Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q4 FY2017 Earnings Presentation

39 slides from Tata Consultancy Services's earnings presentation, Apr 18, 2017

  1. Slide 1: TCS Financial Results Quarter IV & Year Ended FY 2016-17

    TCS Financial Results Quarter IV & Year Ended FY 2016 - 17 April 18, 2017 Copyright © 2014 Tata Consultancy Services Limited 1

  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: Highlights

    Highlights 3

  4. Slide 4: FY17 Performance Highlights

    FY17 Performance Highlights  Revenue: - INR Revenue of ` 1.18 Tn, growth of 8.6% YoY - USD Revenue of $ 17,576 Mn, growth of 6.2% YoY - Constant currency revenue growth of 8.3%, Volume growth of 8.5% YoY  Profit: - Operating Income at ` 303,240 Mn, Operating Margin of 25.7% - Net Income at ` 262,8

  5. Slide 5: Q4 FY17 Performance Highlights

    Q4 FY17 Performance Highlights  Revenue: - INR Revenue of ` 296,420 Mn, -0.3% QoQ and 4.2% YoY - USD Revenue of $ 4,452 Mn, 1.5% QoQ and 5.8% YoY - Constant currency revenue growth of 1.0%, Volume growth of 1.7% QoQ  Profit: - Operating Income at ` 76,270 Mn, Operating Margin of 25.7% - Net Income

  6. Slide 6: Annual Financial Performance

    Annual Financial Performance 6

  7. Slide 7: Growth Summary (INR)

    Growth Summary (INR) Revenue 1,179,660 Y-0-Y Growth 1,086,462 946,484 28.8% 29.9% ` Million 818,094 629,895 15.7% 14.8% 8.6% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Operating Income Operating margin (%) 303,240 29.1% 287,901 238,080 254,244 27.0% 26.9% ` Million 26.5% 25.7% 170,080 FY13 FY

  8. Slide 8: Growth Summary (USD)

    Growth Summary (USD) Revenue 17,576 Y-o-Y Growth Y-o-Y Growth CC 16,545 17.3% 17.0% 15,454 16.2% $ Million 13,442 11.9% 16.2% 13.7% 15.0% 8.3% 11,568 7.1% 6.2% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Operating Income Operating margin (%) 4,385 4,518 29.1% 4,151 3,906 27.0% 26.9% 26.5% $ Mi

  9. Slide 9: Quarterly Financial Performance

    Quarterly Click Financial to edit Master Performance title style 9

  10. Slide 10: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 297,350 296,420 17.5% 293,050 292,840 14.2% ` Million 284,486 7.8% 8.7% 4.2% 4.0% 3.0% -0.1% 1.5% -0.3% Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Operating Income Operating margin (%) 77,330 26.1% 76,170 76,

  11. Slide 11: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 4,452 4,362 4,374 4,387 7.9% 8.1% $ Million 4,207 5.2% 5.8% 5.8% 3.7% 1.5% 0.3% 1.5% 0.3% Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Operating Income Operating margin (%) 1,138 1,141 1,146 26.1% 26.0% 26.0% 2

  12. Slide 12: Operational Parameters

    Operational Parameters 12

  13. Slide 13: Growth by Market

    Growth by Market Q4 FY17 Mix 2.6% 9.7% 53.3% North America 6.8% Latin America UK 11.8% Continental Europe India 13.7% Asia Pacific 2.1% MEA Q-o-Q Y-o-Y YoY Geography (%) Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 CC Growth CC Growth CC Growth Americas North America 54.0 55.0 53.3 -1.8 4.3 53.3 54.0 7.6 Latin

  14. Slide 14: Growth by Domain

    Growth by Domain Q4 FY17 Mix BFSI 3.9% 3.7% 4.5% 5.6% Retail & CPG 39.9% Communication & Media 7.6% Manufacturing Life Sciences & Healthcare 10.6% Hi-Tech Energy & Utilities 11.3% Travel & Hospitality 12.9% Others Q-o-Q Y-o-Y YoY IP Revenue (%) Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 CC Growth CC Growth C

