Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q4 FY2006 Earnings Presentation
16 slides from Tata Consultancy Services's earnings presentation, May 2006
Slide 1: Results for Quarter IV FY 2005-06
2.97 2.24 1.56 1.04 0.69 0.88 Results for Quarter IV FY 2005-06 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 Revenue US $ Billion © Tata Consultancy Services Ltd. May 2006 1
Slide 2: Highlights of FY06
Highlights of FY06 Integrated full-services business model achieving scale and success y 89 of our top 100 customers leveraged one or more services from our growth engines generating over 300+m dollars during FY06. Integration of Tata Infotech, Comicrom and FNS completed – y Stage set for accele
Slide 3: Highlights for FY 2006
Highlights for FY 2006 INDIAN GAAP Rs Crores Y-o-Y Total Income 13,252 35.94% PBIDT (before Other Income) 3,664 30.22% PAT 2,967 50.07% EPS – Rs 60.63 for FY 2006, up from Rs. 42.02 for FY 2005 * Added 330 clients this year * Net Addition of 21140 employees this year (including additions through M&A
Slide 4: Highlights for Q4 FY 2006
Highlights for Q4 FY 2006 INDIAN GAAP Rs Crores Q-o-Q Y-o-Y Total Income 3,709 6.39% 43.85% PBIDT (before Other Income) 992 2.73% 42.97% PAT 832 8.03% 76.38% EPS – Rs 17.01 for Q4, up from Rs. 15.74 for Q3 Incl TIL * Added 89 clients this quarter * Net Addition of 3571 employees this quarter 4
Slide 5: Customer Coverage Customer Proximity
Global Global Delivery Delivery Centers Centers •• Very Very High High Scale Scale India (matured) Low Breadth of Skills High •• Serves Serves large customers large customers China (emerging) Low •• High High High Depth Depth && Breadth Breadth of of skills skills •• Matured Processes Matured Proces
Slide 6: Growth by Market
Growth by Market • Expansion of services with our blue-chip 6.2% client-base in North America has 11.5% enabled our growth in North America. We have several new account wins that Americas will fuel this growth for the future. Europe India • Increased IT spending towards global sourcing by customers
Slide 7: Growth by Domain
Growth by Domain • Expansion of services to existing 9.9% clients and multiple large deal wins 3.0% BFSI are continuing our growth in the 3.7% 41.8% Manufacturing BFSI segment. 6.4% Telecom Life Sciences & Healthcare • Ramp-up in accounts won in the 4.5% Retail & Distribution previous quarters and n
Slide 8: Growth by Service Line
Growth by Service Line 3.7% 2.6% • TCS’ new growth areas BPO, Infrastructure Services, Consulting 24.5% Assurance Services, Engineering & Industrial Solutions – have all scaled up and are experiencing significantly higher growth rates 69.3% • TCS continues to win a number of end-to-end enterprise so
Slide 9: Operational Parameters
Operational Parameters • TCS’ Global Network Delivery Model has gained scale and maturity. • We have over 40 of our large Q4 FY 2006 Q3 FY 2006 FY 2006 FY 2005 Revenue % Incl TIL Excl TIL customers use our GDCs in Latin Delivery Location* America, Hungary and China. We Onsite 59.03 58.26 61.40 62.52
Slide 10: Client Parameters
Client Parameters Q4 FY 2006 Q3 FY 2006 FY 2006 FY 2005 Incl TIL Excl TIL Clients Contribution * Revenue % # 3.70 3.67 3.97 3.70 5.10 Top 1 Top 5 17.00 17.02 17.50 17.00 19.20 Top 10 27.50 27.61 27.70 27.50 30.50 US$ 1 mln Clients 256 243 229 256 214 US$ 5 mln Clients 96 87 87 96 76 US$ 10 mln Clien
Slide 11: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q4 FY 2006 Q3 FY 2006 FY 2006 FY 2005 Incl TIL Excl TIL Active Clients 748 766 677 929 621 New Clients 89 88 83 330 246 Revenue % from Repeat Business 91.9 94.9 94.8 95.2 95.1 Revenue % from New Business 8.1 5.1 5.2 4.8 4.9 11
Slide 12: Human Resources Update: FY06
Human Resources Update: FY06 © Tata Consultancy Services Ltd. May 2006 12
Slide 13: Highlights - FY 06
Highlights - FY 06 First IT Company to cross 60,000 employees Added more than 21,000 employees net this year (up 94% Y-o-Y) Lowest attrition in the industry for 5th year Non-Indian Nationals increased by 65% in FY06 to 6.5% of total base Global Scale: Employees in GDCs grew by 150% to 3,05
Slide 14: Total Employee Base: 66,480
Total Employee Base: 66,480 TCS: 62,832 + Indian subsidiaries Gross and Net Additions (CMC and WTI): 3,648. Gross Additions: 27,377 21,140 Net additions: 21,140 Via Recruitment: 14,758 FY 06 27,377 Via M&A: 6,382 Q4-06 Net Addition: 3,571 10,871 Q4 Utilisation Rate: FY 05 78.95% (excluding
Slide 15: Diverse Global Workforce
Diverse Global Workforce Strength in Global Delivery Centers grew to 3,056 from 1,223 Non-Indians from 52 nationalities comprise 6.5% of total base 24% of our workforce comprises women vis-à-vis 22% at FY05 end 51% of our associates have more than 3 years of work experience Nationalities in
Slide 16: Thank You
Thank You 16 TATA CONSULTANCY SERVICES
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