Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q2 FY2024 Earnings Presentation

26 slides from Tata Consultancy Services's earnings presentation, Oct 11, 2023

  1. Slide 1: TCS Financial Results

    TCS Financial Results Quarter II Ended FY 2023-24 Oct 11, 2023

  2. 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

  3. Slide 3: Q2 FY24 Performance Highlights

    Q2 FY24 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 596,920 Mn, up 7.9% YoY - USD Revenue of $ 7,210 Mn, up 4.8% YoY - Constant currency revenue up 2.8% YoY ➢ Profit: - Operating Margin at 24.3% - Net Margin at 19.0% - Cash flow from operations at 104.2% of net profit ➢ Demand: - Clients $1

  4. Slide 4: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 18.0% 19.1% 591,620 593,810 596,920 16.9% 582,290 553,090 12.6% ` Million 15.4% 7.9% 13.5% 10.7% 7.0% 2.8% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Operating Income Operating margin (%) 142,840 144,880 1

  5. Slide 5: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 6,877 7,075 7,195 7,226 7,210 15.4% 13.5% $ Million 10.7% 7.0% 4.8% 8.6% 8.4% 7.4% 6.6% 2.8% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Operating Income Operating margin (%) 1,651 1,736 1,761 1,749 1,674 2

  6. Slide 6: Operational Parameters

    TATA bli [CS CONSULTANCY TATA SERVICES Operational Parameters Building on belief

  7. Slide 7: Growth by Market

    Growth by Market Y-o-Y Geography (%) Q2 FY23 Q2 FY24 CC Growth Americas North America 54.3 51.7 0.1 Latin America 1.7 2.0 13.1 Europe UK 14.5 16.5 10.7 Continental Europe 14.5 14.9 1.3 Asia Pacific 8.0 7.8 4.1 India 5.1 4.9 3.9 MEA 1.9 2.2 15.9 Total 100.0 100.0 2.8 7

  8. Slide 8: Growth by Domain

    Growth by Domain Y-o-Y Vertical (%) Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 CC Growth BFSI 33.6 33.1 32.9 32.5 32.6 - 0.5 Consumer Business 16.1 16.0 16.0 16.1 15.9 1.0 Life Sciences & Healthcare 10.7 10.8 10.9 11.0 10.9 5.0 Technology & Services 9.1 9.0 8.9 8.7 8.6 - 2.2 Manufacturing 8.2 8.2 8.2 8

  9. Slide 9: Service Lines Commentary

    Service Lines Commentary AI.Cloud Enterprise Solutions During the quarter, we launched our AI.Cloud Business Unit by With changing business models and M&A, customers continue to bringing together the power of Cloud, Data and AI / ML, including invest in their digital core by modernizing their ERP, l

  10. Slide 10: Client Parameters

    Client Parameters Clients Contribution Q2 FY23 Q2 FY24 US$ 1m+ Clients 1210 1272 US$ 5m+ Clients 650 688 US$ 10m+ Clients 455 483 US$ 20m+ Clients 283 292 US$ 50m+ Clients 124 137 US$ 100m+ Clients 59 61 *Last Twelve Months' services revenues 10

  11. Slide 11: Key Highlights (1/2)

    Key Highlights (1/2) • BSNL has selected TCS to roll out a modern 4G and 5G mobile communication infrastructure • ASDA signed a multi-year partnership with TCS in a divestiture and digital transformation deal. across India covering 100K telecom sites. The project involves supply, planning, design, T

  12. Slide 12: Key Highlights (2/2)

    Key Highlights (2/2) • Selected as a strategic partner by the Government of India to transform the Government e- Marketplace (GeM) platform. The opportunity involves management and transformation of GeM into a world-class platform. The project will enable growth and scale, improve inclusivity for MS

  13. Slide 13: Human Resources

    TATA bli [CS CONSULTANCY TATA SERVICES Human Resources Building on belief

  14. Slide 14: Total Employee Base

    Total Employee Base Attrition*: • 14.9% (LTM), IT Services 616,171 615,318 Diversity: 614,795 613,974 • 35.8% Women employees • 152 Nationalities *Excluding Subsidiaries 608,985 Talent Development: • 26.4Mn Learning Hrs YTD (FY24) • 2.6Mn competencies acquired YTD (FY24) Q2-23 Q3-23 Q4-23 Q1-24 Q2-2

