Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q4 FY2021 Earnings Presentation
37 slides from Tata Consultancy Services's earnings presentation, Apr 12, 2021
Slide 1: TCS Financial Results Quarter IV & Year Ended FY 2020-21
TCS Financial Results Quarter IV & Year Ended FY 2020 - 21 April 12, 2021 Copyright © 2020 Tata Consultancy Services Limited 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: Quarterly Financial Performance
Quarterly Financial Performance
Slide 4: Q4 FY21 Performance Highlights
Q4 FY21 Performance Highlights ➢ Revenue: - INR Revenue of ` 437,050 Mn, up 4.0% QoQ, up 9.4% YoY - USD Revenue of $ 5,989 Mn, up 5.0% QoQ, up 10.0% YoY - Constant currency revenue up 4.2% QoQ, up 5.9% YoY ➢ Profit: - Operating Margin at 26.8% - Net Margin at 21.2% - Cash flow from operations at 100
Slide 5: Growth Summary (INR)
Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 420,150 437,050 9.4% 399,460 401,350 383,220 ` Million 5.1% 5.4% 3.0% 0.4% 5.9% 3.0% 0.4% -6.3% -3.2% Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Operating Income Operating margin (%) 111,840 117,340 100,25
Slide 6: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 5,989 10.0% 5,702 5,444 5,424 5,059 3.0% 2.1% $ Million 5.9% -1.7% 0.9% -6.3% 0.4% -3.2% -7.8% Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Operating Income Operating margin (%) 1,608 1,422 1,517 1,366 1,194
Slide 7: Annual Financial Performance
Annual Financial Performance
Slide 8: FY21 Performance Highlights
FY21 Performance Highlights ➢ Revenue: - INR Revenue of ` 1.64 Tn, up 4.6% YoY - USD Revenue of $ 22,174 Mn, up 0.7% YoY - Constant currency revenue down 0.8% YoY ➢ Profit: - Operating Income at ` 424,810 Mn, Operating Margin of 25.9%* - Net Income at ` 333,880 Mn, $ 4,513 Mn, Net Margin of 20.3%* -
Slide 9: Growth Summary
Growth Summary Summary ` Summary $ Revenue & Growth (Actual & CC) % Revenue & Growth (Actual & CC) % 1,641,770; 22,031; 22,174; 1,569,490; 4.6% 20,913; 0.7% 5.3% 1,464,630; 7.2% -0.8% 9.6% 7.1% -0.8% $ Million ` Million 19.0% 7.1% 11.4% 11.4% FY19 FY20 FY21 FY19 FY20 FY21 Operating Income & Margin %
Slide 10: Operational Parameters
TATA CONSULTANCY SERVICES Operational Parameters
Slide 11: Growth by Market
Growth by Market Q-o-Q Y-o-Y YoY Geography (%) Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 CC Growth CC Growth CC Growth Americas North America 50.3 49.1 48.6 3.9 5.9 50.4 49.7 -0.9 Latin America 1.8 1.7 1.6 2.5 1.5 1.9 1.6 -1.2 Europe UK 16.0 15.7 16.0 3.4 1.0 15.9 15.6 -4.3 Continental Europe 15.2 16.2 16.8
Slide 12: Growth by Domain
Growth by Domain Q-o-Q Y-o-Y YoY Vertical (%) Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 CC Growth CC Growth CC Growth BFSI 30.0 31.3 32.2 7.0 13.3 30.8 31.8 2.4 Retail & CPG 15.4 14.5 14.5 4.0 -0.9 15.2 14.4 - 6.2 Life Sciences & Healthcare 8.8 9.8 9.7 3.8 19.3 8.3 9.8 17.1 Manufacturing 10.1 9.6 9.6 3.9 1.
