Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q4 FY2012 Earnings Presentation
43 slides from Tata Consultancy Services's earnings presentation, Apr 23, 2012
Slide 1: Results for Quarter IV FY 2011-12
Title and Content 109 255 131 0 85 214 207 255 56 99 165 73 246 255 155 190 28 42 Dark 1 Light 1 Dark 2 Light 2 Accent 1 Accent 2 185 151 193 255 255 236 175 75 187 221 255 137 164 7 0 62 255 29 Accent 3 Accent 4 Accent 5 Accent 6 Hyperlink Followed Hyperlink Results for Quarter IV FY 2011 - 12 127
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
TATA CONSULTANCY SERVICES Experience certainty. Highlights <p TATA
Slide 4: Q4 FY12 Performance Highlights
Q4 FY12 Performance Highlights Revenue: - INR Revenue of ` 132,593 Mn i.e. growth of 0.4% Q-o-Q and 30.5% Y-o-Y - USD Revenue of $2,648 Mn i.e. growth of 2.4% Q-o-Q and 18.0% Y-o-Y - Constant currency revenue growth of 2.3%, volume growth of 3.3% Q-o-Q Profit: - Operating margin of 27.7%, down 1
Slide 5: FY12 Performance Highlights
FY12 Performance Highlights Revenue: - INR Revenue of ` 488,938 Mn i.e. growth of 31.0% - USD Revenue of $10,171 Mn i.e. growth of 24.2% - Constant currency revenue growth of 23.0% Profit: - Operating margin of 27.6%, down 44bps - Net Income at ` 106,382 Mn i.e. NPM of 21.8% Demand: - 141 new
Slide 6: Annual Performance
TATA CONSULTANCY SERVICES Experience certa’ Annual Performance nty. <p TATA
Slide 7: Indian GAAP Growth Summary
Indian GAAP Growth Summary Revenue Y-o-Y Revenue Growth 48,894 40% 50,000 30% 31.0% 43,000 37,325 ` Crore 21.1% 23.0% 24.3% 36,000 30,029 20% 27,813 29,000 22,620 10% 8.0% 22,000 15,000 0% FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 PBIDT (before Other Income) Y-o-Y PBIDT Growth 50% 16,000 14,
Slide 8: IFRS Revenue Growth
IFRS Revenue Growth Revenue Mix Revenue Growth 488,938 40% 540,000 31.0% 460,000 373,245 42,044 30% 24.3% ` Million 380,000 278,129 300,289 34,351 23.0% 21.5% 300,000 226,175 25,979 20% 21,821 446,894 220,000 20,497 338,894 140,000 256,307 274,310 8.0% 205,678 10% 60,000 FY08 FY09 FY10 FY11 FY12 0%
Slide 9: IFRS Growth Summary INR
IFRS Growth Summary INR Operating Income Y-o-Y Growth 160,000 135,141 40% 31.7% ` Million 28.9% 120,000 104,796 66,013 79,591 20% 29.0% 80,000 51,212 20.6% 10.7% 40,000 0% - FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 -20% EBITDA Y-o-Y Growth 160,000 144,176 40% 111,980 26.0% 29.0% ` Million 1
Slide 10: IFRS Growth Summary USD
IFRS Growth Summary USD Revenue Y-o-Y Growth 12,000.0 10,171 40% 36.6% 29.1% 9,600.0 8,187 24.2% $ Million 5,634 6,016 6,339 20% 7,200.0 4,800.0 6.8% 2,400.0 5.4% 0% - FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 -20% Operating Income Y-o-Y Growth 36.7% 2,806 40% 2,800.0 2,299 24.4% $ Million 2
Slide 11: Quarterly Performance
TATA CONSULTANCY SERVICES Quarterly Performance Experience certainty. <p TATA
Slide 12: Indian GAAP Growth Summary
