Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q1 FY2016 Earnings Presentation
27 slides from Tata Consultancy Services's earnings presentation, Jul 9, 2015
Slide 1: TCS Financial Results Quarter I FY 2015-16
TCS Financial Results Quarter I FY 2015 - 16 July 09, 2015 Copyright © 2014 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: Q1 FY16 Performance Highlights
Q1 FY16 Performance Highlights Revenue: - INR Revenue of ` 256,681 Mn, 6.0% QoQ and 16.1% YoY - USD Revenue of $ 4,036 Mn, 3.5% QoQ and 9.3% YoY - Constant currency revenue growth of 3.5% QoQ and 15.8% YoY; Volume growth of 4.8% Profit: - Operating Income at ` 67,484 Mn, Operating Margin of 26.3
Slide 4: Financial Performance
Financial Performance Click to edit Master title style 4
Slide 5: Growth Summary (INR)
Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 245,011 256,681 238,165 242,198 221,110 22.9% ` Million 15.1% 16.1% 13.5% 12.4% 6.0% 2.6% 2.9% 7.7% -1.1% Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Operating Income Operating margin (%) 66,241 65,911 67,484
Slide 6: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 3,929 3,931 3,900 4,036 3,694 16.7% 17.7% 14.3% 11.4% $ Million 9.3% 6.4% 5.5% 3.5% 0.0% -0.8% Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Operating Income Operating margin (%) 1,055 1,063 1,061 1,061 972 26.8
Slide 7: Operational Parameters
Operational Parameters 7
Slide 8: Growth by Market
Growth by Market 2.2% 9.6% North America 6.4% 52.8% Latin America 11.0% UK Continental Europe India 16.1% Asia Pacific MEA 1.9% Q-o-Q Y-o-Y Geography (%) Q1 FY15 Q4 FY15 Q1 FY16 CC Growth CC Growth Americas North America 52.2 52.4 52.8 4.4 11.4 Latin America 2.2 2.1 1.9 -5.1 5.4 Europe UK 17.7 15.9
Slide 9: Growth by Domain
Growth by Domain BFSI 4.4% 3.5% 2.5% 4.0% Retail & Distribution 5.8% Manufacturing 40.6% 6.9% Telecom Life Sciences & Healthcare 8.6% Hi-Tech Energy & Utilities Travel & Hospitality 9.9% Media & Entertainment 13.8% Others Q-o-Q Y-o-Y IP Revenue (%) Q1 FY15 Q4 FY15 Q1 FY16 CC Growth CC Growth BFSI 41
Slide 10: Growth by Service Line
Growth by Service Line 11.5% Application Development & Maint. 2.5% 40.3% 2.9% Enterprise Solutions Assurance Services 14.7% Engineering & Industrial Services Infrastructure Services 4.5% Global Consulting Asset Leveraged Solutions 8.5% 15.1% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q1 FY
Slide 11: Client Parameters
Client Parameters Clients Contribution* Q1 FY15 Q4 FY15 Q1 FY16 US$ 1m+ Clients 724 791 804 US$ 5m+ Clients 359 389 391 US$ 10m+ Clients 244 261 268 US$ 20m+ Clients 144 162 172 US$ 50m+ Clients 58 68 69 US$ 100m+ Clients 24 29 30 *Last Twelve Months' services revenues 11
Slide 12: Key Wins
Key Wins • A world leader in communications technology, has selected TCS as the strategic and lead partner to deliver their Transformed IT landscape. As a lead transformation partner, TCS will execute the modernizing and optimizing of their IT landscape in a predictable and risk-free manner making t
Slide 13: Key Wins in Digital
Key Wins in Digital Selected by a North American bank for the deployment of mobile-based event management systems using the TCS Event Maestro™ product Selected by a leading UK retailer to enable gap scan and stock adjustment using mobile technologies Selected by a leading European life science
Slide 14: Human Resources
Click to Resources Human edit Master title style 14
Slide 15: Total Employee Base
Total Employee Base Total Employees : 324,935 324,935 319,656 318,625 313,757 305,431 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 15
Slide 16: Q1 Consolidated - Gross Additions 20,302 & Net Additions 5,279
Q1 Consolidated - Gross Additions 20,302 & Net Additions 5,279 Gross Additions: • 6,425 Trainees & 9,337 Laterals in India Attrition*: • 4,540 employees overseas • 15.1% (LTM), IT Services 20,350 20,302 • 15.9% (LTM), including BPS 16,561 Utilization Rate*: 15,817 14,395 • 86.3% (excluding Trainees)
Slide 17: Annexure
Click to edit Master title style Annexure 17
Slide 18: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q4 FY15 Q4 FY15 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Reported Ex Adj Reported Ex Adj Revenue 221,110 242,198 242,198 256,681 100.00 100.00 100.00 100.00 Cost of revenue 122,432 154,996 135,287 144,679 55.37 64.00 55.86 56.37 Gross margin 98,6
Slide 19: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q4 FY15 Q4 FY15 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Reported Ex Adj Reported Ex Adj Employee cost 86,468 111,294 91,585 100,676 39.11 45.95 37.81 39.22 Fees to external consultants 13,244 15,335 15,335 17,236 5.99 6.33 6.33 6.72 Equipment & software 3,264 6,
Slide 20: IFRS Balance Sheet
IFRS Balance Sheet 31-Mar-15 30-Jun-15 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 115,716 15.41 116,331 14.61 Intangible assets and Goodwill 39,308 5.23 39,858 5.00 Accounts Receivable 204,399 27.22 218,453 27.43 Unbilled Revenues 38,271 5.10 40,342 5.07 Investments 17,5
Slide 21: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q4 FY15 Q4 FY15 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Reported Ex Adj Reported Ex Adj Revenue 3,694 3,900 3,900 4,036 100.00 100.00 100.00 100.00 Cost of revenue 2,045 2,496 2,179 2,275 55.37 64.00 55.86 56.37 Gross margin 1,649 1,404
Slide 22: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY15 Q4 FY15 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Reported Ex Adj Reported Ex Adj Employee cost 1,445 1,792 1,475 1,583 39.11 45.95 37.81 39.22 Fees to external consultants 221 247 247 271 5.99 6.33 6.33 6.72 Equipment & software 55 98 98 104 1.48
Slide 23: IFRS Balance Sheet in USD
IFRS Balance Sheet in USD 31-Mar-15 30-Jun-15 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,849 15.41 1,826 14.61 Intangible assets and Goodwill 628 5.23 626 5.00 Accounts Receivable 3,266 27.22 3,430 27.43 Unbilled Revenues 612 5.10 633 5.07 Investments 280 2.34 976 7.81
Slide 24: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q4 FY15 Q4 FY15 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Reported Ex Adj Reported Ex Adj Income 22,111 24,220 24,220 25,668 100.00 100.00 100.00 100.00 Expenditure a) Salaries & Wages 8,532 11,777 9,149 9,976 38.59 48.6
Slide 25: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Mar-15 30-Jun-15 31-Mar-15 30-Jun-15 EQUITY AND LIABILITIES Shareholders' Funds 50,634 55,024 68.74 70.42 Minority Interest 1,128 1,143 1.53 1.46 Short term and long term borrowings 300 338 0.41 0.43 Deferred tax liabilit
Slide 26: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q4 FY15 Q1 FY16 Q4 FY15 Q1 FY16 USD 62.09 63.59 56.42% 56.91% GBP 93.99 98.24 14.14% 14.22% EUR 69.30 70.30 7.83% 7.72% Others 21.60% 21.16% Total 100.00% 100.00% 26
Slide 27: Thank You
Thank You IT Services Business Solutions Consulting
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