Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Investor Presentation (January 2024)
25 slides from Tata Consultancy Services's investor presentation, January 2024
Slide 1: Investor Presentation
Investor Presentation January 2024 Copyright © 2024 Tata Consultancy Services Limited
Slide 2: Forward Looking Statements
Forward Looking Statements 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 ri
Slide 3: Tata Consultancy Services We Are…
Tata Consultancy Services We Are… A global IT services, consulting and business solutions leader partnering with 24.1% the world’s leading businesses in their transformational journeys $27.9 BN Revenue FY 2023 Operating Margin FY 2023 Revenue breakup by Geo Revenue breakup by Industry Regional marke
Slide 4: The TCS Advantage
The TCS Advantage Unmatched Cutting-edge Unique Holistic Transformative contextual technology customer- solutions for partnership knowledge and talent centricity enterprise value Optimize Transform Grow and scale Industrialized frameworks, Reimagine processes, New business models for cognitive techn
Slide 5: Our Services Portfolio
Our Services Portfolio Consulting and Services Integration IoT and Digital Engineering Microsoft BU Cybersecurity AWS BU Interactive Digital Cloud Transformation Platform Services TCS Cloud Services Analytics and Insights Google BU Enterprise Applications Quality Engineering Cognitive Business Opera
Slide 6: The Journey So Far
Rev in USD Mn FY05 FY06 FY07 FY08 12% FY09 FY10 11% FY11 1% FY23 FY12 FY05 to FY13 The Journey So Far FY14 76% FY15 FY16 FY17 Judicious usage of cash … FY18 Capex Industry-leading topline growth … FY19 Acquisitions Invested Funds FY20 FY21 FY22 FY23 Shareholder distribution 6 EPS in ₹ Mar-05 FY05 Ma
Slide 7: Key Demand Drivers of Growth in FY 2023
Key Demand Drivers of Growth in FY 2023 Growth & Transformation ▪ M&A, new ways of working ▪ Product innovation, business model innovation including Horizon Two and Three programs ▪ Customer experience transformation All Time High Cloud Migration Deal Wins ▪ Cloud strategy definition, assessment, bu
Slide 8: Gaining Share in the G&T Opportunity
Gaining Share in the G&T Opportunity 8
Slide 9: Strategic Investments
TATA CONSULTANCY SERVICES Strategic Investments
Slide 10: Industry-Leading HR Outcomes
Industry-Leading HR Outcomes Workforce Talent Pool Expansion Talent Retention Globally Distributed, Highly Localized To Mitigate Supplyside Challenges Best in the Industry 614,795 22,600 150,000+ Highest ever gross addition of lateral 20.1% Employees Net Addition Fresh Graduates Trained and hires in
Slide 11: Fostering a G&T Workforce
Fostering a G&T Workforce Purpose-Centric Contextual Masters TCS Elevate Training for Anyone to learn Anytime, Talent with potential to be Linking learning to career growth Anywhere, accessing Any content on Any device tomorrow’s G&T leaders 48.3 mn 64,000+ 26% 21,000 Learning hours logged in FY 202
Slide 12: Helping Clients Innovate at Scale
Helping Clients Innovate at Scale 5,500+ Focus Areas of TCS’ R&I: Purposeful AI; Computing Futures; Digital Sciences; Sustainability 260+ Researchers and Publications Innovators Physical Sciences Computing / Data Sciences ▪ Meta Materials for Communications ▪ High Performance Computing and AI 7,305
Slide 13: Accelerators, Products and Platforms: Competitive Differentiators
Accelerators, Products and Platforms: Competitive Differentiators Accelerate transformational outcomes, drive high quality revenues and deepen the competitive moat around TCS’ services business Solution Accelerators Customizable assets that deliver speed to market and more certain BFSI DevOps busine
