Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 FY2010 Earnings Presentation
29 slides from Tata Consultancy Services's earnings presentation, Oct 16, 2009
Slide 1: Results for Quarter II FY 2009 - 10
Results for Quarter II FY 2009 - 10 16th Oct 2009
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: Financial Performance
Financial Performance 16th Oct 2009
Slide 4: Indian GAAP Growth Summary
Indian GAAP Growth Summary Consolidated Indian GAAP (INR Crore) Q2 FY10 Q1 FY10 Q2 FY09 Total Income 7,435 7,207 6,953 % Growth Q-o-Q 3.17% % Growth Y-o-Y 6.93% PBIDT (before Other Income) 2,118 1,965 1,820 % Growth Q-o-Q 7.80% % Growth Y-o-Y 16.36% Profit After Tax 1,642 1,534 1,271 % Growth Q-o-Q
Slide 5: US GAAP Revenue Growth
US GAAP Revenue Growth Consolidated US GAAP (INR Million) Q2 FY10 Q1 FY10 Q2 FY09 Total Revenue 74,351 72,070 69,534 % Growth Q-o-Q 3.16% % Growth Y-o-Y 6.93% Revenue from International Business 68,958 65,506 64,098 % Growth Q-o-Q 5.27% % Growth Y-o-Y 7.58% Revenue from Indian Business 5,393 6,564 5
Slide 6: US GAAP Growth Summary
US GAAP Growth Summary 16th Oct 2009 6
Slide 7: Operational Performance
Operational Performance 16th Oct 2009
Slide 8: Growth by Market
Growth by Market 7.3% 5.3% 1.9% North America • Strong market presence helps 53.4% Ibero America 10.6% TCS capitalise on emerging US UK recovery. Continental Europe 16.5% India • Wins in Public Sector, Energy 5.0% Asia Pacific and Retail help mute continued MEA weakness in UK. Geography (% ) Q2 FY10
Slide 9: Growth by Domain
Growth by Domain BFSI 2.2% 3.5% 2.8% 3.0% Telecom 6.0% 45.0% Retail & Distribution 4.8% Manufacturing • BFSI segment continues to out 8.7% Hi-Tech perform, leading recovery in Life Sciences & Healthcare all geographies Travel & Hospitality 12.0% Energy & Utilities 12.0% Media & Entertainment • Telec
Slide 10: Growth by Service Line
Growth by Service Line Application Development & Maint. 11.8% Business Intelligence 3.2% 49.6% 1.6% Enterprise Solutions 8.0% Assurance Services • Strong demand continues for 5.0% Engineering & Industrial Services Application Development 4.8% Infrastructure Services and Maintenance Services. 10.3% G
Slide 11: Client Parameters
Client Parameters Q2 FY10 Q1 FY10 Clients Contribution * Revenue % Top 1 6.8 5.7 Top 5 20.5 19.4 Top 10 28.9 28.0 US$ 1 mln Clients 409 423 US$ 5 mln Clients 171 178 US$ 10 mln Clients 111 113 US$ 20 mln Clients 62 59 US$ 50 mln Clients 23 23 US$ 100 mln Clients 6 6 * Last Twelve Months 16th Oct 200
Slide 12: Operational Parameters
Operational Parameters Revenue % Q2 FY10 Q1 FY10 Delivery Location* Onsite 42.7 44.4 GDC/RDC 6.2 5.2 Offshore 51.1 50.4 Contract Type Time & Material 52.8 52.6 Fixed Price & Time 47.2 47.4 * Excluding Domestic Clients 16th Oct 2009 12
Slide 13: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q2 FY10 Q1 FY10 Active Clients 896 933 New Clients 30 26 Revenue % from Repeat Business 98.2 99.7 Revenue % from New Business * 1.8 0.3 * Reset at the beginning of Financial Year 16th Oct 2009 13
Slide 14: Key Wins
Key Wins A large global mobile device manufacturer who embarked on a supplier consolidation chose TCS as it’s strategic partner with a deal value of around 150MUSD over multiple years. In a 100+MUSD deal over multiple years, TCS has partnered with the world’s leading chemical manufacturer to tra
Slide 15: Human Resources
Human Resources 16th Oct 2009
Slide 16: Total Employee Base: 141,962
