Slides
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TCS Financial Results Quarter III Ended FY 2024-25 Jan 09, 2025
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Disclaimer 2 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 uncertainties include, but are not limited to our ability to, manage growth, intense competition among global IT services companies, various factors which may affect our profitability, such as wage increases or an appreciating Rupee, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on cross-border movement of skilled personnel, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which TCS has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. TCS may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and any forward- looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements.
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Q3 FY25 Performance Highlights 3 Revenue: - INR Revenue of ₹ 639,730 Mn, up 5.6% YoY - USD Revenue of $ 7,539 Mn, up 3.6% YoY - Constant currency revenue up 4.5% YoY Profit: - Operating Margin at 24.5% - Net Margin at 19.4% - Cash flow from operations at 105.3% of net profit Demand: - Clients $100M+ up by 3, $10M+ up by 17 & $5M+ up by 29 YoY - Order book TCV at $10.2 Bn; North America TCV at $5.9 Bn; BFSI TCV at $3.2 Bn, Consumer Business TCV at $1.3 Bn People: - Closing headcount: 607,354 - LTM attrition at 13.0% in IT Services
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Growth Summary (INR) 4 605,830 612,370 626,130 642,590 639,730 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Revenue ` Million 117,350 124,340 120,400 119,090 123,800 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Net Income ` Million 151,550 159,180 154,420 154,650 156,570 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Operating Income ` Million 4.0% 3.5% 5.4% 7.6% 5.6% 1.7% 2.2% 4.4% 5.5% 4.5% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Y-o-Y Growth Y-o-Y Growth CC 19.4% 20.3% 19.2% 18.5% 19.4% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Net margin (%) 25.0% 26.0% 24.7% 24.1% 24.5% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Operating margin (%) *Q3FY24 excludes settlement of legal claim
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19.4% 20.3% 19.2% 18.5% 19.4% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Net margin (%) Growth Summary (USD) 5 7,281 7,363 7,505 7,670 7,539 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Revenue $ Million 2.9% 2.3% 3.9% 6.4% 3.6% 1.7% 2.2% 4.4% 5.5% 4.5% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Y-o-Y Growth Y-o-Y Growth CC 1,821 1,914 1,851 1,846 1,844 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Operating Income $ Million 25.0% 26.0% 24.7% 24.1% 24.5% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Operating margin (%) 1,410 1,496 1,442 1,421 1,458 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Net Income $ Million * Q3FY24 excludes settlement of legal claim
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Operational Parameters
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Growth by Market 7 Geography (%) Q3 FY24 Q3 FY25 Y-o-Y CC Growth Americas North America 50.6 47.7 - 2.3 Latin America 2.1 1.9 7.0 Europe UK 16.4 16.6 4.1 Continental Europe 15.0 13.9 - 1.5 Asia Pacific 7.8 7.8 5.8 India 6.1 9.8 70.2 MEA 2.0 2.3 15.0 Total 100.0 100.0 4.5
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Growth by Domain 8 Vertical (%) Q3 FY24 Q3 FY25 Y-o-Y CC Growth BFSI 31.7 30.5 0.9 Consumer Business 15.7 15.3 1.1 Life Sciences & Healthcare 10.9 10.1 - 4.3 Manufacturing 8.7 8.4 0.4 Technology & Services 8.4 8.0 - 0.4 Communication & Media 6.7 5.8 - 10.6 Energy, Resources and Utilities 5.7 5.6 3.4 Regional Markets & Others 12.2 16.3 40.9 Total 100.0 100.0 4.5
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*Last Twelve Months' services revenues Client Parameters 9 US$ 1m+ Clients 1288 1309 US$ 5m+ Clients 693 722 US$ 10m+ Clients 480 497 US$ 20m+ Clients 299 294 US$ 50m+ Clients 137 134 US$ 100m+ Clients 61 64 Clients Contribution Q3 FY24 Q3 FY25
