Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q4 FY2023-24 Earnings Presentation

36 slides from Tata Consultancy Services's earnings presentation, Apr 12, 2024

  1. Slide 1: TCS Financial Results Quarter IV & Year Ended FY 2023-24

    TCS Financial Results Quarter IV & Year Ended FY 2023-24 Apr 12, 2024

  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: Quarterly Financial Performance

    Quarterly Financial Performance

  4. Slide 4: Q4 FY24 Performance Highlights

    Q4 FY24 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 612,370 Mn, up 3.5% YoY - USD Revenue of $ 7,363 Mn, up 2.3% YoY - Constant currency revenue up 2.2% YoY ➢ Profit: - Operating Margin at 26.0% - Net Margin at 20.3% - Cash flow from operations at 100.4% of net profit ➢ Demand: - Clients $1

  5. Slide 5: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 593,810 596,920 605,830 612,370 16.9% 591,620 12.6% ` Million 7.9% 10.7% 4.0% 3.5% 7.0% 1.7% 2.8% 2.2% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Operating Income Operating margin (%) 151,550 159,180 26.0%

  6. Slide 6: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 7,195 7,226 7,210 7,281 7,363 10.7% $ Million 7.0% 4.8% 2.9% 2.3% 7.4% 6.6% 2.8% 2.2% 1.7% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Operating Income Operating margin (%) 1,914 26.0% 1,761 1,674 1,749 1,8

  7. Slide 7: Annual Financial Performance

    Annual Financial Performance

  8. Slide 8: FY24 Performance Highlights

    FY24 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 2.41 Tn, growth of 6.8% - USD Revenue of $ 29,080 Mn, growth of 4.1% - Constant currency revenue growth of 3.4% ➢ Profit: - Operating Income at ₹ 593,110 Mn, Operating Margin of 24.6%* - Net Income at ₹ 465,850 Mn, $ 5,623 Mn, Net Margin of 1

  9. Slide 9: Growth Summary

    Growth Summary Summary ₹ Summary $ Revenue & Growth (Actual & CC) % Revenue & Growth (Actual & CC) % 2,408,930; 29,080; 2,254,580; 6.8% 27,927; 25,707; 4.1% 1,917,540; 17.6% 3.4% 8.6% $ Million ` Million 15.9% 13.7% 3.4% 16.8% 13.7% 15.4% 15.4% FY22 FY23 FY24 FY22 FY23 FY24 Operating Income & Margin

  10. Slide 10: Operational Parameters

    TATA ! { ( KS CONSULTANCY q@ id SERVICES TATA Operational Parameters Building on belief

  11. Slide 11: Growth by Market

    Growth by Market Y-o-Y YoY Geography (%) Q4 FY23 Q4 FY24 FY23 FY24 CC Growth CC Growth Americas North America 52.4 50.0 - 2.3 53.4 51.1 -0.2 Latin America 1.8 2.0 9.8 1.8 2.0 12.4 Europe UK 15.7 16.8 6.2 15.0 16.5 10.1 Continental Europe 15.1 14.6 - 2.0 14.9 14.9 0.7 Asia Pacific 8.0 7.8 5.2 8.0 7.8

  12. Slide 12: Growth by Domain

    Growth by Domain Y-o-Y YoY Vertical (%) Q4 FY23 Q4 FY24 FY23 FY24 CC Growth CC Growth BFSI 32.9 31.3 - 3.2 33.3 32.0 - 1.0 Consumer Business 16.0 15.7 - 0.3 16.0 15.8 1.8 Life Sciences & Healthcare 10.9 10.9 1.7 10.8 10.9 4.8 Manufacturing 8.1 8.8 9.7 8.2 8.6 7.3 Technology & Services 8.9 8.2 - 5.6

  13. Slide 13: Service Lines Commentary

    Service Lines Commentary AI.Cloud Enterprise Solutions During this quarter, we saw significant demand for Cloud, data During this quarter we saw strong demand from clients for Enterprise platforms and Gen AI across industry segments. Clients are seeking to Application Services. Clients continue to m

