Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q3 FY2007 Earnings Presentation
34 slides from Tata Consultancy Services's earnings presentation, Jan 15, 2007
Slide 1: Results for Quarter III FY 2006-07
Results for Quarter III FY 2006-07 © Tata Consultancy Services ltd. 15 January 2007 1
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 quarter with an all-around performance y Crossed $1 B in Revenues during the quarter with profits of $ 250 M y Crossed $3 B in Revenues during Nine months y 8.44% Revenue growth and 11.41% Net Income growth. y 2 deals of $ 100M+ and 3 deals of $ 50M+ were signed during the quarte
Slide 4: Financial Performance
Financial Performance © Tata Consultancy Services ltd. 15 January 2007 4
Slide 5: Indian GAAP Growth Summary
Indian GAAP Growth Summary Consolidated Indian GAAP (Rs. Crores) Q3 FY07 Q2 FY07 Q3 FY06 Income from IT & Consultancy Services 4,641 4,301 3,286 % Growth Q-o-Q 7.92% % Growth Y-o-Y 41.25% Total Income 4,873 4,495 3,463 % Growth Q-o-Q 8.42% % Growth Y-o-Y 40.72% PBIDT (before Other Income) 1,388 1,25
Slide 6: Indian GAAP Income Statement – Consolidated
Indian GAAP Income Statement – Consolidated Rs. Crores % of Total Income Consolidated Indian GAAP Q3 FY07 Q2 FY07 Q3 FY06 Q3 FY07 Q2 FY07 Q3 FY06 INCOME a) IT & Consultancy Services 4,641.36 4,300.75 3,285.91 95.24 95.68 94.88 b) Manufacturing, Sale of equipment and Licences 232.08 194.08 177.19 4.7
Slide 7: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated Rs Crores % Consolidated Indian GAAP 31-Dec-06 31-Mar-06 31-Dec-06 31-Mar-06 Source of Funds Shareholders' Funds 8,113.09 5,998.81 96.27 95.16 Minority Interest 258.11 164.72 3.06 2.61 Loan Funds 56.76 116.69 0.67 1.86 Deferred Tax Liability - 23.57 - 0.37 To
Slide 8: US GAAP Revenue Growth
US GAAP Revenue Growth Consolidated US GAAP (Rs Millions) Q3 FY07 Q2 FY07 Q3 FY06 Revenue from International Business 44,777 41,064 30,433 % Growth Q-o-Q 9.04% % Growth Y-o-Y 47.13% Revenue from Indian Business 3,828 3,758 4,093 % Growth Q-o-Q 1.87% % Growth Y-o-Y -6.47% Total Revenue 48,605 44,822
Slide 9: US GAAP Growth Summary
US GAAP Growth Summary Consolidated US GAAP (Rs Millions) Q3 FY07 Q2 FY07 Q3 FY06 Gross Margin 22,099 20,335 15,781 % Growth Q-o-Q 8.67% % Growth Y-o-Y 40.04% EBIDTA 13,752 12,294 9,770 % Growth Q-o-Q 11.86% % Growth Y-o-Y 40.77% Operating Income 12,673 11,336 9,032 % Growth Q-o-Q 11.79% % Growth Y-
Slide 10: US GAAP Income Statement
US GAAP Income Statement USD Millions Rs Millions % of Revenue Consolidated US GAAP Q3 FY07 Q3 FY07 Q2 FY07 Q3 FY06 Q3 FY07 Q2 FY07 Q3 FY06 Revenue 1,098.29 48,604.76 44,821.76 34,525.57 100.00 100.00 100.00 Cost of revenue 598.93 26,505.67 24,486.56 18,744.83 54.53 54.63 54.29 Gross margin 499.36 2
Slide 11: COR – SG&A Details
COR – SG&A Details Rs. Millions % of Revenue COR Q3 FY07 Q2 FY07 Q3 FY06 Q3 FY07 Q2 FY07 Q3 FY06 Employee Cost 21,576.73 19,913.48 15,063.98 44.39 44.43 43.63 Equipment & Software 1,528.41 1,717.60 1,487.69 3.14 3.83 4.31 Depreciation 747.43 606.42 506.34 1.54 1.35 1.47 Travel 645.04 543.01 648.46 1
Slide 12: US GAAP Balance Sheet
US GAAP Balance Sheet 31-Dec-06 31-Mar-06 Consolidated US GAAP Rs Millions % Rs Millions % Assets Cash and Cash equivalents 9,801.69 8.37 3,965.01 4.63 Accounts Receivable 41,590.35 35.52 32,789.78 38.29 Unbilled Revenues 7,056.38 6.03 4,712.30 5.50 Other Current assets 10,998.70 9.39 8,133.15 9.50
Slide 13: Operational Performance
Operational Performance © Tata Consultancy Services ltd. 15 January 2007 13
Slide 14: Growth by Market
Growth by Market 5.6% 1.4% 7.9% North America • Strong growth momentum Ibero America continues across geographies. 8.5% 51.9% UK Continental Europe • Existing large customers are India engaging TCS in new services – Asia Pacific adopting our full services model. 20.1% MEA • With a strong customer ba
Slide 15: Growth by Domain
Growth by Domain 8.0% 2.2% BFSI • Our large customers in the 2.9% Manufacturing BFSI segment are committing 6.9% 43.5% Telecom significant incremental spend 4.5% Life Sciences & Healthcare towards TCS validating our Retail & Distribution certainty in delivery. Transportation 16.8% Energy & Utilities
Slide 16: Growth by Service Line
Growth by Service Line 5.8% 2.3% Application Development & Maint. 2.8% 3.4% Business Intelligence • Ramp-ups that occurred in the Engineering & Industrial Services large application development/ 11.8% Infrastructure Services support deals during the previous Enterprise Solutions quarter has driven g
Slide 17: Operational Parameters
Operational Parameters • Our continued focus to shift work offshore is yielding the Revenue % Q3 FY07 Q2 FY07 desired results. Delivery Location* • We ramped up our operations in Onsite 54.3 56.0 GDC/RDC 4.1 3.0 non-India GDCs by over 30% Offshore 41.6 41.0 during the quarter. Contract Type • TCS Gl
Slide 18: Client Parameters
