Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q1 FY2021 Earnings Presentation
27 slides from Tata Consultancy Services's earnings presentation, Jul 9, 2020
Slide 1: TCS Financial Results Quarter I FY 2020-21
TCS Financial Results Quarter I FY 2020 - 21 July 09, 2020 | Copyright © 2020 Tata Consultancy Services Limited
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
Slide 3: Q1 FY21 Performance Highlights
Q1 FY21 Performance Highlights ➢ Revenue: - INR Revenue of ` 383,220 Mn, up 0.4% YoY - USD Revenue of $ 5,059 Mn, down 7.8% YoY - Constant currency revenue down 6.3% YoY ➢ Profit: - Operating Margin at 23.6% - Net Margin at 18.3% - Cash flow from operations at 132.6% of net profit ➢ Demand: - Client
Slide 4: Growth Summary (INR)
Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 3,89,770 3,98,540 3,99,460 11.4% 3,81,720 3,83,220 8.4% 6.8% ` Million 5.1% 10.6% 6.7% 5.8% 3.0% 0.4% -6.3% Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Operating Income Operating margin (%) 99,740 1,00,250
Slide 5: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 5,485 5,517 5,586 10.6% 5,444 8.4% 5,059 6.8% 8.6% $ Million 3.0% 5.8% 6.4% 0.9% -6.3% -7.8% Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Operating Income Operating margin (%) 1,398 1,366 1,325 1,326 25.0% 2
Slide 6: Operational Parameters
TATA CONSULTANCY SERVICES qp Experience certainty. TATA Operational Parameters
Slide 7: Growth by Market
Growth by Market Y-o-Y Geography (%) Q1 FY20 Q1 FY21 CC Growth Americas North America 50.6 51.4 -6.1 Latin America 1.8 1.7 0.2 Europe UK 15.8 15.3 -8.5 Continental Europe 14.3 15.6 2.7 India 6.0 4.3 -27.6 Asia Pacific 9.4 9.8 -3.2 MEA 2.1 1.9 -11.7 Total 100.0 100.0 -6.3
Slide 8: Growth by Domain
Growth by Domain Y-o-Y Vertical (%) Q1 FY20 Q1 FY21 CC Growth BFSI 30.9 31.3 -4.9 Retail & CPG 15.1 14.0 -12.9 Communication & Media 6.9 7.1 -3.6 Manufacturing 9.8 9.7 -7.1 Life Sciences & Healthcare 7.8 9.6 13.8 Technology & Services 8.8 9.1 -4.0 Regional Markets & Others 20.7 19.2 -12.5 Total 100.
Slide 9: Service Lines Commentary
Service Lines Commentary • Cash conservation and cost optimization was the Clients are increasingly adopting Risk based topmost priority for our clients during Q1. We Threat Management as the core strategy rather however, expect this to be temporary and Digital Our Consulting business is expected to
Slide 10: Client Parameters
Client Parameters Clients Contribution Q1 FY20 Q1 FY21 US$ 1m+ Clients 1014 1066 US$ 5m+ Clients 551 564 US$ 10m+ Clients 384 382 US$ 20m+ Clients 219 230 US$ 50m+ Clients 100 100 US$ 100m+ Clients 44 48 *Last Twelve Months' services revenues
Slide 11: Key Highlights (1/3)
Key Highlights (1/3) Consulting & Services Integration ▪ Selected by global market data firm, to transform their operating model to enable a faster, smarter and ▪ Aegon UK has selected TCS as the strategic partner to provide end-to-end digital leaner product-based organization with zero disruption,
Slide 12: Key Highlights (2/3)
Key Highlights (2/3) Enterprise Applications Services, Enterprise Intelligent Automation Cognitive Business Operations, Cloud, Cyber Security ▪ Selected by a global engineering conglomerate, to deliver a strategic business and IT ▪ Chosen by a European multinational corporation, as the strategic par
Slide 13: Key Highlights (3/3)
Key Highlights (3/3) Analytics & Insights, Internet of Things ▪ Engaged by a Europe-based multinational consumer credit reporting company, to ▪ Selected by a leading global investment bank and financial services company, to tap the potential of its unlock the power of its data ecosystem to create gr
Slide 14: Human Resources
TATA CONSULTANCY SERVICES qp Experience certainty. TATA Human Resources
Slide 15: Total Employee Base
Total Employee Base Total Employees : 443,676 Attrition*: • 11.1 (LTM), IT Services 4,50,738 4,48,464 4,46,675 4,43,676 Diversity: 4,36,641 • Women employees: 36.2% • Nationalities: 146 * Excluding Subsidiaries 4,24,285 Talent Development: • 7.9m Learning hours Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 •
Slide 16: Annexure
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Slide 17: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Revenue 3,81,720 3,83,220 100.00 100.00 Cost of revenue 2,27,210 2,32,140 59.52 60.58 Gross margin 1,54,510 1,51,080 40.48 39.42 SG & A expenses 62,310 60,600 16.32 15.81 Operating income 92,200 90,480 24.
