Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Q1 FY2018 Earnings Presentation

27 slides from Tata Consultancy Services's earnings presentation, Jul 13, 2017

  1. Slide 1: TCS Financial Results Quarter I FY 2017-18

    TCS Financial Results Quarter I FY 2017 - 18 July 13, 2017 | Copyright © 2017 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: Q1 FY18 Performance Highlights

    Q1 FY18 Performance Highlights  Revenue: - INR Revenue of ` 295,840 Mn, -0.2% QoQ and 1.0% YoY - USD Revenue of $ 4,591 Mn, 3.1% QoQ and 5.2% YoY - Constant currency revenue growth of 2.0%, Volume growth of 3.5% QoQ - Digital Revenue at 18.9% up 7.6% QoQ and 26.0% YoY  Profit: - Operating Income a

  5. Slide 5: Operational Parameters

    Operational Parameters 5

  6. Slide 6: Growth by Market

    Growth by Market Q-o-Q Y-o-Y Geography (%) Q1 FY17 Q4 FY17 Q1 FY18 CC Growth CC Growth Americas North America 53.5 53.3 52.5 1.7 3.5 Latin America 2.0 2.1 2.1 2.8 8.0 Europe UK 14.8 13.7 13.9 0.7 6.3 Continental Europe 11.5 11.8 12.5 5.9 16.5 India 6.2 6.8 7.0 1.5 13.3 Asia Pacific 9.6 9.7 9.5 1.2 4

  7. Slide 7: Growth by Domain

    Growth by Domain Q-o-Q Y-o-Y Vertical (%) Q1 FY17 Q4 FY17 Q1 FY18 CC Growth CC Growth BFSI 33.3 32.9 32.9 2.3 5.1 Retail & CPG 13.5 12.3 12.2 2.0 -3.4 Communication & Media 7.0 7.2 7.3 3.9 11.6 Manufacturing 7.3 7.4 7.5 3.8 10.2 Life Sciences & Healthcare 6.8 6.9 7.1 4.7 10.7 Energy & Utilities 3.6

  8. Slide 8: Service Line Update

    Service Line Update • The reorganization of the service lines is nearing completion and expected to close in Q2. • Some new service lines are maturing and will stabilize over the next few quarters. • All the service lines are seeing good market traction, robust pipeline and secular growth. • We were

  9. Slide 9: Client Parameters

    Client Parameters Clients Contribution* Q1 FY17 Q4 FY17 Q1 FY18 US$ 1m+ Clients 847 897 905 US$ 5m+ Clients 439 459 464 US$ 10m+ Clients 298 310 322 US$ 20m+ Clients 179 190 190 US$ 50m+ Clients 77 84 85 US$ 100m+ Clients 37 35 36 *Last Twelve Months' services revenues 9

  10. Slide 10: Key Wins

    Key Wins  Selected as a strategic partner by large global Audit and Advisory firm to transform and manage their enterprise IT across five business groups using Agile and DevOps methodology.  Chosen by a large UK life insurance company to transform its customer service and policy administration by

  11. Slide 11: Key Wins in Digital Services and Solutions

    Key Wins in Digital Services and Solutions  Chosen by a European global engineering company to develop an IoT platform for predictive maintenance and monitoring of remote machinery across geographies.  Selected by a North American retail firm to ensure customer centric shopping experience on its c

  12. Slide 12: Resources

    Click Human to edit Resources Master title style 12

  13. Slide 13: Total Employee Base

    Total Employee Base Total Employees : 385,809 387,223 385,809 378,497 Attrition*: 371,519 • 11.6% (LTM), IT Services • 12.4% (LTM), including BPS 362,079 353,843 Diversity: • Women employees: 34.8% • Nationalities: 134 * Excluding Subsidiaries Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 13

  14. Slide 14: Employee Addition

    Employee Addition Q1 FY 2018 FY 2018 (YTD) • Gross additions: 11,202 employees • Gross additions: 11,202 employees • India: • India: • 1,659 Trainees • 1,659 Trainees • 6,289 Laterals • 6,289 Laterals • 3,254 employees overseas • 3,254 employees overseas Net additions: -1,414 employees • Net additio

  15. Slide 15: Annexure

    Click Annexure to edit Master title style 15

  16. Slide 16: IFRS Income Statement

    IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q1 FY17 Q4 FY17 Q1 FY18 Q1 FY17 Q4 FY17 Q1 FY18 Revenue 293,050 296,420 295,840 100.00 100.00 100.00 Cost of revenue 168,020 166,730 172,910 57.33 56.25 58.45 Gross margin 125,030 129,690 122,930 42.67 43.75 41.55 SG & A expenses 51,560

