Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q3 FY2013 Earnings Presentation
31 slides from Tata Consultancy Services's earnings presentation, Jan 14, 2013
Slide 1: Results for Quarter III FY 2012-13
Results for Quarter III FY 2012 - 13 14th Jan 2013 Copyright © 2012 Tata Consultancy Services Limited 14th Jan 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: Q3 FY13 Performance Highlights
Q3 FY13 Performance Highlights Revenue: - INR Revenue of `160,699 Mn, growth of 2.9% QoQ and 21.7% YoY - USD Revenue of $2,948 Mn, growth of 3.3% QoQ and 14.0% YoY - Volume growth of 1.25% QoQ; Constant currency realization up 1.3% QoQ Profit: - Operating Income at ` 43,809 Mn, EBIT Margin of 27
Slide 5: Financial Performance
Ig TATA Financial Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 6: IFRS Revenue Growth
IFRS Revenue Growth Revenue Mix Revenue Growth 156,208 160,699 148,687 11,712 12,277 37.7% 132,040 132,593 10,488 36.6% ` Million 11,070 11,245 30.5% 34.3% 21.7% 138,199 144,495 148,422 120,970 121,349 13.5% 12.1% 5.1% 0.4% 2.9% Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13
Slide 7: IFRS Income Summary (INR)
IFRS Income Summary (INR) Operating Income Y-o-Y Growth Q-o-Q Growth 43,809 41.3% 44.7% 38,618 40,897 41,789 27.7% 32.5% 36,747 ` Million 13.4% 11.3% 2.2% 22.4% -4.8% 4.8% Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 EBITDA Y-o-Y Growth Q-o-Q Growth 44,404 46,541 4
Slide 8: IFRS Summary (USD)
IFRS Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 2,853 2,948 2,586 2,648 2,728 20.6% 18.0% 13.1% 13.0% 14.0% $ Million 2.4% 2.4% 3.0% 4.6% 3.3% Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Operating Income Y-o-Y Growth Q-o-Q Growth 804 24.7% 756 734 750 763 18.
Slide 9: Operational Performance
Ig TATA Operational Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 10: Growth by Market
Growth by Market North America 7.5% 2.1% 7.6% Latin America 9.1% UK Continental Europe 52.6% India 17.5% Asia Pacific 3.6% MEA Q-o-Q Y-o-Y Geography (% ) Q3 FY13 Q2 FY13 Q3 FY12 Growth Growth Americas North America 52.6 52.8 2.5 53.3 20.1 Latin America 3.6 3.4 10.9 3.1 41.3 Europe UK 17.5 17.1 5.2 1
Slide 11: Growth by Domain
Growth by Domain 2.1% 5.1% BFSI 3.8% 3.6% Telecom 5.2% Retail & Distribution 5.8% 43.0% Manufacturing Hi-Tech 8.5% Life Sciences & Healthcare Travel & Hospitality Energy & Utilities 13.4% Media & Entertainment 9.5% Others Q-o-Q Y-o-Y IP Revenue (%) Q3 FY13 Q2 FY13 Q3 FY12 Growth Growth BFSI 43.0 42.
Slide 12: Growth by Service Line
Growth by Service Line Application Development & Maint. 12.4% 2.8% 42.4% Enterprise Solutions* 3.2% 11.7% Assurance Services Engineering & Industrial Services Infrastructure Services 4.7% Global Consulting 7.7% Asset Leverage Solutions 15.1% Business Process Outsourcing Q-o-Q Y-o-Y SP Revenue (%) Q3
Slide 13: Client Parameters
Client Parameters Q3 FY13 Q2 FY13 Clients Contribution * Revenue % Top 1 6.3 6.5 Top 5 18.0 18.4 Top 10 25.2 25.6 US$ 1 mln Clients 551 538 US$ 5 mln Clients 273 269 US$ 10 mln Clients 185 182 US$ 20 mln Clients 114 108 US$ 50 mln Clients 47 45 US$ 100 mln Clients 16 14 * Last Twelve Months 14th Jan
Slide 14: Operational Parameters
Operational Parameters Revenue % Q3 FY13 Q2 FY13 Delivery Location* Onsite 45.6 45.8 GDC/RDC 5.0 5.1 Offshore 49.4 49.1 Contract Type Time & Material 52.7 53.2 Fixed Price & Time 47.3 46.8 * Excluding Domestic Clients 14th Jan 2013 14
Slide 15: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q3 FY13 Q2 FY13 Active Clients 1,051 1,041 New Clients 31 41 Revenue % from Repeat Business 98.4 99.0 Revenue % from New Business * 1.6 1.0 * Reset at the beginning of Financial Year 14th Jan 2013 15
Slide 16: Key Wins
Key Wins • TCS signed a large service management deal with a global financial services major in US. TCS as the sole provider has been entrusted with their entire application portfolio. TCS will leverage its Global Network Delivery Model to deliver services from its centers in Mexico, China, Philippi
Slide 17: Human Resources
Ig TATA Human Resources TATA CONSULTANCY SERVICES Experience certainty.
