Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q4 FY2014 Earnings Presentation

38 slides from Tata Consultancy Services's earnings presentation, Apr 16, 2014

  1. Slide 1: TCS Financial Results Quarter IV & Year Ended 2013-14

    TCS Financial Results Quarter IV & Year Ended 2013 - 14 16th Apr 2014 Copyright © 2012 Tata Consultancy Services Limited 16th Apr 2014 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: Highlights

    Jig TATA Highlights TATA CONSULTANCY SERVICES Experience certainty.

  4. Slide 4: FY14 Performance Highlights

    FY14 Performance Highlights  Revenue: - INR Revenue of `818,094 Mn, growth of 29.9%, CC terms 17.3% - USD Revenue of $13,442 Mn, growth of 16.2%  Profit: - Operating Income at ` 238,080 Mn, Operating Margin of 29.1% - Net Income at ` 191,168 Mn, Net Margin of 23.4%  Demand: - Clients in $100M+ re

  5. Slide 5: Q4 FY14 Performance Highlights

    Q4 FY14 Performance Highlights  Revenue: - INR Revenue of `215,511 Mn, growth of 1.2% QoQ and 31.2% YoY - USD Revenue of $3,503 Mn, growth of 1.9% QoQ and 15.2% YoY  Profit: - Operating Income at ` 62,810 Mn, Operating Margin of 29.1% - Net Income at ` 52,967 Mn, Net Margin of 24.6%  Demand: - Cl

  6. Slide 6: Annual Performance

    Jig TATA Annual Performance TATA CONSULTANCY SERVICES Experience certainty.

  7. Slide 7: Growth Summary (INR)

    Growth Summary (INR) Revenue 818,094 Y-0-Y Growth 629,895 31.0% 29.9% 28.8% ` Million 488,938 373,245 24.3% 300,289 8.0% FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Y-o-Y Growth Operating Income 40.0% 238,080 31.7% 29.0% 25.8% ` Million 170,080 20.6% 104,798 135,168 79,591 FY10 FY11 FY12 FY13

  8. Slide 8: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth 13,442 29.1% 11,568 10,171 24.2% 8,187 16.2% $ Million 6,339 13.7% 5.4% FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Operating Income Y-o-Y Growth 3,906 36.7% 3,124 2,806 22.1% 25.0% $ Million 2,299 18.0% 1,682 11.3% FY10 FY11 FY12 FY13 FY14 FY10 FY11 F

  9. Slide 9: Quarterly Performance

    Jig TATA Quarterly Performance TATA CONSULTANCY SERVICES Experience certainty.

  10. Slide 10: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 209,772 212,940 215,511 34.3% 31.2% 179,871 32.5% ` Million 164,301 23.9% 21.0% 16.6% 2.2% 9.5% 1.5% 1.2% Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Y-o-Y Growth Q-o-Q Growth Operating Income 63,295 63,347 62

  11. Slide 11: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 3,438 3,503 3,337 3,040 3,165 16.0% 17.0% 16.6% 15.2% 14.8% $ Million 4.1% 5.4% 3.1% 3.0% 1.9% Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Operating Income Y-o-Y Growth Q-o-Q Growth 1,007 1,023 1,021 31.9% 27.

  12. Slide 12: Operational Performance

    Jig TATA Operational Performance TATA CONSULTANCY SERVICES Experience cer tainty.

  13. Slide 13: Growth by Market

    Growth by Market Q4 FY14 Mix 7.4% 2.1% North America 6.2% Latin America 12.1% UK 52.2% Continental Europe India 17.8% Asia Pacific MEA 2.2% Q-o-Q Y-o-Y Geography (% ) Q3 FY14 Q4 FY14 FY13 FY14 Growth Growth Americas North America 52.7 52.2 0.2 53.7 53.0 28.2 Latin America 2.3 2.2 -2.3 2.2 2.3 34.5 E

  14. Slide 14: Growth by Domain

    Growth by Domain Q4 FY14 Mix 2.6% 4.4% BFSI 3.8% 3.5% Telecom 6.1% Retail & Distribution 5.3% 42.9% Manufacturing Hi-Tech 8.6% Life Sciences & Healthcare Travel & Hospitality Energy & Utilities 13.5% Media & Entertainment 9.3% Others Q-o-Q Y-o-Y IP Revenue (%) Q3 FY14 Q4 FY14 FY13 FY14 Growth Growth

