Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q4 FY2022 Earnings Presentation
35 slides from Tata Consultancy Services's earnings presentation, Apr 11, 2022
Slide 1: TCS Financial Results
TCS Financial Results Quarter IV & Year Ended FY 2021-22 Apr 11, 2022
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: Quarterly Financial Performance
Quarterly Financial Performance
Slide 4: Q4 FY22 Performance Highlights
Q4 FY22 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 505,910 Mn, up 15.8% YoY - USD Revenue of $ 6,696 Mn, up 11.8% YoY - Constant currency revenue up 14.3% YoY ➢ Profit: - Operating Margin at 25.0% - Net Margin at 19.6% - Cash flow from operations at 111.3% of net profit ➢ Demand: - Clients
Slide 5: Growth Summary (INR)
Growth Summary (INR) Revenue Y-o-Y Growth Y-o-Y Growth CC 505,910 18.5% 16.8% 468,670 488,850 16.3% 15.8% 454,110 ` Million 437,050 9.4% 16.4% 15.5% 15.4% 14.3% 5.9% Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Operating Income Operating margin (%) 122,370 126,280
Slide 6: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Y-o-Y Growth CC 6,524 6,696 21.6% 6,154 6,333 5,989 16.8% 15.4% 14.3% $ Million 10.0% 16.4% 15.5% 14.4% 11.8% 5.9% Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Operating Income Operating margin (%) 1,608 1,570 1,622 1,633 1
Slide 7: Annual Financial Performance
Annual Financial Performance
Slide 8: FY22 Performance Highlights
FY22 Performance Highlights ➢ Revenue: - INR Revenue of ₹ 1.92 Tn, growth of 16.8% YoY - USD Revenue of $ 25,707 Mn, growth of 15.9% YoY - Constant currency revenue growth of 15.4% ➢ Profit: - Operating Income at ₹ 484,530 Mn, Operating Margin of 25.3% - Net Income at ₹ 383,270 Mn, $ 5,139 Mn, Net M
Slide 9: Growth Summary
Growth Summary Summary ₹ Summary $ Revenue & Growth (Actual & CC) % Revenue & Growth (Actual & CC) % 1,917,540; 25,707; 1,641,770; 16.8% 22,174; 15.9% 1,569,490; 22,031; 4.6% 15.4% 0.7% 15.4% 5.3% $ Million ` Million 7.2% -0.8% -0.8% 7.1% 7.1% FY20 FY21 FY22 FY20 FY21 FY22 Operating Income & Margin
Slide 10: Operational Parameters
TATA CONSULTANCY SERVICES Building on belief Operational Parameters
Slide 11: Growth by Market
Growth by Market Y-o-Y YoY Geography (%) Q4 FY21 Q4 FY22 FY21 FY22 CC Growth CC Growth Americas North America 48.6 51.6 18.7 49.7 50.5 17.5 Latin America 1.6 1.7 20.6 1.6 1.7 18.2 Europe UK 16.0 15.6 13.0 15.6 15.9 14.3 Continental Europe 16.8 15.5 10.1 16.3 16.0 15.1 Asia Pacific 9.4 8.5 5.5 9.6 8.
