Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q1 FY2017 Earnings Presentation

27 slides from Tata Consultancy Services's earnings presentation, Jul 14, 2016

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

    TCS Financial Results Quarter I FY 2016 - 17 July 14, 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: Q1 FY17 Performance Highlights

    Q1 FY17 Performance Highlights  Revenue: - INR Revenue of ` 293,050 Mn, 3% QoQ and 14.2% YoY - USD Revenue of $ 4,362 Mn, 3.7% QoQ and 8.1% YoY - Constant currency revenue growth of 3.1%, Volume growth of 3.4% QoQ  Profit: - Operating Income at ` 73,470 Mn, Operating Margin of 25.1% - Net Income a

  4. Slide 4: Financial Performance

    Financial Performance 4

  5. Slide 5: Growth Summary (INR)

    Growth Summary (INR) Revenue Y-o-Y Growth Q-o-Q Growth 293,050 17.5% 271,655 273,640 284,486 16.1% 14.1% 14.2% 256,681 11.7% ` Million 6.0% 5.8% 4.0% 3.0% 0.7% Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Operating Income Operating margin (%) 73,536 72,762 74,119 7

  6. Slide 6: Growth Summary (USD)

    Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 4,207 4,362 4,036 4,156 4,145 9.3% 8.1% 7.9% $ Million 5.8% 5.5% 3.5% 3.7% 3.0% -0.3% 1.5% Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Operating Income Operating margin (%) 1,125 1,102 1,093 1,061 1,096 27.1%

  7. Slide 7: Operational Parameters

    Operational Parameters 7

  8. Slide 8: Growth by Market

    Growth by Market Q1 FY17 Mix 2.4% 9.6% 53.5% North America 6.2% Latin America 11.5% UK Continental Europe India 14.8% Asia Pacific 2.0% MEA Q-o-Q Y-o-Y Geography (%) Q1 FY16 Q4 FY16 Q1 FY17 CC Growth CC Growth Americas North America 52.8 54.0 53.5 2.5 9.7 Latin America 1.9 2.0 2.0 0.3 24.3 Europe UK

  9. Slide 9: Growth by Domain

    Growth by Domain Q1 FY17 Mix 3.9% BFSI 3.1% 4.2% 5.4% Retail & CPG 7.3% 40.4% Communication & Media Manufacturing 10.4% Life Sciences & Healthcare Hi-Tech Energy & Utilities 11.3% Travel & Hospitality 14.0% Others Q-o-Q Y-o-Y IP Revenue (%) Q1 FY16 Q4 FY16 Q1 FY17 CC Growth CC Growth BFSI 40.6 40.9

  10. Slide 10: Growth by Service Line

    Growth by Service Line Q1 FY17 Mix 11.5% Application Development & Maint. 3.2% 38.5% Enterprise Solutions & Consulting 15.5% Assurance Services Engineering & Industrial Services Infrastructure Services 4.8% Asset Leveraged Solutions 8.8% 17.7% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q1

  11. Slide 11: Client Parameters

    Client Parameters Clients Contribution* Q1 FY16 Q4 FY16 Q1 FY17 US$ 1m+ Clients 804 829 847 US$ 5m+ Clients 391 429 439 US$ 10m+ Clients 268 298 298 US$ 20m+ Clients 172 173 179 US$ 50m+ Clients 69 73 77 US$ 100m+ Clients 30 37 37 *Last Twelve Months' services revenues 11

  12. Slide 12: Key Wins

    Key Wins  Selected as a strategic partner by a leading process manufacturing company in North America to bring agility to its IT environment leveraging ignioTM, TCS’ neural automation platform  Partnering with a leading European semiconductor equipment manufacturer to enhance supplier experience a

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

    Key Wins in Digital Services and Solutions  Chosen by a leading global financial services firm to provide its customers with superior onboarding experience across its various products  Engaged by a leading Asian Insurance company for real-time analytics on enterprise performance data using TCS dre

  14. Slide 14: Human Resources

    Human Resources 14

  15. Slide 15: Total Employee Base

    Total Employee Base Total Employees : 362,079 362,079 353,843 Attrition*: • 12.5% (LTM), IT Services 344,691 • 13.6% (LTM), including BPS 335,620 324,935 Diversity: • Women employees: 33.8% • Nationalities: 131 * Excluding Diligenta Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 15

