TATA CONSULTANCY SERVICES LIMITED Registered Office : 9th Floor, Nirmal Building, Nariman Point, Mumbai 400021 PART I : Statement of Audited Consolidated Financial Results for the Quarter and Six months ended 2015 Six months ended Year ended March 31, (A s repo rted) 2015* 2014 2015 2014 2015 1 INCOME FROM OPERATIONS a) Information technology and consultancy services 2660080 2496111 2496111 2335965 5156191 4515249 9270170 b) Sale of equipment and software licenses (Net of excise) 56468 70700 70700 45683 127168 77502 194671 Total income from operations (net) 2716548 2566811 2566811 2381648 5283359 4592751 9464841 2 EXPENSES a) Employee benefits expense 1028471 997603 997603 905612 2026074 1758823 3870115 b) Overseas business expense 368774 357928 357928 339647 726702 667920 1336391 c) Services rendered by business associates and others 200209 174220 174220 163339 374429 296519 622025 d) Depreciation and amortisation expense 48501 47076 47076 44921 95577 86670 179869 e) Other expenses 339869 317545 317545 293010 657414 554194 1188139 Total expenses 1985824 1894372 1894372 1746529 3880196 3364126 7196539 3 PROFIT FROM OPERATIONS BEFORE OTHER INCOME, FINANCE COSTS, EXCEPTIONAL ITEM AND TAX (1-2) 730724 672439 672439 635119 1403163 1228625 2268302 4 OTHER INCOME (NET) 70242 74026 74026 66263 144268 144978 322991 5 PROFIT BEFORE FINANCE COSTS, EXCEPTIONAL ITEM AND TAX (3+4) 800966 746465 746465 701382 1547431 1373603 2591293 6 FINANCE COSTS 442 430 430 6649 872 7516 10419 7 PROFIT BEFORE EXCEPTIONAL ITEM AND TAX (5-6) 800524 746035 746035 694733 1546559 1366087 2580874 8 EXCEPTIONAL ITEM - - - - - 48975 48975 9 PROFIT BEFORE TAX (7+8) 800524 746035 746035 694733 1546559 1415062 2629849 10 TAX EXPENSE 189714 171950 171950 163506 361664 323371 623879 11 PROFIT AFTER TAX BUT BEFORE MINORITY INTEREST (9-10) 610810 574085 574085 531227 1184895 1091691 2005970 12 MINORITY INTEREST 2344 3020 5673 6799 5364 10495 20752 13 NET PROFIT FOR THE PERIOD (11-12) 608466 571065 568412 524428 1179531 1081196 1985218 14 Paid up equity share capital 19704 19704 19587 19587 19704 19587 19587 (Face Value : ` 1 per share) 15 Reserves excluding Revaluation Reserves 5043889 16 Basic and diluted earnings per share (in `) 30.88 28.98 29.02 26.78 59.86 55.20 101.35 17 Dividend per share (par value ` 1 each) Interim dividend on equity shares ( in `) 5.50 5.50 5.50 5.00 11.00 50.00 55.00 Final dividend on equity shares (in `) - - - - - - 24.00 Total dividend on equity shares (in `) 5.50 5.50 5.50 5.00 11.00 50.00 79.00 Total equity dividend percentage 550.00 550.00 550.00 500.00 1100.00 5000.00 7900.00 @ Adjusted for the effect of merger vide Note No. 3 ok * Excluding of the effect of merger vide Note No. 3
PART II: Selected Information for the quarter and six months ended 2015 (A) PARTICULARS OF SHAREHOLDING Particulars Six months ended Year ended March 31, 2015 2015 2014 2015 2014 2015 1 Total Public Shareholding * - Number of shares 511972869 511972869 511306869 511972869 511306869 511306869 - Percentage of shareholding 26.14 26.14 26.10 26.14 26.10 26.10 2 Promoters and promoter group Shareholding a) Pledged / Encumbered - Number of shares 28590000 28590000 28673232 28590000 28673232 28590000 total equity shareholding of promoter and promoter group) 1.98 1.98 1.98 1.98 1.98 1.98 total equity share capital of the company) 1.46 1.46 1.46 1.46 1.46 1.46 b) Non-Encumbered - Number of shares 1418165110 1418165110 1418747878 1418165110 1418747878 1418831110 total equity shareholding of promoter and promoter group) 98.02 98.02 98.02 98.02 98.02 98.02 total equity share capital of the company) 72.40 72.40 72.44 72.40 72.44 72.44 * Total Public Shareholding excludes 1,16,99,962 equity shares pending allotment to the shareholders of erstwhile CMC Limited. (B) Information on investors complaints for the 3 months ended 2015 Pending at the beginning of the quarter Received during the quarter Disposed of during the quarter Remaining unresolved at the end of the quarter 1 38 36 3
