Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 FY2014 Earnings Presentation
28 slides from Tata Consultancy Services's earnings presentation, Oct 15, 2013
Slide 1: TCS Financial Results Quarter II FY 2013-14
TCS Financial Results Quarter II FY 2013 - 14 155h Oct 2013 Copyright © 2012 Tata Consultancy Services Limited 15th Oct 2013 1
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: Highlights
Ig TATA Highlights TATA CONSULTANCY SERVICES Experience certainty.
Slide 4: Q2 FY14 Performance Highlights
Q2 FY14 Performance Highlights Revenue: - INR Revenue of `209,772 Mn, growth of 16.6% QoQ and 34.3% YoY - USD Revenue of $3,337 Mn, growth of 5.4% QoQ and 17.0% YoY - Constant currency revenue growth of 6.0%, volume growth of 7.3% QoQ Profit: - Operating Income at ` 63,295 Mn, Operating Margin o
Slide 5: Financial Performance
Ig TATA Financial Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 6: IFRS Summary (INR)
IFRS Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 209,772 179,871 34.3% 34.3% 164,301 ` Million 156,208 160,699 23.9% 21.7% 21.0% 16.6% 5.1% 9.5% 2.9% 2.2% Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Y-o-Y Growth Q-o-Q Growth Operating Income 63,295 51.5% 48,62
Slide 7: IFRS Summary (USD)
IFRS Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 3,337 3,040 3,165 2,853 2,948 17.0% 14.8% 16.0% 13.0% 14.0% $ Million 4.6% 5.4% 3.3% 3.1% 4.1% Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Operating Income Y-o-Y Growth Q-o-Q Growth 1,007 31.9% 804 806 856 763 1
Slide 8: Operational Performance
Ig TATA Operational Performance TATA CONSULTANCY SERVICES Experience certainty.
Slide 9: Growth by Market
Growth by Market North America 7.1% 2.0% 6.9% Latin America 11.2% UK Continental Europe 53.2% India 17.3% Asia Pacific 2.3% MEA Q-o-Q Y-o-Y Geography (% ) Q2 FY14 Q1 FY14 Q2 FY13 Growth Growth Americas North America 53.2 54.1 14.7 53.8 33.0 Latin America 2.3 2.4 11.0 2.2 40.8 Europe UK 17.3 17.0 18.
Slide 10: Growth by Domain
Growth by Domain 2.2% 4.8% BFSI 3.8% 3.4% Telecom 5.7% Retail & Distribution 5.4% 43.1% Manufacturing Hi-Tech 8.4% Life Sciences & Healthcare Travel & Hospitality Energy & Utilities 13.9% Media & Entertainment 9.3% Others Q-o-Q Y-o-Y IP Revenue (%) Q2 FY14 Q1 FY14 Q2 FY13 Growth Growth BFSI 43.1 43.
Slide 11: Growth by Service Line
Growth by Service Line Application Development & Maint. 11.9% 2.7% 41.7% Enterprise Solutions 3.3% Assurance Services 11.8% Engineering & Industrial Services Infrastructure Services 4.7% Global Consulting 8.5% Asset Leveraged Solutions 15.4% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q2 FY
Slide 12: Client Parameters
Client Parameters Q2 FY14 Q1 FY14 Clients Contribution * US$ 1m+ Clients 687 657 US$ 5m+ Clients 318 309 US$ 10m+ Clients 224 216 US$ 20m+ Clients 125 124 US$ 50m+ Clients 53 53 US$ 100m+ Clients 22 19 *Last Twelve Months' services revenues 15th Oct 2013 12
Slide 13: Operational Parameters
Operational Parameters Revenue % Q2 FY14 Q1 FY14 Delivery Location Local Delivery 46.5 46.3 Remote Delivery 53.5 53.7 Global DC 5.4 5.2 India DC 48.1 48.5 Contract Type Time & Material 48.5 47.8 Fixed Price & Time 51.5 52.2 15th Oct 2013 13
Slide 14: Key Wins
Key Wins A global financial institution has chosen TCS for a multi-year contract for providing assurance services to certify the roll out of their applications globally. A large US based pharma company awarded a multi million dollar deal to provide end to end managed services for its data center
Slide 15: Human Resources
Ig TATA Human Resources TATA CONSULTANCY SERVICES Experience certainty.
