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15th Jan 2010
Results for Quarter III FY 2009 - 10
15th Jan 2010 2
Disclaimer
Certain statements in this release concerning our future prospects are forward-lookingstatements. Forward-looking statements by their nature involve a number of risks anduncertainties 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 Indian and overseas IT services companies, various factorswhich may affect our cost advantage, such as wage increases or an appreciating Rupee,our ability to attract and retain highly skilled professionals, time and cost overruns onfixed-price, fixed-time frame contracts, client concentration, restrictions on immigration,our ability to manage our international operations, reduced demand for technology in ourkey focus areas, disruptions in telecommunication networks, our ability to successfullycomplete and integrate potential acquisitions, liability for damages on our servicecontracts, the success of the companies in which TCS has made strategic investments,withdrawal of governmental fiscal incentives, political instability, legal restrictions onraising capital or acquiring companies outside India, unauthorized use of our intellectualproperty and general economic conditions affecting our industry. TCS may, from time totime, make additional written and oral forward-looking statements, including our reportsto shareholders. These forward-looking statements represent only the Company’s currentintentions, beliefs or expectations, and any forward-looking statement speaks only as ofthe date on which it was made. The Company assumes no obligation to revise or updateany forward-looking statements.
15th Jan 2010
Financial Performance
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Indian GAAP Growth Summary
Total Income 7,649 7,435 7,277
% Growth Q-o-Q 2.87%
% Growth Y-o-Y 5.11%
PBIDT (before Other Income) 2,273 2,118 1,944
% Growth Q-o-Q 7.32%
% Growth Y-o-Y 16.94%
Profit After Tax 1,824 1,642 1,362
% Growth Q-o-Q 11.09%
% Growth Y-o-Y 33.94%
Consolidated Indian GAAP (INR Crore) Q3 FY10 Q2 FY10 Q3 FY09
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US GAAP Revenue Growth
Total Revenue 76,503 74,351 72,770
% Growth Q-o-Q 2.90%
% Growth Y-o-Y 5.13%
Revenue from International Business 70,025 68,351 67,854
% Growth Q-o-Q 2.45%
% Growth Y-o-Y 3.20%
Revenue from Indian Business 6,478 5,999 4,916
% Growth Q-o-Q 7.97%
% Growth Y-o-Y 31.76%
Consolidated US GAAP (INR Million) Q3 FY10 Q2 FY10 Q3 FY09
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US GAAP Growth Summary
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Operational Performance
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52.5%
4.9%
16.0%
10.4%
8.5%5.6% 2.1%
North America Ibero America
UK Continental Europe
India Asia Pacific
MEA
Americas
North America 52.5 52.5
Ibero America 4.9 5.0
Europe
UK 16.0 16.5
Continental Europe 10.4 10.6
India 8.5 8.1
Asia Pacific 5.6 5.4
MEA 2.1 1.9
Total 100.0 100.0
Geography (% ) Q3 FY10 Q2 FY10
Growth by Market
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45.0%
12.1%
12.0%
8.3%
5.0%
5.9%
3.4%3.4%
2.1%
2.8%
BFSI Telecom
Retail & Distribution Manufacturing
Hi-Tech Life Sciences & Healthcare
Travel & Hospitality Energy & Utilities
Media & Entertainment Others
Growth by Domain
BFSI 45.0 45.0
Telecom 12.1 12.0
Retail & Distribution 12.0 12.0
Manufacturing 8.3 8.7
Hi-Tech 5.0 4.8
Life Sciences & Healthcare 5.9 6.0
Travel & Hospitality 3.4 3.5
Energy & Utilities 3.4 2.8
Media & Entertainment 2.1 2.2
Others 2.8 3.0
Total 100.0 100.0
Q3 FY10IP Revenue (%) Q2 FY10
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49.1%
5.7%
10.5%
5.1%
4.9%7.9%
2.1%3.2%
11.5%
Application Development & Maint.Business IntelligenceEnterprise SolutionsAssurance ServicesEngineering & Industrial ServicesInfrastructure ServicesGlobal ConsultingAsset Leverage Solutions
Growth by Service Line
SP Revenue (%) Q3 FY10 Q2 FY10
IT Solutions and Services
Application Development & Maint. 49.1 49.6
Business Intelligence 5.7 5.7
Enterprise Solutions 10.5 10.3
Assurance Services 5.1 4.8
Engineering & Industrial Services 4.9 5.0
Infrastructure Services 7.9 8.0
Global Consulting 2.1 1.6
Asset Leverage Solutions 3.2 3.2
Business Process Outsourcing 11.5 11.8
Total 100.0 100.0
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Client Parameters
Clients Contribution *
Revenue %
Top 1 8.1 6.8
Top 5 21.5 20.5
Top 10 29.9 28.9
US$ 1 mln Clients 419 409
US$ 5 mln Clients 178 171
US$ 10 mln Clients 112 111
US$ 20 mln Clients 61 62
US$ 50 mln Clients 23 23
US$ 100 mln Clients 6 6
* Last Twelve Months
Q2 FY10Q3 FY10
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Operational Parameters
Onsite 42.5 42.7
GDC/RDC 6.2 6.2
Offshore 51.3 51.1
Time & Material 52.0 52.8
Fixed Price & Time 48.0 47.2
* Excluding Domestic Clients
Revenue % Q3 FY10 Q2 FY10
Contract Type
Delivery Location*
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Client Acquisition and Expansion
Particulars Q3 FY10 Q2 FY10
Active Clients 917 896
New Clients 32 30
Revenue % from Repeat Business 96.5 98.2
Revenue % from New Business * 3.5 1.8
* Reset at the beginning of Financial Year
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Key Wins
TCS awarded a $100 million, 5 year deal by a manufacturing major.
