Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 FY2008 Earnings Presentation
36 slides from Tata Consultancy Services's earnings presentation, Oct 15, 2007
Slide 1: Results for Quarter II FY 2007-08
Results for Quarter II FY 2007-08 15 Oct 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 materiallyy from those in such forward-looking statements. The risks and uncertainties r
Slide 3: Highlights
Highlights • Strong Performance: – Revenues at $ 1.4 billion up 45% Y-o-Y; 11% Q-o-Q p 45% Y-o-Y; 7% Q – Profits at $ 313 million up Q-o-Q Q – 9% volume growth in international business • Operational Excellence: – Client migration to higher revenue bands continues. Six new clients in the 20+M catego
Slide 4: Financial Performance
Financial Performance 15 Oct 2007
Slide 5: Indian GAAP Growth Summary
Indian GAAP Growth Summary Consolidated Indian GAAP (Rs. Crore) Q2 FY08 Q1 FY08 Q2 FY07 Total Income 5 640 5,640 5 203 5,203 4 495 4,495 % Growth Q-o-Q 8.40% % Growth Y-o-Y 25.47% PBIDT (excl Other Income) 1,479 1,339 1,254 % Growth Q-o-Q 10.46% %GGrowth th Y Y-o-Y Y 17 88% 17.88% Profit Before Tax
Slide 6: US GAAP Revenue Growth
US GAAP Revenue Growth Consolidated US GAAP (Rs Millions) Q2 FY08 Q1 FY08 Q2 FY07 Revenue from International Business 51,765 47,365 41,064 % Growth Q Q-o-Q oQ 9.29% 9 29% % Growth Y-o-Y 26.06% Revenue from Indian Business 4,633 4,663 3,758 % Growth Q-o-Q -0.65% % Growth Y-o-Y 23.29% Total Revenue 56
Slide 7: US GAAP Growth Summary
US GAAP Growth Summary Consolidated US GAAP (Rs Millions) Q2 FY08 Q1 FY08 Q2 FY07 Gross Margin 25,293 22,951 19,928 % Growth Q-o-Q 10.20% % Growth Y-o-Y 26.92% EBIDTA 14 821 14,821 13 264 13,264 12 294 12,294 % Growth Q-o-Q 11.74% % Growth Y-o-Y 20.55% Operating Income 13,439 11,999 11,336 % Growth
Slide 8: Operational Performance
Operational Performance 15 Oct 2007
Slide 9: Growth by Market
Growth by Market North America 5.2% 1.9% Ibero America 8.2% 8.4% • Full services play and existing UK customer relationships drive strong 52.2% Continental Europe growth in North America 19.9% India g deal flow in UK and Europe • Strong p Asia Pacific across financial services, 4.2% technology, and
Slide 10: Growth by Domain
Growth by Domain BFSI 2.5% 6.1% Telecom • All large verticals register strong 4 4% 4.4% 5.6% 43.3% Manufacturing growth 7.6% Retail & Distribution • Financial services growth Life Sciences & Healthcare accelerating l ti despite d it industry i d t 12.7% 17.8% Transportation turmoil. Energy & Utiliti
Slide 11: Growth by Service Line
Growth by Service Line Application Development & Maint. • Landmark quarter in the 3.4% 6.2% 3.3% 48.6% Business Intelligence evolution of TCS Full Services Enterprise Solutions 6.9% 5 3% 5.3% Assurance Services strategy 3.8% Engineering & Industrial Services • Non ADM services contributed Infrastruc
Slide 12: Operational Parameters
Operational Parameters Revenue % Q2 FY08 Q Q1 FY08 Delivery Location* Onsite 53.3 54.8 GDC/RDC 3.7 4.1 Off h Offshore 43 0 43.0 41 1 41.1 Contract Type Time & Material 56.3 57.3 Fixed Price & Time 43.7 42.7 * Excluding Domestic Clients 15 Oct 2007 12
Slide 13: Client Parameters
Client Parameters Client Concentration Q2 FY08 Q1 FY08 Clients Contribution * Revenue % Top 1 7.0 6.8 Top 5 19.1 19.0 Top 10 27.6 29.3 US$ 1 mln Clients 334 322 US$ 5 mln l Cli Clients t 139 126 US$ 10 mln Clients 92 85 US$ 20 mln Clients 51 45 US$ 50 mln Clients 18 18 US$ 100 mln Clients 6 6 * Last
Slide 14: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q2 FY08 Q1 FY08 Active Clients 814 771 New Clients 51 54 Revenue % from Repeat Business 97.8 99.2 Revenue % from New Business * 2.2 0.8 * Reset at the beginning of Financial Year 15 Oct 2007 14
