Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q1 FY2013-14 Earnings Presentation
29 slides from Tata Consultancy Services's earnings presentation, Jul 18, 2013
Slide 1: TCS Financial Results
TCS Financial Results Quarter I FY 2013 - 14 18th Jul 2013 Copyright © 2012 Tata Consultancy Services Limited 18th Jul 2013 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: Q1 FY14 Performance Highlights
Q1 FY14 Performance Highlights Revenue: - INR Revenue of `179,871 Mn, growth of 9.5% QoQ and 21.0% YoY - USD Revenue of $3,165 Mn, growth of 4.1% QoQ and 16.0% YoY - Constant currency revenue growth of 4.8%, volume growth of 6.1% QoQ Profit: - Operating Income at ` 48,627 Mn, Operating Margin of
Slide 5: Financial Performance
Ig TATA Financial Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 6: IFRS Summary (INR)
IFRS Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 179,871 37.7% 156,208 160,699 164,301 148,687 34.3% ` Million 21.7% 23.9% 21.0% 12.1% 9.5% 5.1% 2.9% 2.2% Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Y-o-Y Growth Q-o-Q Growth Operating Income 48,627 44.7% 40,89
Slide 7: IFRS Summary (USD)
IFRS Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 3,040 3,165 2,853 2,948 16.0% 2,728 14.0% 14.8% 13.1% 13.0% $ Million 4.6% 3.3% 4.1% 3.0% 3.1% Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Operating Income Y-o-Y Growth Q-o-Q Growth 856 804 806 750 763 18.9% 14.
Slide 8: Operational Performance
Ig TATA Operational Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 9: Growth by Market
Growth by Market North America 6.9% 2.1% 7.6% Latin America 9.9% UK Continental Europe 54.1% India 17.0% Asia Pacific 2.4% MEA Q-o-Q Y-o-Y Geography (% ) Q1 FY14 Q4 FY13 Q1 FY13 Growth Growth Americas North America 54.1 53.2 11.5 54.5 20.2 Latin America* 2.4 2.4 7.0 2.0 43.3 Europe UK 17.0 16.8 11.0
Slide 10: Growth by Domain
Growth by Domain 2.1% 4.8% BFSI 3.7% 3.4% Telecom 5.5% Retail & Distribution 5.5% 43.0% Manufacturing Hi-Tech 8.4% Life Sciences & Healthcare Travel & Hospitality Energy & Utilities 14.0% Media & Entertainment 9.6% Others Q-o-Q Y-o-Y IP Revenue (%) Q1 FY14 Q4 FY13 Q1 FY13 Growth Growth BFSI 43.0 43.
Slide 11: Growth by Service Line
Growth by Service Line Application Development & Maint. 11.9% 2.5% 42.3% Enterprise Solutions 3.5% Assurance Services 11.9% Engineering & Industrial Services Infrastructure Services 4.7% Global Consulting 8.1% Asset Leveraged Solutions 15.1% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q1 FY
Slide 12: Client Parameters
Client Parameters Q1 FY14 Q4 FY13 Clients Contribution * US$ 1m+ Clients 657 638 US$ 5m+ Clients 309 290 US$ 10m+ Clients 216 211 US$ 20m+ Clients 124 121 US$ 50m+ Clients 53 52 US$ 100m+ Clients 19 17 *Last Twelve Months' services revenues; includes clients in India 18th Jul 2013 12
Slide 13: Operational Parameters
Operational Parameters Revenue % Q1 FY14 Q4 FY13 Delivery Location* Onsite 46.3 46.5 Global DC 5.2 5.2 India DC 48.5 48.3 * Contract Type* Time & Material 47.8 48.7 Fixed Price & Time 52.2 51.3 *Includes services revenues from India 18th Jul 2013 13
Slide 14: Key Wins
Key Wins • Department of Post engaged TCS as their central transformation system integrator. TCS is providing common infrastructure for eight large modernisation programs, transforming the core mail operations for DoP as well as back office operations like HR and F&A, making services easily accessib
Slide 15: Human Resources
Ig TATA Human Resources TATA CONSULTANCY SERVICES Experience certainty.