  14. Slide 14: Client Parameters

    Client Parameters Clients Contribution Q4 FY23 Q4 FY24 US$ 1m+ Clients 1241 1294 US$ 5m+ Clients 665 693 US$ 10m+ Clients 461 487 US$ 20m+ Clients 291 301 US$ 50m+ Clients 133 139 US$ 100m+ Clients 60 62 *Last Twelve Months' services revenues 14

  15. Slide 15: Key Highlights (1/2)

    Key Highlights (1/2) • Signed a strategic partnership with Ramboll, a global architecture, engineering, and consultancy • Selected by Toyota Motor North America as its strategic partner to consolidate their supplier company headquartered in Denmark, to manage Ramboll’s cloud and data centers, applic

  16. Slide 16: Key Highlights (2/2)

    Key Highlights (2/2) • Selected by Australia’s largest e-health company, providing software products, solutions and • “Extending this strategic partnership will improve how we serve our customers, further simplify our platforms, to develop a robust software product offering to manage the operations

  17. Slide 17: Human Resources

    TATA ! { ( KS CONSULTANCY q@ id SERVICES TATA Human Resources Building on belief

  18. Slide 18: Total Employee Base

    Total Employee Base Attrition*: • 12.5% (LTM), IT Services 614,795 615,318 Diversity: 608,985 • 35.6% Women employees • 152 Nationalities 603,305 *Excluding Subsidiaries 601,546 Talent Development: • 51 Mn Learning Hrs (FY24) • 5 Mn competencies acquired (FY24) Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 • 696K h

  19. Slide 19: Annexure

    TATA ! { ( KS CONSULTANCY q@ id SERVICES TATA Annexure Building on belief

  20. Slide 20: IFRS Income Statement

    IFRS Income Statement ₹ M illion % of Revenue Consolidated IFRS Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Revenue 591,620 612,370 100.00 100.00 Cost of revenue 354,090 360,460 59.84 58.86 Gross margin 237,530 251,910 40.16 41.14 SG & A expenses 92,650 92,730 15.67 15.14 Operating income 144,880 159,180 24.49

  21. Slide 21: COR – SG&A Details

    COR – SG&A Details ₹ Million % of Revenue COR Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Employee cost 262,030 276,280 44.29 45.12 Fees to external consultants 48,680 27,990 8.23 4.57 Equipment and software 6,200 15,610 1.05 2.55 Facility expenses 4,400 4,850 0.74 0.79 Depreciation 9,820 9,620 1.66 1.57 Travel

  22. Slide 22: Cash Flow Summary

    Cash Flow Summary IFRS in ₹ Mn Q4 FY23 Q4 FY24 Net Cash from Operations 118,640 124,800 Capital Expenditure 7,690 8,990 Free Cash Flow 110,950 115,810 Dividends Paid 274,430 97,690 Operating Cash Flow to Sales (%) 20.1 20.4 Operating Cash Flow to Net Profit (%) 104.1 100.4 Total Cash and Investments

  23. Slide 23: IFRS Income Statement

    IFRS Income Statement ₹ Million % of Revenue Consolidated IFRS FY24 FY24 FY23 FY23 Ex Adj* Reported Ex Adj* Reported Revenue 2,254,580 2,408,930 2,408,930 100.00 100.00 100.00 Cost of revenue 1,362,680 1,435,950 1,435,950 60.44 59.61 59.61 Gross margin 891,900 972,980 972,980 39.56 40.39 40.39 SG &

  24. Slide 24: COR – SG&A Details

    COR – SG&A Details ₹ Million % of Revenue COR FY24 FY24 FY23 FY23 Ex Adj* Reported Ex Adj* Reported Employee cost 991,470 1,092,440 1,092,440 43.99 45.35 45.35 Fees to external consultants 206,420 149,860 149,860 9.16 6.23 6.23 Equipment and software 18,810 37,020 37,020 0.83 1.53 1.53 Facility expe