  17. Slide 17: COR – SG&A Details

    COR – SG&A Details ` Million % of Revenue COR Q1 FY17 Q4 FY17 Q1 FY18 Q1 FY17 Q4 FY17 Q1 FY18 Employee cost 116,210 117,400 121,520 39.66 39.61 41.08 Fees to external consultants 21,420 19,200 19,530 7.31 6.48 6.60 Equipment and software 6,780 7,050 7,250 2.31 2.38 2.45 Facility expenses 5,890 5,510

  18. Slide 18: Cash Flow Summary

    Cash Flow Summary IFRS in ` Mn Q1 FY17 Q4 FY17 Q1 FY18 Net Cash from Operations 58,700 74,540 61,700 Capital Expenditure 6,080 5,100 5,830 Free Cash Flow 52,620 69,440 55,870 Dividends Paid 53,440 15,270 60,740 Buy Back (incl. expenses) - - 160,420 Operating Cash Flow to Sales (%) 20.0 25.1 20.9 Ope

  19. Slide 19: IFRS Statement of Financial Position

    IFRS Statement of Financial Position 31-Mar-17 30-Jun-17 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 117,410 11.14 120,110 13.36 Intangible assets and Goodwill 37,680 3.58 38,000 4.23 Accounts Receivable 226,840 21.53 226,950 25.23 Unbilled Revenues 53,510 5.08 60,950 6.7

  20. Slide 20: IFRS Income Statement – In USD

    IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q1 FY17 Q4 FY17 Q1 FY18 Q1 FY17 Q4 FY17 Q1 FY18 Revenue 4,362 4,452 4,591 100.00 100.00 100.00 Cost of revenue 2,501 2,504 2,683 57.33 56.25 58.45 Gross margin 1,861 1,948 1,908 42.67 43.75 41.55 SG & A expenses 768 802 835 17.6

  21. Slide 21: COR – SG&A Details – In USD

    COR – SG&A Details – In USD $ Million % of Revenue COR Q1 FY17 Q4 FY17 Q1 FY18 Q1 FY17 Q4 FY17 Q1 FY18 Employee cost 1,730 1,763 1,886 39.66 39.61 41.08 Fees to external consultants 319 288 303 7.31 6.48 6.60 Equipment and software 101 106 113 2.31 2.38 2.45 Facility expenses 88 83 98 2.01 1.86 2.13

  22. Slide 22: IFRS Statement of Financial Position in USD

    IFRS Statement of Financial Position in USD 31-Mar-17 30-Jun-17 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,811 11.15 1,857 13.36 Intangible assets and Goodwill 581 3.57 588 4.23 Accounts Receivable 3,498 21.53 3,509 25.23 Unbilled Revenues 825 5.08 942 6.77 Investments

  23. Slide 23: Ind AS Income Statement - Consolidated

    Ind AS Income Statement - Consolidated ` Crore % of Revenue Consolidated Ind AS Q1 FY17 Q4 FY17 Q1 FY18 Q1 FY17 Q4 FY17 Q1 FY18 Revenue 29,305 29,642 29,584 100.00 100.00 100.00 Expenditure a) Employee Costs 15,374 15,692 16,183 52.46 52.94 54.70 b) Other Operating expenses 6,094 5,818 5,988 20.80 1

  24. Slide 24: Ind AS Balance Sheet - Consolidated

    Ind AS Balance Sheet - Consolidated ` Crore % Consolidated Ind AS 31-Mar-17 30-Jun-17 31-Mar-17 30-Jun-17 ASSETS Property, plant and equipment 11,645 11,901 11.28 13.55 Investments 41,980 27,863 40.66 31.72 Deferred tax assets (net) 2,828 2,939 2.74 3.35 Goodwill (on consolidation) 1,597 1,642 1.55

  25. Slide 25: Currency mix and average realized rates in INR

    Currency mix and average realized rates in INR Average rates % of Revenue ` Cr. Currency Q4 FY17 Q1 FY18 Q4 FY17 Q1 FY18 Q1 FY18 USD 66.58 64.44 56.26% 55.62% (543) GBP 82.87 82.61 11.86% 11.98% 14 EUR 71.10 71.78 8.00% 8.57% 25 Others 23.88% 23.83% (152) Total 100.00% 100.00% (656) 25

  26. Slide 26: FY17 Revenue by Verticals

    FY17 Revenue by Verticals % Revenue Q-o-Q CC Growth Vertical (%) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 BFSI 33.3 33.6 33.9 32.9 4.7 2.2 2.7 -2.2 Retail & CPG 13.5 13.0 13.0 12.3 1.7 -3.0 1.6 -4.4 Communication & Media 7.0 7.2 6.7 7.2 8.3 3.3 -4.7 8.8 Manufacturing 7.3 7.3 7

  27. Slide 27: Thank You

    Thank You IT Services Business Solutions Consulting

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