Slide 14: Longer Term Growth Strategy
. TATA CK KK CONSULTANCY SERVICES Longer Term Growth Strategy
Slide 15: Customer-centricity at the Core of Our Strategy
Customer-centricity at the Core of Our Strategy Client Metrics Rev per US$ 1 Million+ Client ($ Mn) 291 268 207 22.5 120 133 21.7 20.2 19.8 97 58 60 38 FY 2018 FY 2022 FY 2023 FY 2018 FY 2022 FY 2023 US$ 20Mn+ US$ 50Mn+ US$ 100Mn+ Growth 13.5% 15
Slide 16: Consistent Profitable Growth for Long Term Value Creation
Consistent Profitable Growth for Long Term Value Creation Resilient, Industry-Leading Profitability Robust Cash Flow Cash Conversion Free Cash Flow EBIT Margin USD Mn OCF to Net Income CAGR: 4.6% 21.7 21.7 105.6% 20.2 100.6% $5,131 $4,217 FY 2019 FY 2023 FY 2019 FY 2023 16
Slide 17: Shareholder-friendly Capital Allocation
Shareholder-friendly Capital Allocation 98% 102% 98% 98% 97% Average Payout 91% FY 2019 – FY 2023 $4,070 $4,433 $4,604 $5,131 $5,023 $4,233 $4,217 $4,540 $5,023 $5,136 $4,090 112 668 471 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Shareholder Payout Payout ratio 17
Slide 18: Making Progress in our Net Zero Journey
Making Progress in our Net Zero Journey* Target Achieved in FY 2023 Water Waste Net Zero 70% 71% 88% 100% By 2030 Reduction in Scope 1+2 Reduction in Scope 1+2 Recycling of sewage Recycling of regulated wastes, emissions by 2025 vs emissions vs base year 2016 generated (India) e-wastes, paper, packa
Slide 19: And Helping Clients in Their Sustainability Journeys
And Helping Clients in Their Sustainability Journeys • TCS Clever Energy • TCS Envirozone and TCS Net Zero • TCS IP2 and InTwin • Climate Risk Assessment • Green IT Portfolio Services and more 100+ Climate Change 2 • • • Health, Safety & security Wellness analytics and insights • Sustainable Banking
Slide 20: Giving back to the Community
Giving back to the Community Literacy Program Volunteering Overall Impact goIT Bridging 1.1 Mn+ the 2.8 Mn 150k 4.5 Mn 41,000+ learners Literacy Hours Volunteers Beneficiaries Students Gap BridgeIT Youth Employment Program Tata Medical Center, Cancer Institute Ignite My Future 347 48,600+ 117,600+ 2
Slide 21: TCS Strategic Responses to Opportunities and Threats
TCS Strategic Responses to Opportunities and Threats Opportunity / Threat TCS Approach Outcomes ▪ Macroeconomic uncertainty ▪ Proven track record in helping enterprises reduce their cost of ▪ Strong deal flow resulting in a robust order impacting decision making and operations. book that gives bette
Slide 22: TCS Strategic Responses to Opportunities and Threats
TCS Strategic Responses to Opportunities and Threats Opportunity / Threat TCS Approach Outcomes ▪ Accelerated adoption of public ▪ Dedicated business units with end to end capabilities on each of the ▪ Strong growth in cloud transformation cloud hyperscaler platforms. revenues. ▪ Continued investmen
Slide 23: Annexure
TATA J CONSULTANCY = SERVICES Annexure
Slide 24: Financial Highlights
Financial Highlights Amount in USD Mn, unless otherwise stated Yearly Quarterly IFRS FY 2023 FY 2022 YoY 3Q 2023* 3Q 2022 YoY * Revenue growth – 13.7% 1.7% Constant Currency Revenue - INR Mn 2,254,580 1,917,540 17.6% 605,830 582,290 4.0% Revenue $27,927 $25,707 8.6% $7,281 $7,075 2.9% Gross Profit $
Slide 25: Thank You
TATA Jy CONSULTANCY ew SERVICES Thank You
Tata Consultancy Services — Investor Presentation (January 2024) on 6ix