Indian GAAP Growth Summary Revenue Q-o-Q Revenue Growth Y-o-Y Revenue Growth 13,204 13,259 36.6% 13,500 40% 31.3% 31.4% 11,633 30.5% 12,000 10,797 30% 25.3% ` Crore 10,157 10,500 20% 13.5% 9,000 7.7% 10% 5.1% 6.3% 7,500 0.4% 6,000 0% Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q4 FY11 Q1 FY12 Q2 FY12 Q3
Slide 13: IFRS Revenue Growth
IFRS Revenue Growth Revenue Mix Revenue Growth 150,000 132,040 132,593 36.6% 116,335 40% 31.3% 31.4% 30.5% 130,000 101,575 107,970 11,070 11,245 25.3% 30% ` Million 110,000 9,646 8,987 10,084 90,000 20% 13.5% 70,000 106,689 120,970 121,349 92,588 97,887 6.3% 7.7% 50,000 10% 5.1% 0.4% 30,000 0% Q4 FY
Slide 14: IFRS Growth Summary INR
IFRS Growth Summary INR Operating Income Y-o-Y Growth Q-o-Q Growth 40,000 38,618 36,719 35.2% 41.3% 25.2% 27.7% ` Million 40% 20.8% 35,000 28,765 31,543 28,261 30,000 20% 5.2% -1.8% 22.4% 25,000 0% 11.6% 20,000 -4.9% -20% Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY1
Slide 15: IFRS Growth Summary USD
IFRS Growth Summary USD Revenue Y-o-Y Growth Q-o-Q Growth 2,525 2,586 2,648 2,412 33.2% 34.4% 2,244 40% 26.0% $ Million 2,500.0 20.6% 18.0% 2,000.0 20% 4.7% 7.4% 4.7% 2.4% 2.4% 1,500.0 0% 1,000.0 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 -20% Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Operating Income Y-
Slide 16: Operational Performance
TATA CONSULTANCY SERVICES Operational Performance Experience certainty. <p TATA
Slide 17: Growth by Market
Growth by Market Distribution by Geography – Q412 7.7% 2.1% North America 8.5% Latin Am erica 9.8% UK 53.6% Cont inental Europe India 15.2% Asia Pacific 3.1% MEA Q-o-Q Y-o-Y Geography (% ) Q4 FY12 Q3 FY12 FY12 FY11 Growth Growth Americas North America 53.6 53.3 1.0 53.3 53.9 29.6 Latin America 3.1 3
Slide 18: Growth by Domain
Growth by Domain Distribution by Domain – Q412 BFSI 2.2% 6.4% 3.8% Telecom 3.7% 5.3% Reta il & Dis tribution 42.2% Manufact uring 6.0% Hi- Te ch Lif e S ciences & He althcare 7.9% Tra vel & Hospita lity Energy & Utilities Media & Enterta inme nt 12.5% 10.0% Ot he rs Q-o-Q Y-o-Y IP Revenue (%) Q4 FY1
Slide 19: Growth by Service Line
Growth by Service Line Distribution by Service Line – Q412 Application Development & Maint. 11.5% Business Intelligence 3.9% 44.4% 2.7% Enterprise Solutions 10.4% Assurance Services Engineering & Industrial Services 4.6% Infrastructure Services 7.3% Global Consulting Asset Leverage Solutions 11.0% 4
Slide 20: Client Parameters
Client Parameters Q4 FY12 Q3 FY12 FY12 FY11 Clients Contribution * Revenue % Top 1 6.8 6.9 6.8 7.4 Top 5 19.2 19.6 19.2 21.4 Top 10 27.1 27.7 27.1 29.6 US$ 1 mln Clients 522 512 522 458 US$ 5 mln Clients 245 235 245 208 US$ 10 mln Clients 170 161 170 143 US$ 20 mln Clients 99 95 99 81 US$ 50 mln Cli
Slide 21: Operational Parameters
Operational Parameters Revenue % Q4 FY12 Q3 FY12 FY12 FY11 Delivery Location* Onsite 45.2 45.0 45.0 44.0 GDC/RDC 4.5 4.5 4.4 5.0 Offshore 50.3 50.5 50.6 51.0 Contract Type Time & Material 53.0 53.6 52.6 50.6 Fixed Price & Time 47.0 46.4 47.4 49.4 * Excluding Domestic Clients 23rd April 2012 21
Slide 22: Client Acquisition and Expansion