  25. Slide 25: Cash Flow Summary

    Cash Flow Summary IFRS in ₹ Mn FY23 FY24 Net Cash from Operations 445,030 469,320 Capital Expenditure 30,630 26,500 Free Cash Flow 414,400 442,820 Dividends Paid 414,100 252,180 Buy Back (incl. expenses) 41,920 210,050 Operating Cash Flow to Sales (%) 19.7 19.5 Operating Cash Flow to Net Profit (%)

  26. Slide 26: IFRS Statement of Financial Position

    IFRS Statement of Financial Position ₹ Million Consolidated IFRS 31-Mar-23 31-Mar-24 Assets Property and equipment 115,950 112,240 Right-of-use Assets 75,600 78,860 Intangible assets and Goodwill 48,730 44,990 Accounts Receivable 411,980 445,610 Unbilled Revenues 149,350 153,000 Invested Funds 498,2

  27. Slide 27: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Revenue 7,195 7,363 100.00 100.00 Cost of revenue 4,307 4,334 59.84 58.86 Gross margin 2,888 3,029 40.16 41.14 SG & A expenses 1,127 1,115 15.67 15.14 Operating income 1,761 1,914 24.49 26.00 Othe

  28. Slide 28: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Employee cost 3,186 3,322 44.29 45.12 Fees to external consultants 592 337 8.23 4.57 Equipment and software 75 188 1.05 2.55 Facility expenses 54 58 0.74 0.79 Depreciation 120 116 1.66 1.57 Travel 56 69 0.77 0.94

  29. Slide 29: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS FY24 FY24 FY23 FY23 Ex Adj* Reported Ex Adj* Reported Revenue 27,927 29,080 29,080 100.00 100.00 100.00 Cost of revenue 16,884 17,335 17,335 60.44 59.61 59.61 Gross margin 11,043 11,745 11,745 39.56 40.39 40.39 SG & A expenses 4

  30. Slide 30: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR FY24 FY24 FY23 FY23 Ex Adj* Reported Ex Adj* Reported Employee cost 12,284 13,188 13,188 43.99 45.35 45.35 Fees to external consultants 2,559 1,810 1,810 9.16 6.23 6.23 Equipment and software 231 446 446 0.83 1.53 1.53 Facility expenses 205 233

  31. Slide 31: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD $ Million Consolidated IFRS 31-Mar-23 31-Mar-24 Assets Property and equipment 1,410 1,346 Right-of-use Assets 919 946 Intangible assets and Goodwill 593 539 Accounts Receivable 5,010 5,343 Unbilled Revenues 1,816 1,834 Invested Funds 6,058 5,633 Other curr

  32. Slide 32: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Revenue 59,162 61,237 100.00 100.00 Expenditure a) Employee Costs 33,687 35,138 56.94 57.38 b) Cost of equipment and software licences 620 1,561 1.05 2.55 c) Other Operating expenses 9,081

  33. Slide 33: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS FY24 FY24 FY23 FY23 Ex Adj* Reported Ex Adj* Reported Revenue 225,458 240,893 240,893 100.00 100.00 100.00 Expenditure a) Employee Costs 127,522 140,131 140,131 56.56 58.17 58.17 b) Cost of equipment and software licence

  34. Slide 34: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ₹ Crore Consolidated Ind AS 31-Mar-23 31-Mar-24 Assets Property and equipment 11,464 10,940 Right-of-use Assets 7,560 7,886 Intangible assets and Goodwill 2,725 2,342 Accounts Receivable 41,198 44,561 Unbilled Revenues 14,935 15,300 Invested Funds 49,824 46,963 Ot

  35. Slide 35: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 USD 82.23 83.16 54.94% 51.94% GBP 100.44 105.13 13.56% 14.67% EUR 88.44 90.07 11.07% 11.18% Others 20.43% 22.21% Total 100.00% 100.00% 35

  36. Slide 36: Thank you

    Thank you Copyright © 2024 Tata Consultancy Services Limited

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