Total Employee Base: 141,962 TCS Employees : 123,092 Overseas branches & subsidiaries: 9,732 Global/Regional Delivery Centers : 3,969 Subsidiaries* : 18,870 17,611 18,238 18,870 4,714 4,698 126,150 123,404 123,092 125,629 116,912 FY09 - Q2 FY09 - Q3 FY09 - Q4 FY10 - Q1 FY10 - Q2 Employees in
Slide 17: Q2 TCS + Subsidiaries: Gross Additions 5,530 & Net Additions 320
Q2 TCS + Subsidiaries : Gross Additions : 5,530 & Net Additions : 320 • Additions: • 1,820 Trainees & 1,189 Laterals in India; 827 in Overseas Branch • Attrition: 11.4% (LTM), including BPO • IT Services: 10.8% (LTM), BPO: 18% (LTM) • Utilization Rate: 79.5% (excluding Trainees), 73.6% (including Tr
Slide 18: Diversity
Diversity • 30% of our workforce are women • 58% of our associates have more than 3 years of work experience • Associates from 75 nationalities Composition of International Workforce Mexican Others 7.4% 12.4% British American 6.5% 10.3% Columbian 2.1% Chinese Chilean 8.5% 15.5% Brazilian 11.2% Hunga
Slide 19: Campus Update
Campus Update • 24,885 campus offers were made in FY09. 1,820 trainees joined in Q2 • Campus visits in FY10 would start in Q4 when students are in their last semester 16th Oct 2009 19
Slide 20: Annexure
LAT ATAT ATA TAT ATA T ATALANTA TATA TAT ATALANTA NEL PANETT ANLANLPZN LEUPEPTIN LEN LENT Annexure 16' Oct 2009
Slide 21: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated INR Crore % of Total Income Consolidated Indian GAAP Q2 FY10 Q1 FY10 Q2 FY09 Q2 FY10 Q1 FY10 Q2 FY09 INCOME a) IT & Consultancy Services 7,199 6,942 6,667 96.82 96.33 95.88 b) Manufacturing, Sale of equipment and Licences 236 265 286 3.18 3.67 4.12 Total I
Slide 22: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated INR Crore % Consolidated Indian GAAP 30-Sep-09 31-Mar-09 30-Sep-09 31-Mar-09 Source of Funds Shareholders' Funds 18,351 15,700 94.80 94.18 Minority Interest 315 277 1.63 1.66 Loan Funds 530 564 2.73 3.39 Deferred Tax Liability 162 129 0.84 0.77 Total Liabilit
Slide 23: US GAAP Income Statement
US GAAP Income Statement INR Million % of Revenue Consolidated US GAAP Q2 FY10 Q1 FY10 Q2 FY09 Q2 FY10 Q1 FY10 Q2 FY09 Revenue 74,351 72,070 69,534 100.00 100.00 100.00 Cost of revenue 40,311 39,238 37,752 54.22 54.44 54.29 Gross margin 34,040 32,832 31,782 45.78 45.56 45.71 SG & A expenses 14,509 1
Slide 24: COR – SG&A Details
COR – SG&A Details 16th Oct 2009 24
Slide 25: US GAAP Balance Sheet
US GAAP Balance Sheet 30-Sep-09 31-Mar-09 Consolidated US GAAP INR Million % INR Million % Assets Cash and Cash equivalents 15,886 6.27 14,839 6.49 Accounts Receivable 60,470 23.87 61,540 26.90 Unbilled Revenues 14,926 5.89 14,813 6.47 Other Current assets 38,750 15.29 31,860 13.93 Property & Equipm
Slide 26: US GAAP Income Statement – In USD
US GAAP Income Statement – In USD 16th Oct 2009 26
Slide 27: COR – SG&A Details – In USD
COR – SG&A Details – In USD 16th Oct 2009 27
Slide 28: US GAAP Balance Sheet in USD
US GAAP Balance Sheet in USD 30-Sep-09 31-Mar-09 Consolidated US GAAP USD Million % USD Million % Assets Cash and Cash equivalents 330 6.27 292 6.49 Accounts Receivable 1,257 23.87 1,213 26.90 Unbilled Revenues 310 5.89 292 6.47 Other Current assets 806 15.29 628 13.92 Property & Equipment 803 15.24
Slide 29: Thank You
Thank You SUZANUZAN LU ZAN ZA U ZA ZAN ZAZA ZA ZAZA ZA ZA ZA ZAZA ZA ZA ZA ANZA PANNTVANNTVANNTV NNT YANNI YANNI YANNI YANNI PANNE PANNE PANNE P ANNE PANNE /ANNEP/ANNOP ANNE /ANNIP ANNO PANNE PANN ANNO ZN UNEP ANGHVANGHY/NGHYANGHV/NGHY/NGHV/NGEV/NGHY/NGHV/NGHPANNEY/ANEP/NNEP/ANEY/ANEP/ANEPANEPAANEP/
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