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Human Resources
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11 Total Employee Base Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 603,305 601,546 606,998 612,724 607,354 Attrition*: • 13.0% (LTM), IT Services Diversity: • 35.3 % Women employees • 152 Nationalities *Excluding Subsidiaries Talent Development: • 40.1Mn Learning Hrs YTD (FY25) • 3.8Mn competencies acquired (FY25) • 474K high demand competencies acquired YTD (FY25)
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Annexure
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IFRS Income Statement 13 Ex Adj* Reported Ex Adj* Reported Revenue 605,830 605,830 639,730 100.00 100.00 100.00 Cost of revenue 358,710 358,710 391,390 59.21 59.21 61.19 Gross margin 247,120 247,120 248,340 40.79 40.79 38.81 SG & A expenses 95,570 105,150 91,770 15.78 17.36 14.35 Operating income 151,550 141,970 156,570 25.01 23.43 24.46 Other income (expense), net 7,150 6,320 10,090 1.18 1.05 1.58 Income before income taxes 158,700 148,290 166,660 26.19 24.48 26.04 Income taxes 40,960 37,320 42,220 6.76 6.16 6.59 Income after income taxes 117,740 110,970 124,440 19.43 18.32 19.45 Non-controlling interests 390 390 640 0.06 0.06 0.10 Net income 117,350 110,580 123,800 19.37 18.26 19.35 Earnings per share in ₹ 32.14 30.29 34.21 Q3 FY24Q3 FY24Consolidated IFRS Q3 FY25 Q3 FY25 ₹ Million % of Revenue * excludes settlement of legal claim
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COR – SG&A Details 14 Ex Adj* Reported Ex Adj* Reported Employee cost 269,500 269,500 283,860 44.48 44.48 44.37 Fees to external consultants 37,200 37,200 28,120 6.14 6.14 4.40 Equipment and software 11,730 11,730 35,190 1.94 1.94 5.50 Facility expenses 4,800 4,800 5,460 0.79 0.79 0.85 Depreciation 9,510 9,510 10,780 1.57 1.57 1.69 Travel 4,840 4,840 5,470 0.80 0.80 0.86 Communication 3,550 3,550 4,050 0.59 0.59 0.63 Other expenses 17,580 17,580 18,460 2.90 2.90 2.89 Cost of Revenue 358,710 358,710 391,390 59.21 59.21 61.19 Ex Adj* Reported Ex Adj* Reported Employee cost 77,720 77,720 75,700 12.83 12.83 11.83 Fees to external consultants 2,510 2,510 1,570 0.41 0.41 0.25 Facility expenses 3,070 3,070 3,270 0.51 0.51 0.51 Depreciation 2,820 2,820 2,980 0.46 0.46 0.47 Travel 1,990 1,990 1,820 0.33 0.33 0.29 Communication 2,100 2,100 1,910 0.35 0.35 0.30 Provision for Doubtful Debts 220 220 410 0.04 0.04 0.06 Settlement of legal claim - 9,580 - - 1.58 - Other expenses 5,140 5,140 4,110 0.85 0.85 0.64 S G & A expens es 95,570 105,150 91,770 15.78 17.36 14.35 % of Revenue Q3 FY25 ₹ Million ₹ Million Q3 FY24 Q3 FY24 COR SG&A % of Revenue Q3 FY24 Q3 FY25 Q3 FY25 Q3 FY25 Q3 FY24 * excludes settlement of legal claim
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IFRS in ₹ Mn Q3 FY24 Q3 FY25 Net Cash from Operations 112,760 130,320 Capital Expenditure 9,240 7,260 Free Cash Flow 103,520 123,060 Dividends Paid 32,930 36,220 Buy Back (incl. expenses) 210,050 - Operating Cash Flow to Sales (%) 18.6 20.4 Operating Cash Flow to Net Profit (%) 102.0 105.3 Total Cash and Investments 457,310 623,490 Cash Flow Summary 15
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IFRS Statement of Financial Position 16 31-Mar-24 31-Dec-24 A ssets Property and equipment 112,240 112,670 Right-of-use Assets 78,860 93,050 Intangible assets and Goodwill 44,990 51,180 Accounts Receivable 445,610 522,220 Unbilled Revenues 153,000 145,470 Invested Funds 469,630 623,490 Other current assets 90,950 121,630 Other non current assets 90,440 94,630 ₹ Total as s ets 1,485,720 1,764,340 Liabilities and Shareholders' Equity Shareholders' Funds 926,120 1,116,110 Current liabilities 461,040 531,330 Non-current liabilities 90,260 107,650 Non-controlling interests 8,300 9,250 Total Liabilities 1,485,720 1,764,340 Consolidated IFRS ₹ Million Detailed financials are uploaded.
