Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q1 FY2015 Earnings Presentation
28 slides from Tata Consultancy Services's earnings presentation, Jul 17, 2014
Slide 1: TCS Financial Results Quarter I FY 2014-15
TCS Financial Results Quarter I FY 2014 - 15 17th July 2014 Copyright © 2014 Tata Consultancy Services Limited 1
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
Slide 3: Highlights
Click to edit Master title style Highlights 3
Slide 4: Q1 FY15 Performance Highlights
Q1 FY15 Performance Highlights Revenue: - INR Revenue of `221,110 Mn, growth of 2.6% QoQ and 22.9% YoY - USD Revenue of $3,694 Mn, growth of 5.5% QoQ and 16.7% YoY - Constant currency revenue growth of 4.8%, volume growth of 5.7% QoQ Profit: - Operating Income at ` 58,149 Mn, Operating Margin of
Slide 5: Financial Performance
Financial Performance Click to edit Master title style 5
Slide 6: Growth Summary (INR)
Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 212,940 215,511 221,110 209,772 32.5% 179,871 34.3% 31.2% ` Million 21.0% 22.9% 16.6% 9.5% 1.2% 2.6% 1.5% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Operating Income Y-o-Y Growth Q-o-Q Growth 63,295 63,347 62
Slide 7: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 3,694 3,438 3,503 3,337 17.0% 16.7% 3,165 16.0% 16.6% 15.2% $ Million 5.4% 5.5% 4.1% 3.0% 1.9% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Y-o-Y Growth Q-o-Q Growth Operating Income 31.9% 1,007 1,023 1,021 27.
Slide 8: Operational Performance
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Slide 9: Growth by Market
Growth by Market 7.6% 2.0% 6.3% North America 52.2% 12.0% Latin America UK Continental Europe India 17.7% Asia Pacific MEA 2.2% Q-o-Q Y-o-Y Geography (%) Q1 FY14 Q4 FY14 Q1 FY15 Growth Growth Americas North America 54.1 52.2 52.2 2.6 18.5 Latin America 2.4 2.2 2.2 1.4 13.5 Europe UK 17.0 17.8 17.7 2
Slide 10: Growth by Domain
Growth by Domain BFSI 4.5% 3.9% 2.7% 3.6% Telecom 6.3% Retail & Distribution 41.7% 5.5% Manufacturing Hi-Tech 8.6% Life Sciences & Healthcare Travel & Hospitality Energy & Utilities 13.8% Media & Entertainment 9.4% Others Q-o-Q Y-o-Y IP Revenue (%) Q1 FY14 Q4 FY14 Q1 FY15 Growth Growth BFSI 43.0 42.
Slide 11: Growth by Service Line
Growth by Service Line 11.9% Application Development & Maint. 2.5% 40.8% 3.2% Enterprise Solutions Assurance Services 12.6% Engineering & Industrial Services Infrastructure Services 4.5% Global Consulting 8.6% Asset Leveraged Solutions 15.9% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q1 FY
Slide 12: Client Parameters
Client Parameters Clients Contribution * Q1 FY14 Q4 FY14 Q1 FY15 US$ 1m+ Clients 657 714 724 US$ 5m+ Clients 309 354 359 US$ 10m+ Clients 216 231 244 US$ 20m+ Clients 124 136 144 US$ 50m+ Clients 53 53 58 US$ 100m+ Clients 19 24 24 *Last Twelve Months' services revenues 12
Slide 13: Operational Parameters
Operational Parameters Revenue % Q1 FY14 Q4 FY14 Q1 FY15 Delivery Location Local Delivery 46.3 47.0 47.1 Remote Delivery 53.7 53.0 52.9 Global DC 5.2 5.6 5.7 India DC 48.5 47.4 47.2 Contract Type Time & Material 47.8 47.6 47.5 Fixed Price & Time 52.2 52.4 52.5 13
Slide 14: Key Wins
Key Wins A US based global pharmaceutical and medical device company has selected TCS for a multi-year multi- million dollar end to end IT infrastructure outsourcing deal. A leading Nordics based Operator selected TCS as its partner to modernize and simplify the fixed network operations in a mul