(C ) Consolidated Segment Information Six months ended Year ended March 31, (As reported) 2015* 2014 2015 2014 2015 REVENUE BY INDUSTRY PRACTICE Banking, Financial Services and Insurance 1099738 1040978 1040978 961150 2140716 1882933 3856566 Manufacturing 265040 254065 254065 240175 519105 429782 924245 Retail and Consumer Packaged Goods 375838 354524 354524 322087 730362 626348 1282901 Telecom, Media and Entertainment 294339 283607 283607 276822 577946 545518 1093355 Others 681593 633637 633637 581414 1315230 1108170 2307774 REVENUE FROM OPERATIONS 2716548 2566811 2566811 2381648 5283359 4592751 9464841 SEGMENT RESULTS Banking, Financial Services and Insurance 330472 310721 310721 283341 641193 560598 1059447 Manufacturing 72562 65184 65184 59063 137746 113452 222300 Retail and Consumer Packaged Goods 100590 91316 91316 89140 191906 180001 325449 Telecom, Media and Entertainment 82484 77892 77892 78776 160376 148973 277078 Others 190107 171381 170009 165817 361488 304460 548011 Total 776215 716494 715122 676137 1492709 1307484 2432285 Unallocable expenses (net) 45933 44485 43113 47667 90418 86375 174402 Operating income 730282 672009 672009 628470 1402291 1221109 2257883 Other income (net) 70242 74026 74026 66263 144268 144978 322991 PROFIT BEFORE EXCEPTIONAL ITEM AND TAX 800524 746035 746035 694733 1546559 1366087 2580874 Exceptional Item - - - - - 48975 48975 PROFIT BEFORE TAX 800524 746035 746035 694733 1546559 1415062 2629849 SEGMENT CAPITAL EMPLOYED As at As at As at As at As at Sept Sept March 31, (As reported) 2015* 2014 2015 Banking, Financial Services and Insurance 919596 894796 894796 855644 705735 Manufacturing 250237 242369 242369 239188 214834 Retail and Consumer Packaged Goods 321709 321318 321318 307425 276750 Telecom, Media and Entertainment 318378 326720 326720 334670 269721 Others 797251 771715 801331 761264 712142 2607171 2556918 2586534 2498191 2179182 Unallocable Assets (net) 3469097 3030164 3030164 2455912 2997070 Total Capital Employed (net) 6076268 5587082 5616698 4954103 5176252 The Group has identified business (industry practice) as its primary segment and geography as its secondary segment. Business segments comprise (1) banking, financial services and insurance, (2) manufacturing, (3) retail and consumer packaged goods, (4) telecommunication, media and entertainment and (5) others such as energy, resources and utilities, Hi-Tech, life science and healthcare, s-governance, travel, transportation and hospitality, products, etc. @ Adjusted for the effect of merger vide Note No. 3 * Excluding of the effect of merger vide Note No. 3
(A) TATA CONSULTANCY SERVICES LIMITED Registered Office : 9th Floor, Nirmal Building, Nariman Point, Mumbai 400021 (D) Audited Consolidated Statement of Assets and Liabilities as at 2015 EQUITY AND LIABILITIES 1 Shareholders' funds As at As at March 31, 2015 2015 a) Share Capital 19704 19587 b) Reserves and Surplus 6010997 5043889 Shareholders' funds 6030701 5063476 2 Minority Interest 45567 112776 3 Non- current Liabilities a) Long-term borrowings 9196 11427 b) Deferred tax liabilities (net) 38672 34296 c) Other long-term liabilities 81691 82502 d) Long-term provisions 30811 29787 Non- current liabilities 160370 158012 4 Current Liabilities (B) a) Short- term borrowings 64 18556 b) Trade payables 640777 883093 c) Other current liabilities 427694 364659 d) Short- term provisions 386648 765516 ASSETS 1 Non- current assets Current liabilities 1455183 2031824 TOTAL - EQUITY AND LIABILITIES 7691821 7366088 a) Fixed Assets 1235795 1231132 b) Goodwill on consolidation 184385 209322 c) Non- current investments 17550 16918 d) Deferred tax assets (net) 70676 59394 e) Long-term loans and advances 769996 915492 f) Other non-current assets 53227 52530 2 Current assets Non- current assets 2331629 2484788 a) Current investments 389799 149260 b) Inventories 2012 1607 c) Unbilled revenue 421842 382708 d) Trade receivables 2252290 2043794 e) Cash and bank balances 1741449 1855604 f) Short-term loans and advances 450816 414645 g) Other current assets 101984 33682 Current assets 5360192 4881300 TOTAL- ASSETS 7691821 7366088 0
