Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 FY2021 Earnings Presentation
27 slides from Tata Consultancy Services's earnings presentation, Oct 7, 2020
Slide 1: TCS Financial Results Quarter II FY 2020-21
TCS Financial Results Quarter II FY 2020 - 21 October 07, 2020 Copyright © 2020 Tata Consultancy Services Limited
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: Q2 FY21 Performance Highlights
Q2 FY21 Performance Highlights ➢ Revenue: - INR Revenue of ` 401,350 Mn, up 4.7% QoQ, up 3.0% YoY - USD Revenue of $ 5,424 Mn, up 7.2% QoQ, down 1.7% YoY - Constant currency revenue up 4.8% QOQ, down 3.2% YoY ➢ Profit: - Operating Margin at 26.2%* - Net Margin at 21.0%* - Cash flow from operations a
Slide 4: Growth Summary (INR)
Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 3,98,540 3,99,460 4,01,350 3,89,770 3,83,220 8.4% 6.8% ` Million 5.1% 3.0% 0.4% 5.8% 6.7% 3.0% -6.3% -3.2% Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Operating Income Operating margin (%) 1,05,150 26.2% 93
Slide 5: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 5,517 5,586 5,444 5,424 8.4% 6.8% 5,059 3.0% $ Million 6.4% 5.8% -1.7% 0.9% -6.3% -3.2% -7.8% Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Operating Income Operating margin (%) 1,398 1,366 1,422 1,326 26.2%
Slide 6: Operational Parameters
TATA CONSULTANCY SERVICES Operational Parameters
Slide 7: Growth by Market
Growth by Market Q-o-Q Y-o-Y Geography (%) Q2 FY20 Q1 FY21 Q2 FY21 CC Growth CC Growth Americas North America 50.6 51.4 49.9 3.6 -3.0 Latin America 1.9 1.7 1.7 5.5 -2.7 Europe UK 15.6 15.3 15.5 3.8 -8.1 Continental Europe 14.6 15.6 16.3 6.1 3.7 India 5.7 4.3 5.0 20.0 -10.7 Asia Pacific 9.4 9.8 9.7 2
Slide 8: Growth by Domain
Growth by Domain Q-o-Q Y-o-Y Vertical (%) Q2 FY20 Q1 FY21 Q2 FY21 CC Growth CC Growth BFSI 31.3 31.5 31.9 6.2 -1.1 Retail & CPG 14.9 14.0 14.6 8.8 -5.7 Communication & Media 6.9 6.9 6.5 -2.4 -10.1 Manufacturing 9.8 9.7 9.4 1.4 -7.3 Life Sciences & Healthcare 8.0 9.6 9.8 6.9 17.2 Technology & Service
Slide 9: Service Lines Commentary
Service Lines Commentary Consulting & Services Integration Cyber Security As companies look beyond the pandemic & adapt to the Strong demand for global security technology new realities, location independent execution, implementations driven by the need for cyber resilience & ▪ COVID pandemic contin
Slide 10: Client Parameters
Client Parameters Clients Contribution Q2 FY20 Q1 FY21 Q2 FY21 US$ 1m+ Clients 1032 1066 1076 US$ 5m+ Clients 554 564 565 US$ 10m+ Clients 398 382 386 US$ 20m+ Clients 225 230 228 US$ 50m+ Clients 101 100 97 US$ 100m+ Clients 47 48 49 *Last Twelve Months' services revenues
Slide 11: Key Highlights (1/3)
Key Highlights (1/3) Consulting & Services Integration Cloud & Security ▪ Selected by a global electrical appliances company, to transform the global supply chain ▪ Selected by Albertsons, a leading food and drug retailer in the United States, to advance its processes through intelligent planning, l
Slide 12: Key Highlights (2/3)
Key Highlights (2/3) Cognitive Business Operations, Enterprise Applications & Automation Interactive ▪ Selected by the North America division of a global automaker, as their partner in transforming the delivery model for IT ▪ Chosen by a large global pharma company, for its Digital Infrastructure se
Slide 13: Key Highlights (3/3)
Key Highlights (3/3) Analytics & Insights IoT and Engineering Services, Quality Engg & Transformation ▪ Selected by a leading global bank, for its Data Warehouse Modernization ▪ Selected by a European retailer, to develop a leading hyperscale cloud based IoT platform. The enterprise IoT program leve