Slide 16: Total Employee Base
Total Employee Base Total Employees : 277,586 276,196 277,586 263,637 254,076 243,545 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 18th Jul 2013 16
Slide 17: Q1 Consolidated - Gross Additions 10,611 & Net Additions 1,390
Q1 Consolidated - Gross Additions 10,611 & Net Additions 1,390 Gross Additions: • 751 Trainees & 6,605 Laterals in India • 3,255 employees overseas Attrition*: • 10.52% (LTM), including 20,098 18,654 BPO 17,145 • IT Services: 9.55% (LTM) 13,831 12,560 • BPO: 15.77% (LTM) 10,531 10,611 9,561 Utilizat
Slide 18: Diversity
Diversity 32.3% of our workforce are women 60.7% of our associates have more than 3 years of work experience Associates from 118 nationalities Composition of International Workforce (Consolidated) Others 19.8% Mexican British Indians 11.2% 17.5% 91.9% American Chilean Others 4.6% 8.1% 14.8% Fi
Slide 19: Annexure
Ig TATA Annexure TATA CONSULTANCY SERVICES Experience certainty.
Slide 20: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q1 FY14 Q4 FY13 Q1 FY13 Q1 FY14 Q4 FY13 Q1 FY13 INCOME a) IT & Consultancy Services 17,552 15,851 14,521 97.58 96.47 97.66 b) Manufacturing, Sale of equipment and Licences 435 579 348 2.42 3.53 2.34 Total Incom
Slide 21: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 30-Jun-13 31-Mar-13 30-Jun-13 31-Mar-13 Source of Funds Shareholders' Funds 41,824 38,646 95.58 95.41 Minority Interest 717 695 1.64 1.72 Loan Funds 296 211 0.68 0.52 Deferred Tax Liability 274 235 0.63 0.58 Non Current Liab
Slide 22: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q1 FY14 Q4 FY13 Q1 FY13 Q1 FY14 Q4 FY13 Q1 FY13 Revenue 179,871 164,301 148,687 100.00 100.00 100.00 Cost of revenue 96,700 87,592 80,012 53.76 53.31 53.81 Gross margin 83,171 76,709 68,675 46.24 46.69 46.19 SG & A expenses 34,544 33,125
Slide 23: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q1 FY14 Q4 FY13 Q1 FY13 Q1 FY14 Q4 FY13 Q1 FY13 Employee cost 68,221 60,799 57,014 37.93 37.00 38.34 Fees to external consultants 10,423 9,601 7,778 5.79 5.85 5.23 Equipment & software 4,027 4,914 2,901 2.24 2.99 1.95 Depreciation 1,809 1,862 1,524 1.01
Slide 24: IFRS Balance Sheet
IFRS Balance Sheet 30-Jun-13 31-Mar-13 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 86,230 15.00 81,944 15.80 Intangible assets and Goodwill 40,893 7.11 35,063 6.76 Accounts Receivable 162,546 28.27 140,956 27.17 Unbilled Revenues 38,205 6.64 31,410 6.06 Investments 34,943
Slide 25: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q1 FY14 Q4 FY13 Q1 FY13 Q1 FY14 Q4 FY13 Q1 FY13 Revenue 3,165 3,040 2,728 100.00 100.00 100.00 Cost of revenue 1,701 1,621 1,468 53.76 53.31 53.81 Gross margin 1,464 1,419 1,260 46.24 46.69 46.19 SG & A expenses 608 613 510 19.2
Slide 26: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q1 FY14 Q4 FY13 Q1 FY13 Q1 FY14 Q4 FY13 Q1 FY13 Employee cost 1,200 1,125 1,046 37.93 37.00 38.34 Fees to external consultants 183 178 143 5.79 5.84 5.23 Equipment & software 71 91 53 2.24 2.99 1.95 Depreciation 32 35 28 1.01 1.13 1.02 Travel 43
Slide 27: IFRS Balance Sheet in USD
IFRS Balance Sheet in USD 30-Jun-13 31-Mar-13 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,453 15.00 1,508 15.80 Intangible assets and Goodwill 689 7.11 645 6.76 Accounts Receivable 2,738 28.27 2,594 27.17 Unbilled Revenues 644 6.64 578 6.06 Investments 589 6.08 376 3.93
Slide 28: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q1 FY14 Q4 FY13 Q1 FY14 Q4 FY13 USD 56.84 54.06 58.53% 57.70% GBP 87.01 83.33 14.78% 14.53% EUR 74.16 70.90 7.47% 7.00% Others 19.22% 20.77% 100.00% 100.00% 18th Jul 2013 28
Slide 29: Thank You
ES qe e certainty. TATA [ATATATAT ATATATATA
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