Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q4 FY2015 Earnings Presentation

37 slides from Tata Consultancy Services's earnings presentation, Apr 16, 2015

  1. Slide 1: TCS Financial Results Quarter IV & Year Ended FY 2014-15

    TCS Financial Results Quarter IV & Year Ended FY 2014 - 15 April 16, 2015 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: Highlights

    Highlights 3

  4. Slide 4: FY15 Performance Highlights

    FY15 Performance Highlights  Revenue: - INR Revenue of ` 946,484 Mn, growth of 15.7% YoY - USD Revenue of $ 15,454 Mn, growth of 15.0% YoY - Constant currency revenue growth of 17.0%  Profit (excluding employee rewards): - Operating Income at ` 254,244 Mn, Operating Margin of 26.9% - Net Income at

  5. Slide 5: Q4 FY15 Performance Highlights

    Q4 FY15 Performance Highlights  Revenue: - INR Revenue of ` 242,198 Mn, -1.1% QoQ and +12.4% YoY - USD Revenue of $ 3,900 Mn, -0.8% QoQ and + 11.4% YoY - Constant currency revenue growth of 1.6%  Profit (excluding employee rewards): - Operating Income at ` 65,911 Mn, Operating Margin of 27.2% - Ne

  6. Slide 6: Annual Financial Performance

    Click to edit Annual MasterPerformance Financial title style 6

  7. Slide 7: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-0-Y Growth 946,484 818,094 629,895 31.0% 28.8% ` Million 24.3% 29.9% 488,938 373,245 15.7% FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Operating Income Y-o-Y Growth 254,244 40.0% 238,080 31.7% 29.0% 25.8% ` Million 135,168 170,080 104,798 6.8% FY11 FY12 FY13 FY14

  8. Slide 8: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth 15,454 29.1% 13,442 24.2% 11,568 10,171 16.2% $ Million 8,187 13.7% 15.0% FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Operating Income Y-o-Y Growth 4,151 36.7% 3,906 3,124 25.0% 2,806 22.1% $ Million 2,299 11.3% 6.3% FY11 FY12 FY13 FY14 FY15* FY11 FY12

  9. Slide 9: Quarterly Financial Performance

    Quarterly Financial Click to edit MasterPerformance title style 9

  10. Slide 10: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 238,165 245,011 242,198 31.2% 215,511 221,110 22.9% ` Million 13.5% 15.1% 12.4% 1.2% 2.6% 2.9% 7.7% -1.1% Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Operating Income 44.1% Y-o-Y Growth Q-o-Q Growth 66,241 65,

  11. Slide 11: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 3,929 3,931 3,900 3,694 17.7% 3,503 16.7% 15.2% 14.3% 11.4% $ Million 5.5% 6.4% 1.9% 0.0% -0.8% Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Y-o-Y Growth Q-o-Q Growth Operating Income 1,055 1,063 1,061 1,021 26

  12. Slide 12: Operational Parameters

    Operational Parameters 12

  13. Slide 13: Growth by Market

    Growth by Market Q4 FY15 Mix 2.1% 9.8% North America 6.6% 52.4% Latin America 11.1% UK Continental Europe India 15.9% Asia Pacific MEA 2.1% Q-o-Q Y-o-Y Geography (%) Q3 FY15 Q4 FY15 FY14 FY15 ` Growth ` Growth Americas North America 51.9 52.4 -0.3 53.0 51.9 13.1 Latin America 2.1 2.1 -0.6 2.3 2.1 5.

  14. Slide 14: Growth by Domain

    Growth by Domain Q4 FY15 Mix BFSI 4.8% 3.9% 2.7% 3.4% Telecom 6.7% Retail & Distribution 40.6% 6.0% Manufacturing Hi-Tech Life Sciences & Healthcare 10.2% Travel & Hospitality Energy & Utilities Media & Entertainment 13.6% 8.1% Others Q-o-Q Y-o-Y IP Revenue (%) Q3 FY15 Q4 FY15 FY14 FY15 ` Growth ` G