Slide 15: Human Resources
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Slide 16: Total Employee Base
Total Employee Base Total Employees : 305,431 305,431 300,464 290,713 285,250 277,586 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 16
Slide 17: Q1 Consolidated - Gross Additions 15,817 & Net Additions 4,967
Q1 Consolidated - Gross Additions 15,817 & Net Additions 4,967 Gross Additions: • 3,452 Trainees & 8,488 Laterals in India • 3,877 employees overseas Attrition*: • 12.0% (LTM), including 18,564 BPS 17,362 15,817 14,663 Utilization Rate*: • 85.3% (excluding Trainees) 10,611 9,751 • 79.8% (including T
Slide 18: Annexure
Click to edit Master title style Annexure 18
Slide 19: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q1 FY14 Q4 FY14 Q1 FY15 Q1 FY14 Q4 FY14 Q1 FY15 Revenue 179,871 215,511 221,110 100.00 100.00 100.00 Cost of revenue 96,700 114,640 122,432 53.76 53.19 55.37 Gross margin 83,171 100,871 98,678 46.24 46.81 44.63 SG & A expenses 34,544 38,
Slide 20: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q1 FY14 Q4 FY14 Q1 FY15 Q1 FY14 Q4 FY14 Q1 FY15 Employee cost 68,221 79,555 86,468 37.93 36.91 39.11 Fees to external consultants 11,025 12,377 13,244 6.13 5.74 5.99 Equipment & software 4,027 3,559 3,264 2.24 1.65 1.48 Depreciation 1,809 2,469 3,608 1.0
Slide 21: IFRS Balance Sheet
IFRS Balance Sheet 31-Mar-14 30-Jun-14 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 103,644 15.04 105,370 14.11 Intangible assets and Goodwill 41,568 6.03 41,539 5.56 Accounts Receivable 182,304 26.45 191,373 25.63 Unbilled Revenues 40,056 5.81 42,961 5.75 Investments 34,6
Slide 22: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q1 FY14 Q4 FY14 Q1 FY15 Q1 FY14 Q4 FY14 Q1 FY15 Revenue 3,165 3,503 3,694 100.00 100.00 100.00 Cost of revenue 1,701 1,863 2,045 53.76 53.19 55.37 Gross margin 1,464 1,640 1,649 46.24 46.81 44.63 SG & A expenses 608 619 677 19.2
Slide 23: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q1 FY14 Q4 FY14 Q1 FY15 Q1 FY14 Q4 FY14 Q1 FY15 Employee cost 1,200 1,293 1,445 37.93 36.91 39.11 Fees to external consultants 194 201 221 6.13 5.73 5.99 Equipment & software 71 58 55 2.24 1.65 1.48 Depreciation 32 40 60 1.01 1.15 1.63 Travel 43
Slide 24: IFRS Balance Sheet in USD
IFRS Balance Sheet in USD 31-Mar-14 30-Jun-14 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,726 15.04 1,754 14.11 Intangible assets and Goodwill 692 6.03 692 5.56 Accounts Receivable 3,035 26.46 3,186 25.63 Unbilled Revenues 667 5.81 715 5.75 Investments 576 5.02 1,444 11
Slide 25: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q1 FY14 Q4 FY14 Q1 FY15 Q1 FY14 Q4 FY14 Q1 FY15 INCOME a) IT & Consultancy Services 17,552 21,142 21,793 97.58 98.10 98.56 b) Manufacturing, Sale of equipment and Licences 435 409 318 2.42 1.90 1.44 Total Incom
Slide 26: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Mar-14 30-Jun-14 31-Mar-14 30-Jun-14 EQUITY AND LIABILITIES Shareholders' Funds 49,195 44,373 73.27 60.40 Minority Interest 708 712 1.06 0.97 Short term and long term borrowings 254 158 0.38 0.22 Deferred tax liabilities
Slide 27: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 USD 61.53 59.85 56.03% 55.83% GBP 101.84 100.80 15.82% 15.85% EUR 84.32 81.92 9.34% 9.14% Others 18.81% 19.18% Total 100.00% 100.00% 27
Slide 28: Thank You
Thank You IT Services Business Solutions Consulting
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