Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q3 FY2009 Earnings Presentation

29 slides from Tata Consultancy Services's earnings presentation, Jan 15, 2009

  1. Slide 1: Results for Quarter III FY 2008 - 09

    Results for Quarter III FY 2008 - 09 15 January 2009

  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: Financial Performance

    Financial Performance 15 January 2009

  4. Slide 4: Indian GAAP Growth Summary

    Indian GAAP Growth Summary Consolidated Indian GAAP (INR Crore) Q3 FY09 Q2 FY09 Q3 FY08 Income from IT & Consultancy Services 7,063 6,667 5,500 % Growth Q-o-Q 5.94% % Growth Y-o-Y 28.42% Total Income 7,277 6,953 5,863 % Growth Q-o-Q 4.65% % Growth Y-o-Y 24.13% PBIDT (before Other Income) 1,944 1,820

  5. Slide 5: US GAAP Revenue Growth

    US GAAP Revenue Growth 15 January 2009 5

  6. Slide 6: US GAAP Growth Summary

    US GAAP Growth Summary 15 January 2009 6

  7. Slide 7: Operational Performance

    Operational Performance 15 January 2009

  8. Slide 8: Growth by Market

    Growth by Market 5.0% 1.7%  The US market appears to be stabilizing 6.8% North America 10.7% 52.2% at lower levels. TCS enjoyed good client Ibero America additions, though ramp-ups have not UK happened yet. Continental Europe India  Our strong pan-European presence, and 18.5% Asia Pacific category

  9. Slide 9: Growth by Domain

    Growth by Domain 2.0% 2.3% BFSI  The impact of the slowdown was 2.6% Telecom 3.7% 41.9% felt in Manufacturing, Telecom, and 5.2% Retail & Distribution Transportation sectors in addition to 6.7% Manufacturing BFSI. Hi-Tech 10.6% Life Sciences & Healthcare  Consumer spending led sectors like Travel

  10. Slide 10: Growth by Service Line

    Growth by Service Line 3.2% 5.8% Application Development & Maint. 2.5% 49.0% Business Intelligence  TCS full services capabilities 8.3% 6.3% Enterprise Solutions helped win important large deals 4.2% Assurance Services in this quarter. Engineering & Industrial Services 12.6% Infrastructure Services

  11. Slide 11: Client Parameters

    Client Parameters Q3 FY09 Q2 FY09 Clients Contribution * Revenue % Top 1 5.1 5.9 Top 5 17.3 17.8 Top 10 26.3 26.9 US$ 1 mln Clients 395 397 US$ 5 mln Clients 166 168 US$ 10 mln Clients 112 108 US$ 20 mln Clients 59 55 US$ 50 mln Clients 23 22 US$ 100 mln Clients 7 7 * Last Twelve Months 15 January 2

  12. Slide 12: Operational Parameters

    Operational Parameters Revenue % Q3 FY09 Q2 FY09 Delivery Location* Onsite 51.0 52.6 GDC/RDC 5.4 4.6 Offshore 43.6 42.8 Contract Type Time & Material 54.5 56.6 Fixed Price & Time 45.5 43.4 * Excluding Domestic Clients 15 January 2009 12

  13. Slide 13: Client Acquisition and Expansion

    Client Acquisition and Expansion Particulars Q3 FY09 Q2 FY09 Active Clients 965 920 New Clients 41 51 Revenue % from Repeat Business 96.3 97.6 Revenue % from New Business * 3.7 2.4 * Reset at the beginning of Financial Year 15 January 2009 13

  14. Slide 14: Key Wins

    Key Wins  TCS has won a large transformational full services outsourcing deal for a leading specialty retailer of North America. Apart from IT/IS/BPO outsourced services, TCS will also carry out transformational initiatives like Inventory Optimization and Customer Centricity  TCS has won a multi y

  15. Slide 15: Human Resources

    Human Resources 15 January 2009

  16. Slide 16: Largest IT Employer in India: 130,343 employees

    Largest IT Employer in India: 130,343 employees  Total Employees : 130,343  TCS : 126,613 (Excluding 12,459 TCS e-Serve employees)  Indian subsidiaries : 3,730  Overseas Subsidiaries and Branches : 11,667  Global Delivery Centers : 4,798 3,689 3,730 3,715 126,613 3,830 3,709 117,921 107,698 112

  17. Slide 17: Q3 - 09 Gross Additions 11,773 & Net Additions 8,692

    Q3 - 09 Gross Additions 11,773 & Net Additions 8,692  Q3 Additions:  8,704 Trainees & 1,696 Laterals in India; 1,373 in Overseas Subs & Branches  Attrition: 11.9%(LTM), including BPO  IT Services: 11.2% (LTM), BPO: 20.5 % (LTM)  Utilization Rate was 79.90 % (excluding trainees), 71.8 % (includi

