Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q3 FY2021 Earnings Presentation
27 slides from Tata Consultancy Services's earnings presentation, Jan 8, 2021
Slide 1: TCS Financial Results Quarter III FY 2020-21
TCS Financial Results Quarter III FY 2020 - 21 January 08, 2021 Copyright © 2020 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: Q3 FY21 Performance Highlights
Q3 FY21 Performance Highlights ➢ Revenue: - INR Revenue of ` 420,150 Mn, up 4.7% QoQ, up 5.4% YoY - USD Revenue of $ 5,702 Mn, up 5.1% QoQ, up 2.1% YoY - Constant currency revenue up 4.1% QoQ, up 0.4% YoY ➢ Profit: - Operating Margin at 26.6% - Net Margin at 20.7% - Cash flow from operations at 137.
Slide 4: Growth Summary (INR)
Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 4,20,150 3,98,540 3,99,460 3,83,220 4,01,350 6.8% 5.4% ` Million 5.1% 3.0% 0.4% 6.7% 3.0% 0.4% -6.3% -3.2% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Operating Income Operating margin (%) 26.2% 26.6% 1,11,
Slide 5: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 5,586 5,702 6.8% 5,444 5,424 5,059 3.0% 2.1% $ Million 6.4% -1.7% 0.9% -6.3% 0.4% -3.2% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 -7.8% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Operating Income Operating margin (%) 1,517 1,398 1,366 1,422 26.6%
Slide 6: Operational Parameters
TATA CONSULTANCY SERVICES Operational Parameters
Slide 7: Growth by Market
Growth by Market Q-o-Q Y-o-Y Geography (%) Q3 FY20 Q2 FY21 Q3 FY21 CC Growth CC Growth Americas North America 50.1 49.9 49.1 3.3 -0.2 Latin America 1.9 1.7 1.7 3.1 -3.8 Europe UK 15.9 15.5 15.7 4.5 -1.6 Continental Europe 14.9 16.3 16.2 2.5 3.6 Asia Pacific 9.3 9.7 9.7 2.6 1.3 India 5.7 5.0 5.6 18.1
Slide 8: Growth by Domain
Growth by Domain Q-o-Q Y-o-Y Vertical (%) Q3 FY20 Q2 FY21 Q3 FY21 CC Growth CC Growth BFSI 30.7 31.9 31.3 2.0 2.4 Retail & CPG 15.2 14.6 14.5 3.1 -5.1 Life Sciences & Healthcare 8.3 9.8 9.8 5.2 18.2 Manufacturing 10.0 9.4 9.6 7.1 -3.6 Technology & Services 8.4 8.9 8.6 0.8 2.4 Communication & Media 6
Slide 9: Service Lines Commentary
Service Lines Commentary Analytics & Insights Cloud & Security Services ▪ Strong rebound for Growth and Transformation This quarter saw the emergence of new Data Stories An upsurge in demand across all hyperscaler cloud services post Covid pandemic and an urgency to take up data during the quarter.
Slide 10: Client Parameters
Client Parameters Clients Contribution Q3 FY20 Q2 FY21 Q3 FY21 US$ 1m+ Clients 1053 1076 1077 US$ 5m+ Clients 557 565 565 US$ 10m+ Clients 395 386 386 US$ 20m+ Clients 232 228 229 US$ 50m+ Clients 102 97 97 US$ 100m+ Clients 47 49 48 *Last Twelve Months' services revenues 10
Slide 11: Key Highlights (1/3)
Key Highlights (1/3) Cloud & Security Interactive ▪ Selected by a subsidiary of one of the world's largest chemical companies, ▪ Selected by a global medical devices company, to migrate ▪ Selected by a global insurance for delivering Next Generation Private Cloud services with TCS Enterprise busines
Slide 12: Key Highlights (2/3)
Key Highlights (2/3) Consulting & Services Integration, Enterprise Application Services IoT and Engineering Services ▪ The T. Marzetti Company has selected Tata Consultancy Services as their single strategic IT Service Provider for Infrastructure, ▪ Selected by a Nordics-based postal and logistics A
Slide 13: Key Highlights (3/3)
Key Highlights (3/3) Cognitive Business Operations, Quality Engg & Transformation Analytics & Insights ▪ Selected by a prominent health care chain in the US, to transform their revenue management operations. TCS will ▪ Selected by one of the largest supermarket chains in the United leverage its MFDM
