Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q1 FY2008 Earnings Presentation
35 slides from Tata Consultancy Services's earnings presentation, Jul 16, 2007
Slide 1: Results for Quarter I FY 2007-08
Results for Quarter I FY 2007-08 16 July 2007
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future growth prospects are forward- looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rel
Slide 3: Highlights
Highlights • Strong Performance in Challenging circumstances • Revenues at $1.3 billion up 42% Y-o-Y; 8% Q-o-Q • Profits at $ 291 million up 55% Y-o-Y; 8% Q-o-Q • 7.6% volume growth in international business • Operational Excellence: • Significant movement of clients to higher revenue bands • 6 cust
Slide 4: Financial Performance
Financial Performance 16 July 2007
Slide 5: Indian GAAP Growth Summary
Indian GAAP Growth Summary Consolidated Indian GAAP (Rs. Crore) Q1 FY08 Q4 FY07 Q1 FY07 Total Income 5,203 5,162 4,155 % Growth Q-o-Q 0.79% % Growth Y-o-Y 25.22% PBIDT (excl Other Income) 1,339 1,464 1,031 % Growth Q-o-Q -8.57% % Growth Y-o-Y 29.82% Profit Before Tax 1,368 1,429 1,011 % Growth Q-o-Q
Slide 6: US GAAP Revenue Growth
US GAAP Revenue Growth Consolidated US GAAP (Rs Millions) Q1 FY08 Q4 FY07 Q1 FY07 Revenue from International Business 47,365 46,632 37,058 % Growth Q-o-Q 1.57% % Growth Y-o-Y 27.81% Revenue from Indian Business 4,664 4,832 4,384 % Growth Q-o-Q -3.48% % Growth Y-o-Y 6.37% Total Revenue 52,028 51,464
Slide 7: US GAAP Growth Summary
US GAAP Growth Summary Consolidated US GAAP (Rs Millions) Q1 FY08 Q4 FY07 Q1 FY07 Gross Margin 22,951 23,320 17,395 % Growth Q-o-Q -1.58% % Growth Y-o-Y 31.94% EBIDTA 13,264 14,568 10,126 % Growth Q-o-Q -8.95% % Growth Y-o-Y 30.99% Operating Income 11,999 13,173 9,263 % Growth Q-o-Q -8.91% % Growth
Slide 8: Operational Performance
Operational Performance 16 July 2007
Slide 9: Growth by Market
Growth by Market 5.0% 1.6% 9.0% North America • Growth in all major markets. Ibero America 8.6% 51.3% • Full services play and new client wins UK drive growth in North America and UK. Continental Europe India • In Continental Europe, MEA and APAC Asia Pacific new client wins, package implementation
Slide 10: Growth by Domain
Growth by Domain 8.1% 2.4% BFSI • BFSI practice is witnessing 2.8% Telecom significant growth with existing 6.1% 43.1% customers as well as new client Manufacturing wins – across IT, Infrastructure, Retail & Distribution Assurance and BPO services 8.0% Life Sciences & Healthcare Transportation • Pha
Slide 11: Growth by Service Line
Growth by Service Line 3.3% 5.9% Application Developm ent & 3.0% Maint. • Infrastructure services along with IT Business Intelligence 5.7% services drives wins in the Enterprise Solutions 5.3% 51.5% outsourcing deals. Assurance Services 3.3% Engineering & Industrial • Global Consulting Practice won
Slide 12: Operational Parameters
Operational Parameters Revenue % Q1 FY08 Q4 FY07 Delivery Location* Onsite 54.8 54.1 GDC/RDC 4.1 4.6 Offshore 41.1 41.3 Contract Type Time & Material 57.3 59.8 Fixed Price & Time 42.7 40.2 * Excluding Domestic Clients 16 July 2007 12
Slide 13: Client Parameters
Client Parameters Q1 FY08 Q4 FY07 Clients Contribution * Revenue % Top 1 6.8 6.6 Top 5 19.0 18.5 Top 10 29.3 28.4 US$ 1 mln Clients 322 297 US$ 5 mln Clients 126 119 US$ 10 mln Clients 85 75 US$ 20 mln Clients 45 39 US$ 50 mln Clients 18 14 US$ 100 mln Clients 6 3 * Last Twelve Months 16 July 2007 1
Slide 14: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q1 FY08 Q4 FY07 Active Clients 771 780 New Clients 54 43 Revenue % from Repeat Business 99.2 94.9 Revenue % from New Business * 0.8 5.1 * Reset at the beginning of Financial Year 16 July 2007 14
Slide 15: Delivery Highlights
Delivery Highlights • Successfully re-architected and delivered an Enterprise Data Warehouse (EDW) for a major US-based Media & Publishing company. • Helped a major US based Pharmacy Retailer in the development and rollout of their Distribution Center solution - designed and developed with high degr
Slide 16: Representative Wins
Representative Wins • Provide a comprehensive range of telecom services to enable complete transformation of existing systems and processes to the next generation convergent billing system in a $ 100M+ deal for a leading Asian telco. • Engaged by a North American Airline company as a strategic partn
Slide 17: Representative Wins
Representative Wins • Providing ADM and Infrastructure services in a $25 M deal for a large UK-based airline • A large Retail Bank in the UK has engaged TCS for its strategic initiative to enhance customer experience. • Creating a common platform to bring efficiencies in its global operations for an
Slide 18: Profiles of Service Lines
Profiles of Service Lines 16 July 2007
Slide 19: Assurance Services
