Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q2 FY2017 Earnings Presentation

27 slides from Tata Consultancy Services's earnings presentation, Oct 13, 2016

  1. Slide 1: TCS Financial Results Quarter II FY 2016-17

    TCS Financial Results Quarter II FY 2016 - 17 Oct 13, 2016 Copyright © 2014 Tata Consultancy Services Limited 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: Q2 FY17 Performance Highlights

    Q2 FY17 Performance Highlights  Revenue: - INR Revenue of ` 292,840 Mn, -0.1% QoQ and 7.8% YoY - USD Revenue of $ 4,374 Mn, 0.3% QoQ and 5.2% YoY - Constant currency revenue growth of 1.0%, Volume growth of 1.3% QoQ  Profit: - Operating Income at ` 76,170 Mn, Operating Margin of 26.0% - Net Income

  4. Slide 4: Financial Performance

    Financial Performance Click to edit Master title style 4

  5. Slide 5: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 284,486 293,050 292,840 17.5% 271,655 273,640 14.1% 14.2% ` Million 11.7% 7.8% 5.8% 4.0% 0.7% 3.0% -0.1% Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Operating Income Operating margin (%) 76,170 73,535 72,762 7

  6. Slide 6: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 4,362 4,374 4,156 4,145 4,207 7.9% 8.1% $ Million 5.8% 5.5% 5.2% 3.0% 3.7% 1.5% 0.3% -0.3% Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Operating Income Operating margin (%) 1,125 1,102 1,096 1,138 1,093 27.1%

  7. Slide 7: Operational Parameters

    Operational Parameters 7

  8. Slide 8: Growth by Market

    Growth by Market Q2 FY17 Mix 2.4% 10.2% North America 54.0% 5.8% Latin America 11.8% UK Continental Europe India 13.8% Asia Pacific 2.0% MEA Q-o-Q Y-o-Y Geography (%) Q2 FY16 Q1 FY17 Q2 FY17 CC Growth CC Growth Americas North America 52.7 53.5 54.0 1.4 7.9 Latin America 1.8 2.0 2.0 -0.2 15.8 Europe

  9. Slide 9: Growth by Domain

    Growth by Domain Q2 FY17 Mix 3.9% BFSI 2.9% 4.3% 5.4% Retail & CPG 7.6% 40.4% Communication & Media Manufacturing Life Sciences & Healthcare 10.7% Hi-Tech Energy & Utilities 11.4% Travel & Hospitality 13.4% Others Q-o-Q Y-o-Y IP Revenue (%) Q2 FY16 Q1 FY17 Q2 FY17 CC Growth CC Growth BFSI 40.5 40.4

  10. Slide 10: Growth by Service Line

    Growth by Service Line Q2 FY17 Mix 11.7% Application Development & Maint. 2.6% 38.4% Enterprise Solutions & Consulting 15.7% Assurance Services Engineering & Industrial Services 4.8% Infrastructure Services Asset Leveraged Solutions 9.0% 17.8% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q2

  11. Slide 11: Client Parameters

    Client Parameters Clients Contribution* Q2 FY16 Q1 FY17 Q2 FY17 US$ 1m+ Clients 819 847 859 US$ 5m+ Clients 404 439 449 US$ 10m+ Clients 274 298 295 US$ 20m+ Clients 171 179 185 US$ 50m+ Clients 65 77 78 US$ 100m+ Clients 33 37 36 *Last Twelve Months' services revenues 11

  12. Slide 12: Key Wins

    Key Wins  Selected as a strategic partner by a leading Professional Services firm to Transform and Manage their Global Work Place Operations supported by a smart digital mobile solution for managing their corporate and partner community.  Selected as a Strategic Partner by a leading food & beverag

  13. Slide 13: Key Wins in Digital Services and Solutions

    Key Wins in Digital Services and Solutions  Selected by an European pharmaceutical company to create a Health Patch integration app linked to the cloud for instant analysis of a patients vital signs  Engaged by a global financial services firm to implement an enterprise data lake using Big Data te

