Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 FY2009 Earnings Presentation
30 slides from Tata Consultancy Services's earnings presentation, Oct 22, 2008
Slide 1: Results for Quarter II FY 2008 - 09
Results for Quarter II FY 2008 - 09 22 October 2008
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: Financial Performance
Financial Performance 22 October 2008
Slide 4: Indian GAAP Growth Summary
Indian GAAP Growth Summary Consolidated Indian GAAP (INR Crore) Q2 FY09 Q1 FY09 Q2 FY08 Income from IT & Consultancy Services 6,667 6,098 5,296 % Growth Q-o-Q 9.33% % Growth Y-o-Y 25.88% Total Income 6,953 6,411 5,550 % Growth Q-o-Q 8.46% % Growth Y-o-Y 25.29% PBIDT (before Other Income) 1,820 1,559
Slide 5: US GAAP Revenue Growth
US GAAP Revenue Growth 22 October 2008 5
Slide 6: US GAAP Growth Summary
US GAAP Growth Summary 22 October 2008 6
Slide 7: Operational Performance
Operational Performance 22 October 2008
Slide 8: Growth by Market
Growth by Market 7.8% 5.3% 1.8% North America • Diversification across emerging 10.5% Ibero America markets like Ibero-america, APAC, 49.7% UK Middle East and Africa helped Continental Europe soften impact of developed market India slowdown. 20.2% Asia Pacific MEA • North America posted positive 4.7
Slide 9: Growth by Domain
Growth by Domain BFSI 3.0% 1.7% 1.8% Telecom • BFSI continues to register 4.6% 41.9% 4.8% Manufacturing positive growth despite 6.9% Retail & Distribution unprecedented volatility and 9.0% Hi-Tech uncertainty in the global financial Life Sciences & Healthcare markets. Travel & Hospitality 11.0% Ener
Slide 10: Growth by Service Line
Growth by Service Line 2.9% 3.1% 5.8% Application Development & Maint. • Traditional application 49.2% 7.5% Business Intelligence development and maintenance 6.0% Enterprise Solutions gained prominence in 4.4% Assurance Services weakening investment climate. Engineering & Industrial Services 12.5% I
Slide 11: Client Parameters
Client Parameters Q2 FY09 Q1 FY09 Clients Contribution * Revenue % Top 1 5.9 6.2 Top 5 17.8 18.5 Top 10 26.9 28.3 US$ 1 mln Clients 397 362 US$ 5 mln Clients 168 147 US$ 10 mln Clients 108 105 US$ 20 mln Clients 55 54 US$ 50 mln Clients 22 21 US$ 100 mln Clients 7 7 * Last Twelve Months 22 October 2
Slide 12: Operational Parameters
Operational Parameters Revenue % Q2 FY09 Q1 FY09 Delivery Location* Onsite 52.6 54.9 GDC/RDC 4.6 4.2 Offshore 42.8 40.9 Contract Type Time & Material 56.6 57.2 Fixed Price & Time 43.4 42.8 * Excluding Domestic Clients 22 October 2008 12
Slide 13: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q2 FY09 Q1 FY09 Active Clients 920 885 New Clients 51 35 Revenue % from Repeat Business 97.6 99.3 Revenue % from New Business * 2.4 0.7 * Reset at the beginning of Financial Year 22 October 2008 13
Slide 14: Key Wins
Key Wins • A large, electronic retailer in Europe has engaged TCS as their strategic partner through a full services outsourcing deal. • A Leading North American Financial Services organization has selected TCS as their partner for providing transformational BPO services in a multi-year deal. • TCS
Slide 15: Key Deliveries
Key Deliveries • TCS designed, developed and is operating, a comprehensive solution for a leading European Insurer to support launch and servicing of annuity products. • TCS successfully completed the enterprise Manufacturing, Distribution and Financial application rollout for world's leading docume
Slide 16: Human Resources
Human Resources 22 October 2008
Slide 17: Largest IT Employer in India: 121,610 employees
Largest IT Employer in India: 121,610 employees Total Employees : 121,610 TCS : 117,921 Indian subsidiaries : 3,689 Overseas Subsidiaries and Branches : 11,002 Global Delivery Centers : 4,785 3,689 3,830 3,709 3,715 3,985 117,921 112,593 107,698 104,399 100,362 Q2-08 Q3-08 Q4-08 Q1-09 Q2-0
Slide 18: Q2-09 Gross Additions 9,682 & Net Additions 5,328
Q2 - 09 Gross Additions 9,682 & Net Additions 5,328. • Q2 Additions: • 6,673 Trainees & 1,587 Laterals in India; 1,422 in Overseas Subs & Branches • Attrition: 13.2%(LTM), including BPO • IT Services: 12.4% (LTM), BPO: 22.7 % (LTM) • Utilization Rate was 81.1 % (excluding trainees), 74.7 % (includin
Slide 19: Diverse Workforce
Diverse Workforce • 29% of our workforce are women • 52% of our associates have more than 3 years of work experience. • Associates from 64 Nationalities Colombian Others 10.3% British Indian Hungarian 2.3% 16.9% 4.2% 90.8% Uruguayan Chilean 6.0% 11.6% Others Mexican 7.4% 9.2% Ecuadorian American 11.