Slide 13: Service Lines Commentary
Service Lines Commentary Strong rebound in growth and We continue to address our transformation services driven clients’ strategic imperatives of by clients continuing on their Broad based growth for all our resilient business operations and Our Pipeline, Order Book We won multiple multi horizon tra
Slide 14: Client Parameters
Client Parameters Clients Contribution Q4 FY20 Q3 FY21 Q4 FY21 US$ 1m+ Clients 1072 1077 1096 US$ 5m+ Clients 565 565 569 US$ 10m+ Clients 391 386 387 US$ 20m+ Clients 240 229 228 US$ 50m+ Clients 105 97 101 US$ 100m+ Clients 49 48 48 *Last Twelve Months' services revenues 14
Slide 15: Key Highlights (1/3)
Key Highlights (1/3) Consulting & Services Integration IoT & Engineering Services, Analytics & Insights ▪ Selected by a US-based biopharmaceutical services provider, as their strategic infrastructure and ▪ Chosen by a leading provider of Engineering and Technology services headquartered applications
Slide 16: Key Highlights (2/3)
Key Highlights (2/3) Cloud and Security Interactive ▪ Selected by a prominent financial services organizations headquartered in UK, for its digital transformation journey to ▪ Selected by a Canadian communications and media company, as modernize its infrastructure, data, and application layers on Cl
Slide 17: Key Highlights (3/3)
Key Highlights (3/3) Enterprise Application Services Cognitive Business Operations and Quality Engineering ▪ Selected by a major agricultural commodities and products company, to undertake a ▪ Selected by a leading energy infrastructure and utility company, for IT transformation of its business-led
Slide 18: Human Resources
TATA CONSULTANCY SERVICES Human Resources
Slide 19: Total Employee Base
Total Employee Base Total Employees : 488,649 Attrition*: 488,649 • 7.2% (LTM), IT Services Diversity: 469,261 • Women employees: 36.5% 453,540 • Nationalities: 154 446,675 448,464 * Excluding Subsidiaries 443,676 Talent Development: • ~11.8 Mn Learning hours in Q4’21. Q3-20 Q4-20 Q1-21 Q2-21 Q3-21
Slide 20: Annexure
TATA CONSULTANCY SERVICES Annexure
Slide 21: IFRS Income Statement
IFRS Income Statement ` M illion % of Re v e nue Consolidate d IFRS Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Re v e nue 399,460 437,050 100.00 100.00 Cost of revenue 231,690 256,820 58.00 58.76 Gross margin 167,770 180,230 42.00 41.24 SG & A expenses 67,520 62,890 16.90 14.40 Ope rating income 100,250 117,34
Slide 22: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Employee cost 166,430 185,420 41.66 42.42 Fees to external consultants 30,970 37,100 7.75 8.49 Equipment and software 4,690 4,540 1.17 1.04 Facility expenses 4,300 3,680 1.08 0.84 Depreciation 7,280 8,220 1.83 1.88 Travel
Slide 23: Cash Flow Summary
Cash Flow Summary IFRS in ` Mn Q4 FY20 Q4 FY21 Net Cash from Operations 88,090 92,470 Capital Expenditure 7,410 11,620 Free Cash Flow 80,680 80,850 Dividends Paid 73,120 22,200 Buy Back (incl. expenses) - 197,570 Operating Cash Flow to Sales (%) 22.1 21.2 Operating Cash Flow to Net Profit (%) 109.4
Slide 24: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS FY21 FY21 FY20 FY20 Ex Adj* Reported Ex Adj* Reported Revenue 1,569,490 1,641,770 1,641,770 100.00 100.00 100.00 Cost of revenue 923,220 971,380 971,380 58.83 59.16 59.16 Gross margin 646,270 670,390 670,390 41.17 40.84 40.84 SG & A expe
Slide 25: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR FY21 FY21 FY20 FY20 Ex Adj* Reported Ex Adj* Reported Employee cost 656,520 719,460 719,460 41.83 43.81 43.81 Fees to external consultants 125,000 126,480 126,480 7.97 7.71 7.71 Equipment and software 19,050 14,620 14,620 1.21 0.89 0.89 Facility expenses
Slide 26: Cash Flow Summary
Cash Flow Summary IFRS in ` Mn FY20 FY21 Net Cash from Operations 353,910 411,070 Capital Expenditure 30,880 31,390 Free Cash Flow 323,030 379,680 Dividends Paid 377,020 109,070 Buy Back (incl. expenses) - 197,570 Operating Cash Flow to Sales (%) 22.5 25.0 Operating Cash Flow to Net Profit (%)* 109.