Six months ended Year ended March 31, (As reported) 2015* 2014 2015 2014 2015 1 INCOME FROM OPERATIONS a) Information technology and consultancy services 2121554 1986932 1965867 1804271 4108486 3524100 7216074 b) Sale of equipment and software licenses (Net of excise) 42037 47960 41511 36234 89997 60248 141732 Total income from operations (net) 2163591 2034892 2007378 1840505 4198483 3584348 7357806 2 EXPENSES a) Employee benefits expense 727229 711906 700232 626067 1439135 1228551 2736832 b) Overseas business expense 332846 319390 318754 301524 652236 589960 1181763 c) Services rendered by business associates and others 161961 141141 140612 126223 303102 246747 504661 d) Depreciation and amortisation expense 38759 37487 36116 34071 76246 67597 139377 e) Other expenses 236107 213924 204712 196553 450031 380131 831730 Total expenses 1496902 1423848 1400426 1284438 2920750 2512986 5394363 3 PROFIT FROM OPERATIONS BEFORE OTHER INCOME, FINANCE COSTS, EXCEPTIONAL ITEM AND TAX (1-2) 666689 611044 606952 556067 1277733 1071362 1963443 4 OTHER INCOME (NET) 69790 95608 89364 86517 165398 166413 446673 5 TATA CONSULTANCY SERVICES LIMITED Registered Office : 9th Floor, Nirmal Building, Nariman Point, Mumbai 400021 Statement of Audited Standalone Financial Results for the Quarter and Six months ended 2015 PROFIT BEFORE FINANCE COSTS, EXCEPTIONAL ITEM AND TAX (3+4) 736479 706652 696316 642584 1443131 1237775 2410116 6 FINANCE COSTS 304 108 108 5814 412 6187 7957 7 PROFIT BEFORE EXCEPTIONAL ITEM AND TAX (5-6) 736175 706544 696208 636770 1442719 1231588 2402159 8 EXCEPTIONAL ITEM - - - - - 52776 52838 9 PROFIT BEFORE TAX (7+8) 736175 706544 696208 636770 1442719 1284364 2454997 10 TAX EXPENSE 166330 149062 147311 137602 315392 275509 529301 11 NET PROFIT FOR THE PERIOD (9-10) 569845 557482 548897 499168 1127327 1008855 1925696 12 Reserves excluding Revaluation Reserves 4522057 13 Basic and diluted earnings per share (in `) 28.92 28.29 28.02 25.48 57.21 51.51 98.31 @ Adjusted for the effect of merger vide Note No. 3 * Excluding of the effect of merger vide Note No. 3
Select explanatory notes to the Statement of Audited Financial Results for the Quarter and Six months ended 2015. 1. The audited consolidated financial results and the audited standalone financial results of the Company for the quarter and six months ended 2015 have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at its meeting held on October 13, 2015. 2. Other Income (consolidated) for the quarter and six months ended 2015 includes foreign exchange gain (net) of ` 20351 lakhs and a gain (net) of ` 40015 lakhs respectively (Previous period: gain (net) of ` 16440 lakhs and a gain (net) of ` 40411 lakhs respectively). 3. (a) In accordance with the Scheme of Amalgamation (Scheme) of the erstwhile CMC Limited with the Company as sanctioned by the Hon ble High Court of Judicature at Bombay vide its order dated August 14, 2015 and by the Hon ble High Court of Judicature at Hyderabad and Telangana vide its order dated July 20, 2015, the undertaking of CMC Limited has been transferred to and vested in the Company retrospectively with effect from April 1, 2015 (the appointed date). The Scheme came into effect on October 1, 2015. (b) Pursuant to the Scheme coming into effect, every public shareholder of CMC Limited holding fully paid up equity shares was allotted 79 Equity Shares of ` 1 each in the Company, credited as fully paid up for every 100 Equity Shares of ` 10 each fully paid up held in CMC Limited. Accordingly, 1,16,99,962 equity shares of ` 1 each has been allotted to the shareholders of CMC Limited on October 5, 2015. (c) Since the audited standalone financial results for the quarter and six months ended 2015 include the results of CMC Limited for the period, these results are not comparable with the standalone results for the quarter and six months ended 2014. The figures for the quarter ended 2015 in the audited standalone financial results have been restated to include the results of CMC Limited for the quarter ended 2015 and have been shown in a separate column to facilitate comparison with the audited standalone financial results for the quarter ended 2015. 4. On July 2015, Tata Consultancy Services Saudi Arabia was incorporated as a Limited Liability Company in the Kingdom of Saudi Arabia with Tata Consultancy Services Netherlands BV (a wholly owned subsidiary of the Company) holding 76% ownership and Saudi Desert Rose Holding BV (a subsidiary of General Electric Company) holding 24%. 5. The Board of Directors at its meeting held on October 13, 2015, has declared an interim dividend of ` 5.50 per equity share. 6. Previous period / years figures have been regrouped, wherever necessary. For and on behalf of the Board of Directors Mumbai October 13, 2015 N. Chandrasekaran CEO & Managing Director