Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q1 FY2013 Earnings Presentation
32 slides from Tata Consultancy Services's earnings presentation, Jul 12, 2012
Slide 1: Results for Quarter I FY 2012 - 13
Results for Quarter I FY 2012 - 13 12th July 2012 Copyright © 2012 Tata Consultancy Services Limited 12th July 2012 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
Ig TATA Highlights TATA CONSULTANCY SERVICES Experience certainty.
Slide 4: Q1 FY13 Performance Highlights
Q1 FY13 Performance Highlights Revenue: - INR Revenue of `148,687 Mn, growth of 12.1% QoQ and 37.7% YoY - USD Revenue of $2,728 Mn, growth of 3.0% QoQ and 13.1% YoY - Constant currency revenue growth of 4.0%, volume growth of 5.3% QoQ Profit: - Operating Income at ` 40,897 Mn, Operating Margin o
Slide 5: Financial Performance
Ig TATA Financial Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 6: Indian GAAP Growth Summary
Indian GAAP Growth Summary Revenue Y-o-Y Revenue Growth Q-o-Q Revenue Growth 14,869 36.6% 37.7% 15,000 40% 31.4% 13,259 30.5% 13,204 25.3% 13,500 30% ` Crore 11,633 12,000 10,797 20% 13.5% 10,500 12.1% 10% 6.3% 7.7% 9,000 0.4% 7,500 0% Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q2 FY12 Q3 FY12
Slide 7: IFRS Revenue Growth
IFRS Revenue Growth Revenue Mix Revenue Growth 148,687 37.7% 150,000 132,593 36.6% 132,040 10,488 40% 31.4% 130,000 107,970 116,335 11,070 11,245 30.5% 25.3% ` Million 110,000 9,646 30% 10,084 90,000 138,199 20% 13.5% 12.1% 70,000 106,689 120,970 121,349 97,887 7.7% 50,000 10% 6.3% 0.4% 30,000 0% Q1
Slide 8: IFRS Growth Summary (INR)
IFRS Growth Summary (INR) Operating Income Y-o-Y Growth Q-o-Q Growth 40,897 41.3% 44.7% 40,000 38,618 36,747 40% 25.2% 27.7% 20.8% 31,543 ` Million 35,000 28,261 20% 11.3% 30,000 22.4% -4.8% -1.8% 11.6% 25,000 0% 20,000 -20% Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1
Slide 9: IFRS Growth Summary (USD)
IFRS Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 2,586 2,648 2,728 2,412 2,525 34.4% 2,500 40% 26.0% 20.6% 18.0% $ Million 13.1% 2,000 20% 7.4% 4.7% 2.4% 2.4% 3.0% 1,500 0% 1,000 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 -20% Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Operating Income Y-o-Y Gr
Slide 10: Operational Performance
Ig TATA Operational Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 11: Growth by Market
Growth by Market North America 7.4% 2.1% 7.1% Latin America 9.6% UK 53.5% Continental Europe India 17.0% Asia Pacific MEA 3.3% Q-o-Q Y-o-Y Geography (% ) Q1 FY13 Q4 FY12 Q1 FY12 Growth Growth Americas North America 53.5 53.6 12.0 52.9 39.4 Latin America 3.3 3.1 18.6 3.1 43.5 Europe UK 17.0 15.2 25.4
Slide 12: Growth by Domain
Growth by Domain 2.2% 4.8% BFSI 3.6% 3.7% Telecom 5.3% Retail & Distribution 6.0% 43.0% Manufacturing Hi-Tech 7.9% Life Sciences & Healthcare Travel & Hospitality Energy & Utilities 13.2% Media & Entertainment 10.3% Others Q-o-Q Y-o-Y IP Revenue (%) Q1 FY13 Q4 FY12 Q1 FY12 Growth Growth BFSI 43.0 42
Slide 13: Growth by Service Line
Growth by Service Line 13.0% Application Development & Maint. 2.8% 43.4% Business Intelligence 2.8% Enterprise Solutions 10.6% Assurance Services Engineering & Industrial Services 4.6% Infrastructure Services 7.6% Global Consulting Asset Leverage Solutions 11.3% 3.9% Business Process Outsourcing Q-o
Slide 14: Client Parameters
Client Parameters Q1 FY13 Q4 FY12 Clients Contribution * Revenue % Top 1 6.7 6.8 Top 5 18.8 19.2 Top 10 26.5 27.1 US$ 1 mln Clients 527 522 US$ 5 mln Clients 259 245 US$ 10 mln Clients 175 170 US$ 20 mln Clients 105 99 US$ 50 mln Clients 46 43 US$ 100 mln Clients 14 14 * Last Twelve Months 12th July
Slide 15: Operational Parameters
Operational Parameters Revenue % Q1 FY13 Q4 FY12 Delivery Location* Onsite 44.7 45.2 GDC/RDC 4.8 4.5 Offshore 50.5 50.3 Contract Type Time & Material 53.2 53.0 Fixed Price & Time 46.8 47.0 * Excluding Domestic Clients 12th July 2012 15
Slide 16: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q1 FY13 Q4 FY12 Active Clients 1,032 1,037 New Clients 29 42 Revenue % from Repeat Business 99.7 96.5 Revenue % from New Business * 0.3 3.5 * Reset at the beginning of Financial Year 12th July 2012 16
Slide 17: Key Wins
Key Wins • TCS signed a $100 M+ contract with a leading North American retailer as its transformation partner. • A leading communications solutions provider from North America awarded a multi- million dollar managed services deal to provide application support and maintenance services for their core
Slide 18: Human Resources
Ig TATA Human Resources TATA CONSULTANCY SERVICES Experience certainty.
