Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q2 FY2016 Earnings Presentation

27 slides from Tata Consultancy Services's earnings presentation, Oct 13, 2015

  1. Slide 1: TCS Financial Results Quarter II FY 2015-16

    TCS Financial Results Quarter II FY 2015 - 16 Oct 13, 2015 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: Q2 FY16 Performance Highlights

    Q2 FY16 Performance Highlights  Revenue: - INR Revenue of ` 271,655 Mn, 5.8% QoQ and 14.1% YoY - USD Revenue of $ 4,156 Mn, 3.0% QoQ and 5.8% YoY - Constant currency revenue growth of 3.9% QoQ and 12.0% YoY; Volume growth of 4.9%  Profit: - Operating Income at ` 73,536 Mn, Operating Margin of 27.1

  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 256,681 271,655 238,165 245,011 242,198 ` Million 15.1% 12.4% 16.1% 14.1% 13.5% 2.9% 6.0% 5.8% 7.7% -1.1% Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Operating Income Operating margin (%) 73,536 67,484 27.0% 2

  6. Slide 6: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 4,036 4,156 17.7% 3,929 3,931 3,900 14.3% 11.4% $ Million 9.3% 5.8% 6.4% 3.5% 0.0% 3.0% -0.8% Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Operating Income Operating margin (%) 1,125 1,055 1,063 1,061 1,061 27.

  7. Slide 7: Operational Parameters

    Operational Parameters 7

  8. Slide 8: Growth by Market

    Growth by Market 2.4% 9.4% North America 6.5% 52.7% Latin America 10.8% UK Continental Europe India 16.4% Asia Pacific MEA 1.8% Q-o-Q Y-o-Y Geography (%) Q2 FY15 Q1 FY16 Q2 FY16 CC Growth CC Growth Americas North America 51.0 52.8 52.7 3.1 10.5 Latin America 1.9 1.9 1.8 6.2 19.1 Europe UK 17.1 16.1

  9. Slide 9: Growth by Domain

    Growth by Domain BFSI 4.6% 3.6% 2.4% 4.0% Retail & Distribution 5.9% Manufacturing 40.5% 7.0% Telecom Life Sciences & Healthcare Hi-Tech 8.4% Energy & Utilities Travel & Hospitality 9.8% Media & Entertainment 13.8% Others Q-o-Q Y-o-Y IP Revenue (%) Q2 FY15 Q1 FY16 Q2 FY16 CC Growth CC Growth BFSI 40

  10. Slide 10: Growth by Service Line

    Growth by Service Line 11.4% Application Development & Maint. 3.2% 40.0% 2.5% Enterprise Solutions Assurance Services 14.7% Engineering & Industrial Services Infrastructure Services 4.5% Global Consulting Asset Leveraged Solutions 8.7% 15.0% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q2 FY

  11. Slide 11: Client Parameters

    Client Parameters Clients Contribution* Q2 FY15 Q1 FY16 Q2 FY16 US$ 1m+ Clients 743 804 819 US$ 5m+ Clients 367 391 404 US$ 10m+ Clients 247 268 274 US$ 20m+ Clients 153 172 171 US$ 50m+ Clients 62 69 65 US$ 100m+ Clients 24 30 33 *Last Twelve Months' services revenues 11

  12. Slide 12: Key Wins

    Key Wins • Selected as Strategic Partner by a large mutual life-insurance company to manage IT Application Portfolio for driving efficiency, simplification and automation leveraging TCS Integrated Service Delivery Model and GNDM • Expanded relationship with a leading retailer in North America throug

  13. Slide 13: Key Wins in Digital Services and Solutions

    Key Wins in Digital Services and Solutions  Chosen by a global bank to create its strategy and technology roadmap for its advanced analytic needs using big data technologies  Selected by an APAC bank to provide consulting services to develop architecture and roadmap for a Hadoop based Data Lake. 