  14. Slide 14: Human Resources

    Click to Resources Human edit Master title style 14

  15. Slide 15: Total Employee Base

    Total Employee Base Total Employees : 371,519 371,519 Attrition*: 362,079 • 11.9% (LTM), IT Services 353,843 • 12.9% (LTM), including BPS 344,691 335,620 Diversity: • Women employees: 34.3% • Nationalities: 129 * Excluding Diligenta, Alti, eServe Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 15

  16. Slide 16: Employee Addition

    Employee Addition Q2 FY 2017 FY 2017 YTD • Gross additions: 22,665 employees • Gross additions: 40,457 employees • India: • India: • 11,884 Trainees • 16,922 Trainees • 7,486 Laterals • 17,363 Laterals • 3,295 employees overseas • 6,172 employees overseas Net additions: 9,440 employees • Net additio

  17. Slide 17: Annexure

    Click to edit Master title style Annexure 17

  18. Slide 18: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q2 FY16 Q1 FY17 Q2 FY17 Q2 FY16 Q1 FY17 Q2 FY17 Revenue 271,655 293,050 292,840 100.00 100.00 100.00 Cost of revenue 151,501 168,020 165,340 55.77 57.33 56.46 Gross margin 120,154 125,030 127,500 44.23 42.67 43.54 SG & A expenses 46,619

  19. Slide 19: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q2 FY16 Q1 FY17 Q2 FY17 Q2 FY16 Q1 FY17 Q2 FY17 Employee cost 103,964 116,210 114,050 38.27 39.66 38.95 Fees to external consultants 20,114 21,420 21,640 7.41 7.31 7.39 Equipment and software 5,606 6,780 4,880 2.07 2.31 1.67 Facility expenses 5,498 5,890

  20. Slide 20: IFRS Statement of Financial Position

    IFRS Statement of Financial Position 31-Mar-16 30-Sep-16 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 117,900 12.93 117,630 12.34 Intangible assets and Goodwill 39,460 4.32 38,890 4.08 Accounts Receivable 240,730 26.39 250,610 26.29 Unbilled Revenues 39,920 4.38 47,120 4.9

  21. Slide 21: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q2 FY16 Q1 FY17 Q2 FY17 Q2 FY16 Q1 FY17 Q2 FY17 Revenue 4,156 4,362 4,374 100.00 100.00 100.00 Cost of revenue 2,318 2,501 2,470 55.77 57.33 56.46 Gross margin 1,838 1,861 1,904 44.23 42.67 43.54 SG & A expenses 713 768 766 17.1

  22. Slide 22: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q2 FY16 Q1 FY17 Q2 FY17 Q2 FY16 Q1 FY17 Q2 FY17 Employee cost 1,591 1,730 1,704 38.27 39.66 38.95 Fees to external consultants 308 319 323 7.41 7.31 7.39 Equipment and software 86 101 73 2.07 2.31 1.67 Facility expenses 84 88 87 2.02 2.01 1.98 D

  23. Slide 23: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD 31-Mar-16 30-Sep-16 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,780 12.93 1,765 12.34 Intangible assets and Goodwill 595 4.32 583 4.08 Accounts Receivable 3,634 26.39 3,761 26.28 Unbilled Revenues 603 4.38 707 4.94 Investments

  24. Slide 24: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q2 FY16 Q1 FY17 Q2 FY17 Q2 FY16 Q1 FY17 Q2 FY17 Revenue 27,165 29,305 29,284 100.00 100.00 100.00 Expenditure a) Employee Costs 13,623 15,374 15,280 50.15 52.46 52.18 b) Other Operating expenses 5,720 6,094 5,891 21.06 2

  25. Slide 25: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-16 30-Sep-16 31-Mar-16 30-Sep-16 ASSETS Property, plant and equipment 11,775 11,706 13.22 12.56 Investments 22,822 29,227 25.62 31.35 Deferred tax assets (net) 2,908 2,705 3.26 2.90 Goodwill (on consolidation) 1,669 1,669 1.87

  26. Slide 26: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q1 FY17 Q2 FY17 Q1 FY17 Q2 FY17 USD 67.18 66.95 56.47% 56.92% GBP 95.46 87.77 13.02% 12.00% EUR 75.24 74.78 7.96% 8.16% Others 22.55% 22.92% Total 100.00% 100.00% 26

  27. Slide 27: Thank You

    Thank You IT Services Business Solutions Consulting

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