Slide 16: Total Employee Base
Total Employee Base Total Employees : 285,250 285,250 277,586 276,196 263,637 254,076 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 15th Oct 2013 16
Slide 17: Q2 Consolidated - Gross Additions 17,362 & Net Additions 7,664
Q2 Consolidated - Gross Additions 17,362 & Net Additions 7,664 Gross Additions: Attrition*: • 6,296 Trainees & 6,423 Laterals in India • 10.9% (LTM), including BPO • 4,643 employees overseas • IT Services: 9.9% (LTM) • BPO: 16.3% (LTM) 20,098 18,654 17,145 17,362 Utilization Rate*: • 83.4% (excludin
Slide 18: Annexure
Ig TATA Annexure TATA CONSULTANCY SERVICES Experience certainty.
Slide 19: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q2 FY14 Q1 FY14 Q2 FY13 Q2 FY14 Q1 FY14 Q2 FY13 INCOME a) IT & Consultancy Services 20,533 17,552 15,188 97.88 97.58 97.23 b) Manufacturing, Sale of equipment and Licences 444 435 433 2.12 2.42 2.77 Total Incom
Slide 20: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 30-Sep-13 31-Mar-13 30-Sep-13 31-Mar-13 Source of Funds Shareholders' Funds 44,090 38,646 95.58 95.23 Minority Interest 630 695 1.37 1.71 Loan Funds 186 211 0.40 0.52 Deferred Tax Liability 252 235 0.55 0.58 Non Current Liab
Slide 21: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q2 FY14 Q1 FY14 Q2 FY13 Q2 FY14 Q1 FY14 Q2 FY13 Revenue 209,772 179,871 156,208 100.00 100.00 100.00 Cost of revenue 109,048 96,700 85,377 51.98 53.76 54.66 Gross margin 100,724 83,171 70,831 48.02 46.24 45.34 SG & A expenses 37,429 34,5
Slide 22: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q2 FY14 Q1 FY14 Q2 FY13 Q2 FY14 Q1 FY14 Q2 FY13 Employee cost 77,119 68,221 60,008 36.76 37.93 38.42 Fees to external consultants 12,390 10,423 8,321 5.91 5.79 5.33 Equipment & software 3,891 4,027 3,741 1.85 2.24 2.39 Depreciation 2,038 1,809 1,621 0.97
Slide 23: IFRS Balance Sheet
IFRS Balance Sheet 30-Sep-13 31-Mar-13 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 91,928 15.43 81,944 15.77 Intangible assets and Goodwill 42,598 7.15 35,063 6.75 Accounts Receivable 172,420 28.95 140,956 27.13 Unbilled Revenues 43,991 7.39 31,410 6.05 Investments 40,161
Slide 24: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q2 FY14 Q1 FY14 Q2 FY13 Q2 FY14 Q1 FY14 Q2 FY13 Revenue 3,337 3,165 2,853 100.00 100.00 100.00 Cost of revenue 1,735 1,701 1,559 51.98 53.76 54.66 Gross margin 1,602 1,464 1,294 48.02 46.24 45.34 SG & A expenses 595 608 531 17.8
Slide 25: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q2 FY14 Q1 FY14 Q2 FY13 Q2 FY14 Q1 FY14 Q2 FY13 Employee cost 1,227 1,200 1,096 36.76 37.93 38.42 Fees to external consultants 197 183 152 5.91 5.79 5.33 Equipment & software 62 71 68 1.85 2.24 2.39 Depreciation 33 32 29 0.97 1.01 1.04 Travel 41
Slide 26: IFRS Balance Sheet in USD
IFRS Balance Sheet in USD 30-Sep-13 31-Mar-13 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,470 15.43 1,508 15.77 Intangible assets and Goodwill 681 7.15 645 6.75 Accounts Receivable 2,758 28.95 2,594 27.13 Unbilled Revenues 704 7.39 578 6.04 Investments 642 6.74 376 3.93
Slide 27: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q2 FY14 Q1 FY14 Q2 FY14 Q1 FY14 USD 62.86 56.84 57.38% 58.53% GBP 98.11 87.01 15.20% 14.78% EUR 83.89 74.16 8.52% 7.47% Others 18.90% 19.22% 100.00% 100.00% 15th Oct 2013 27
Slide 28: Thank You
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