  15. Slide 15: Growth by Service Line

    Growth by Service Line Q4 FY15 Mix 11.6% Application Development & Maint. 2.3% 40.1% 3.2% Enterprise Solutions Assurance Services 14.5% Engineering & Industrial Services Infrastructure Services 4.5% Global Consulting Asset Leveraged Solutions 8.4% 15.4% Business Process Services Q-o-Q Y-o-Y SP Reven

  16. Slide 16: Operational Parameters

    Operational Parameters Revenue % Q4 FY14 Q3 FY15 Q4 FY15 FY14 FY15 Delivery Location Local Delivery 47.0 48.2 48.5 46.7 48.2 Remote Delivery 53.0 51.8 51.5 53.3 51.8 Global DC 5.6 5.8 5.5 5.4 5.6 India DC 47.4 46.0 46.0 47.9 46.2 Contract Type Time & Material 47.6 48.3 47.4 48.0 48.0 Fixed Price & T

  17. Slide 17: Client Parameters

    Client Parameters Clients Contribution* Q4 FY14 Q3 FY15 Q4 FY15 FY14 FY15 US$ 1m+ Clients 714 764 791 714 791 US$ 5m+ Clients 354 387 389 354 389 US$ 10m+ Clients 231 249 261 231 261 US$ 20m+ Clients 136 159 162 136 162 US$ 50m+ Clients 53 65 68 53 68 US$ 100m+ Clients 24 25 29 24 29 *Last Twelve Mo

  18. Slide 18: Key Wins

    Key Wins  Selected by a large European Bank to provide Business Process Services for Retail Banking, Market Operations and Reconciliations.  Chosen by a leading global bank as its Strategic Partner to deliver solutions and services across IT and Operations.  Selected by a large telecom company in

  19. Slide 19: Human Resources

    Click to Resources Human edit Master title style 19

  20. Slide 20: Total Employee Base

    Total Employee Base Total Employees : 319,656 319,656 318,625 313,757 305,431 300,464 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 20

  21. Slide 21: Gross and Net Additions, Attrition, Utilization

    Q4 Consolidated - Gross Additions: 14,395 & Net Additions: 1,031 Gross Additions: • 5,569 Trainees & 5,853 Laterals in India Attrition*: • 2,973 employees overseas • 13.8% (LTM), IT Services • 14.9% (LTM), including BPS 20,350 18,564 Utilization Rate*: 15,817 16,561 14,395 • 85.4% (excluding Trainee

  22. Slide 22: Annexure

    Click to edit Master title style Annexure 22

  23. Slide 23: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS FY15 FY15 FY14 FY14 Ex Adj Reported Ex Adj Reported Revenue 818,094 946,484 946,484 100.00 100.00 100.00 Cost of revenue 430,645 525,283 544,992 52.64 55.50 57.58 Gross margin 387,449 421,201 401,492 47.36 44.50 42.42 SG & A expenses 149

  24. Slide 24: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR FY15 FY15 FY14 FY14 Ex Adj Reported Ex Adj Reported Employee cost 303,182 362,844 382,553 37.06 38.34 40.42 Fees to external consultants 49,970 61,165 61,165 6.11 6.46 6.46 Equipment & software 14,701 18,601 18,601 1.80 1.97 1.97 Depreciation 8,581 12,71

  25. Slide 25: IFRS Income Statement

    IFRS Income Statement ` M illion % of Revenue Consolidated IFRS Q4 FY15 Q4 FY15 Q4 FY14 Q3 FY15 Q4 FY14 Q3 FY15 Ex Adj Reported Ex Adj Reported Revenue 215,511 245,011 242,198 242,198 100.00 100.00 100.00 100.00 Cost of revenue 114,640 135,159 135,287 154,996 53.19 55.16 55.86 64.00 Gross margin 100

  26. Slide 26: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q4 FY15 Q4 FY15 Q4 FY14 Q3 FY15 Q4 FY14 Q3 FY15 Ex Adj Reported Ex Adj Reported Employee cost 79,555 93,242 91,585 111,294 36.91 38.06 37.81 45.95 Fees to external consultants 12,377 16,473 15,335 15,335 5.74 6.72 6.33 6.33 Equipment & software 3,559 5,4