Slide 14: Human Resources
TATA CONSULTANCY SERVICES Human Resources
Slide 15: Total Employee Base
Total Employee Base Total Employees : 453,540 Attrition*: 4,53,540 • 8.9 (LTM), IT Services 4,50,738 4,48,464 Diversity: 4,46,675 4,43,676 • Women employees: 36.4% • Nationalities: 147 4,36,641 * Excluding Subsidiaries Talent Development: • 10.2 Mn Learning hours Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
Slide 16: Annexure
TATA CONSULTANCY SERVICES Annexure
Slide 17: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q2 FY21 Q2 FY21 Q2 FY20 Q2 FY20 Ex Adj* Reported Ex Adj* Reported Revenue 3,89,770 4,01,350 4,01,350 100.00 100.00 100.00 Cost of revenue 2,30,630 2,37,150 2,37,150 59.17 59.09 59.09 Gross margin 1,59,140 1,64,200 1,64,200 40.83 40.91 40
Slide 18: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q2 FY21 Q2 FY21 Q2 FY20 Q2 FY20 Ex Adj* Reported Ex Adj* Reported Employee cost 1,64,200 1,78,690 1,78,690 42.13 44.52 44.52 Fees to external consultants 31,480 28,960 28,960 8.08 7.22 7.22 Equipment and software 4,650 2,660 2,660 1.19 0.66 0.66 Facility
Slide 19: Cash Flow Summary
Cash Flow Summary IFRS in ` Mn Q2 FY20 Q2 FY21 Net Cash from Operations 86,860 1,06,180 Capital Expenditure 7,380 6,320 Free Cash Flow 79,480 99,860 Dividends Paid 22,640 19,000 Operating Cash Flow to Sales (%) 22.3 26.5 Operating Cash Flow to Net Profit (%) 108.0 125.9 Total Cash and Investments 5,
Slide 20: IFRS Statement of Financial Position
IFRS Statement of Financial Position 31-Mar-20 30-Sep-20 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 1,19,380 9.71 1,18,810 8.77 Right-of-use Assets 79,940 6.50 77,010 5.68 Intangible assets and Goodwill 41,330 3.35 42,580 3.14 Accounts Receivable 3,06,060 24.88 2,83,090
Slide 21: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q2 FY21 Q2 FY21 Q2 FY20 Q2 FY20 Ex Adj* Reported Ex Adj* Reported Revenue 5,517 5,424 5,424 100.00 100.00 100.00 Cost of revenue 3,264 3,205 3,205 59.17 59.09 59.09 Gross margin 2,253 2,219 2,219 40.83 40.91 40.91 SG & A expense
Slide 22: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q2 FY21 Q2 FY21 Q2 FY20 Q2 FY20 Ex Adj* Reported Ex Adj* Reported Employee cost 2,324 2,415 2,415 42.13 44.52 44.52 Fees to external consultants 445 391 391 8.08 7.22 7.22 Equipment and software 66 36 36 1.19 0.66 0.66 Facility expenses 67 44 44
Slide 23: IFRS Statement of Financial Position in USD
IFRS Statement of Financial Position in USD 31-Mar-20 30-Sep-20 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,583 9.71 1,610 8.77 Right-of-use Assets 1,060 6.50 1,044 5.68 Intangible assets and Goodwill 547 3.35 577 3.14 Accounts Receivable 4,057 24.88 3,836 20.89 Unbille
Slide 24: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q2 FY21 Q2 FY21 Q2 FY20 Q2 FY20 Ex Adj* Reported Ex Adj* Reported Revenue 38,977 40,135 40,135 100.00 100.00 100.00 Expenditure a) Employee Costs 21,470 22,665 22,665 55.08 56.47 56.47 b) Cost of equipment and software l
Slide 25: Ind AS Balance Sheet - Consolidated
Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-20 30-Sep-20 31-Mar-20 30-Sep-20 ASSETS Property, plant and equipment 12,130 12,143 10.03 9.10 Right-of-use assets 7,994 7,701 6.61 5.77 Investments 26,356 36,617 21.80 27.45 Deferred tax assets (net) 2,828 3,052 2.34 2.29 Good
Slide 26: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 USD 70.65 75.75 74.00 53.16% 54.04% 52.07% GBP 86.30 93.96 96.15 13.79% 13.30% 13.52% EUR 78.07 83.67 87.04 10.57% 11.11% 12.06% Others 22.48% 21.55% 22.35% Total 100.00
Slide 27: Thank You
TATA CONSULTANCY SERVICES Thank You
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