Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q3 FY2020 Earnings Presentation
28 slides from Tata Consultancy Services's earnings presentation, Jan 17, 2020
Slide 1: TCS Financial Results Quarter III FY 2019-20
TCS Financial Results Quarter III FY 2019 - 20 January 17, 2020 1 | Copyright © 2019 Tata Consultancy Services Limited
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: Quarterly Financial Performance
Quarterly Click to editFinancial Performance Master title style 3
Slide 4: Q3 FY20 Performance Highlights
Q3 FY20 Performance Highlights ➢ Revenue: - INR Revenue of ` 398,540 Mn, up 6.7% YoY - USD Revenue of $ 5,586 Mn, up 6.4% YoY - Constant currency revenue up 6.8% YoY ➢ Profit: - Operating Margin at 25.0% - Net Margin at 20.4%; EPS up 0.2% YoY - Cash flow from operations at 116.4% of net profit ➢ Dem
Slide 5: Growth Summary (INR)
Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 381,720 389,770 398,540 20.8% 373,380 380,100 18.5% ` Million 11.4% 8.4% 6.8% 12.1% 12.7% 10.6% 5.8% 6.7% Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Operating Income Operating margin (%) 99,740 95,640 95,3
Slide 6: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 5,485 5,517 5,586 5,397 5,250 12.7% 12.1% 10.6% $ Million 8.4% 9.7% 6.8% 8.5% 8.6% 5.8% 6.4% Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Operating Income Operating margin (%) 1,345 1,354 1,398 1,325 1,326 2
Slide 7: Operational Parameters
Operational Parameters 7
Slide 8: Growth by Market
Growth by Market Y-o-Y Geography (%) Q3 FY19 Q3 FY20 CC Growth Americas North America 51.2 50.1 4.1 Latin America 2.0 1.9 6.2 Europe UK 15.5 15.9 7.5 Continental Europe 14.1 14.9 15.9 India 5.7 5.7 6.4 Asia Pacific 9.4 9.3 5.7 MEA 2.1 2.2 10.8 Total 100.0 100.0 6.8 8
Slide 9: Growth by Domain
Growth by Domain Y-o-Y Vertical (%) Q3 FY19 Q3 FY20 CC Growth BFSI 30.9 30.4 5.3 Retail & CPG 15.5 15.2 5.1 Communication & Media 6.9 7.0 9.5 Manufacturing 9.8 10.0 9.2 Life Sciences & Healthcare 7.6 8.3 17.1 Technology & Services 8.7 8.4 3.3 Regional Markets & Others 20.6 20.7 5.7 Total 100.0 100.0
Slide 10: Service Lines Commentary
Service Lines Commentary • As customers scale their growth & transformation Business leaders are now looking to AI & initiatives, they are leveraging our modern offerings Strong growth led by Next-Gen Enterprise machine learning to address the challenges of powered by our Business 4.0TM framework, c
Slide 11: Client Parameters
Client Parameters Clients Contribution Q3 FY19 Q3 FY20 US$ 1m+ Clients 996 1053 US$ 5m+ Clients 519 557 US$ 10m+ Clients 370 395 US$ 20m+ Clients 211 232 US$ 50m+ Clients 99 102 US$ 100m+ Clients 45 47 *Last Twelve Months' services revenues 11
Slide 12: Key Highlights (1/3)
Key Highlights (1/3) Consulting & Services Integration Analytics and Insights, Internet of Things • Chosen by Bayer, a leading life sciences company, as a strategic • Selected by CSL Behring, a leading rare diseases biotech • Selected by a US-based multinational pharmaceutical partner to provide IT
Slide 13: Key Highlights (2/3)
Key Highlights (2/3) Interactive, Enterprise Applications Cloud, Cyber Security, Blockchain • Engaged by one of the largest American multinational technology companies, to • Selected by a global medical devices company, to • Chosen by a leading multinational bank based in transform their current leg
Slide 14: Key Highlights (3/3)
Key Highlights (3/3) Cognitive Business Operations • Selected by Aptiv PLC, a global technology company, as a strategic partner to continue to advance their • Selected by a financial software and risk solutions, to render digital workplace services on a IT Infrastructure Operations by bringing in bu
Slide 15: Human Resources
Human Resources Click to edit Master title style 15
Slide 16: Total Employee Base
Total Employee Base Total Employees : 446,675 Attrition*: • 12.2% (LTM), IT Services 450,738 446,675 Diversity: 436,641 • Women employees: 36.2% 424,285 • Nationalities: 146 417,929 * Excluding Subsidiaries 411,102 Talent Development: • 9.8m Learning hours Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 • 327k+
Slide 17: Annexure
Annexure Click to edit Master title style 17
Slide 18: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Revenue 373,380 398,540 100.00 100.00 Cost of revenue 217,350 233,690 58.21 58.63 Gross margin 156,030 164,850 41.79 41.37 SG & A expenses 60,390 65,110 16.17 16.34 Operating income 95,640 99,740 25.62 25.