  15. Slide 15: Annexure

    TATA bli [CS CONSULTANCY TATA SERVICES Annexure Building on belief

  16. Slide 16: IFRS Income Statement

    IFRS Income Statement ₹ M illion % of Revenue Consolidated IFRS Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Revenue 553,090 596,920 100.00 100.00 Cost of revenue 334,620 357,620 60.50 59.91 Gross margin 218,470 239,300 39.50 40.09 SG & A expenses 85,680 94,470 15.49 15.83 Operating income 132,790 144,830 24.01

  17. Slide 17: COR – SG&A Details

    COR – SG&A Details ₹ Million % of Revenue COR Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Employee cost 240,650 273,670 43.51 45.85 Fees to external consultants 53,270 40,790 9.64 6.83 Equipment and software 4,010 4,620 0.72 0.77 Facility expenses 4,120 4,890 0.74 0.82 Depreciation 9,360 9,640 1.69 1.62 Travel

  18. Slide 18: Cash Flow Summary

    Cash Flow Summary IFRS in ₹ Mn Q2 FY23 Q2 FY24 Net Cash from Operations 106,750 118,230 Capital Expenditure 6,130 4,660 Free Cash Flow 100,620 113,570 Dividends Paid 29,490 121,010 Operating Cash Flow to Sales (%) 19.3 19.8 Operating Cash Flow to Net Profit (%) 102.3 104.2 Total Cash and Investments

  19. Slide 19: IFRS Statement of Financial Position

    IFRS Statement of Financial Position ₹ Million Consolidated IFRS 31-Mar-23 30-Sep-23 Assets Property and equipment 115,950 110,620 Right-of-use Assets 75,600 76,350 Intangible assets and Goodwill 48,730 46,150 Accounts Receivable 411,980 424,220 Unbilled Revenues 149,350 151,740 Invested Funds 498,2

  20. Slide 20: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Revenue 6,877 7,210 100.00 100.00 Cost of revenue 4,161 4,320 60.50 59.91 Gross margin 2,716 2,890 39.50 40.09 SG & A expenses 1,065 1,141 15.49 15.83 Operating income 1,651 1,749 24.01 24.26 Othe

  21. Slide 21: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Employee cost 2,992 3,306 43.51 45.85 Fees to external consultants 663 493 9.64 6.83 Equipment and software 50 56 0.72 0.77 Facility expenses 51 59 0.74 0.82 Depreciation 116 116 1.69 1.62 Travel 59 61 0.86 0.85 C

  22. Slide 22: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD $ Million Consolidated IFRS 31-Mar-23 30-Sep-23 Assets Property and equipment 1,410 1,332 Right-of-use Assets 919 919 Intangible assets and Goodwill 593 556 Accounts Receivable 5,010 5,107 Unbilled Revenues 1,816 1,828 Invested Funds 6,058 7,185 Other curr

  23. Slide 23: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Revenue 55,309 59,692 100.00 100.00 Expenditure a) Employee Costs 31,041 35,123 56.12 58.84 b) Cost of equipment and software licences 401 462 0.72 0.77 c) Other Operating expenses 9,351 8

  24. Slide 24: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ₹ Crore Consolidated Ind AS 31-Mar-23 30-Sep-23 Assets Property and equipment 11,464 10,872 Right-of-use Assets 7,560 7,635 Intangible assets and Goodwill 2,725 2,469 Accounts Receivable 41,198 42,422 Unbilled Revenues 14,935 15,174 Invested Funds 49,824 59,677 Ot

  25. Slide 25: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 USD 80.42 82.79 56.92% 53.96% GBP 92.46 103.81 12.29% 14.34% EUR 79.86 89.53 10.31% 11.12% Others 20.48% 20.58% Total 100.00% 100.00% 25

  26. Slide 26: Thank you

    Thank you Copyright © 2023 Tata Consultancy Services Limited

Tata Consultancy Services — Q2 FY2024 Earnings Presentation on 6ix