Slide 14: Human Resources
TATA CONSULTANCY SERVICES Human Resources
Slide 15: Total Employee Base
Total Employee Base Total Employees : 469,261 Attrition*: 4,69,261 • 7.6 (LTM), IT Services Diversity: 4,53,540 • Women employees: 36.4% 4,50,738 • Nationalities: 147 4,48,464 4,46,675 * Excluding Subsidiaries 4,43,676 Talent Development: • 12.1 Mn Learning hours Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21
Slide 16: Annexure
TATA CONSULTANCY SERVICES Annexure
Slide 17: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Revenue 3,98,540 4,20,150 100.00 100.00 Cost of revenue 2,33,690 2,45,270 58.63 58.38 Gross margin 1,64,850 1,74,880 41.37 41.62 SG & A expenses 65,110 63,040 16.34 15.00 Operating income 99,740 1,11,840 2
Slide 18: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Employee cost 1,65,860 1,81,670 41.62 43.24 Fees to external consultants 31,410 30,870 7.88 7.35 Equipment and software 4,600 3,960 1.15 0.94 Facility expenses 4,400 3,740 1.10 0.89 Depreciation 6,870 7,780 1.72 1.86 Trave
Slide 19: Cash Flow Summary
Cash Flow Summary IFRS in ` Mn Q3 FY20 Q3 FY21 Net Cash from Operations 94,510 1,19,520 Capital Expenditure 7,170 7,230 Free Cash Flow 87,340 1,12,290 Dividends Paid 2,00,710 45,020 Operating Cash Flow to Sales (%) 23.7 28.4 Operating Cash Flow to Net Profit (%) 116.4 137.4 Total Cash and Investment
Slide 20: IFRS Statement of Financial Position
IFRS Statement of Financial Position 31-Mar-20 31-Dec-20 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 1,19,380 9.71 1,19,810 8.31 Right-of-use Assets 79,940 6.50 76,980 5.34 Intangible assets and Goodwill 41,330 3.35 43,990 3.05 Accounts Receivable 3,06,060 24.88 2,99,670
Slide 21: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Revenue 5,586 5,702 100.00 100.00 Cost of revenue 3,275 3,329 58.63 58.38 Gross margin 2,311 2,373 41.37 41.62 SG & A expenses 913 856 16.34 15.00 Operating income 1,398 1,517 25.03 26.62 Other in
Slide 22: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Employee cost 2,325 2,466 41.62 43.24 Fees to external consultants 440 419 7.88 7.35 Equipment and software 64 54 1.15 0.94 Facility expenses 62 51 1.10 0.89 Depreciation 96 106 1.72 1.86 Travel 79 29 1.42 0.51 Co
Slide 23: IFRS Statement of Financial Position in USD
IFRS Statement of Financial Position in USD 31-Mar-20 31-Dec-20 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,583 9.71 1,640 8.31 Right-of-use Assets 1,060 6.50 1,054 5.34 Intangible assets and Goodwill 547 3.35 602 3.05 Accounts Receivable 4,057 24.88 4,102 20.78 Unbille
Slide 24: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Revenue 39,854 42,015 100.00 100.00 Expenditure a) Employee Costs 21,622 23,431 54.25 55.77 b) Cost of equipment and software licences 460 396 1.15 0.94 c) Other Operating expenses 6,901 5
Slide 25: Ind AS Balance Sheet - Consolidated
Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-20 31-Dec-20 31-Mar-20 31-Dec-20 ASSETS Property, plant and equipment 12,130 12,293 10.03 8.65 Right-of-use assets 7,994 7,698 6.61 5.42 Investments 26,356 50,344 21.80 35.43 Deferred tax assets (net) 2,828 3,332 2.34 2.35 Good
Slide 26: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21 USD 71.35 74.00 73.68 52.70% 52.07% 51.23% GBP 92.91 96.15 98.13 14.18% 13.52% 13.45% EUR 79.03 87.04 88.26 10.71% 12.06% 12.19% Others 22.41% 22.35% 23.13% Total 100.00
Slide 27: Thank You
TATA CONSULTANCY SERVICES Thank You
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