Slide 19: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Employee cost 154,440 165,860 41.36 41.62 Fees to external consultants 28,220 31,410 7.56 7.88 Equipment and software 5,400 4,600 1.45 1.15 Facility expenses 7,470 4,400 2.00 1.10 Depreciation 4,150 6,870 1.11 1.72 Travel
Slide 20: Cash Flow Summary
Cash Flow Summary IFRS in ` Mn Q3 FY19 Q3 FY20 Net Cash from Operations 86,820 94,510 Capital Expenditure 5,360 7,170 Free Cash Flow 81,460 87,340 Dividends Paid 16,090 200,710 Operating Cash Flow to Sales (%) 23.3 23.7 Operating Cash Flow to Net Profit (%) 107.1 116.4 Total Cash and Investments 438
Slide 21: IFRS Statement of Financial Position
IFRS Statement of Financial Position 31-Mar-19 31-Dec-19 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 116,500 9.95 117,920 9.91 Right-of-use Assets - - 66,050 5.55 Intangible assets and Goodwill 40,130 3.43 41,070 3.45 Accounts Receivable 274,410 23.44 291,840 24.51 Unbill
Slide 22: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Revenue 5,250 5,586 100.00 100.00 Cost of revenue 3,056 3,275 58.21 58.63 Gross margin 2,194 2,311 41.79 41.37 SG & A expenses 849 913 16.17 16.34 Operating income 1,345 1,398 25.62 25.03 Other in
Slide 23: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Employee cost 2,172 2,325 41.36 41.62 Fees to external consultants 397 440 7.56 7.88 Equipment and software 76 64 1.45 1.15 Facility expenses 105 62 2.00 1.10 Depreciation 58 96 1.11 1.72 Travel 79 79 1.50 1.42 Co
Slide 24: IFRS Statement of Financial Position in USD
IFRS Statement of Financial Position in USD 31-Mar-19 31-Dec-19 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,685 9.95 1,654 9.91 Right-of-use Assets - - 926 5.55 Intangible assets and Goodwill 581 3.43 576 3.45 Accounts Receivable 3,969 23.44 4,092 24.51 Unbilled Revenue
Slide 25: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Revenue 37,338 39,854 100.00 100.00 Expenditure a) Employee Costs 19,994 21,622 53.55 54.25 b) Cost of equipment and software licences 540 460 1.45 1.15 c) Other Operating expenses 6,721 6
Slide 26: Ind AS Balance Sheet - Consolidated
Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-19 31-Dec-19 31-Mar-19 31-Dec-19 ASSETS Property, plant and equipment 11,553 11,938 10.05 10.21 Right-of-use assets - 6,605 - 5.65 Investments 29,330 26,230 25.52 22.44 Deferred tax assets (net) 2,656 2,978 2.31 2.55 Goodwill (
Slide 27: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY19 Q3 FY20 YoY Q3 FY19 Q3 FY20 USD 71.12 71.35 0.33% 53.73% 52.70% GBP 90.84 92.91 2.28% 13.91% 14.18% EUR 81.31 79.03 -2.81% 9.97% 10.71% Others 22.39% 22.41% Total 100.00% 100.00% 27
Slide 28: Thank You
Thank You IT Services Business Solutions Consulting
Tata Consultancy Services — Q3 FY2020 Earnings Presentation on 6ix