Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 2016 Earnings Presentation
20 slides from Tata Consultancy Services's earnings presentation, October 2015
Slide 1: Tata Consultancy Services Investor Relations
Tata Consultancy Services Investor Relations October 2015 | Copyright © 2015 Tata Consultancy Services Limited 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 2015 (ending March) revenue US$ 15.45 billion Employer of Choice, No. of Employees over 335,620 Global Presence: 23
Slide 4: The Journey so far…
The Journey so far… Industry-leading top-line growth… …with superior profitability… $20,000 120 100 Rev in USD Mn $15,000 80 EPS in ` 60 $10,000 40 $5,000 20 0 $0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY07 FY05 FY06 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 …judicious usage of cash… …
Slide 5: Headroom for Future Growth
Headroom for Future Growth Outsourced IT Spend in USD Bn The worldwide market for IT Services is growing faster $1,200 Emergence of new technologies Rising technology intensity of business $800 across industries Catch-up spend in lagging verticals and regions $400 Greater propensity to outso
Slide 6: Long Term Growth: Key Enablers
Long Term Growth: Key Enablers Elements of Strategy Broad Diversification Strong Foundation 6
Slide 7: Strong Foundation
Strong Foundation Focus on Execution - Delivery Excellence Innovation - Essential Catalyst for Growth Talent Management - Strong Set of Skills 7
Slide 8: Broad Diversification: Revenue Spread across Markets
Broad Diversification Revenue Spread Latin America 1.8% across Markets MEA 2.4% India 6.5% Asia Pacific 9.4% North America 52.7% Continental Europe 10.8% UK 16.4% 8
Slide 9: Broad Diversification: Revenue Spread across Industries
Broad Diversification Travel and Hospitality Revenue Spread Energy and Utilities 3.6% across Industries 4.0% Media & Others Entertainment 4.6% 2.4% Hi Tech 5.9% BFSI 40.5% Life Sciences and Healthcare 7.0% Telecom 8.4% Manufacturing 9.8% Retail and Distribution 13.8% 9
Slide 10: Broad Diversification: Revenue by Service Lines
Broad Diversification Asset Leveraged Revenue spread by Solutions Global Consulting 3.2% 2.5% Service Lines Engineering & Industrial Services 4.5% Assurance Services 8.7% Application Development & Maintenance 40.0% Business Process Services 11.4% Infrastructure Services 14.7% Enterprise Solutions 15
Slide 11: Elements of Strategy
Elements of Strategy Key Client Focus Integrated Full Services Global Network Delivery Model GNDMTM Strategic Acquisitions Non Linear Business Models 11
Slide 12: Elements of Strategy: Key Client Focus
Elements of Strategy: Key Client Focus LTM Services No. of Clients Key Client Focus Revenue Contribution * 2Q16 1Q16 2Q15 Our verticalized, client-centric organization has $ 100 mn+ 33 30 24 delivered Agility & Entrepreneurial energy $ 50 mn+ 65 69 62 Improved customer intimacy $ 20 mn+ 171 172
Slide 13: Elements of Strategy: Integrated Full Services Play
Elements of Strategy: Integrated Full Services Play Integrated Full Services Mature full services capability allows better up/cross-selling Expands our footprint beyond traditional IT BPS IT Solutions & Infrastructure services Services Services Fully leverages our model to deliver even greater
Slide 14: Elements of Strategy: Global Network Delivery Model
Elements of Strategy: Global Network Delivery Model Global Network Delivery Model GNDMTM Global Support for Global Customers, Local front-end UK Europe N. America support 6 10 4 India APAC Competing for significant Local MEA 8 111 projects: Strong need for 3 world-class IT support Latin America
Slide 15: Elements of Strategy: Strategic Acquisitions
Elements of Strategy: Strategic Acquisitions Access to Geographies Gain Domain/ Acquire Intellectual /Market Technology Expertise Property Nov ’05: Comicrom (Chile) Oct ’05: Pearl Assurance Oct ’05: FNS (Australia) Apr ’13: Alti (France) (UK) Apr ’14: IT Frontier Oct ’08: Citigroup Globa
Slide 16: Elements of Strategy: Non Linear Business Models
Elements of Strategy: Non Linear Business Models TCS Financial Platform BPO SMB Platform Solutions End-to-end universal Bundling BPO with a Launched in India in Feb banking and insurance common platform 2011, progressing products and solutions shared across clientele satisfactorily Diligenta
Slide 17: Financial Highlights
Tata Consultancy Click to edit Master Services title style Financial Highlights 17
Slide 18: 2Q 2016 Financial Highlights
2Q 2016 Financial Highlights IFRS Amount in US$ Million, unless otherwise mentioned Yearly Quarterly Key metrics FY15 FY14 YoY 2Q16 1Q16 QoQ 2Q15 YoY Revenue $15,454 $13,442 15.0% $4,156 $4,036 3.0% $3,929 5.8% Gross Profit $6,877 $6,363 8.1% $1,838 $1,761 4.4% $1,745 5.4% Gross Margin 44.5% 47.3% (
Slide 19: In Summary
In Summary TCS’ strategies for There is plenty of A verticalized, client- longer-term growth headroom for future centric organization have steadily growth structure has expanded Global investments in the addressable market at Enabled leaner, more technology continue to a macro-level agile, ent
Slide 20: Thank You
Thank You IT Services Business Solutions Consulting
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