  18. Slide 18: Diverse Workforce

    Diverse Workforce  30% of our workforce are women  52% of our associates have more than 3 years of work experience.  Associates from 67 Nationalities Mexican, 8.0% Others, 10.3% American, 8.8% British, 16.5% Chinese, 9.2% Colombian, 2.7% Indian Others 90.9% 9.1% Brazilian, 9.9% Chilean, 13.1% Uru

  19. Slide 19: Campus Update - 24,885 offers made for FY'10

    Campus Update - 24,885 offers made for FY’10  95.4% Day 1 Slots Achieved. 94.1% 95.4% 91.2%  Campus Offers  Q1 – 22,148 66.7%  Q2 – 2,641  Q3 – 96 33.3%  Total Institutes Accredited - 8.8% 5.9% 4.6%  Engineering - 455  Business School - 110 FY06 FY07 FY08 FY09 YTD Day 1 Others 15 January 200

  20. Slide 20: Annexure

    id TATA CONSULTANCY SERVICES TATA IVANNTP/NGTVANGTV/ANYEYV/NVEG/NNTO NST V/NGTV/ANGE/ANYET/ AVEO NNO NST P/NGTV/ANGTV/ANNET/ANVEP/NNIG/NNTP/NNTV/ANSI/A NEPAL ZAUE/ANEZANLENLEZNLEASUP ALENT PN LEAL ALENT PZNLESLP LENE Annexure 15 January 2009

  21. Slide 21: Indian GAAP Income Statement – Consolidated – Q3 FY09

    Indian GAAP Income Statement – Consolidated – Q3 FY09 INR Crore % of Total Income Consolidated Indian GAAP Q3 FY09 Q2 FY09 Q3 FY08 Q3 FY09 Q2 FY09 Q3 FY08 INCOME a) IT & Consultancy Services 7,063 6,667 5,500 97.06 95.88 93.81 b) Manufacturing, Sale of equipment and Licences 214 286 363 2.94 4.12 6.

  22. Slide 22: Indian GAAP Balance Sheet - Consolidated

    Indian GAAP Balance Sheet - Consolidated INR Crore % Consolidated Indian GAAP 31-Dec-08 31-Mar-08 31-Dec-08 31-Mar-08 Source of Funds Shareholders' Funds 14,830 12,300 94.07 93.84 Minority Interest 256 213 1.62 1.62 Loan Funds 511 455 3.25 3.47 Deferred Tax Liability 167 140 1.06 1.07 Total Liabilit

  23. Slide 23: US GAAP Income Statement

    US GAAP Income Statement INR Million % of Revenue Consolidated US GAAP Q3 FY09 Q2 FY09 Q3 FY08 Q3 FY09 Q2 FY09 Q3 FY08 Revenue 72,770 69,534 58,637 100.00 100.00 100.00 Cost of revenue 40,304 37,752 32,362 55.39 54.29 55.19 Gross margin 32,466 31,782 26,275 44.61 45.71 44.81 SG & A expenses 14,446 1

  24. Slide 24: COR – SG&A Details

    COR – SG&A Details 15 January 2009 24

  25. Slide 25: US GAAP Balance Sheet

    US GAAP Balance Sheet 31-Dec-08 31-Mar-08 Consolidated US GAAP INR Million % INR Million % Assets Cash and Cash equivalents 14,882 6.90 10,352 5.91 Accounts Receivable 61,739 28.64 53,903 30.80 Unbilled Revenues 14,942 6.93 13,525 7.73 Other Current assets 20,907 9.70 15,390 8.79 Property & Equipmen

  26. Slide 26: US GAAP Income Statement

    US GAAP Income Statement 15 January 2009 26

  27. Slide 27: COR – SG&A Details

    COR – SG&A Details 15 January 2009 27

  28. Slide 28: US GAAP Balance Sheet

    US GAAP Balance Sheet 31-Dec-08 31-Mar-08 Consolidated US GAAP USD Million % USD Million % Assets Cash and Cash equivalents 305 6.90 258 5.91 Accounts Receivable 1,265 28.64 1,344 30.80 Unbilled Revenues 306 6.93 337 7.73 Other Current assets 428 9.70 384 8.79 Property & Equipment 744 16.83 753 17.2

  29. Slide 29: Thank You!

    Thank You! SUZANUZAN LU ZAN ZA U ZA ZAN ZAZA ZA ZAZA ZA ZA ZA ZAZA ZA ZA ZA ANZA PANNTVANNTVANNTV NNT YANNI YANNI YANNI YANNI PANNE PANNE PANNE P ANNE PANNE /ANNEP/ANNOP ANNE /ANNIP ANNO PANNE PANN ANNO ZN UNEP ANGHVANGHY/NGHYANGHV/NGHY/NGHV/NGEV/NGHY/NGHV/NGHPANNEY/ANEP/NNEP/ANEY/ANEP/ANEPANEPAANEP

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