  15. Slide 15: Growth by Service Line

    Growth by Service Line Q4 FY14 Mix Application Development & Maint. 12.1% 2.6% 41.0% Enterprise Solutions 3.4% Assurance Services 12.0% Engineering & Industrial Services Infrastructure Services 4.8% Global Consulting Asset Leveraged Solutions 8.4% 15.7% Business Process Services Q-o-Q Y-o-Y SP Reven

  16. Slide 16: Client Parameters

    Client Parameters Clients Contribution * Q3 FY14 Q4 FY14 FY13 FY14 US$ 1m+ Clients 711 714 638 714 US$ 5m+ Clients 333 354 290 354 US$ 10m+ Clients 224 231 211 231 US$ 20m+ Clients 129 136 121 136 US$ 50m+ Clients 55 53 52 53 US$ 100m+ Clients 22 24 17 24 *Last Twelve Months' services revenues 16th

  17. Slide 17: Operational Parameters

    Operational Parameters Revenue % Q3 FY14 Q4 FY14 FY13 FY14 Delivery Location Local Delivery 46.8 47.0 46.7 46.7 Remote Delivery 53.2 53.0 53.3 53.3 Global DC 5.4 5.6 4.8 5.4 India DC 47.8 47.4 48.5 47.9 Contract Type Time & Material 48.3 47.6 48.9 48.0 Fixed Price & Time 51.7 52.4 51.1 52.0 16th Apr

  18. Slide 18: Key Wins

    Key Wins  Engaged by leading European utility to operate and transform customer service processes with an aim to making them a leader in customer satisfaction within the industry.  Selected by a North American Fortune-500 multi-specialty pharmaceutical company for a multi-year, multi-million dolla

  19. Slide 19: Key Wins

    Key Wins  A leading Australian retailer engaged TCS for a multi-channel enablement of their merchandising systems  A leading European Bank has engaged TCS to define the strategic roadmap leveraging Big Data for its credit risk transformation program  Chosen by a leading merchandiser to rollout a

  20. Slide 20: Human Resources

    Jig TATA Human Resources TATA CONSULTANCY SERVICES Experience certainty.

  21. Slide 21: Total Employee Base

    Total Employee Base Total Employees : 300,464 16th Apr 2014 21

  22. Slide 22: Q4 Consolidated - Gross Additions 18,564 & Net Additions 9,751

    Q4 Consolidated - Gross Additions 18,564 & Net Additions 9,751 Gross Additions: • 7,572 Trainees & 7,401 Laterals in India Attrition*: • 3,591 employees overseas • 11.3% (LTM), including BPS • IT Services: 10.4% (LTM) • BPS: 14.9% (LTM) Utilization Rate*: • 83.8% (excluding Trainees) • 77.9% (includ

  23. Slide 23: Annexure

    Jig TATA Annexure TATA CONSULTANCY SERVICES Experience certainty.

  24. Slide 24: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS FY13 FY14 FY13 FY14 Revenue 629,895 818,094 100.00 100.00 Cost of revenue 339,188 430,645 53.85 52.64 Gross margin 290,707 387,449 46.15 47.36 SG & A expenses 120,627 149,369 19.15 18.26 Operating income 170,080 238,080 27.00 29.10 Other

  25. Slide 25: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR FY13 FY14 FY13 FY14 Employee cost 238,361 303,182 37.84 37.06 Fees to external consultants 34,720 49,970 5.51 6.11 Equipment & software 15,267 14,701 2.43 1.80 Depreciation 6,688 8,581 1.06 1.05 Travel 8,868 10,642 1.41 1.30 Communication 5,340 5,925 0.8

  26. Slide 26: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q4 FY13 Q3 FY14 Q4 FY14 Q4 FY13 Q3 FY14 Q4 FY14 Revenue 164,301 212,940 215,511 100.00 100.00 100.00 Cost of revenue 87,592 110,257 114,640 53.31 51.78 53.19 Gross margin 76,709 102,683 100,871 46.69 48.22 46.81 SG & A expenses 33,125 39

  27. Slide 27: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q4 FY13 Q3 FY14 Q4 FY14 Q4 FY13 Q3 FY14 Q4 FY14 Employee cost 60,799 78,287 79,555 37.00 36.77 36.91 Fees to external consultants 9,601 13,427 12,377 5.85 6.31 5.74 Equipment & software 4,914 3,224 3,559 2.99 1.51 1.65 Depreciation 1,862 2,264 2,469 1.13

