TDCX’s full year 2023 revenue down 0.9%, or up 3.0% in constant currency terms¹
Full Year 2023 Financial Highlights2
-
Total revenue of
US$499.3 million , down 0.9% year-on-year, or up 3.0% in constant currency terms1, which included a 3.9% point negative impact of foreign exchange rates compared with the prior year -
Profit for the year was
US$91.1 million , up 14.5% year-on-year, primarily driven by cost optimization efforts, lower tax, higher interest income and a net reversal of equity settled share-based payment expense
Fourth Quarter 2023 Financial Highlights2
-
Total revenue of
US$120.4 million , down 10.1% year-on-year, or down 5.3% in constant currency terms1, which included a 4.8% point negative impact of foreign exchange rates compared with the prior year period -
Profit for the period was
US$24.2 million , up 27.8% year-on-year, primarily driven by cost optimization efforts, lower tax, higher interest income and a net reversal of equity settled share-based payment expense
Mr. Laurent Junique, Chief Executive Officer and Founder of
(US$ million2, except for %) |
FY 2022 |
FY 2023 |
% Change |
Q4 2022 |
Q4 2023 |
% Change |
Revenue |
503.7 |
499.3 |
-0.9% (+3.0% on a constant currency basis)1 |
134.0 |
120.4 |
-10.1% (-5.3% on a constant currency basis)1 |
Profit for the period |
79.6 |
91.1 |
+14.5% |
19.0 |
24.2 |
+27.8% |
Net profit margin (%) |
15.8% |
18.3% |
|
14.2% |
20.1% |
|
EBITDA 3 |
136.7 |
136.9 |
+0.1% |
32.4 |
35.6 |
+9.7% |
EBITDA Margins 3 (%) |
27.1% |
27.4% |
|
24.2% |
29.5% |
|
Adjusted EBITDA 3,4 |
150.2 |
131.0 |
-12.8% |
40.1 |
32.8 |
-18.3% |
Adjusted EBITDA Margins 3,4 (%) |
29.8% |
26.2% |
|
29.9% |
27.2% |
|
Adjusted Net Income 3,4 |
93.4 |
85.2 |
-8.7% |
25.5 |
21.2 |
-16.8% |
Business Highlights
Sustained client growth
-
Client count5 up 15% year-on-year, bringing total client count to 97 as of
December 31, 2023 , compared with 84 as ofDecember 31, 2022 - Newly launched clients in Q4 23 include a global digital payments company and a professional chauffeur portal
Improved revenue diversification
- Revenue from clients outside the top five rose 44% year-on-yearin FY 23
- Revenue mix from top five clients lowered to 73% in FY 23, from 81% in FY 22
Contribution from new geographies
- Revenue from new geographies6 was four times in FY 23 versus FY 22
Detailed Financial Information on the Form 6-K
Please refer to https://investors.tdcx.com/financials/quarterly-results/default.aspx for the detailed financial information contained in Form 6-K.
__________________
1 Revenue at constant currency is calculated by translating the revenue of our local subsidiaries in each period in the respective local functional currencies to the presentation currency of the Company and its subsidiaries, using the average currency conversion rates in effect during the comparable prior period, rather than at the actual currency conversion rates in effect during the current reporting period.
2 FX rate of
3 For a discussion of the use of non-IFRS financial measures, see “Non-IFRS Financial Measures”.
4 The reported amounts for Adjusted EBITDA and Adjusted Net Income for the three months and full year ended
5 “Client count” refers to launched campaigns that are revenue generating.
6 Refers to sites in
Webcast and Conference Call Information
The Company will not host a conference call to discuss the results. Please reach out to the Investor Relations or Public Relations contacts listed below with any questions.
About
TDCX’s commitment to delivering positive outcomes for our clients extends to its role as a responsible corporate citizen. Its Corporate Social Responsibility program focuses on positively transforming the lives of its people, its communities and the environment.
Convenience Translation
The Company’s financial information is stated in
Non-IFRS Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with IFRS, we use the following non-IFRS financial measures to help evaluate our operating performance:
“EBITDA” represents profit for the year/ period before interest expense, interest income, income tax expense and depreciation and amortization expense. “EBITDA margin” represents EBITDA as a percentage of revenue.
“Adjusted EBITDA” represents profit for the year/ period before interest expense, interest income, income tax expense, depreciation and amortization expense, acquisition-related professional fees, net foreign exchange gains or losses and equity-settled share-based payment expense (or net reversal) incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue.
“Adjusted Net Income” represents profit for the year/ period before acquisition-related professional fees, net foreign exchange gains or losses and equity-settled share-based payment expense (or net reversal) incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments.
Revenue at constant currency is calculated by translating the revenue of our local subsidiaries in each period in the respective local functional currencies to the presentation currency of the Company and its subsidiaries, using the average currency conversion rates in effect during the comparable prior period, rather than at the actual currency conversion rates in effect during the current reporting period.
