Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q4 FY2023 Earnings Presentation

36 slides from Tata Consultancy Services's earnings presentation, Apr 12, 2023

  1. Slide 1: TCS Financial Results Quarter IV & Year Ended FY 2022-23

    TCS Financial Results Quarter IV & Year Ended FY 2022-23 Apr 12, 2023

  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 FY23 Performance Highlights

    Q4 FY23 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 591,620 Mn, up 16.9% YoY - USD Revenue of $ 7,195 Mn, up 7.4% YoY - Constant currency revenue up 10.7% YoY ➢ Profit: - Operating Margin at 24.5% - Net Margin at 19.3% - Cash flow from operations at 104.1% of net profit ➢ Demand: - Clients

  5. Slide 5: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 18.0% 19.1% 582,290 591,620 15.8% 16.2% 16.9% 527,580 553,090 505,910 ` Million 14.3% 15.5% 15.4% 13.5% 10.7% Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Operating Income Operating margin (%) 142,840 144,88

  6. Slide 6: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 7,075 7,195 6,696 6,780 6,877 14.3% 15.5% 15.4% $ Million 13.5% 10.7% 11.8% 10.2% 8.6% 8.4% 7.4% Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Operating Income Operating margin (%) 1,671 1,736 1,761 1,566 1,6

  7. Slide 7: Annual Financial Performance

    Annual Financial Performance

  8. Slide 8: FY23 Performance Highlights

    FY23 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 2.25 Tn, growth of 17.6% - USD Revenue of $ 27,927 Mn, growth of 8.6% - Constant currency revenue growth of 13.7% ➢ Profit: - Operating Income at ₹ 542,370 Mn, Operating Margin of 24.1% - Net Income at ₹ 421,470 Mn, $ 5,219 Mn, Net Margin of

  9. Slide 9: Growth Summary

    Growth Summary Summary ₹ Summary $ Revenue & Growth (Actual & CC) % Revenue & Growth (Actual & CC) % 2,254,580; 27,927; 1,917,540; 17.6% 25,707; 8.6% 1,641,770; 16.8% 13.7% 22,174; 15.9% 13.7% $ Million ` Million 4.6% 15.4% 0.7% 15.4% -0.8% -0.8% FY21 FY22 FY23 FY21 FY22 FY23 Operating Income & Marg

  10. Slide 10: Operational Parameters

    TATA CONSULTANCY SERVICES Building on belief Operational Parameters

  11. Slide 11: Growth by Market

    Growth by Market Y-o-Y YoY Geography (%) Q4 FY22 Q4 FY23 FY22 FY23 CC Growth CC Growth Americas North America 51.6 52.4 9.6 50.5 53.4 15.3 Latin America 1.7 1.8 15.1 1.7 1.8 17.3 Europe UK 15.6 15.7 17.0 15.9 15.0 15.0 Continental Europe 15.5 15.1 8.4 16.0 14.9 11.0 Asia Pacific 8.5 8.0 7.5 8.8 8.0

  12. Slide 12: Growth by Domain

    Growth by Domain Y-o-Y YoY Vertical (%) Q4 FY22 Q4 FY23 FY22 FY23 CC Growth CC Growth BFSI 31.7 31.4 9.1 32.1 31.7 11.8 Retail & CPG 15.3 15.6 13.0 15.0 15.8 19.7 Life Sciences & Healthcare 10.1 10.4 12.3 10.0 10.2 13.3 Manufacturing 10.0 9.9 9.1 9.9 9.9 13.0 Technology & Services 8.7 8.7 9.2 8.7 8.