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Ex Adj* Reported Ex Adj* Reported Revenue 7,281 7,281 7,539 100.00 100.00 100.00 Cost of revenue 4,311 4,311 4,613 59.21 59.21 61.19 Gross margin 2,970 2,970 2,926 40.79 40.79 38.81 SG & A expenses 1,149 1,264 1,082 15.78 17.36 14.35 Operating income 1,821 1,706 1,844 25.01 23.43 24.46 Other income (expense), net 86 76 119 1.18 1.05 1.58 Income before income taxes 1,907 1,782 1,963 26.19 24.48 26.04 Income taxes 492 448 497 6.76 6.16 6.59 Income after income taxes 1,415 1,334 1,466 19.43 18.32 19.45 Non-controlling interests 5 5 8 0.06 0.06 0.10 Net income 1,410 1,329 1,458 19.37 18.26 19.35 Earnings per share in $ 0.39 0.36 0.40 Q3 FY25 $ Million % of Revenue Q3 FY25 Q3 FY24Consolidated IFRS Q3 FY24 IFRS Income Statement – In USD 17 * excludes settlement of legal claim
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Ex Adj* Reported Ex Adj* Reported Employee cost 3,239 3,239 3,345 44.48 44.48 44.37 Fees to external consultants 447 447 331 6.14 6.14 4.40 Equipment and software 141 141 415 1.94 1.94 5.50 Facility expenses 58 58 64 0.79 0.79 0.85 Depreciation 114 114 127 1.57 1.57 1.69 Travel 58 58 65 0.80 0.80 0.86 Communication 43 43 48 0.59 0.59 0.63 Other expenses 211 211 218 2.90 2.90 2.89 Cost of Revenue 4,311 4,311 4,613 59.21 59.21 61.19 Ex Adj* Reported Ex Adj* Reported Employee cost 934 934 892 12.83 12.83 11.83 Fees to external consultants 30 30 18.53 0.41 0.41 0.25 Facility expenses 37 37 39 0.51 0.51 0.51 Depreciation 34 34 35 0.46 0.46 0.47 Travel 24 24 21 0.33 0.33 0.29 Communication 25 25 22 0.35 0.35 0.30 Provision for Doubtful Debts 3 3 5 0.04 0.04 0.06 Settlement of legal claim - 115 - 1.58 - Other expenses 62 62 49 0.85 0.85 0.64 SG&A expens es 1,149 1,264 1,082 15.78 17.36 14.35 Q3 FY25 Q3 FY24 Q3 FY24 Q3 FY25 % of Revenue % of Revenue COR $ Million Q3 FY24 Q3 FY25 SG&A $ Million Q3 FY24 Q3 FY25 COR – SG&A Details – In USD 18 * excludes settlement of legal claim
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IFRS Statement of Financial Position in USD 19 31-Mar-24 31-Dec-24 A ssets Property and equipment 1,346 1,317 Right-of-use Assets 946 1,087 Intangible assets and Goodwill 539 598 Accounts Receivable 5,343 6,099 Unbilled Revenues 1,834 1,698 Invested Funds 5,633 7,282 Other current assets 1,092 1,423 Other non current assets 1,083 1,106 Total as s ets 17,816 20,610 Liabilities and Shareholders' Equity Shareholders' Funds 11,104 13,035 Current liabilities 5,529 6,206 Non-current liabilities 1,082 1,258 Non-controlling interests 101 111 Total Liabilities 17,816 20,610 $ Million Consolidated IFRS Detailed financials are uploaded.
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Ex Adj* Reported Ex Adj* Reported Revenue 60,583 60,583 63,973 100.00 100.00 100.00 Expenditure a) Employee Costs 34,722 34,722 35,956 57.31 57.31 56.21 b) Cost of equipment and software licences 1,173 1,173 3,519 1.94 1.94 5.50 c) Other Operating expenses 8,300 8,300 7,464 13.70 13.70 11.67 d) Depreciation 1,233 1,233 1,377 2.04 2.04 2.15 Total Expenditure 45,428 45,428 48,316 74.99 74.99 75.53 Profit Before Taxes, Other Income & Exceptional Items 15,155 15,155 15,657 25.01 25.01 24.47 Settlement of legal claim - 958 - - 1.58 - Profit Before Taxes & Other Income 15,155 14,197 15,657 25.01 23.43 24.47 Other income (expense), net 715 632 1,009 1.18 1.05 1.58 Profit Before Taxes 15,870 14,829 16,666 26.19 24.48 26.05 Provision For Taxes 4,096 3,732 4,222 6.76 6.16 6.60 Profit After Taxes & Before Non-controlling interests 11,774 11,097 12,444 19.43 18.32 19.45 Non-controlling interests 39 39 64 0.06 0.06 0.10 Net Profit 11,735 11,058 12,380 19.37 18.26 19.35 Earnings per share in ₹ 32.14 30.29 34.21 Consolidated Ind AS ₹ Crore % of Revenue Q3 FY24 Q3 FY25 Q3 FY25 Q3 FY24 Ind AS Income Statement - Consolidated 20 * excludes settlement of legal claim
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Ind AS Balance Sheet - Consolidated 21 31-Mar-24 31-Dec-24 Assets Property and equipment 10,940 10,907 Right-of-use Assets 7,886 9,305 Intangible assets and Goodwill 2,342 2,959 Accounts Receivable 44,561 52,222 Unbilled Revenues 15,300 14,547 Invested Funds 46,963 62,349 Other current assets 9,095 12,168 Other non current assets 9,362 9,854 Total Assets 146,449 174,311 Liabilities and Shareholders' Equity Shareholders' Funds 90,489 109,488 Current liabilities 46,104 53,133 Non-current liabilities 9,026 10,765 Non-controlling interests 830 925 Total Liabilities 146,449 174,311 Consolidated Ind AS ₹ Crore Detailed financials are uploaded.
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Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 USD 83.21 84.85 52.91% 49.43% GBP 104.24 107.72 14.35% 14.43% EUR 90.06 89.62 11.14% 10.64% Others 21.60% 25.50% Total 100.00% 100.00% Currency Average rates % of Revenue Currency mix and average realized rates in INR 22
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