We believe that EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Revenue at Constant Currency and Revenue Growth at Constant Currency help us to compare our operating performance on a consistent basis by removing the impact of items not directly resulting from our core operations, and thereby help us to identify underlying trends in our operating results, enhancing our understanding of past performance and future prospects.
We exclude items from Adjusted EBITDA and Adjusted Net Income, including acquisition-related professional fees, net foreign exchange gains or losses and equity-settled share-based payment expense (or net reversal) incurred in connection with our Performance Share Plan, as they are not indicative of our ongoing operating performance, and adjusting for such items is meaningful and useful to readers to understand the underlying performance of the business by eliminating the impact of certain items that may obscure trends in the underlying performance of the business.
The above non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or construed as an alternative to revenue, net income, or any other measure of performance or as an indicator of our operating performance. The non-IFRS financial measures presented here may not be comparable to similarly titled measures presented by other companies because other companies may calculate similarly titled measures differently. For more information on the non-IFRS financial measures, including full reconciliations to the nearest IFRS measure, please see the form 6-K section captioned “Non-IFRS Financial Measures” or the presentation slides.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
||||||||
For the three months ended |
||||||||
2023 |
|
2022 |
||||||
|
US$’000 |
S$’000 |
|
S$’000 |
||||
Revenue |
|
120,434 |
|
158,804 |
|
|
176,671 |
|
Employee benefits expense |
|
(74,472 |
) |
(98,199 |
) |
|
(114,810 |
) |
Depreciation and amortization expense |
|
(8,112 |
) |
(10,696 |
) |
|
(10,672 |
) |
Rental and maintenance expense |
|
(1,819 |
) |
(2,398 |
) |
|
(2,690 |
) |
Recruitment expense |
|
(1,943 |
) |
(2,562 |
) |
|
(3,404 |
) |
Transport and travelling expense |
|
(328 |
) |
(432 |
) |
|
(666 |
) |
Telecommunication and technology expense |
|
(2,411 |
) |
(3,179 |
) |
|
(3,271 |
) |
Interest expense |
|
(453 |
) |
(597 |
) |
|
(549 |
) |
Other operating expense (1) |
|
(5,039 |
) |
(6,644 |
) |
|
(9,472 |
) |
Share of profit from an associate |
|
- |
|
- |
|
|
4 |
|
Interest income |
|
2,666 |
|
3,515 |
|
|
1,426 |
|
Other operating income |
|
1,140 |
|
1,503 |
|
|
395 |
|
Profit before income tax |
|
29,663 |
|
39,115 |
|
|
32,962 |
|
Income tax expense |
|
(5,419 |
) |
(7,146 |
) |
|
(7,952 |
) |
Profit for the period |
|
24,244 |
|
31,969 |
|
|
25,010 |
|
Item that will not be reclassified to profit or loss: |
|
|
|
|
|
|||
Remeasurement of retirement benefit obligation |
|
(36 |
) |
(47 |
) |
|
924 |
|
Item that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|||
Exchange differences on translation of foreign operations |
|
(8,313 |
) |
(10,961 |
) |
|
(16,179 |
) |
Total comprehensive income for the period |
|
15,895 |
|
20,961 |
|
|
9,755 |
|
|
|
|
|
|
|
|||
Profit attributable to: |
|
|
|
|
|
|||
- Owners of |
|
24,242 |
|
31,967 |
|
|
25,010 |
|
- Non-controlling interests |
|
2 |
|
2 |
|
|
- |
|
|
|
24,244 |
|
31,969 |
|
|
25,010 |
|
|
|
|
|
|
|
|||
Total comprehensive income attributable to: |
|
|
|
|
|
|||
- Owners of |
|
15,893 |
|
20,959 |
|
|
9,755 |
|
- Non-controlling interests |
|
2 |
|
2 |
|
|
- |
|
|
|
15,895 |
|
20,961 |
|
|
9,755 |
|
|
|
|
|
|
||||
Basic earnings per share (in US$ or S$) (2) |
|
0.17 |
|
0.22 |
|
|
0.17 |
|
Diluted earnings per share (in US$ or S$) (2) |
|
0.17 |
|
0.22 |
|
|
0.17 |
|
_______________________________
(1) We reported foreign exchange gains or losses, as applicable, on a net basis for the relevant period under the “other operating expense” line item.
(2) Basic and diluted earnings per share
For the three months ended |
||
|
2023 |
2022 |
Weighted average number of ordinary shares for the purposes of basic earnings per share |
144,210,719 |
144,921,462 |
Weighted average number of ordinary shares for the purposes of diluted earnings per share |
144,210,719 |
144,921,462 |
The translation of Singapore Dollar amounts into United States Dollar amounts (“USD”) for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of
Comparison of the Three Months Ended
Revenue.