Slide 18: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Employee cost 1,60,030 1,73,680 41.92 45.32 Fees to external consultants 31,140 29,550 8.16 7.71 Equipment and software 5,110 3,460 1.34 0.90 Facility expenses 4,550 3,320 1.19 0.87 Depreciation 6,190 7,280 1.62 1.90 Trave
Slide 19: Cash Flow Summary
Cash Flow Summary IFRS in ` Mn Q1 FY20 Q1 FY21 Net Cash from Operations 84,460 92,900 Capital Expenditure 8,920 6,220 Free Cash Flow 75,540 86,680 Dividends Paid 80,560 22,850 Operating Cash Flow to Sales (%) 22.1 24.2 Operating Cash Flow to Net Profit (%) 103.9 132.6 Total Cash and Investments 4,89
Slide 20: IFRS Statement of Financial Position
IFRS Statement of Financial Position 31-Mar-20 30-Jun-20 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 1,19,380 9.71 1,18,950 9.23 Right-of-use Assets 79,940 6.50 80,100 6.22 Intangible assets and Goodwill 41,330 3.35 42,040 3.26 Accounts Receivable 3,06,060 24.88 3,03,820
Slide 21: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Revenue 5,485 5,059 100.00 100.00 Cost of revenue 3,265 3,065 59.52 60.58 Gross margin 2,220 1,994 40.48 39.42 SG & A expenses 895 800 16.32 15.81 Operating income 1,325 1,194 24.16 23.61 Other in
Slide 22: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Employee cost 2,299 2,293 41.92 45.32 Fees to external consultants 448 390 8.16 7.71 Equipment and software 73 46 1.34 0.90 Facility expenses 65 44 1.19 0.87 Depreciation 89 96 1.62 1.90 Travel 87 31 1.58 0.61 Com
Slide 23: IFRS Statement of Financial Position in USD
IFRS Statement of Financial Position in USD 31-Mar-20 30-Jun-20 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,583 9.71 1,575 9.23 Right-of-use Assets 1,060 6.50 1,061 6.22 Intangible assets and Goodwill 547 3.35 556 3.26 Accounts Receivable 4,057 24.88 4,024 23.59 Unbille
Slide 24: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Revenue 38,172 38,322 100.00 100.00 Expenditure a) Employee Costs 20,809 22,093 54.51 57.65 b) Cost of equipment and software licences 511 346 1.34 0.90 c) Other Operating expenses 6,815 5
Slide 25: Ind AS Balance Sheet - Consolidated
Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-20 30-Jun-20 31-Mar-20 30-Jun-20 ASSETS Property, plant and equipment 12,130 12,126 10.03 9.57 Right-of-use assets 7,994 8,010 6.61 6.32 Investments 26,356 29,720 21.80 23.46 Deferred tax assets (net) 2,828 2,654 2.34 2.10 Good
Slide 26: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q1 FY20 Q1 FY21 YoY Q1 FY20 Q1 FY21 USD 69.60 75.75 8.84% 53.16% 54.04% GBP 88.77 93.96 5.84% 14.01% 13.30% EUR 78.28 83.67 6.88% 10.40% 11.11% Others 22.43% 21.55% Total 100.00% 100.00%
Slide 27: Thank You
TATA CONSULTANCY SERVICES qp Experience certainty. TATA Thank You
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