Slide 15: Representative Wins
Representative Wins • W World’s ld’ premier i non profit fi financial fi i l services i fi has firm h selected l d TCS as their h i strategic i partner for f IT development and support needs, in a contract valued at 50+ million USD • TCS has been selected by a major UK bank as a strategic partner to
Slide 16: Representative Wins
Representative Wins • A leading North American manufacturer of home entertainment systems has selected TCS to implement a Global Enterprise Solution by leveraging TCS’ Global Network Delivery Model (GNDM) across North America, Europe and APAC. • A world leader in Healthcare products and services eng
Slide 17: Delivery Highlights
Delivery Highlights • TCS successfully implemented a multi channel customer experience management solution for the retail and mortgage operations of one of the largest savings and loan banks in North America. • For a large US based publishing house, TCS developed a procurement and manufacturing solu
Slide 18: Profiles of Service Lines
Profiles of Service Lines 15 Oct 2007
Slide 19: Global Consulting Practice
Global Consulting Practice • 57 new customers added and this practice now provides services to 73 of the TCS top 100 customers • 100 consultants recruited - current strength is 835 • 268 new engagements in this Quarter. Quarter • 27% of GCP Revenue is generated through services delivered form offsho
Slide 20: BPO Services
BPO Services • TCS BPO now provides services to 19 of the Fortune 500 companies. • Total Number of Employees – 8552 • The TCS BPO delivery centers in India have been certified at both ISO 27001 and ISO 9001. • A leading telecommunications service provider in Iberoamerica selected TCS to pprovide F&A
Slide 21: Assurance Services
Assurance Services • Added 11 new customers and this practice now services 57 of the TCS top 100 customers • A leading global information services and publishing company recognized TCS’ Test Center of Excellence with an outstanding performance award for year 2006 • Chosen as a consulting partner by
Slide 22: IT Infrastructure Services
IT Infrastructure Services • 25 new customers added and this practice now services 62 of TCS’ top 100 customers • Microsoft recognized TCS as the Best Solution Partners for Softgrid Technology • Selected as the preferred vendor by one of the top 5 global investment banks to provide availability mana
Slide 23: Engineering & Industrial Services (EIS)
Engineering & Industrial Services (EIS) • 12 clients added. • TCS signed i d a global l b l system t i t integration ti contract t t withith a large l E European pharma h manufacturer to provide plant automation services to their Global sites. • A large l UK based b d Utility Utilit company partnere
Slide 24: TCS BaNCS product suite wins and go-lives
• TCS BαNCS product suite had 8 wins and 5 implementations went live during the quarter. • TCS’ Payments y product was awarded the SWIFT Gold Certification. With this,, three TCS p BαNCS products - Securities Processing, Corporate Actions and Payments are SWIFT Gold certified. • One of the leading P
Slide 25: Human Resources
qp TATA CONSULTANCY SERVICES TATA IZA UZAA LUZ AIZEN UZ JM\ UZ UZ UZ ZA LEZ UZ LIZA LIZA LIZA LZ IVANNTV ANGI ANGI PANTY INST ANSTV/NGTVANGTVANGHY/NGHY ANGIE ANGI ANGI ANGI ANGIY ANGE PANNE PANNE PAANNEPANNEP/NNDPANNIPANNEY ANGRY ANGT SLIZANLEZAN ZANE ZAN LIZA ZANT LIZAN LIZA LEZ LIZA LIZA LIZA LEZ
Slide 26: Largest Private Employer in India: 104,347 employees