  27. Slide 27: IFRS Balance Sheet

    IFRS Balance Sheet 31-Mar-15 31-Mar-14 Consolidated IFRS ` Million % ` Million % Ex Adj Reported Ex Adj Reported Assets Property and equipment 103,644 15.04 115,716 115,716 15.47 15.44 Intangible assets and Goodwill 41,568 6.03 39,308 39,308 5.26 5.24 Accounts Receivable 182,304 26.45 204,399 204,39

  28. Slide 28: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS FY15 FY15 FY14 FY14 Ex Adj Reported Ex Adj Reported Revenue 13,442 15,454 15,454 100.00 100.00 100.00 Cost of revenue 7,079 8,577 8,894 52.67 55.50 57.55 Gross margin 6,363 6,877 6,560 47.33 44.50 42.45 SG & A expenses 2,457 2,7

  29. Slide 29: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR FY15 FY15 FY14 FY14 Ex Adj Reported Ex Adj Reported Employee cost 4,984 5,926 6,243 37.08 38.34 40.40 Fees to external consultants 820 998 998 6.10 6.46 6.46 Equipment & software 243 303 303 1.80 1.96 1.96 Depreciation 141 208 208 1.05 1.35 1.35

  30. Slide 30: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q4 FY15 Q4 FY15 Q4 FY14 Q3 FY15 Q4 FY14 Q3 FY15 Ex Adj Reported Ex Adj Reported Revenue 3,503 3,931 3,900 3,900 100.00 100.00 100.00 100.00 Cost of revenue 1,863 2,168 2,179 2,496 53.19 55.16 55.86 64.00 Gross margin 1,640 1,763

  31. Slide 31: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY15 Q4 FY15 Q4 FY14 Q3 FY15 Q4 FY14 Q3 FY15 Ex Adj Reported Ex Adj Reported Employee cost 1,293 1,496 1,475 1,792 36.91 38.06 37.81 45.95 Fees to external consultants 201 264 247 247 5.73 6.72 6.33 6.33 Equipment & software 58 87 98 98 1.65

  32. Slide 32: IFRS Balance Sheet – In USD

    IFRS Balance Sheet – In USD 31-Mar-15 Consolidated IFRS 31-Mar-14 $ Million % $ Million % Ex Adj Reported Ex Adj Reported Assets Property and equipment 1,726 15.04 1,849 1,849 15.47 15.44 Intangible assets and Goodwill 692 6.03 628 628 5.26 5.24 Accounts Receivable 3,035 26.46 3,266 3,266 27.33 27.2

  33. Slide 33: Indian GAAP Income Statement - Consolidated

    Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP FY15 FY15 FY14 FY14 Ex Adj Reported Ex Adj Reported Income 81,809 94,648 94,648 100.00 100.00 100.00 Expenditure a) Salaries & Wages 29,860 36,073 38,701 36.50 38.11 40.89 b) Overseas business expenditure 11,63

  34. Slide 34: Indian GAAP Income Statement - Consolidated

    Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q4 FY15 Q4 FY15 Q4 FY14 Q3 FY15 Q4 FY14 Q3 FY15 Ex Adj Reported Ex Adj Reported Income 21,551 24,501 24,220 24,220 100.00 100.00 100.00 100.00 Expenditure a) Salaries & Wages 7,581 9,336 9,149 11,777 35.18 38.1

  35. Slide 35: Indian GAAP Balance Sheet - Consolidated

    Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Mar-15 31-Mar-15 31-Mar-14 31-Mar-14 Ex Adj Reported Ex Adj Reported EQUITY AND LIABILITIES Shareholders' Funds 49,195 52,694 50,634 73.27 71.70 68.74 Minority Interest 708 1,135 1,128 1.06 1.54 1.53 Short term and long t

  36. Slide 36: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue Currency Q3 FY15 Q4 FY15 Q3 FY15 Q4 FY15 USD 62.33 62.09 55.34% 56.42% GBP 98.17 93.99 14.38% 14.14% EUR 77.45 69.30 8.57% 7.83% Others 21.70% 21.60% Total 100.00% 100.00% 36

  37. Slide 37: Thank You

    Thank You IT Services Business Solutions Consulting

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