Slide 19: Total Employee Base
Total Employee Base Total Employees : 243,545 243,545 238,583 226,751 214,770 202,190 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Including Subsidiaries 12th July 2012 19
Slide 20: Q1 Consolidated - Gross Additions 13,831 & Net Additions 4,962
Q1 Consolidated - Gross Additions 13,831 & Net Additions 4,962 Gross Additions: • 4,313 Trainees & 7,041 Laterals in India • 2,477 employees overseas 20,349 19,156 Attrition*: 18,907 • IT Services: 10.9% (LTM) 13,831 • BPO: 20.7% (LTM) 11,988 12,580 11,981 11,832 Utilization Rate*: • 81.3% (excludin
Slide 21: Diversity
Diversity 31.7% of our workforce are women 62% of our associates have more than 3 years of work experience Associates from 113 nationalities Composition of International Workforce (Consolidated) Others Mexican 18.0% 8.6% British Indians 22.6% 92.5% American Others 16.3% 7.5% Chilean Chinese 6.
Slide 22: Annexure
Ig TATA Annexure TATA CONSULTANCY SERVICES Experience certainty.
Slide 23: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q1 FY13 Q4 FY12 Q1 FY12 Q1 FY13 Q4 FY12 Q1 FY12 INCOME a) IT & Consultancy Services 14,521 12,899 10,444 97.66 97.28 96.73 b) Manufacturing, Sale of equipment and Licences 348 360 353 2.34 2.72 3.27 Total Incom
Slide 24: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 30-Jun-12 31-Mar-12 30-Jun-12 31-Mar-12 Source of Funds Shareholders' Funds 32,385 29,579 95.30 95.59 Minority Interest 585 559 1.72 1.81 Loan Funds 197 116 0.58 0.38 Deferred Tax Liability 210 173 0.62 0.56 Non Current Liab
Slide 25: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q1 FY13 Q4 FY12 Q1 FY12 Q1 FY13 Q4 FY12 Q1 FY12 Revenue 148,687 132,593 107,970 100.00 100.00 100.00 Cost of revenue 80,012 70,705 60,175 53.81 53.33 55.73 Gross margin 68,675 61,888 47,795 46.19 46.67 44.27 SG & A expenses 27,778 25,141
Slide 26: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q1 FY13 Q4 FY12 Q1 FY12 Q1 FY13 Q4 FY12 Q1 FY12 Employee cost 57,014 49,501 43,310 38.34 37.33 40.11 Fees to external consultants 7,778 6,826 4,365 5.23 5.15 4.04 Equipment & software 2,901 3,293 3,016 1.95 2.48 2.79 Depreciation 1,524 1,488 1,384 1.02 1
Slide 27: IFRS Balance Sheet
IFRS Balance Sheet 30-Jun-12 31-Mar-12 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 68,274 14.77 64,549 15.67 Intangible assets and Goodwill 35,373 7.65 34,973 8.49 Accounts Receivable 128,899 27.89 115,023 27.91 Unbilled Revenues 26,984 5.84 22,478 5.46 Investments 26,884
Slide 28: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q1 FY13 Q4 FY12 Q1 FY12 Q1 FY13 Q4 FY12 Q1 FY12 Revenue 2,728 2,648 2,412 100.00 100.00 100.00 Cost of revenue 1,468 1,412 1,344 53.81 53.33 55.73 Gross margin 1,260 1,236 1,068 46.19 46.67 44.27 SG & A expenses 510 502 437 18.6
Slide 29: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q1 FY13 Q4 FY12 Q1 FY12 Q1 FY13 Q4 FY12 Q1 FY12 Employee cost 1,046 988 967 38.34 37.33 40.11 Fees to external consultants 143 136 98 5.23 5.15 4.04 Equipment & software 53 66 67 1.95 2.49 2.79 Depreciation 28 30 31 1.02 1.12 1.28 Travel 41 36 3
Slide 30: IFRS Balance Sheet in USD
IFRS Balance Sheet in USD 30-Jun-12 31-Mar-12 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,221 14.77 1,267 15.67 Intangible assets and Goodwill 633 7.65 687 8.49 Accounts Receivable 2,306 27.89 2,258 27.92 Unbilled Revenues 482 5.84 441 5.46 Investments 481 5.82 290 3.59
Slide 31: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q1 FY13 Q4 FY12 Q1 FY13 Q4 FY12 USD 54.50 50.07 59.36% 59.49% GBP 85.89 79.25 14.65% 12.80% EUR 69.92 66.17 6.96% 7.41% Others 19.03% 20.30% 100.00% 100.00% 12th July 2012 31
Slide 32: Thank You
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