  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 : 335,620 335,620 324,935 318,625 319,656 313,757 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 15

  16. Slide 16: Q2 Consolidated - Gross Additions 25,186 & Net Additions 10,685

    Q2 Consolidated - Gross Additions 25,186 & Net Additions 10,685 Gross Additions: • 9,943 Trainees & 10,978 Laterals in India Attrition*: • 4,265 employees overseas • 15.5% (LTM), IT Services • 16.2% (LTM), including BPS 25,186 Utilization Rate*: 20,350 20,302 • 86.0% (excluding Trainees) 16,561 14,3

  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 Q2 FY15 Q1 FY16 Q2 FY16 Q2 FY15 Q1 FY16 Q2 FY16 Revenue 238,165 256,681 271,655 100.00 100.00 100.00 Cost of revenue 132,405 144,679 151,501 55.59 56.37 55.77 Gross margin 105,760 112,002 120,154 44.41 43.63 44.23 SG & A expenses 41,818

  19. Slide 19: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q2 FY15 Q1 FY16 Q2 FY16 Q2 FY15 Q1 FY16 Q2 FY16 Employee cost 91,549 100,676 103,964 38.44 39.22 38.27 Fees to external consultants 16,113 17,236 20,114 6.77 6.72 7.41 Equipment & software 3,794 6,586 5,606 1.59 2.57 2.07 Depreciation 2,876 3,249 3,344 1

  20. Slide 20: IFRS Statement of Financial Position

    IFRS Statement of Financial Position 31-Mar-15 30-Sep-15 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 115,716 15.41 117,039 14.87 Intangible assets and Goodwill 39,308 5.23 39,484 5.02 Accounts Receivable 204,399 27.22 225,253 28.62 Unbilled Revenues 38,271 5.10 42,184 5.3

  21. Slide 21: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q2 FY15 Q1 FY16 Q2 FY16 Q2 FY15 Q1 FY16 Q2 FY16 Revenue 3,929 4,036 4,156 100.00 100.00 100.00 Cost of revenue 2,184 2,275 2,318 55.59 56.37 55.77 Gross margin 1,745 1,761 1,838 44.41 43.63 44.23 SG & A expenses 690 700 713 17.5

  22. Slide 22: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q2 FY15 Q1 FY16 Q2 FY16 Q2 FY15 Q1 FY16 Q2 FY16 Employee cost 1,510 1,583 1,591 38.44 39.22 38.27 Fees to external consultants 266 271 308 6.77 6.72 7.41 Equipment & software 63 104 86 1.59 2.57 2.07 Depreciation 47 51 51 1.21 1.26 1.23 Travel 6

  23. Slide 23: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD 31-Mar-15 30-Sep-15 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,849 15.41 1,781 14.87 Intangible assets and Goodwill 628 5.23 601 5.02 Accounts Receivable 3,266 27.22 3,427 28.62 Unbilled Revenues 612 5.10 642 5.36 Investments

  24. Slide 24: Indian GAAP Income Statement - Consolidated

    Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q2 FY15 Q1 FY16 Q2 FY16 Q2 FY15 Q1 FY16 Q2 FY16 Income 23,816 25,668 27,165 100.00 100.00 100.00 Expenditure a) Salaries & Wages 9,056 9,976 10,284 38.03 38.87 37.86 b) Overseas business expenditure 3,396 3,579

  25. Slide 25: Indian GAAP Balance Sheet - Consolidated

    Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Mar-15 30-Sep-15 31-Mar-15 30-Sep-15 EQUITY AND LIABILITIES Shareholders' Funds 50,634 60,307 68.74 78.41 Minority Interest 1,128 456 1.53 0.59 Short term and long term borrowings 300 92 0.41 0.12 Deferred tax liabilities

  26. Slide 26: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q1 FY16 Q2 FY16 Q1 FY16 Q2 FY16 USD 63.59 65.36 56.91% 56.55% GBP 98.24 100.91 14.22% 14.51% EUR 70.30 73.18 7.72% 7.56% Others 21.16% 21.38% Total 100.00% 100.00% 26

  27. Slide 27: Thank You

    Thank You IT Services Business Solutions Consulting

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