A UK government entity has chosen TCS to be its strategic ICT partner, to help drive
their mission-critical Strategic Transformational Change Program. The contract value
is about £150 million over its lifetime.
In deals totaling over Rs 450 crores, TCS has been selected by two Indian states as the
implementation partner for their Accelerated Power Development and Reform
Program.
A US based pharmaceutical company has awarded TCS a multi-million, multi-year
deal for managed services in its regulatory IT and discovery areas.
In a multi-year full services deal, a leading Specialty Retailer has selected TCS as its
strategic partner for its e-commerce transformation program.
TCS has been selected by a large global publishing company to manage end-to-end
publishing operations.
A global travel services company has awarded TCS a 7 year, multi-million dollar
ADM and managed services deal.
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Human Resources
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Q3 (FY10) Total Employee Base: 149,654
* CMC, WTI, TCS e-Serve, Diligenta & others are now shown under ‘Subsidiaries’
TCS Employees : 130,509
Overseas branches & subsidiaries: 9,782
Global/Regional Delivery Centers : 4,007
Subsidiaries* : 19,145
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Q3 (FY10) Gross Additions 11,377 & Net Additions 7,417
• Additions:• 8,239 Trainees & 2,249 Laterals in India; 889 in Overseas Branches
• Attrition: 11.5% (LTM), including BPO
• IT Services: 10.8% (LTM), BPO: 18.3% (LTM)
• Utilization Rate: 81.1% (excluding Trainees), 77.2% (including Trainees)
Q3 TCS Consolidated: Gross Additions : 12,854 & Net Additions : 7,692
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Diversity
Composition of International Workforce
• 30% of our workforce are women
• 58% of our associates have more than 3 years of work experience
• Associates from 78 nationalities
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Campus Hire Update for FY 11
5,625 technical offers made in Q3
77 institutes visited in Q3 FY 10
Day 1 slot in 96.1% campuses
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Annexure
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Indian GAAP Income Statement - Consolidated
INCOME
a) IT & Consultancy Services 7,445 7,199 7,063 97.34 96.82 97.06
b) Manufacturing, Sale of equipment and Licences 204 236 214 2.66 3.18 2.94
Total Income 7,649 7,435 7,277 100.00 100.00 100.00
EXPENDITURE
a ) Salaries & Wages 2,712 2,769 2,530 35.45 37.24 34.77
b ) Overseas business expenditure 1,184 1,110 1,327 15.47 14.92 18.23
c) Other operating expenses 1,480 1,438 1,476 19.36 19.35 20.29
Total Expenditure 5,376 5,317 5,333 70.28 71.51 73.29
Profit Before Interest, Depreciation, Taxes
& Other Income 2,273 2,118 1,944 29.72 28.49 26.71
Interest 4 4 11 0.05 0.05 0.14
Depreciation 168 166 147 2.20 2.23 2.02
Profit Before Taxes & Other Income 2,101 1,948 1,786 27.47 26.21 24.55
Other income (expense), net 66 (8) (172) 0.86 (0.11) (2.36)
Profit Before Taxes 2,167 1,940 1,614 28.33 26.10 22.19
Provision For Taxes 323 277 240 4.22 3.73 3.30
Profit After Taxes From Operations 1,844 1,663 1,374 24.11 22.37 18.89
Minority Interest (20) (21) (12) (0.26) (0.28) (0.16)
Net Profit 1,824 1,642 1,362 23.85 22.09 18.73
% of Total Income
Q3 FY10 Q2 FY10 Q3 FY09 Q3 FY10 Q2 FY10 Q3 FY09Consolidated Indian GAAP
INR Crore
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Indian GAAP Balance Sheet - Consolidated
31-Dec-09 31-Mar-09 31-Dec-09 31-Mar-09
Source of Funds
