Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q3 FY2017 Earnings Presentation

28 slides from Tata Consultancy Services's earnings presentation, Jan 12, 2017

  1. Slide 1: TCS Financial Results Quarter III FY 2016-17

    TCS Financial Results Quarter III FY 2016 - 17 Jan 12, 2017 Copyright © 2014 Tata Consultancy Services Limited 1

  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: Q3 FY17 Performance Highlights

    Q3 FY17 Performance Highlights  Revenue: - INR Revenue of ` 297,350 Mn, 1.5% QoQ and 8.7% YoY - USD Revenue of $ 4,387 Mn, 0.3% QoQ and 5.8% YoY - Constant currency revenue growth of 2.0%, Volume growth of 1.0% QoQ  Profit: - Operating Income at ` 77,330 Mn, Operating Margin of 26.0% - Net Income

  4. Slide 4: Financial Performance

    Financial Performance Click to edit Master title style 4

  5. Slide 5: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 297,350 17.5% 293,050 292,840 14.2% 11.7% ` Million 284,486 8.7% 7.8% 273,640 4.0% 3.0% 0.7% -0.1% 1.5% Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Operating Income Operating margin (%) 77,330 76,170 26.6% 26.

  6. Slide 6: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 4,374 4,387 4,362 7.9% 8.1% $ Million 4,207 5.5% 5.8% 5.2% 4,145 3.7% 1.5% 0.3% -0.3% 0.3% Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Operating Income Operating margin (%) 1,138 1,141 26.6% 1,102 26.1% 26.0%

  7. Slide 7: Operational Parameters

    Click to edit Parameters Operational Master title style 7

  8. Slide 8: Growth by Market

    Growth by Market Q3 FY17 Mix 2.5% 9.6% 55.0% North America 6.3% Latin America 11.1% UK Continental Europe India 13.3% Asia Pacific 2.2% MEA Q-o-Q Y-o-Y Geography (%) Q3 FY16 Q2 FY17 Q3 FY17 CC Growth CC Growth Americas North America 53.5 54.0 55.0 2.2 8.7 Latin America 2.1 2.0 2.2 12.5 15.1 Europe U

  9. Slide 9: Growth by Domain

    Growth by Domain Q3 FY17 Mix BFSI 3.8% 3.8% 4.5% 5.4% Retail & CPG 40.4% Communication & Media 7.4% Manufacturing Life Sciences & Healthcare 10.6% Hi-Tech Energy & Utilities 10.6% Travel & Hospitality 13.5% Others Q-o-Q Y-o-Y IP Revenue (%) Q3 FY16 Q2 FY17 Q3 FY17 CC Growth CC Growth BFSI 40.6 40.4

  10. Slide 10: Growth by Service Line

    Growth by Service Line Q3 FY17 Mix 11.6% Application Development & Maint. 3.0% 37.2% Enterprise Solutions & Consulting 16.8% Assurance Services Engineering & Industrial Services Infrastructure Services 4.9% Asset Leveraged Solutions 9.0% 17.5% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q3

  11. Slide 11: Client Parameters

    Client Parameters Clients Contribution* Q3 FY16 Q2 FY17 Q3 FY17 US$ 1m+ Clients 838 859 880 US$ 5m+ Clients 413 449 454 US$ 10m+ Clients 281 295 300 US$ 20m+ Clients 173 185 186 US$ 50m+ Clients 65 78 80 US$ 100m+ Clients 34 36 34 *Last Twelve Months' services revenues 11

  12. Slide 12: Key Wins in Digital Services and Solutions

    Key Wins in Digital Services and Solutions  Engaged by a North America based investment services firm for a consulting engagement to define an end-to-end strategy for predicting commercial loan performance using machine learning  Selected by a European multinational pharmaceutical company to empow

  13. Slide 13: Key Wins

    Key Wins  Selected by a large European Bank as global strategic partner for IT transformation programs  Chosen as a Strategic Partner by a Global Financial Services major in North America to deliver Enterprise Infrastructure and Production Services leveraging IgnioTM, TCS' cognitive automation pro

  14. Slide 14: Human Resources

    Click to Resources Human edit Master title style 14

  15. Slide 15: Total Employee Base

    Total Employee Base Total Employees : 378,497 378,497 371,519 Attrition*: 362,079 • 11.3% (LTM), IT Services 353,843 • 12.2% (LTM), including BPS 344,691 Diversity: • Women employees: 34.6% • Nationalities: 132 * Excluding Subsidiaries Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 15