Client Acquisition and Expansion Particulars Q4 FY12 Q3 FY12 FY12 FY11 Active Clients 1,037 1,003 1076 1034 New Clients 42 40 141 140 Revenue % from Repeat Business 96.5 98.3 98.4 97.8 Revenue % from New Business * 3.5 1.7 1.6 2.2 * Reset at the beginning of Financial Year 23rd April 2012 22
Slide 23: Key Wins
Key Wins • A leading US Insurer has selected TCS as a strategic partner in a multi-year program that aims to help it re-architect its policy and customer management application portfolio and drive greater agility in product development, integrated marketing, and customer experience management. • One
Slide 24: Human Resources
TATA CONSULTANCY SERVICES Human Resources Experience certainty. <p TATA
Slide 25: Total Employee Base
Total Employee Base Total Employees : 238, 583 238,583 226,751 214,770 198,614 202,190 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Including Subsidiaries 25
Slide 26: Q4 Consolidated - Gross Additions 19,156 & Net Additions 11,832
Q4 Consolidated - Gross Additions 19,156 & Net Additions 11,832 Gross Additions: • 9,790 Trainees & 5,681 Laterals in India • 3,685 employees overseas Attrition*: 20,349 • IT Services: 11.05% (LTM) 19,324 18,907 19,156 • BPO: 21.64% (LTM) Utilization Rate*: 11,988 12,580 11,832 • 80.64% (excluding T
Slide 27: Diversity
Diversity 31.6% of our workforce are women 62.4% of our associates have more than 3 years of work experience Associates from 110 nationalities Composition of International Workforce (Consolidated) Others 16.1% Mexican 8.1% Indians British 23.4% 92.7% American Others 15.6% 7.3% Chilean Chinese
Slide 28: Annexure
TATA CONSULTANCY SERVICES Experience certainty. Annexure <p TATA
Slide 29: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated Consolidated Indian GAAP ` Crore % of Total Income FY12 FY11 FY12 FY11 INCOME a) IT & Consultancy Services 47,437 36,046 97.02 96.57 b) Manufacturing, Sale of equipment and Licences 1,457 1,279 2.98 3.43 Total Income 48,894 37,325 100.00 100.00 EXPENDITURE
Slide 30: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated Consolidated Indian GAAP ` Crore % of Total Income Q4 FY12 Q3 FY12 Q4 FY11 Q4 FY12 Q3 FY12 Q4 FY11 INCOME a) IT & Consultancy Services 12,979 12,723 9,848 97.89 96.36 96.95 b) Manufacturing, Sale of equipment and Licences 280 481 309 2.11 3.64 3.05 Total I
Slide 31: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated Consolidated Indian GAAP ` Crore % 31-Mar-12 31-Mar-11 31-Mar-12 31-Mar-11 Source of Funds Shareholders' Funds 29,579 24,505 95.63 96.22 Minority Interest 559 458 1.81 1.80 Loan Funds 116 69 0.37 0.27 Deferred Tax Liability 173 110 0.56 0.43 Non Current Liabi
Slide 32: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS FY12 FY11 FY12 FY11 Revenue 488,938 373,245 100.00 100.00 Cost of revenue 264,580 204,280 54.11 54.73 Gross margin 224,358 168,965 45.89 45.27 SG & A expenses 89,217 64,169 18.25 17.19 Operating income 135,141 104,796 27.64 28.08 Other i