Slide 18: Total Employee Base
Total Employee Base Total Employees : 263,637 263,637 254,076 238,583 243,545 226,751 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 14th Jan 2013 18
Slide 19: Q3 Consolidated - Gross Additions 17,145 & Net Additions 9,561
Q3 Consolidated - Gross Additions 17,145 & Net Additions 9,561 Gross Additions: • 9,831 Trainees & 5,072 Laterals in India • 2,242 employees overseas Attrition*: • 11.2% (LTM), including BPO 18,907 19,156 18,654 • IT Services: 9.8% (LTM) 17,145 • BPO: 22.3% (LTM) 13,831 11,981 11,832 10,531 Utilizat
Slide 20: Diversity
Diversity 32% of our workforce are women 60% of our associates have more than 3 years of work experience Associates from 112 nationalities Composition of International Workforce (Consolidated) Others 18.7% Mexican British Indians 10.4% 20.4% 92.4% Others American 7.6% 16.3% Chilean 4.9% Chines
Slide 21: Annexure
Ig TATA Annexure TATA CONSULTANCY SERVICES Experience certainty.
Slide 22: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q3 FY13 Q2 FY13 Q3 FY12 Q3 FY13 Q2 FY13 Q3 FY12 INCOME a) IT & Consultancy Services 15,663 15,188 12,723 97.47 97.23 96.36 b) Manufacturing, Sale of equipment and Licences 407 433 481 2.53 2.77 3.64 Total Incom
Slide 23: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Dec-12 31-Mar-12 31-Dec-12 31-Mar-12 Source of Funds Shareholders' Funds 38,159 29,579 94.83 95.59 Minority Interest 660 559 1.64 1.81 Loan Funds 489 116 1.22 0.38 Deferred Tax Liability 237 173 0.59 0.56 Non Current Liab
Slide 24: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q3 FY13 Q2 FY13 Q3 FY12 Q3 FY13 Q2 FY13 Q3 FY12 Revenue 160,699 156,208 132,040 100.00 100.00 100.00 Cost of revenue 86,208 85,377 69,964 53.65 54.66 52.99 Gross margin 74,491 70,831 62,076 46.35 45.34 47.01 SG & A expenses 30,682 29,042
Slide 25: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q3 FY13 Q2 FY13 Q3 FY12 Q3 FY13 Q2 FY13 Q3 FY12 Employee cost 60,541 60,008 49,602 37.67 38.42 37.57 Fees to external consultants 9,020 8,321 5,737 5.61 5.33 4.34 Equipment & software 3,702 3,741 4,286 2.30 2.39 3.25 Depreciation 1,680 1,621 1,360 1.05 1
Slide 26: IFRS Balance Sheet
IFRS Balance Sheet 31-Dec-12 31-Mar-12 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 76,304 15.69 64,549 15.67 Intangible assets and Goodwill 35,478 7.29 34,973 8.49 Accounts Receivable 132,712 27.28 115,023 27.91 Unbilled Revenues 31,660 6.51 22,478 5.46 Investments 18,085
Slide 27: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q3 FY13 Q2 FY13 Q3 FY12 Q3 FY13 Q2 FY13 Q3 FY12 Revenue 2,948 2,853 2,586 100.00 100.00 100.00 Cost of revenue 1,581 1,559 1,370 53.65 54.66 52.99 Gross margin 1,367 1,294 1,216 46.35 45.34 47.01 SG & A expenses 563 531 460 19.0
Slide 28: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q3 FY13 Q2 FY13 Q3 FY12 Q3 FY13 Q2 FY13 Q3 FY12 Employee cost 1,111 1,096 971 37.67 38.42 37.57 Fees to external consultants 165 152 112 5.61 5.33 4.34 Equipment & software 68 68 84 2.30 2.39 3.25 Depreciation 31 29 27 1.05 1.04 1.03 Travel 40 4
Slide 29: IFRS Balance Sheet in USD
IFRS Balance Sheet in USD 31-Dec-12 31-Mar-12 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,395 15.69 1,267 15.67 Intangible assets and Goodwill 648 7.29 687 8.49 Accounts Receivable 2,426 27.28 2,258 27.92 Unbilled Revenues 579 6.51 441 5.46 Investments 331 3.72 290 3.59
Slide 30: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY13 Q2 FY13 Q3 FY13 Q2 FY13 USD 54.51 54.76 58.10% 58.88% GBP 87.43 87.04 15.26% 14.94% EUR 71.16 68.84 6.62% 6.25% Others 20.02% 19.93% 100.00% 100.00% 14th Jan 2013 30
Slide 31: Thank You
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