Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q1 FY2007 Earnings Presentation
33 slides from Tata Consultancy Services's earnings presentation, Jul 18, 2006
Slide 1: Results for Quarter I FY 2006-07
Results for Quarter I FY 2006-07 © Tata Consultancy Services ltd. 18 July 2006 1
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: Highlights
Highlights Robust revenue growth across geographies and verticals. All large deals signed during last year are ramping up as per plan. Financial Services, Retail and Telecom sectors see greater momentum New services like Assurance, Infrastructure Support, Business Intelligence and Consulting a
Slide 4: Financial Performance
Adult Literacy Programme Financial Performance © Tata Consultancy Services ltd. 18 July 2006 4
Slide 5: Indian GAAP Growth Summary
Indian GAAP Growth Summary Consolidated Indian GAAP (Rs. Crores) Q1 FY07 Q4 FY06 Q1 FY06 Income from IT & Consultancy Services 3,987 3,472 2,684 % Growth Q-o-Q 14.81% % Growth Y-o-Y 48.53% Total Income 4,227 3,709 2,890 % Growth Q-o-Q 13.96% % Growth Y-o-Y 46.27% PBIDT (before Other Income) 1,070 99
Slide 6: Indian GAAP Income Statement – Consolidated
Indian GAAP Income Statement – Consolidated Consolidated Indian GAAP Rs. Crores % of Revenue Q1 FY07 Q4 FY06 Q1 FY06 Q1 FY07 Q4 FY06 Q1 FY06 INCOME a) IT & Consultancy Services 3,986.54 3,472.21 2,683.99 94.31 93.61 92.87 b) Manufacturing, Sale of equipment and Licences 240.65 237.00 206.02 5.69 6.3
Slide 7: Indian GAAP Income Statement – Unconsolidated
Indian GAAP Income Statement – Unconsolidated Unconsolidated Indian GAAP Rs. Crores % of Revenue Q1 FY07 Q4 FY06 Q1 FY06 Q1 FY07 Q4 FY06 Q1 FY06 INCOME a) IT & Consultancy Services 3,271.30 2,926.02 2,370.67 95.26 95.36 95.87 b) Manufacturing, Sale of equipment and licences 162.94 142.37 102.04 4.74
Slide 8: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated Consolidated Indian GAAP Rs Crores % 30-Jun-06 31-Mar-06 30-Jun-06 31-Mar-06 Source of Funds Shareholders' Funds 6,628.34 5,998.81 95.80 95.16 Minority Interest 155.64 164.72 2.25 2.61 Loan Funds 134.42 116.69 1.94 1.86 Deferred Tax Liability 0.38 23.57 0.01
Slide 9: US GAAP Revenue Growth
US GAAP Revenue Growth Consolidated US GAAP (Rs Million) Q1 FY07 Q4 FY06 Q1 FY06 Revenue from International Business 37,059 32,960 25,261 % Growth Q-o-Q 12.44% % Growth Y-o-Y 46.70% Revenue from Indian Business 4,384 4,273 3,867 % Growth Q-o-Q 2.60% % Growth Y-o-Y 13.37% Total Revenue 41,443 37,234
Slide 10: US GAAP Growth Summary
US GAAP Growth Summary Consolidated US GAAP (Rs Million) Q1 FY07 Q4 FY06 Q1 FY06 Gross Margin 17,872 16,757 13,728 % Growth Q-o-Q 6.66% % Growth Y-o-Y 30.19% Operating Income 9,265 8,965 7,732 % Growth Q-o-Q 3.34% % Growth Y-o-Y 19.82% Net Income 8,626 7,958 6,472 % Growth Q-o-Q 8.39% % Growth Y-o-Y
Slide 11: US GAAP Income Statement
US GAAP Income Statement Consolidated US GAAP USD Million Rs Million % of Revenue Q1 FY07 Q1 FY07 Q4 FY06 Q1 FY06 Q1 FY07 Q4 FY06 Q1 FY06 Revenue 900.16 41,443.32 37,233.69 29,128.71 100.00 100.00 100.00 Cost of revenue 511.97 23,570.98 20,477.16 15,400.39 56.88 55.00 52.87 Gross margin 388.19 17,87
Slide 12: COR – SG&A Details
COR – SG&A Details Rs. Millions % of Revenue COR Q1 FY07 Q4 FY06 Q1 FY06 Q1 FY07 Q4 FY06 Q1 FY06 Employee Cost 18,772.19 16,453.97 11,657.09 45.30 44.19 40.02 Equipment & Software 1,884.15 1,866.35 1,799.52 4.55 5.01 6.18 Depreciation 499.67 579.71 409.97 1.21 1.56 1.41 Travel 546.62 496.42 632.44 1
Slide 13: US GAAP Balance Sheet
US GAAP Balance Sheet Consolidated US GAAP 30-Jun-06 31-Mar-06 Rs Milliion % Rs Milliion % Assets Cash and Cash equivalents 4,664.16 4.86 3,965.01 4.63 Accounts Receivable 35,241.34 36.70 32,789.78 38.29 Unbilled Revenues 7,161.88 7.45 4,712.30 5.50 Other Current assets 9,446.15 9.84 8,133.15 9.50 P
Slide 14: Operational Performance
TCS IT WIZ Operational Performance © Tata Consultancy Services ltd. 18 July 2006 14
Slide 15: Growth by Market
Growth by Market TCS experienced growth in all geographies 3.9% 2.9%1.7% during the quarter. All large deals announced during last fiscal Americas 10.6% UK 53.2% Europe have started ramping up. 7.8% India Excellent momentum in Europe in Telecom, Asia Pacific Financial Services verticals, Enterpri
Slide 16: Growth by Domain
Growth by Domain Telecom sector achieved excellent 9.3% growth in Europe, Middle East and Asia. TCS is engaged in a number of SI 2.6% BFSI 3.6% 41.2% 6.7% Manufacturing Telecom engagements for GSM/ 3G OSS Life Sciences & Healthcare implementations and CRM Solutions 4.1% Retail & Distribution across
Slide 17: Growth by Service Line