Client Parameters Client Concentration Q3 FY07 Q2 FY07 Clients Contribution * Revenue % Top 1 5.7 4.9 Top 5 17.4 16.8 Top 10 27.5 26.8 US$ 1 mln Clients 288 274 US$ 5 mln Clients 114 105 US$ 10 mln Clients 74 70 US$ 20 mln Clients 37 32 US$ 50 mln Clients 15 15 * Last Twelve Months 18
Slide 19: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q3 FY07 Q2 FY07 Active Clients 754 742 New Clients 55 58 Revenue % from Repeat Business 96.1 97.9 Revenue % from New Business 3.9 2.1 19
Slide 20: Delivery Highlights
Delivery Highlights For a large construction company in UK, TCS successfully delivered an enterprise transformation engagement to streamline the information flow into a single channel resulting in higher employee efficiency and improved risk management. TCS delivered a major milestone for a larg
Slide 21: Representative Wins
Representative Wins TCS signed a comprehensive transformation and outsourcing deal with a leading private bank in Latin America for US$ 140 million for five years. As part of the deal, TCS will implement FNS BANCSTM core banking solution to support the bank’s operations. TCS and FNS won an appro
Slide 22: Representative Wins
Representative Wins World’s leading provider of Health & Hygiene products from North America selected TCS for providing global end-to-end infrastructure services. This deal where TCS will leverage its Global Network Delivery Model clearly positions TCS’ capabilities to deliver end-to-end managed i
Slide 23: Profiles of 'Select' Growth Engines
Profiles of ‘Select’ Growth Engines © Tata Consultancy Services ltd. 15 January 2007 23
Slide 24: Assurance Services
Assurance Services The practice added 5 new clients during the quarter. TCS’s Test Center of Excellence and Enterprise Shared Services Framework have gained significant traction with the customers. Key Engagements TCS has been selected as the only Partner for the QA and Testing Services for a
Slide 25: IT Infrastructure Services
IT Infrastructure Services The practice added 28 new clients during the quarter Key Engagements A UK based large application services client in the Insurance domain selected TCS as their “IT Infrastructure Partner” clearly validating TCS’ full services capability. Another large financial servi
Slide 26: BPO
BPO TCS BPO practice added 3 new clients during the quarter Key Engagements TCS strengthened its global pharma BPO base by winning a multi-year contract with a UK pharma major. TCS now services pharma customers in the US, UK and Europe on clinical trial-based processes. TCS has been selected t
Slide 27: Engineering & Industrial Services (EIS)
Engineering & Industrial Services (EIS) EIS Practice added 12 new clients during the quarter TCS became first Indian company to be AS 9100: Rev B certified for design and development of airframe structures. TCS’ growing presence in Geospatial Technologies space was recognized by the MapInfo As
Slide 28: Global Consulting Practice
Global Consulting Practice The practiced signed up 188 new engagements during the quarter. We added 40 new customers for GCP. Key Engagements TCS delivered an integrated process assessment framework with an RoI model identifying savings to the tune of 36 MUSD for a leading US Insurance Major.
Slide 29: Financial Services Products
Financial Services Products Significant wins across the complete portfolio of TCS financial services products Key Engagements One of the largest banks in China has selected TCS/FNS for their core banking operations TCS corporate actions suite has been selected as the Global Corporate Actions A
Slide 30: Human Resources
TCS awarded DQ-IDC “Best IT Employer” in 2006 for the 3rd Consecutive Year Human Resources © Tata Consultancy Services ltd. 15 January 2007 30
Slide 31: Total Employee Base: 83,500
Total Employee Base: 83,500 No. of TCS Employees: 79,755 No. of Employees with Indian subsidiaries (CMC, and WTI): 3,745 3,745 3,835 3,660 3,648 79,755 3,688 74,193 67,530 62,832 58,561 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Employees in TCS Ltd Employees in Indian Subsidiaries 31
Slide 32: FY 07 Q3 Gross additions 7,835 & Net additions 5,562
FY 07 Q3 Gross additions 7,835 & Net additions 5,562 • In India TCS added, 2,478 Trainees and 4,015 Experienced Professionals • TCS added 1,342 employees in Overseas Subsidiaries and Branches • TCS Utilisation Rate was 78.22% (excluding trainees), 74.99% (including trainees) • TCS attrition rate for
Slide 33: Truly Global Workforce
Truly Global Workforce No of Employees in Overseas Subsidiaries and Branches : 7,138. Of these No. of Employees in Global/Regional Delivery Centers was 2,665. Non-Indian nationals was 8.8%. Employees from across 65 nationalities. 25% of our workforce comprises women. 48% of our associate
Slide 34: Thank You!
Thank You! 34 TATA CONSULTANCY SERVICES
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