Assurance Services • Added 6 new customers in Q1. • Key Wins – Provide and deploy a managed test center framework to harvest process efficiencies, enhance tool and automation leverage for a large multi-national bank – Provide application certification services as part of a key transformation initiat
Slide 20: IT Infrastructure Services
IT Infrastructure Services • Added 5 new clients during the quarter. • Key Wins • Provide Data Center services for European operations of a leading US-based engineering and manufacturing firm. • Provide end-to-end infrastructure services, including campus, airport and remote island location support
Slide 21: BPO Services
BPO Services • Added 5 new clients during Q1 FY08 • Total Employees: 7,196. • Key Wins • Consolidated dominant position in Pharma KPO with another key win of a leading European Pharma major to provide services in clinical data management, bio-statistics and drug safety. • Offering platform based pay
Slide 22: Engineering & Industrial Services (EIS)
Engineering & Industrial Services (EIS) • Added 13 customers in Q1 • “Adaptive Manufacturing” solution won the SAP Pinnacle Award • Key Wins • Develop industry leading solutions for the Aerospace & Defense Domain with European based leader in Product Lifecycle Management (PLM) products. • Implementi
Slide 23: Global Consulting Practice
Global Consulting Practice • Added 45 new customers in Q1. • GCP closed 203 new engagements in this Quarter. • GCP added strong lateral hires across key geographies – Total strength of 753 dedicated Consultants with global reach. • Strong traction for transformational opportunities in IT Strategy an
Slide 24: TCS Financial Solutions
TCS Financial Solutions • TCS BαNCS suite of products gaining mindshare in BFSI domain. – 11 wins in Q1 and 4 implementations went live in Q1. • TCS BαNCS selected wins The Banker Technology award 2007 for Payments Innovation • Key Wins • Core Banking platform gained another significant win in Great
Slide 25: Human Resources
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Slide 26: Industry Leader in HR Practices: Largest Private Employer in India
Industry Leader in HR Practices: Largest Private Employer in India Total Employees: 94,902 TCS : 91,094 Indian subsidiaries: 3,808 Overseas Subsidiaries and Branches : 8,655 Global/Regional Delivery Centers : 3,620 16 July 2007 26
Slide 27: Industry Leader in HR Practices: Lowest Attrition in the Industry
Industry Leader in HR Practices Lowest Attrition in the Industry •Attrition: 11.5%, including BPO • IT Services: 11% (LTM), BPO: 16.7% (LTM) •Additions: 2,898 Trainees & 4,795 Laterals in India; 1,013 in Overseas Subs & Branches •Utilization Rate was 79.1% (excluding trainees), 76.0% (including trai
Slide 28: Industry Leader in HR Practices: Global & Diverse Workforce
Industry Leader in HR Practices: Global & Diverse Workforce 27% of our workforce are women 48.8% of our associates have more than 3 years of work experience. HungarianMexican Chinese 2% 1%Uruguayian 9% 8% Chilean 21% Others 19% Indian Other 90.6% 9.4% Australian 1% British American 13% 9% Brazilia
Slide 29: Annexure
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Slide 30: Indian GAAP Income Statement – Consolidated
Indian GAAP Income Statement – Consolidated Rs. Crore % of Total Income Consolidated Indian GAAP Q1 FY08 Q4 FY07 Q1 FY07 Q1 FY08 Q4 FY07 Q1 FY07 INCOME a) IT & Consultancy Services 4,927.33 4,950.29 3,914.20 94.70 95.90 94.21 b) Manufacturing, Sale of equipment and Licences 275.56 211.80 240.65 5.30
Slide 31: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated Rs Crore % Consolidated Indian GAAP 30-Jun-07 31-Mar-07 30-Jun-07 31-Mar-07 Source of Funds Shareholders' Funds 9,825.25 8,850.10 93.26 91.80 Minority Interest 189.89 211.80 1.80 2.20 Loan Funds 438.10 506.75 4.16 5.26 Deferred Tax Liability 82.55 71.70 0.78
Slide 32: US GAAP Income Statement
US GAAP Income Statement USD Millions Rs Millions % of Revenue Consolidated US GAAP Q1 FY08 Q1 FY08 Q4 FY07 Q1 FY07 Q1 FY08 Q4 FY07 Q1 FY07 Revenue 1,278.02 52,028.23 51,463.73 41,441.88 100.00 100.00 100.00 Cost of revenue 714.25 29,077.29 28,143.90 24,047.23 55.89 54.69 58.03 Gross margin 563.77 2
Slide 33: COR – SG&A Details
COR – SG&A Details Rs. Millions % of Revenue COR Q1 FY08 Q4 FY07 Q1 FY07 Q1 FY08 Q4 FY07 Q1 FY07 Employee Cost 22,851.91 21,906.96 19,075.50 43.92 42.57 46.03 Equipment & Software 2,169.23 1,669.50 1,876.25 4.17 3.24 4.53 Depreciation 856.09 967.36 590.82 1.65 1.88 1.43 Travel 743.55 796.61 546.62 1
Slide 34: US GAAP Balance Sheet
US GAAP Balance Sheet 30-Jun-07 31-Mar-07 Consolidated US GAAP Rs Millions % Rs Millions % Assets Cash and Cash equivalents 8,021.26 5.52 12,291.40 9.41 Accounts Receivable 43,138.21 29.71 43,090.44 32.98 Unbilled Revenues 10,715.99 7.38 7,834.80 6.00 Other Current assets 15,320.64 10.55 11,636.23 8
Slide 35: Thank You!
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