Slide 12: Growth by Domain
Growth by Domain Y-o-Y YoY Vertical (%) Q4 FY21 Q4 FY22 FY21 FY22 CC Growth CC Growth BFSI 32.2 31.9 12.9 31.8 32.2 16.7 Retail & CPG 14.5 15.4 22.1 14.4 15.1 20.6 Life Sciences & Healthcare 9.7 10.0 16.4 9.7 10.0 19.2 Manufacturing 9.6 10.0 19.0 9.6 9.9 19.4 Technology & Services 8.4 8.7 18.0 8.7 8
Slide 13: Service Lines Commentary
Service Lines Commentary Cloud IoT & Digital Engineering The multi-year technology cycle fueled by cloud adoptions Growth was led by transformation programs spanning Intelligent • The demand environment continued to be strong continued apace. Clients are investing to build a new future-ready Product
Slide 14: Client Parameters
Client Parameters Clients Contribution Q4 FY21 Q4 FY22 US$ 1m+ Clients 1096 1182 US$ 5m+ Clients 569 638 US$ 10m+ Clients 387 439 US$ 20m+ Clients 228 268 US$ 50m+ Clients 101 120 US$ 100m+ Clients 48 58 *Last Twelve Months' services revenues 14
Slide 15: Key Highlights
Key Highlights • Sun Life Financial, a leading international financial services organization providing insurance, • Selected by NXP Semiconductors Netherlands B.V., a global semiconductor company, to wealth, and asset management solutions to individual and corporate clients, has partnered modernize
Slide 16: Human Resources
TATA CONSULTANCY a . SERVICES Building on belief Human Resources
Slide 17: Total Employee Base
Total Employee Base Attrition*: 592,195 • 17.4 % (LTM), IT Services 556,986 528,748 509,058 Diversity: 488,649 469,261 • Women employees: 35.6% • Nationalities: 153 *Excluding Subsidiaries Talent Development: • 22Mn Learning Hrs in Q4’22 • 476K Digital Trained Associates Q3-21 Q4-21 Q1-22 Q2-22 Q3-2
Slide 18: Annexure
TATA CONSULTANCY a . SERVICES Building on belief Annexure
Slide 19: IFRS Income Statement
IFRS Income Statement ₹ M illion % of Revenue Consolidated IFRS Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Revenue 437,050 505,910 100.00 100.00 Cost of revenue 256,820 302,870 58.76 59.89 Gross margin 180,230 203,040 41.24 40.11 SG & A expenses 62,890 76,760 14.40 15.15 Operating income 117,340 126,280 26.84
Slide 20: COR – SG&A Details
COR – SG&A Details ₹ Million % of Revenue COR Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Employee cost 185,420 221,930 42.42 43.86 Fees to external consultants 37,100 46,320 8.49 9.16 Equipment and software 4,540 2,600 1.04 0.51 Facility expenses 3,680 3,440 0.84 0.68 Depreciation 8,220 9,230 1.88 1.83 Travel
Slide 21: Cash Flow Summary
Cash Flow Summary IFRS in ₹ Mn Q4 FY21 Q4 FY22 Net Cash from Operations 92,470 110,510 Capital Expenditure 11,620 7,920 Free Cash Flow 80,850 102,590 Dividends Paid 22,200 25,900 Buy Back (incl. expenses) 197,570 180,490 Operating Cash Flow to Sales (%) 21.2 21.8 Operating Cash Flow to Net Profit (%
Slide 22: IFRS Income Statement
IFRS Income Statement ₹ Million % of Revenue Consolidated IFRS FY21 FY21 FY22 FY22 Ex Adj* Reported Ex Adj* Reported Revenue 1,641,770 1,641,770 1,917,540 100.00 100.00 100.00 Cost of revenue 971,380 971,380 1,146,210 59.16 59.16 59.78 Gross margin 670,390 670,390 771,330 40.84 40.84 40.22 SG & A ex
Slide 23: COR – SG&A Details
COR – SG&A Details ₹ Million % of Revenue COR FY21 FY21 FY22 FY22 Ex Adj* Reported Ex Adj* Reported Employee cost 719,460 719,460 841,350 43.81 43.81 43.88 Fees to external consultants 126,480 126,480 167,950 7.71 7.71 8.76 Equipment and software 14,620 14,620 11,630 0.89 0.89 0.60 Facility expenses