  15. Slide 15: Growth by Service Line

    Growth by Service Line Q4 FY17 Mix 11.9% Application Development & Maint. 2.9% 37.7% Enterprise Solutions & Consulting 16.2% Assurance Services Engineering & Industrial Services Infrastructure Services 5.0% Asset Leveraged Solutions 9.0% 17.3% Business Process Services Q-o-Q Y-o-Y YoY SP Revenue (%)

  16. Slide 16: Client Parameters

    Client Parameters Clients Contribution* Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 US$ 1m+ Clients 829 880 897 829 897 US$ 5m+ Clients 429 454 459 429 459 US$ 10m+ Clients 298 300 310 298 310 US$ 20m+ Clients 173 186 190 173 190 US$ 50m+ Clients 73 80 84 73 84 US$ 100m+ Clients 37 34 35 37 35 *Last Twelve Mo

  17. Slide 17: Key Wins

    Key Wins  Selected by a large global financial services company to provide end-to-end ADM services  Chosen by a leading global Travel Commerce Platform company as its primary technology partner to innovate and shape a superior customer experience through the power of digital technologies  Selecte

  18. Slide 18: Key Wins in Digital Services and Solutions

    Key Wins in Digital Services and Solutions  Selected by a North American biotechnology company as a strategic partner for Digital transformation  Engaged by an APAC resources firm for workforce re-imagination and enhanced customer engagement using Artificial Intelligence  Chosen by a North Americ

  19. Slide 19: Human Resources

    Click Human to edit Resources Master title style 19

  20. Slide 20: Total Employee Base

    Total Employee Base Total Employees : 387,223 387,223 378,497 Attrition*: 371,519 • 10.5% (LTM), IT Services 362,079 • 11.5% (LTM), including BPS 353,843 344,691 Diversity: • Women employees: 34.7% • Nationalities: 130 * Excluding Subsidiaries Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 20

  21. Slide 21: Employee Addition

    Employee Addition Q4 FY 2017 FY 2017 • Gross additions: 20,093 employees • Gross additions: 78,912 employees • India: • India: • 11,556 Trainees • 39,428 Trainees • 5,733 Laterals • 27,900 Laterals • 2,804 employees overseas • 11,584 employees overseas Net additions: 8,726 employees • Net additions:

  22. Slide 22: Annexure

    Click Annexure to edit Master title style 22

  23. Slide 23: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS FY16 FY17 FY16 FY17 Revenue 1,086,462 1,179,660 100.00 100.00 Cost of revenue 608,997 668,870 56.05 56.70 Gross margin 477,465 510,790 43.95 43.30 SG & A expenses 189,564 207,550 17.45 17.60 Operating income 287,901 303,240 26.50 25.70 O

  24. Slide 24: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR FY16 FY17 FY16 FY17 Employee cost 418,829 462,020 38.56 39.17 Fees to external consultants 78,228 83,450 7.20 7.07 Equipment and software 25,711 28,080 2.37 2.38 Facility expenses 21,658 23,010 1.99 1.95 Depreciation 13,507 14,570 1.24 1.23 Travel 15,999

  25. Slide 25: Cash Flow Summary

    Cash Flow Summary IFRS in ` Mn FY16 FY17 Net Cash from Operations (Reported) 209,160 269,920 Employee Rewards Payout 24,660 - Net Cash from Operations 233,820 269,920 Capital Expenditure 19,670 19,530 Free Cash Flow 214,150 250,390 Dividends Paid 95,150 109,740 Operating Cash Flow to Sales (%) 21.5

  26. Slide 26: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q4 FY16 Q3 FY17 Q4 FY17 Q4 FY16 Q3 FY17 Q4 FY17 Revenue 284,486 297,350 296,420 100.00 100.00 100.00 Cost of revenue 160,622 168,780 166,730 56.46 56.76 56.25 Gross margin 123,864 128,570 129,690 43.54 43.24 43.75 SG & A expenses 49,745

  27. Slide 27: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q4 FY16 Q3 FY17 Q4 FY17 Q4 FY16 Q3 FY17 Q4 FY17 Employee cost 109,282 114,360 117,400 38.41 38.46 39.61 Fees to external consultants 20,999 21,190 19,200 7.38 7.13 6.48 Equipment and software 7,926 9,370 7,050 2.79 3.15 2.38 Facility expenses 5,512 5,810