Shareholders' Funds 19,798 15,700 97.79 94.18
Minority Interest 331 277 1.64 1.66
Loan Funds 46 564 0.23 3.38
Deferred Tax Liability 70 129 0.34 0.77
Total Liabilities 20,245 16,670 100.00 100.00
Application of Funds
Fixed Assets (net) 4,396 4,190 21.71 25.13
Goodwill 3,267 3,261 16.14 19.56
Deferred Tax Asset 160 61 0.79 0.36
Investments 3,902 1,614 19.27 9.68
Cash and Bank Balance 3,360 2,698 16.60 16.19
Current Assets, Loans and Advances 10,940 10,814 54.04 64.87
Current Liabilities and Provisions (5,780) (5,968) (28.55) (35.80)
Net Current Assets 8,520 7,544 42.08 45.26
Total Assets 20,245 16,670 100.00 100.00
Consolidated Indian GAAPINR Crore %
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Revenue 76,503 74,351 72,770 100.00 100.00 100.00
Cost of revenue 40,959 40,311 40,304 53.54 54.22 55.39
Gross margin 35,544 34,040 32,466 46.46 45.78 44.61
SG & A expenses 14,656 14,509 14,446 19.16 19.51 19.85
Operating income 20,888 19,531 18,020 27.30 26.27 24.76
Other income (expense), net 569 (144) (1,847) 0.74 (0.19) (2.54)
Income before income taxes 21,457 19,387 16,173 28.04 26.08 22.22
Income taxes 3,241 2,909 2,480 4.24 3.91 3.41
Equity in net earnings of affiliates - - (1) - - (0.00)
Income after income taxes 18,216 16,478 13,692 23.80 22.17 18.81
Minority Interest 241 239 167 0.31 0.32 0.23
Net Income 17,975 16,239 13,525 23.49 21.85 18.58
INR INR INR
Earnings Per Share in INR 9.18 8.30 6.91
Q2 FY10Consolidated US GAAP
Q3 FY09
% of Revenue
Q3 FY10 Q3 FY09Q2 FY10 Q3 FY10
INR Million
US GAAP Income Statement
15th Jan 2010 24
COR – SG&A Details
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INR Million % INR Million %
Assets
Cash and Cash equivalents 11,380 4.35 14,839 6.49
Accounts Receivable 60,486 23.10 61,540 26.90
Unbilled Revenues 11,840 4.52 14,814 6.47
Other Current assets 42,079 16.07 31,860 13.93
Property & Equipment 39,834 15.21 37,490 16.39
Intangible assets and Goodwill 33,627 12.84 34,185 14.93
Investments 39,983 15.28 17,271 7.55
Other Non Current assets 22,605 8.63 16,803 7.34
Total assets 261,834 100.00 228,802 100.00
Liabilities and Shareholders' Equity
Current liabilities 55,691 21.27 57,387 25.08
Short term borrowings 14 0.01 5,157 2.25
Long term debt 2,948 1.13 2,762 1.21
Minority Interest 3,738 1.43 3,133 1.37
Other non-current liabilities 3,782 1.44 3,818 1.67
Shareholders' Funds 195,661 74.72 156,545 68.42
Total Liabilities 261,834 100.00 228,802 100.00
Consolidated US GAAP31-Dec-09 31-Mar-09
US GAAP Balance Sheet
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US GAAP Income Statement – In USD
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COR – SG&A Details – In USD
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US GAAP Balance Sheet in USD
USD Million % USD Million %
Assets
Cash and Cash equivalents 245 4.35 292 6.49
Accounts Receivable 1,300 23.10 1,213 26.90
Unbilled Revenues 254 4.52 292 6.47
Other Current assets 904 16.07 628 13.92
Property & Equipment 856 15.22 739 16.39
Intangible assets and Goodwill 723 12.84 674 14.94
Investments 859 15.27 340 7.55
Other Non Current assets 486 8.63 331 7.34
Total assets 5,627 100.00 4,509 100.00
Liabilities and Shareholders' Equity
Current liabilities 1,197 21.27 1,131 25.08
Short term borrowings 0 0.01 102 2.26
Long term debt 63 1.13 54 1.21
Minority Interest 80 1.42 62 1.36
Other non-current liabilities 81 1.44 75 1.67
Shareholders' Funds 4,206 74.73 3,085 68.42
Total Liabilities 5,627 100.00 4,509 100.00
Consolidated US GAAP31-Dec-09 31-Mar-09
15th Jan 2010 29
Thank You!