  28. Slide 28: IFRS Balance Sheet

    IFRS Balance Sheet 31-Mar-13 31-Mar-14 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 81,944 15.77 103,644 15.04 Intangible assets and Goodwill 35,063 6.75 41,569 6.03 Accounts Receivable 140,956 27.13 182,304 26.45 Unbilled Revenues 31,410 6.05 40,056 5.81 Investments 20,40

  29. Slide 29: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS FY13 FY14 FY13 FY14 Revenue 11,568 13,442 100.00 100.00 Cost of revenue 6,229 7,079 53.85 52.66 Gross margin 5,339 6,363 46.15 47.34 SG & A expenses 2,215 2,457 19.15 18.28 Operating income 3,124 3,906 27.00 29.06 Other income (

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

    COR – SG&A Details – In USD $ Million % of Revenue COR FY13 FY14 FY13 FY14 Employee cost 4,377 4,984 37.84 37.08 Fees to external consultants 638 820 5.51 6.10 Equipment & software 280 243 2.43 1.80 Depreciation 123 141 1.06 1.05 Travel 163 175 1.41 1.30 Communication 98 98 0.85 0.73 Facility expens

  31. Slide 31: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q4 FY13 Q3 FY14 Q4 FY14 Q4 FY13 Q3 FY14 Q4 FY14 Revenue 3,040 3,438 3,503 100.00 100.00 100.00 Cost of revenue 1,621 1,780 1,863 53.31 51.78 53.19 Gross margin 1,419 1,658 1,640 46.69 48.22 46.81 SG & A expenses 613 635 619 20.1

  32. Slide 32: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY13 Q3 FY14 Q4 FY14 Q4 FY13 Q3 FY14 Q4 FY14 Employee cost 1,125 1,264 1,293 37.00 36.77 36.91 Fees to external consultants 178 217 201 5.85 6.31 5.73 Equipment & software 91 52 58 2.99 1.51 1.65 Depreciation 35 36 40 1.13 1.06 1.15 Travel 41

  33. Slide 33: IFRS Balance Sheet in USD

    IFRS Balance Sheet in USD 31-Mar-13 31-Mar-14 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,508 15.77 1,726 15.04 Intangible assets and Goodwill 645 6.75 693 6.04 Accounts Receivable 2,594 27.13 3,035 26.46 Unbilled Revenues 578 6.05 667 5.81 Investments 376 3.93 574 5.00

  34. Slide 34: Indian GAAP Income Statement - Consolidated

    Indian GAAP Income Statement - Consolidated ` Crore % of Total Income Consolidated Indian GAAP FY13 FY14 FY13 FY14 INCOME a) IT & Consultancy Services 61,223 80,140 97.20 97.96 b) Manufacturing, Sale of equipment and Licences 1,766 1,669 2.80 2.04 Total Income 62,989 81,809 100.00 100.00 EXPENDITURE

  35. Slide 35: Indian GAAP Income Statement - Consolidated

    Indian GAAP Income Statement - Consolidated ` Crore % of Total Income Consolidated Indian GAAP Q4 FY13 Q3 FY14 Q4 FY14 Q4 FY13 Q3 FY14 Q4 FY14 INCOME a) IT & Consultancy Services 15,851 20,912 21,142 96.47 98.21 98.10 b) Manufacturing, Sale of equipment and Licences 579 382 409 3.53 1.79 1.90 Total

  36. Slide 36: Indian GAAP Balance Sheet - Consolidated

    Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Mar-13 31-Mar-14 31-Mar-13 31-Mar-14 Source of Funds Shareholders' Funds 38,646 49,195 95.23 95.35 Minority Interest 695 708 1.71 1.37 Loan Funds 211 254 0.52 0.49 Deferred Tax Liability 235 309 0.58 0.60 Non Current Liab

  37. Slide 37: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY14 Q4 FY14 Q3 FY14 Q4 FY14 USD 61.94 61.53 56.75% 56.03% GBP 100.86 101.84 15.43% 15.82% EUR 84.78 84.32 9.07% 9.34% Others 18.75% 18.80% Total 100.00% 100.00% 16th Apr 2014 37

  38. Slide 38: Thank You

    Thank You IT Services Business Solutions Consulting

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