Slide 24: Cash Flow Summary
Cash Flow Summary IFRS in ₹ Mn FY21 FY22 Net Cash from Operations 411,070 421,450 Capital Expenditure 31,390 29,640 Free Cash Flow 379,680 391,810 Dividends Paid 109,070 133,750 Buy Back (incl. expenses) 197,570 180,490 Operating Cash Flow to Sales (%) 25.0 22.0 Operating Cash Flow to Net Profit (%)
Slide 25: IFRS Statement of Financial Position
IFRS Statement of Financial Position 31-Mar-21 31-Mar-22 Consolidated IFRS ₹ Million % ₹ Million % Assets Property and equipment 121,350 9.13 120,800 8.41 Right-of-use Assets 76,330 5.74 76,360 5.32 Intangible assets and Goodwill 44,280 3.33 50,360 3.51 Accounts Receivable 301,340 22.68 342,190 23.8
Slide 26: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Revenue 5,989 6,696 100.00 100.00 Cost of revenue 3,519 4,008 58.76 59.89 Gross margin 2,470 2,688 41.24 40.11 SG & A expenses 862 1,017 14.40 15.15 Operating income 1,608 1,671 26.84 24.96 Other
Slide 27: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Employee cost 2,541 2,937 42.42 43.86 Fees to external consultants 508 613 8.49 9.16 Equipment and software 62 34 1.04 0.51 Facility expenses 50 46 0.84 0.68 Depreciation 113 122 1.88 1.83 Travel 30 33 0.49 0.50 C
Slide 28: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS FY21 FY21 FY22 FY22 Ex Adj* Reported Ex Adj* Reported Revenue 22,174 22,174 25,707 100.00 100.00 100.00 Cost of revenue 13,118 13,118 15,366 59.16 59.16 59.78 Gross margin 9,056 9,056 10,341 40.84 40.84 40.22 SG & A expenses 3,3
Slide 29: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR FY21 FY21 FY22 FY22 Ex Adj* Reported Ex Adj* Reported Employee cost 9,714 9,714 11,280 43.81 43.81 43.88 Fees to external consultants 1,709 1,709 2,251 7.71 7.71 8.76 Equipment and software 198 198 155 0.89 0.89 0.60 Facility expenses 189 189 18
Slide 30: IFRS Statement of Financial Position in USD
IFRS Statement of Financial Position in USD 31-Mar-21 31-Mar-22 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,653 9.13 1,596 8.41 Right-of-use Assets 1,040 5.74 1,009 5.32 Intangible assets and Goodwill 603 3.33 665 3.51 Accounts Receivable 4,106 22.68 4,520 23.82 Unbille
Slide 31: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Revenue 43,705 50,591 100.00 100.00 Expenditure a) Employee Costs 23,625 28,353 54.07 56.04 b) Cost of equipment and software licences 454 260 1.04 0.51 c) Other Operating expenses 6,825 8
Slide 32: Ind AS Income Statement - Consolidated
Ind AS Income Statement - Consolidated ₹ Crore % of Revenue Consolidated Ind AS FY21 FY21 FY22 FY22 Ex Adj* Reported Ex Adj* Reported Revenue 164,177 164,177 191,754 100.00 100.00 100.00 Expenditure a) Employee Costs 91,814 91,814 107,554 55.92 55.92 56.09 b) Cost of equipment and software licences
Slide 33: Ind AS Balance Sheet - Consolidated
Ind AS Balance Sheet - Consolidated ₹ Crore % Consolidated Ind AS 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 ASSETS Property, plant and equipment 12,516 13,080 9.57 9.24 Right-of-use assets 7,633 7,636 5.84 5.40 Investments 29,373 30,485 22.46 21.54 Deferred tax assets (net) 3,931 3,708 3.01 2.62 Goodw
Slide 34: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 USD 72.97 75.55 50.93% 54.09% GBP 100.69 100.48 13.80% 13.46% EUR 87.38 84.27 12.62% 11.28% Others 22.65% 21.17% Total 100.00% 100.00% 34
Slide 35: Thank You
Thank You Copyright © 2021 Tata Consultancy Services Limited
Tata Consultancy Services — Q4 FY2022 Earnings Presentation on 6ix