-19 31-Mar-19 30-Sep-19 ASSETS Property, plant and equipment 11,553 11,634 10.05 9.14 Right-of-use assets - 6,352 - 4.99 Investments 29,330 30,639 25.52 24.06 Deferred tax assets (net) 2,656 2,300 2.31 1.80 Goodwill (o
Slide 27: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q2 FY19 Q2 FY20 YoY Q2 FY19 Q2 FY20 USD 70.67 70.65 -0.02% 53.84% 53.16% GBP 92.29 86.30 -6.49% 13.82% 13.79% EUR 82.56 78.07 -5.45% 10.12% 10.57% Others 22.22% 22.48% Total 100.00% 100.00% 27
Slide 28: Thank You
Thank You IT Services Business Solutions Consulting
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