Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 2014 Earnings Presentation
20 slides from Tata Consultancy Services's earnings presentation, October 2013
Slide 1: Tata Consultancy Services Investor Relations
Tata Consultancy Services Investor Relations October 2013 1
Slide 2: Forward Looking Statement
Investor Relations Forward Looking Statement 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 expe
Slide 3: Tata Consultancy Services
Tata Consultancy Services • Started in 1968, TCS is an IT services, consulting and business solutions company, offering transformational and outsourcing services to global enterprises • FY 2013 (ending March) revenue US$ 11.57 billion • Employer of Choice, No. of Employees over 285,250 • Global Pres
Slide 4: The Journey so far…
The Journey so far… Industry-leading top-line growth… …with superior profitability… …judicious usage of cash… …and higher-than-benchmark share performance * FY05 to FY13 4
Slide 5: Headroom for Future Growth
Headroom for Future Growth The worldwide market for IT Worldwide spend on IT Services Outsourcing Services is growing – Technology intensity is going up across verticals – Lagging verticals and regions are catching up – Emergence of new technologies The proportion of outsourced IT Source: Gartne
Slide 6: Long Term Growth: Key Enablers
Long Term Growth: Key Enablers Positioning for a long term growth 1. Strong 2. Broad 3. Elements of Foundation Diversification Strategy 6
Slide 7: Long Term Growth: Key Enablers - Elements of Strategy
Long Term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy Focus on Execution – Delivery Excellence Innovation – Essential Catalyst for Growth Talent Management – Strong Set of Skills 7
Slide 8: Revenue Spread Across Markets
Long-term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy a. Revenue Spread Across Markets 8
Slide 9: Presence Across Industries
Long-term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy b. Presence Across Industries 9
Slide 10: Offerings Across Services
Long-term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy c. Offerings Across Services * Includes Business Intelligence 10
Slide 11: Diversification Elements of Strategy
Long Term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy 1. Key Client Focus 2. Integrated Full Services 3. Global Network Delivery Model GNDMTM 4. Strategic Acquisitions 5. Non Linear Business Models 11
Slide 12: Key Client Focus
Long Term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy 1. Key Client Focus LTM Revenue No. of Clients Contribution 2Q14* 1Q14* 2Q13 • Guided by Customer Relevancy, $ 1 mn+ 687 657 538 our verticalized, client-centric $ 5 mn+ 318 309 269 organization has delivered
Slide 13: Integrated Full Services
Long Term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy 2. Integrated Full Services • Mature full services capability allows better up/cross-selling • Expands our footprint beyond BPS IT Solutions Infrastructure & Services Services traditional IT services • Fully
Slide 14: Global Network Delivery Model GNDM
Long Term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy 3. Global Network Delivery Model GNDMTM • Global Support for Global Customers N. UK Europe America 1 5 • Competing for significant 7 India APAC 8 Local projects: Strong need MEA 2 92 for world-class IT suppor
Slide 15: Strategic Acquisitions
Long Term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy 4. Strategic Acquisitions • Enter new geographies / market segments • Gain domain / technology expertise • Acquire Intellectual property 15
Slide 16: Non-Linear Business Models
Long Term Growth: Key Enablers Strong Foundation Broad Diversification Elements of Strategy 5. Non-Linear Business Models • TCS Financial Solutions: End-to-end universal banking and insurance products and solutions • Platform BPO: Bundling BPO with a common platform shared across clientele • Vertica
Slide 17: Financial Highlights
Tata Consultancy Services Financial Highlights
Slide 18: 2Q 2014 Financial Highlights
2Q 2014 Financial Highlights IFRS USD Million Key metrics FY13 FY12 YoY 2Q14 1Q14 QoQ 2Q13 YoY Revenue $11,568 $10,171 13.7% $3,337 $3,165 5.4% $2,853 17.0% Gross Profit $5,339 $4,661 14.5% $1,602 $1,464 9.4% $1,293 23.9% Gross Margin 46.15% 45.83% 48.01% 46.26% 45.32% Operating Income $3,123 $2,806
Slide 19: In Summary
In Summary There is plenty of headroom for future growth – Global investments in technology continue to grow – Rate of change of technology is accelerating, forcing more outsourcing – Our market share is minuscule, but gaining TCS’ strategies for longer-term growth have steadily expanded – the a
Slide 20: Thank You
Thank You
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