Slide 33: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR FY12 FY11 FY12 FY11 Employee cost 188,203 145,234 38.49 38.91 Fees to external consultants 21,897 14,133 4.48 3.79 Equipment & software 13,646 10,338 2.79 2.77 Depreciation 5,806 4,909 1.19 1.31 Travel 6,957 5,762 1.42 1.54 Communication 4,666 4,108 0.95
Slide 34: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q4 FY12 Q3 FY12 Q4 FY11 Q4 FY12 Q3 FY12 Q4 FY11 Revenue 132,593 132,040 101,575 100.00 100.00 100.00 Cost of revenue 70,725 69,964 55,208 53.34 52.99 54.35 Gross margin 61,868 62,076 46,367 46.66 47.01 45.65 SG & A expenses 25,149 23,458
Slide 35: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q4 FY12 Q3 FY12 Q4 FY11 Q4 FY12 Q3 FY12 Q4 FY11 Employee cost 49,572 49,661 39,468 37.39 37.61 38.86 Fees to external consultants 6,775 5,678 4,002 5.11 4.30 3.94 Equipment & software 3,351 4,350 2,729 2.53 3.29 2.69 Depreciation 1,488 1,360 1,405 1.12 1
Slide 36: IFRS Balance Sheet
IFRS Balance Sheet 31-Mar-12 31-Mar-11 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 64,548 15.67 51,996 15.93 Intangible assets and Goodwill 34,929 - 8.48 34,064 - 10.44 Accounts receivable 114,991 27.91 81,907 25.10 Unbilled revenues 22,478 - 5.45 13,489 - 4.13 Investment
Slide 37: IFRS Income Statement – In USD
IFRS Income Statement – In USD Consolidated IFRS $ Million % of Revenue FY12 FY11 FY12 FY11 Revenue 10,171 8,187 100.00 100.00 Cost of revenue 5,510 4,481 54.17 54.73 Gross margin 4,661 3,706 45.83 45.27 SG & A expenses 1,855 1,407 18.25 17.19 Operating income 2,806 2,299 27.58 28.08 Other income (e
Slide 38: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR FY12 FY11 FY12 FY11 Employee cost 3,921 3,186 38.55 38.91 Fees to external consultants 454 310 4.47 3.79 Equipment & software 283 227 2.78 2.77 Depreciation 122 108 1.19 1.32 Travel 146 126 1.43 1.54 Communication 97 90 0.96 1.10 Facility expens
Slide 39: IFRS Income Statement – In USD
IFRS Income Statement – In USD Consolidated IFRS $ Million % of Revenue Q4 FY12 Q3 FY12 Q4 FY11 Q4 FY12 Q3 FY12 Q4 FY11 Revenue 2,648 2,586 2,245 100.00 100.00 100.00 Cost of revenue 1,413 1,370 1,220 53.34 52.99 54.35 Gross margin 1,235 1,216 1,025 46.66 47.01 45.65 SG & A expenses 502 460 389 18.9
Slide 40: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q4 FY12 Q3 FY12 Q4 FY11 Q4 FY12 Q3 FY12 Q4 FY11 Employee cost 990 973 872 37.39 37.61 38.86 Fees to external consultants 135 111 88 5.11 4.30 3.94 Equipment & software 67 85 60 2.53 3.29 2.69 Depreciation 30 27 31 1.12 1.03 1.38 Travel 36 32 32
Slide 41: IFRS Balance Sheet in USD
IFRS Balance Sheet in USD 31-Mar-12 31-Mar-11 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,267 15.67 1,166 15.93 Intangible assets and Goodwill 686 - 8.48 764 - 10.44 Accounts Receivable 2,257 27.91 1,837 25.10 Unbilled Revenues 441 - 5.45 303 - 4.13 Investments 290 3.59
Slide 42: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q4 FY12 Q3 FY12 Q4 FY12 Q3 FY12 USD 50.07 51.07 59.49% 59.50% GBP 79.25 80.53 12.80% 12.44% EUR 66.17 68.88 7.41% 7.49% Others 20.30% 20.57% 100.00% 100.00% 23rd April 2012 42
Slide 43: Thank You
Thank You
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