3.5% Growth by Service Line 2.3% All new service areas like Global 25.3% Consulting, Infrastructure and Assurance services are driving growth in existing large accounts. In the BPO segment, the Pearl 68.9% deal has become operational and the revenues have started flowing in. In addition, TCS lande
Slide 18: Operational Parameters
Operational Parameters The Global Network Delivery Model continue attract customers and 4 new customers started to leverage TCS’ GDCs in China, Hungary, Uruguay and Q1 FY07 Q4 FY06 Revenue % Brazil during this quarter. Delivery Location* The offshore leverage remains a key Onsite 58.7 59.0 focus a
Slide 19: Client Parameters
Client Parameters Client Concentration Q1 FY07 Q4 FY06 Clients Contribution * Revenue % Top 1 4.0 3.7 Top 5 16.7 17.0 Top 10 26.8 27.5 US$ 1 mln Clients 258 256 US$ 5 mln Clients 97 96 US$ 10 mln Clients 65 54 US$ 20 mln Clients 33 31 US$ 50 mln Clients 10 9 * Last Twelve Months 19
Slide 20: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q1 FY07 Q4 FY06 Active Clients 764 748 New Clients 62 89 Revenue % from Repeat Business 98.8 91.9 Revenue % from New Business 1.2 8.1 20
Slide 21: Client and Delivery Highlights
Client and Delivery Highlights • TCS helped a Fortune 500 energy company to streamline and integrate its operations in four acquisitions in China through successful implementation of an Enterprise Solution. • TCS successfully rolled out Siebel-based Global Sales and Campaign Management solution for
Slide 22: Representative Wins
Representative Wins • A large North American retailer selected TCS as a strategic partner for developing their next generation business critical applications. The deal is worth over US $50 million. • A leading European telecommunication operator has selected TCS as its Test Strategy partner for the
Slide 23: Profiles of ‘Select’ Growth Engines
Blood Donation Camp - China Profiles of ‘Select’ Growth Engines © Tata Consultancy Services ltd. 18 July 2006 23
Slide 24: BPO
BPO TCS BPO continues to grow strongly across all its operating units adding 6 new clients in Q1. Key Engagements y A major US-based pharmaceutical company selected TCS for clinical data management, statistical analysis and medical writing services across the entire spectrum of clinical research
Slide 25: Engineering & Industrial Services
Engineering & Industrial Services TCS witnessed steady growth in EIS with the addition of 23 overseas clients. TCS was awarded the Frost & Sullivan Best Company Award for its services in Manufacturing space in the area of engineering and industrial services Key Engagements y TCS successfully c
Slide 26: IT Infrastructure Services
IT Infrastructure Services TCS differentiated offerings in IT Infrastructure Services continue to attract strong traction from clients. In Q1, TCS added 12 new IT IS customers. Key Engagements y For a leading North American retailer TCS leveraged its Global Infrastructure Command Center to pro
Slide 27: Assurance Services
Assurance Services Assurance services enjoyed good growth momentum, adding 6 new clients in Q1. TCS provided test strategy consulting to 5 clients in Q1 and has setup testing center of excellence for 28 clients Key Engagements y A leading European telecommunication operator has selected TCS as
Slide 28: Global Consulting Practice
Global Consulting Practice GCP has registered strong growth adding 36 new customers GCP won 106 new engagements in Q1 and executed 124 engagements Key Engagements y GCP helped a leading European depository evolve into a Service Oriented enterprise and thereby enhance business agility and drive
Slide 29: Human Resources
Human Resources © Tata Consultancy Services ltd. 18 July 2006 29
Slide 30: Total Associate Base: 71,190
Total Associate Base: 71,190 No. of TCS Associates: 67,530 (including 4,514 in Corporate Functions) No. of Associates in Overseas Subsidiaries and Branches: 4,746 No. of Associates with Indian subsidiaries (CMC and WTI): 3,660 3,660 3,648 3,455 67,530 62,832 48,337 Q1-06 Q4-06 Q1-07 Associates
Slide 31: Additions - Gross 7,095 & Net 4,698 Associates
Additions - Gross 7,095 & Net 4,698 Associates In Q1-FY07, we added 2,574 Trainees and 2,703 Experienced Professionals 1,818 Associates added in Overseas Subsidiaries and Branches We added a net of 3,761 people through recruitment and absorbed 937 people in Diligenta Utilisation Rate in Q1-F
Slide 32: Truly Global Workforce
Truly Global Workforce No. of Associates in Global / Regional Delivery Centers was 2,489 Non-Indian nationals was 7.3% Associates from across 53 nationalities 25% of our workforce comprises women 50% of our associates have more than 3 years of work experience Australian, Others, 11% 4% Uru
Slide 33: Thank You!
Thank You! 33 TATA CONSULTANCY SERVICES
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