  16. Slide 16: Employee Addition

    Employee Addition Q1 FY 2017 FY 2017 • Gross additions: 17,792 employees • Gross additions: 17,792 employees • India: • India: • 5,038 Trainees • 5,038 Trainees • 9,877 Laterals • 9,877 Laterals • 2,877 employees overseas • 2,877 employees overseas Net additions: 8,236 employees • Net additions: 8,2

  17. Slide 17: Annexure

    Annexure 17

  18. Slide 18: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q1 FY16 Q4 FY16 Q1 FY17 Q1 FY16 Q4 FY16 Q1 FY17 Revenue 256,681 284,486 293,050 100.00 100.00 100.00 Cost of revenue 144,679 160,622 168,020 56.37 56.46 57.33 Gross margin 112,002 123,864 125,030 43.63 43.54 42.67 SG & A expenses 44,518

  19. Slide 19: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q1 FY16 Q4 FY16 Q1 FY17 Q1 FY16 Q4 FY16 Q1 FY17 Employee cost 100,676 109,282 116,210 39.22 38.41 39.66 Fees to external consultants 17,236 20,999 21,420 6.72 7.38 7.31 Equipment and software 6,586 7,926 6,780 2.57 2.79 2.31 Facility expenses 5,198 5,512

  20. Slide 20: IFRS Statement of Financial Position

    IFRS Statement of Financial Position 31-Mar-16 30-Jun-16 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 117,900 12.93 118,620 12.92 Intangible assets and Goodwill 39,460 4.32 39,310 4.28 Accounts Receivable 240,730 26.39 247,410 26.95 Unbilled Revenues 39,920 4.38 43,850 4.7

  21. Slide 21: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q1 FY16 Q4 FY16 Q1 FY17 Q1 FY16 Q4 FY16 Q1 FY17 Revenue 4,036 4,207 4,362 100.00 100.00 100.00 Cost of revenue 2,275 2,375 2,501 56.37 56.46 57.33 Gross margin 1,761 1,832 1,861 43.63 43.54 42.67 SG & A expenses 700 736 768 17.3

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

    COR – SG&A Details – In USD $ Million % of Revenue COR Q1 FY16 Q4 FY16 Q1 FY17 Q1 FY16 Q4 FY16 Q1 FY17 Employee cost 1,583 1,616 1,730 39.22 38.41 39.66 Fees to external consultants 271 311 319 6.72 7.38 7.31 Equipment and software 104 117 101 2.57 2.79 2.31 Facility expenses 82 81 88 2.02 1.94 2.01

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

    IFRS Statement of Financial Position in USD 31-Mar-16 30-Jun-16 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,780 12.93 1,757 12.92 Intangible assets and Goodwill 595 4.32 582 4.28 Accounts Receivable 3,634 26.39 3,664 26.95 Unbilled Revenues 603 4.38 649 4.78 Investments

  24. Slide 24: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q1 FY16 Q4 FY16 Q1 FY17 Q1 FY16 Q4 FY16 Q1 FY17 Revenue 25,668 28,449 29,305 100.00 100.00 100.00 Expenditure a) Employee Costs 13,291 14,423 15,374 51.78 50.70 52.46 b) Other Operating expenses 5,176 6,119 6,094 20.17 2

  25. Slide 25: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-16 30-Jun-16 31-Mar-16 30-Jun-16 ASSETS Property, plant and equipment 11,775 11,821 13.22 13.18 Investments 22,822 24,571 25.62 27.40 Deferred tax assets (net) 2,908 2,882 3.26 3.21 Goodwill (on consolidation) 1,669 1,684 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 Q4 FY16 Q1 FY17 Q4 FY16 Q1 FY17 USD 67.63 67.18 57.13% 56.47% GBP 96.00 95.46 14.15% 13.02% EUR 74.78 75.24 7.53% 7.96% Others 21.19% 22.55% Total 100.00% 100.00% 26

  27. Slide 27: Thank You

    Thank You IT Services Business Solutions Consulting

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