  13. Slide 13: Service Lines Commentary – Q4 FY23

    Service Lines Commentary – Q4 FY23 Cloud Enterprise Application Services Strong Growth across all industry segments with noticeable traction Enterprises continue to invest in modern ERP platforms on the → In a challenging environment, spends are in application and data modernization for improved use

  14. Slide 14: Client Parameters

    Client Parameters Clients Contribution Q4 FY22 Q4 FY23 US$ 1m+ Clients 1182 1241 US$ 5m+ Clients 638 665 US$ 10m+ Clients 439 461 US$ 20m+ Clients 268 291 US$ 50m+ Clients 120 133 US$ 100m+ Clients 58 60 *Last Twelve Months' services revenues 14

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

    Key Highlights (1/2) • TCS has expanded its decade-long partnership with SAS as they continue to transform their • Further strengthening on the long-standing partnership with Singapore Airlines (SIA) of business under SAS-FORWARD initiative until 2028. TCS will work with SAS to continue more than tw

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

    Key Highlights (2/2) • Selected by a leading American beverages firm, as the strategic partner to transform their • The global enterprise Bayer, has chosen TCS as a partner to drive its strategic supply chain processes on a leading ERP solution. TCS will design an end-to-end solution program (#CORE)

  17. Slide 17: Human Resources

    TATA CONSULTANCY ; ; SERVICES Building on belief Human Resources

  18. Slide 18: Total Employee Base

    Total Employee Base Attrition*: 616,171 613,974 614,795 • 20.1% (LTM), IT Services 606,331 Diversity: 592,195 • Women employees: 35.7% • Nationalities: 150 *Excluding Subsidiaries 556,986 Talent Development: • 13.3 Mn Learning Hrs in Q4’23 • 500K Digital Trained Associates Q3-22 Q4-22 Q1-23 Q2-23 Q3

  19. Slide 19: Annexure

    TATA CONSULTANCY . SERVICES Building on belief Annexure

  20. Slide 20: IFRS Income Statement

    IFRS Income Statement ₹ M illion % of Revenue Consolidated IFRS Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Revenue 505,910 591,620 100.00 100.00 Cost of revenue 302,870 354,090 59.89 59.84 Gross margin 203,040 237,530 40.11 40.16 SG & A expenses 76,760 92,650 15.15 15.67 Operating income 126,280 144,880 24.96

  21. Slide 21: COR – SG&A Details

    COR – SG&A Details ₹ Million % of Revenue COR Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Employee cost 221,930 262,030 43.86 44.29 Fees to external consultants 46,320 48,680 9.16 8.23 Equipment and software 2,600 6,200 0.51 1.05 Facility expenses 3,440 4,400 0.68 0.74 Depreciation 9,230 9,820 1.83 1.66 Travel

  22. Slide 22: Cash Flow Summary

    Cash Flow Summary IFRS in ₹ Mn Q4 FY22 Q4 FY23 Net Cash from Operations 110,510 118,640 Capital Expenditure 7,920 7,690 Free Cash Flow 102,590 110,950 Dividends Paid 25,900 274,430 Buy Back (incl. expenses) 180,490 - Operating Cash Flow to Sales (%) 21.8 20.1 Operating Cash Flow to Net Profit (%) 11

  23. Slide 23: IFRS Income Statement

    IFRS Income Statement ₹ Million % of Revenue Consolidated IFRS FY22 FY23 FY22 FY23 Revenue 1,917,540 2,254,580 100.00 100.00 Cost of revenue 1,146,210 1,362,680 59.78 60.44 Gross margin 771,330 891,900 40.22 39.56 SG & A expenses 286,800 349,530 14.95 15.50 Operating income 484,530 542,370 25.27 24.

  24. Slide 24: COR – SG&A Details

    COR – SG&A Details ₹ Million % of Revenue COR FY22 FY23 FY22 FY23 Employee cost 841,350 991,470 43.88 43.99 Fees to external consultants 167,950 206,420 8.76 9.16 Equipment and software 11,630 18,810 0.60 0.83 Facility expenses 13,540 16,510 0.71 0.73 Depreciation 35,680 38,200 1.86 1.70 Travel 12,9