Largest Private Employer in India : 104,347 employees TCS Consolidated: 104,347 Indian subsidiaries: 3,985 TCS Ltd : 100,362 Overseas Subsidiaries and Branches : 8,900 Global Delivery Centers : 3,748 DQ – IT Best Employer Award for the 4th Year in a row 3,985 3,837 3 808 3,808 3,745 100,
Slide 27: Lowest Attrition in the Industry
Lowest Attrition in the Industryy • Attrition: 11.5%, including BPO • IT Services: 10.9% (LTM), BPO: 17.9 % (LTM) • Additions: 5,899 5 899 Trainees & 5,658 5 658 Laterals in India; 966 in Overseas Subs & Branches • Utilization Rate was 78.9% (excluding trainees), 73.7% (including trainees) Gross Add
Slide 28: Global & Diverse Workforce
Global & Diverse Workforce 28 % of our workforce are women 48% of our associates have more than 3 years of work experience. Hungarian Mexican 2% 2% Uruguayian Chinese 8% 11.2% Others Oth 8.5% Others Chilean 19.1% Indian 19% 91 5% 91.5% Australian American 1.2% British 10% 12.5% Brazilian 15% 15
Slide 29: Top Campus Recruiter: 22,295 offers made for FY09
Top Campus Recruiter : 22,295 offers made for FY09 95.5% Day 1 slots achieved Day 1 Others •100% Day 1 in Ahd, Hyd, Kolkata & Pune 91.2% 95.5% •265 Institutes visited 66.7% B.Sc hiring •1,259 science graduates have joined 33.3% 8.8% 4.5% FY06 FY07 FY08 (YTD) 15 Oct 2007 29
Slide 30: Annexure
qp TATA CONSULTANCY SERVICES TATA IZA UZAA LUZ AIZEN UZ JM\ UZ UZ UZ ZA LEZ UZ LIZA LIZA LIZA LZ IVANNTV ANGI ANGI PANTY INST ANSTV/NGTVANGTVANGHY/NGHY ANGIE ANGI ANGI ANGI ANGIY ANGE PANNE PANNE PAANNEPANNEP/NNDPANNIPANNEY ANGRY ANGT SLIZANLEZAN ZANE ZAN LIZA ZANT LIZAN LIZA LEZ LIZA LIZA LIZA LEZ
Slide 31: Indian GAAP Income Statement – Consolidated
Indian GAAP Income Statement – Consolidated Rs. Crore % of Total Income Consolidated Indian GAAP Q2 FY08 Q1 FY08 Q2 FY07 Q2 FY08 Q1 FY08 Q2 FY07 INCOME a) IT & Consultancy Services 5,386.30 5 386 30 4,927.33 4 927 33 4,300.75 4 300 75 95.51 95 51 94.70 94 70 95.68 95 68 b) Manufacturing, Sale of equ
Slide 32: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated Rs Crore % Consolidated Indian GAAP 30 S t 07 31-Mar-07 30-Sept-07 31 M 07 30 30-Sept-07 S t 07 31-Mar-07 31 M 07 Source of Funds Shareholders' Funds 10,772.97 8,850.10 93.65 91.80 Minority y Interest 190.62 211.80 1.66 2.20 Loan Funds 430.86 506.75 3.75 5.26
Slide 33: US GAAP Income Statement
US GAAP Income Statement USD Millions Rs Millions % of Revenue Consolidated US GAAP Q2 FY08 Q2 FY08 Q1 FY08 Q2 FY07 Q2 FY08 Q1 FY08 Q2 FY07 Revenue 1,415.53 56,398.40 52,028.23 44,821.76 100.00 100.00 100.00 Cost of revenue 780.71 31,105.63 29,077.29 24,893.98 55.15 55.89 55.54 Gross margin 634.82 2
Slide 34: COR – SG&A Details
COR – SG&A Details Rs. Millions % of Revenue COR Q2 FY08 Q1 FY08 Q2 FY07 Q2 FY08 Q1 FY08 Q2 FY07 Employee Cost 24,695.49 22,851.91 19,992.79 43.79 43.92 44.61 Equipment & Software 2,030.87 2,169.23 1,716.42 3.60 4.17 3.83 Depreciation 953.32 856.09 606.42 1.69 1.65 1.35 Travel 766.07 743.55 543.00 1
Slide 35: US GAAP Balance Sheet
US GAAP Balance Sheet 30-Sep-07 31-Mar-07 Consolidated US GAAP Rs Millions % Rs Millions % Assets A t Cash and Cash equivalents 9,207.27 6.06 12,291.40 9.41 Accounts Receivable 48,992.98 32.23 43,090.44 32.98 Unbilled Revenues , 12,200.74 8.03 7,834.80 , 6.00 Other Current assets 15,193.46 10.00 11,
Slide 36: Thank You!
Thank You! ANTP/NVEV/INGEY/ANVEV/INVEP/ANVEP/INGBY/ANVEP/INVEY/ANVEP/INGEU/ANVEP/INVEPZANVEP/INVED/ANVEP/NVED/ANNIP/ANVEP/INGEY/AAVEP/ANGEY LAN LIZAN LIZA LIZA LAN LIAN LEZ TZN LZAN LIZZ LIZA ZAN ZAZA ZAZA ZAZA LZ LIZA LZ VULNS LIZA LEZ UZ LIZA ZA LEZ LZ LIZA LZ ZAZA LEZ LEZ UZ UIZANZANZANLEZZNL aI
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