Slide 20: Campus Update - 24,789 offers made for FY'10
Campus Update - 24,789 offers made for FY’10 96.4% Day 1 slots achieved • 41 Institutes visited Total Offers made in Q2 : 2,641 Total Institutes Accredited: 455 22 October 2008 20
Slide 21: Annexure
id TATA CONSULTANCY SERVICES TATA IVANNTP/NGTVANGTV/ANYEYV/NVEG/NNTO NST V/NGTV/ANGE/ANYET/ AVEO NNO NST P/NGTV/ANGTV/ANNET/ANVEP/NNIG/NNTP/NNTV/ANSI/A NEPAL ZAUE/ANEZANLENLEZNLEASUP ALENT PN LEAL ALENT PZNLESLP LENE Annexure 22 October 2008
Slide 22: Indian GAAP Income Statement – Consolidated – Q2 FY09
Indian GAAP Income Statement – Consolidated – Q2 FY09 INR Crore % of Total Income Consolidated Indian GAAP Q2 FY09 Q1 FY09 Q2 FY08 Q2 FY09 Q1 FY09 Q2 FY08 INCOME a) IT & Consultancy Services 6,667 6,098 5,296 95.88 95.13 95.43 b) Manufacturing, Sale of equipment and Licences 286 313 254 4.12 4.87 4.
Slide 23: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated INR Crore % Consolidated Indian GAAP 30-Sep-08 31-Mar-08 30-Sep-08 31-Mar-08 Source of Funds Shareholders' Funds 13,867 12,300 93.64 93.83 Minority Interest 241 213 1.62 1.62 Loan Funds 491 455 3.32 3.47 Deferred Tax Liability 209 140 1.41 1.08 Total Liabilit
Slide 24: US GAAP Income Statement
US GAAP Income Statement INR Million % of Revenue Consolidated US GAAP Q2 FY09 Q1 FY09 Q2 FY08 Q2 FY09 Q1 FY09 Q2 FY08 Revenue 69,534 64,107 55,497 100.00 100.00 100.00 Cost of revenue 37,752 37,147 31,106 54.29 57.95 56.05 Gross margin 31,782 26,960 24,391 45.71 42.05 43.95 SG & A expenses 14,934 1
Slide 25: COR – SG&A Details
COR – SG&A Details 22 October 2008 25
Slide 26: US GAAP Balance Sheet
US GAAP Balance Sheet 30-Sep-08 31-Mar-08 Consolidated US GAAP INR Million % INR Million % Assets Cash and Cash equivalents 13,858 6.89 10,352 5.91 Accounts Receivable 62,507 31.06 53,903 30.80 Unbilled Revenues 14,728 7.32 13,525 7.73 Other Current assets 18,588 9.24 15,390 8.79 Property & Equipmen
Slide 27: US GAAP Income Statement
US GAAP Income Statement 22 October 2008 27
Slide 28: COR – SG&A Details
COR – SG&A Details 22 October 2008 28
Slide 29: US GAAP Balance Sheet
US GAAP Balance Sheet 30-Sep-08 31-Mar-08 Consolidated US GAAP USD Million % USD Million % Assets Cash and Cash equivalents 295 6.89 258 5.92 Accounts Receivable 1,330 31.07 1,344 30.80 Unbilled Revenues 313 7.32 337 7.73 Other Current assets 396 9.23 384 8.79 Property & Equipment 716 16.72 753 17.2
Slide 30: Thank You!
Thank You! SUZANUZAN LU ZAN ZA U ZA ZAN ZAZA ZA ZAZA ZA ZA ZA ZAZA ZA ZA ZA ANZA PANNTVANNTVANNTV NNT YANNI YANNI YANNI YANNI PANNE PANNE PANNE P ANNE PANNE /ANNEP/ANNOP ANNE /ANNIP ANNO PANNE PANN ANNO ZN UNEP ANGHVANGHY/NGHYANGHV/NGHY/NGHV/NGEV/NGHY/NGHV/NGHPANNEY/ANEP/NNEP/ANEY/ANEP/ANEPANEPAANEP
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