Slide 27: IFRS Statement of Financial Position
IFRS Statement of Financial Position 31-Mar-20 31-Mar-21 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 119,380 9.71 121,350 9.13 Right-of-use Assets 79,940 6.50 76,330 5.74 Intangible assets and Goodwill 41,330 3.35 44,280 3.33 Accounts Receivable 306,060 24.88 301,340 22.6
Slide 28: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Revenue 5,444 5,989 100.00 100.00 Cost of revenue 3,158 3,519 58.00 58.76 Gross margin 2,286 2,470 42.00 41.24 SG & A expenses 920 862 16.90 14.40 Operating income 1,366 1,608 25.10 26.84 Other in
Slide 29: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Employee cost 2,268 2,541 41.66 42.42 Fees to external consultants 422 508 7.75 8.49 Equipment and software 64 62 1.17 1.04 Facility expenses 59 50 1.08 0.84 Depreciation 100 113 1.83 1.88 Travel 72 30 1.33 0.49 C
Slide 30: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS FY21 FY21 FY20 FY20 Ex Adj* Reported Ex Adj* Reported Revenue 22,031 22,174 22,174 100.00 100.00 100.00 Cost of revenue 12,962 13,118 13,118 58.83 59.16 59.16 Gross margin 9,069 9,056 9,056 41.17 40.84 40.84 SG & A expenses 3,65
Slide 31: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR FY21 FY21 FY20 FY20 Ex Adj* Reported Ex Adj* Reported Employee cost 9,216 9,714 9,714 41.83 43.81 43.81 Fees to external consultants 1,755 1,709 1,709 7.97 7.71 7.71 Equipment and software 268 198 198 1.21 0.89 0.89 Facility expenses 252 189 189
Slide 32: IFRS Statement of Financial Position in USD
IFRS Statement of Financial Position in USD 31-Mar-20 31-Mar-21 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,583 9.71 1,653 9.13 Right-of-use Assets 1,060 6.50 1,040 5.74 Intangible assets and Goodwill 547 3.35 603 3.33 Accounts Receivable 4,057 24.88 4,106 22.68 Unbille
Slide 33: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Revenue 39,946 43,705 100.00 100.00 Expenditure a) Employee Costs 22,051 23,625 55.20 54.07 b) Cost of equipment and software licences 469 454 1.17 1.04 c) Other Operating expenses 6,450 6
Slide 34: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS FY21 FY21 FY20 FY20 Ex Adj* Reported Ex Adj* Reported Revenue 156,949 164,177 164,177 100.00 100.00 100.00 Expenditure a) Employee Costs 85,952 91,814 91,814 54.76 55.92 55.92 b) Cost of equipment and software licences 1
Slide 35: Ind AS Balance Sheet - Consolidated
Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-20 31-Mar-21 31-Mar-20 31-Mar-21 ASSETS Property, plant and equipment 12,130 12,516 10.03 9.57 Right-of-use assets 7,994 7,633 6.61 5.84 Investments 26,356 29,373 21.80 22.46 Deferred tax assets (net) 2,828 3,931 2.34 3.01 Good
Slide 36: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q4 FY20 Q3 FY21 Q4 FY21 Q4 FY20 Q3 FY21 Q4 FY21 USD 73.38 73.68 72.97 52.93% 51.23% 50.93% GBP 92.66 98.13 100.69 14.12% 13.45% 13.80% EUR 80.20 88.26 87.38 10.95% 12.19% 12.62% Others 22.00% 23.13% 22.65% Total 100.0
Slide 37: Thank You
TATA CONSULTANCY SERVICES Thank You
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