  25. Slide 25: Cash Flow Summary

    Cash Flow Summary IFRS in ₹ Mn FY22 FY23 Net Cash from Operations 421,450 445,030 Capital Expenditure 29,640 30,630 Free Cash Flow 391,810 414,400 Dividends Paid 133,750 414,100 Buy Back / Tax on Buy Back 180,490 41,920 Operating Cash Flow to Sales (%) 22.0 19.7 Operating Cash Flow to Net Profit (%)

  26. Slide 26: IFRS Statement of Financial Position

    IFRS Statement of Financial Position ₹ Million Consolidated IFRS 31-Mar-22 31-Mar-23 Assets Property and equipment 120,800 115,950 Right-of-use Assets 76,360 75,600 Intangible assets and Goodwill 50,360 48,730 Accounts Receivable 342,190 411,980 Unbilled Revenues 122,100 149,350 Invested Funds 560,5

  27. Slide 27: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Revenue 6,696 7,195 100.00 100.00 Cost of revenue 4,008 4,307 59.89 59.84 Gross margin 2,688 2,888 40.11 40.16 SG & A expenses 1,017 1,127 15.15 15.67 Operating income 1,671 1,761 24.96 24.49 Othe

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

    COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Employee cost 2,937 3,186 43.86 44.29 Fees to external consultants 613 592 9.16 8.23 Equipment and software 34 75 0.51 1.05 Facility expenses 46 54 0.68 0.74 Depreciation 122 120 1.83 1.66 Travel 33 56 0.50 0.77 C

  29. Slide 29: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS FY22 FY23 FY22 FY23 Revenue 25,707 27,927 100.00 100.00 Cost of revenue 15,366 16,884 59.78 60.44 Gross margin 10,341 11,043 40.22 39.56 SG & A expenses 3,845 4,329 14.95 15.50 Operating income 6,496 6,714 25.27 24.06 Other inco

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

    COR – SG&A Details – In USD $ Million % of Revenue COR FY22 FY23 FY22 FY23 Employee cost 11,280 12,284 43.88 43.99 Fees to external consultants 2,251 2,559 8.76 9.16 Equipment and software 155 231 0.60 0.83 Facility expenses 182 205 0.71 0.73 Depreciation 478 474 1.86 1.70 Travel 174 225 0.68 0.80 C

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

    IFRS Statement of Financial Position in USD $ Million Consolidated IFRS 31-Mar-22 31-Mar-23 Assets Property and equipment 1,596 1,410 Right-of-use Assets 1,009 919 Intangible assets and Goodwill 665 593 Accounts Receivable 4,520 5,010 Unbilled Revenues 1,613 1,816 Invested Funds 7,405 6,058 Other cu

  32. Slide 32: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Revenue 50,591 59,162 100.00 100.00 Expenditure a) Employee Costs 28,353 33,687 56.04 56.94 b) Cost of equipment and software licences 260 620 0.51 1.05 c) Other Operating expenses 8,133 9

  33. Slide 33: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS FY22 FY23 FY22 FY23 Revenue 191,754 225,458 100.00 100.00 Expenditure a) Employee Costs 107,554 127,522 56.09 56.56 b) Cost of equipment and software licences 1,163 1,881 0.61 0.83 c) Other Operating expenses 29,980 36,7

  34. Slide 34: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ₹ Crore Consolidated Ind AS 31-Mar-22 31-Mar-23 Assets Property and equipment 11,979 11,464 Right-of-use Assets 7,636 7,560 Intangible assets and Goodwill 2,888 2,725 Accounts Receivable 34,219 41,198 Unbilled Revenues 12,210 14,935 Invested Funds 56,053 49,824 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 FY22 Q4 FY23 Q4 FY22 Q4 FY23 USD 75.55 82.23 54.09% 54.94% GBP 100.48 100.44 13.46% 13.56% EUR 84.27 88.44 11.28% 11.07% Others 21.17% 20.43% Total 100.00% 100.00% 35

  36. Slide 36: Thank you

    Thank you Copyright © 2023 Tata Consultancy Services Limited

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