  16. Slide 16: Employee Addition

    Employee Addition Q3 FY 2017 9M FY 2017 • Gross additions: 18,362 employees • Gross additions: 58,819 employees • India: • India: • 10,950 Trainees • 27,872 Trainees • 4,804 Laterals • 22,167 Laterals • 2,608 employees overseas • 8,780 employees overseas Net additions: 6,978 employees • Net addition

  17. Slide 17: Annexure

    Click to edit Master title style Annexure 17

  18. Slide 18: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q3 FY16 Q2 FY17 Q3 FY17 Q3 FY16 Q2 FY17 Q3 FY17 Revenue 273,640 292,840 297,350 100.00 100.00 100.00 Cost of revenue 152,194 165,340 168,780 55.62 56.46 56.76 Gross margin 121,446 127,500 128,570 44.38 43.54 43.24 SG & A expenses 48,684

  19. Slide 19: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q3 FY16 Q2 FY17 Q3 FY17 Q3 FY16 Q2 FY17 Q3 FY17 Employee cost 104,907 114,050 114,360 38.34 38.95 38.46 Fees to external consultants 19,877 21,640 21,190 7.27 7.39 7.13 Equipment and software 5,594 4,880 9,370 2.05 1.67 3.15 Facility expenses 5,449 5,800

  20. Slide 20: Cash Flow Summary

    Cash Flow Summary IFRS in ` Millions Q3 FY16 Q2 FY17 Q3 FY17 Net Cash from Operations 58,770 57,100 79,570 Capital Expenditure 4,690 4,260 4,080 Free Cash Flow 54,080 52,840 75,490 Dividends Paid 13,280 26,210 14,820 Operating Cash Flow to Sales (%) 21.5 19.5 26.8 Total Cash and Investments 277,500

  21. Slide 21: IFRS Statement of Financial Position

    IFRS Statement of Financial Position 31-Mar-16 31-Dec-16 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 117,900 12.93 116,970 11.63 Intangible assets and Goodwill 39,460 4.32 38,280 3.81 Accounts Receivable 240,730 26.39 242,120 24.07 Unbilled Revenues 39,920 4.38 45,370 4.5

  22. Slide 22: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q3 FY16 Q2 FY17 Q3 FY17 Q3 FY16 Q2 FY17 Q3 FY17 Revenue 4,145 4,374 4,387 100.00 100.00 100.00 Cost of revenue 2,305 2,470 2,490 55.62 56.46 56.76 Gross margin 1,840 1,904 1,897 44.38 43.54 43.24 SG & A expenses 738 766 756 17.7

  23. Slide 23: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q3 FY16 Q2 FY17 Q3 FY17 Q3 FY16 Q2 FY17 Q3 FY17 Employee cost 1,589 1,704 1,687 38.34 38.95 38.46 Fees to external consultants 301 323 312 7.27 7.39 7.13 Equipment and software 85 73 138 2.05 1.67 3.15 Facility expenses 83 87 86 1.99 1.98 1.96 D

  24. Slide 24: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD 31-Mar-16 31-Dec-16 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,780 12.93 1,723 11.63 Intangible assets and Goodwill 595 4.32 564 3.80 Accounts Receivable 3,634 26.39 3,566 24.07 Unbilled Revenues 603 4.38 668 4.51 Investments

  25. Slide 25: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q3 FY16 Q2 FY17 Q3 FY17 Q3 FY16 Q2 FY17 Q3 FY17 Revenue 27,364 29,284 29,735 100.00 100.00 100.00 Expenditure a) Employee Costs 14,011 15,280 15,275 51.20 52.18 51.37 b) Other Operating expenses 5,606 5,891 6,231 20.49 2

  26. Slide 26: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-16 31-Dec-16 31-Mar-16 31-Dec-16 ASSETS Property, plant and equipment 11,775 11,612 13.22 11.79 Investments 22,822 34,921 25.62 35.45 Deferred tax assets (net) 2,908 2,674 3.26 2.72 Goodwill (on consolidation) 1,669 1,633 1.87

  27. Slide 27: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q2 FY17 Q3 FY17 Q2 FY17 Q3 FY17 USD 66.95 67.78 56.92% 58.21% GBP 87.77 83.79 12.00% 11.40% EUR 74.78 72.18 8.16% 7.92% Others 22.92% 22.47% Total 100.00% 100.00% 27

  28. Slide 28: Thank You

    Thank You IT Services Business Solutions Consulting

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