  28. Slide 28: Cash Flow Summary

    Cash Flow Summary IFRS in ` Mn Q4 FY16 Q3 FY17 Q4 FY17 Net Cash from Operations 64,090 79,570 74,540 Capital Expenditure 5,100 4,080 5,100 Free Cash Flow 58,990 75,490 69,440 Dividends Paid 12,160 14,820 15,270 Operating Cash Flow to Sales (%) 22.5 26.8 25.1 Operating Cash Flow to Net Profit (%) 101

  29. Slide 29: IFRS Statement of Financial Position

    IFRS Statement of Financial Position 31-Mar-16 31-Mar-17 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 117,900 12.93 117,410 11.14 Intangible assets and Goodwill 39,460 4.32 37,680 3.58 Accounts Receivable 240,730 26.39 226,840 21.53 Unbilled Revenues 39,920 4.38 53,510 5.0

  30. Slide 30: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS FY16 FY17 FY16 FY17 Revenue 16,545 17,576 100.00 100.00 Cost of revenue 9,274 9,965 56.05 56.70 Gross margin 7,271 7,611 43.95 43.30 SG & A expenses 2,886 3,093 17.45 17.60 Operating income 4,385 4,518 26.50 25.70 Other income (

  31. Slide 31: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR FY16 FY17 FY16 FY17 Employee cost 6,379 6,884 38.56 39.17 Fees to external consultants 1,191 1,243 7.20 7.07 Equipment and software 391 418 2.37 2.38 Facility expenses 330 343 1.99 1.95 Depreciation 206 217 1.24 1.23 Travel 243 268 1.47 1.52 Com

  32. Slide 32: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q4 FY16 Q3 FY17 Q4 FY17 Q4 FY16 Q3 FY17 Q4 FY17 Revenue 4,207 4,387 4,452 100.00 100.00 100.00 Cost of revenue 2,375 2,490 2,504 56.46 56.76 56.25 Gross margin 1,832 1,897 1,948 43.54 43.24 43.75 SG & A expenses 736 756 802 17.4

  33. Slide 33: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY16 Q3 FY17 Q4 FY17 Q4 FY16 Q3 FY17 Q4 FY17 Employee cost 1,616 1,687 1,763 38.41 38.46 39.61 Fees to external consultants 311 312 288 7.38 7.13 6.48 Equipment and software 117 138 106 2.79 3.15 2.38 Facility expenses 81 86 83 1.94 1.96 1.86

  34. Slide 34: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD 31-Mar-16 31-Mar-17 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,780 12.93 1,811 11.15 Intangible assets and Goodwill 595 4.32 581 3.57 Accounts Receivable 3,634 26.39 3,498 21.53 Unbilled Revenues 603 4.38 825 5.08 Investments

  35. Slide 35: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS FY16 FY17 FY16 FY17 Revenue 108,646 117,966 100.00 100.00 Expenditure a) Employee Costs 55,348 61,621 50.94 52.24 b) Other Operating expenses 22,621 24,034 20.82 20.37 c) Depreciation 1,888 1,987 1.74 1.68 Total Expendit

  36. Slide 36: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q4 FY16 Q3 FY17 Q4 FY17 Q4 FY16 Q3 FY17 Q4 FY17 Revenue 28,449 29,735 29,642 100.00 100.00 100.00 Expenditure a) Employee Costs 14,423 15,275 15,692 50.70 51.37 52.94 b) Other Operating expenses 6,119 6,231 5,818 21.51 2

  37. Slide 37: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-16 31-Mar-17 31-Mar-16 31-Mar-17 ASSETS Property, plant and equipment 11,775 11,645 13.22 11.28 Investments 22,822 41,980 25.62 40.66 Deferred tax assets (net) 2,908 2,828 3.26 2.74 Goodwill (on consolidation) 1,669 1,597 1.87

  38. Slide 38: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY17 Q4 FY17 Q3 FY17 Q4 FY17 USD 67.78 66.58 58.21% 56.26% GBP 83.79 82.87 11.40% 11.86% EUR 72.18 71.10 7.92% 8.00% Others 22.47% 23.88% Total 100.00% 100.00% 38

  39. Slide 39: Thank You

    Thank You IT Services Business Solutions Consulting

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