Our revenue decreased by 10.1% to
-
Our revenue from omnichannel CX solutions services decreased by 1.9% to
S$96.5 million (US$73.2 million ) fromS$98.5 million for the corresponding period of 2022 primarily impacted by lower volumes requirement by existing clients in the digital advertising and media and fintech sectors, buffered partially by increased demand by clients in the gaming, technology, travel and hospitality, e-commerce, fast-moving consumer goods verticals and new food delivery customer. -
Our revenue from sales and digital marketing services decreased by 12.1% to
S$43.0 million (US$32.6 million ) fromS$48.9 million for the same period of 2022 mainly attributed to declined volume requirements of existing campaign by key digital advertising clients and media and e-commerce sectors. -
Our revenue from content, trust and safety services decreased by 36.7% to
S$17.7 million (US$13.5 million ) fromS$28.1 million for the same period of 2022 primarily due to the contraction of volumes requirement by the digital advertising and media vertical client. -
Our revenue from our other service fees increased by 20.9% to
S$1.5 million (US$1.1 million ) fromS$1.2 million for the same period of 2022 primarily due to an expansion of existing campaigns.
The following table sets forth our service provided by amount for the three months ended
For the three months ended |
||||
2023 |
2022 |
|||
US$’000 |
S$’000 |
S$’000 |
||
Revenue by service |
||||
Omnichannel CX solutions |
73,216 |
96,542 |
|
98,452 |
Sales and digital marketing |
32,634 |
43,032 |
|
48,942 |
Content, trust and safety |
13,460 |
17,749 |
|
28,052 |
Other service fees # |
1,124 |
1,481 |
|
1,225 |
Total revenue |
120,434 |
158,804 |
|
176,671 |
# Other service fees comprise revenue from other business process services and revenue from other services.
Employee Benefits Expense.
Our employee benefits expense decreased by 14.5% to
Depreciation and Amortization Expense. Our depreciation and amortization expense remained stable during the two comparative periods.
Rental and Maintenance Expense
. Our rental and maintenance expenses decreased by 10.9% to
Recruitment Expense
. Our recruitment expense decreased by 24.7% to
Transport and Travelling Expense. Our transport and travelling expenses decreased by 35.1% to
Telecommunication and Technology Expense . Our telecommunication and technology expenses remained stable during the two comparative periods.
Interest Expense
. Our interest expense increased by 8.7% to
Other Operating Expense
. Our other operating expense decreased by 29.9% to
Share of Profit from an Associate
. This relates to our share of profit from an associated company in
Interest Income
. Our interest income increased by 146.5% to
Other Operating Income
. Our other operating income increased by 280.5% to
Profit Before Income Tax
. As a result of the foregoing, we achieved a profit before income tax of
Income Tax Expense
. Our income tax expense decreased by 10.1% to
Profit for the Period.
As a result of the foregoing, our profit for the period increased by 27.8% to
Exchange differences on translation of foreign operations
. Exchange differences on translation of foreign operations recognized in other comprehensive income was a loss of
Total Comprehensive Income for the Period
. As a result of the foregoing, our total comprehensive income for the period increased by 114.9% to
Additional Adjustments to Certain Non-IFRS Financial Measures
With effect from
Share Repurchase Program
On
Our proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades, and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations and its insider trading policy. Our board of directors will review the share repurchase program periodically and may authorize adjustment of its terms and size. All share repurchases are subject to and will be carried out, if at all, in accordance with applicable regulatory requirements.
From
NON-IFRS FINANCIAL MEASURES
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin, Adjusted EPS, revenue at constant currency, and revenue growth at constant currency are non-IFRS financial measures.
EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin
“EBITDA” represents profit for the period before interest expense, interest income, income tax expense, and depreciation and amortization expense. “EBITDA margin” represents EBITDA as a percentage of revenue. “Adjusted EBITDA” represents profit for the period before interest expense, interest income, income tax expense, depreciation and amortization expense, equity-settled share-based payment expense (or net reversal) incurred in connection with our Performance Share Plan, net foreign exchange gain or loss and acquisition-related professional fees. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue.
For the three months ended |
|||||||||||
2023 |
2022 (4) |
||||||||||
US$’000 |
S$’000 |
Margin |
S$’000 |
Margin |
|||||||
Revenue |
120,434 |
|
158,804 |
|
— |
|
|
176,671 |
|
— |
|
Profit for the period and net profit margin |
24,244 |
|
31,969 |
|
20.1 |
% |
|
25,010 |
|
14.2 |
% |
Adjustments for: |
|
|
|
|
|
|
|||||
Depreciation and amortization expense |
8,112 |
|
10,696 |
|
6.7 |
% |
|
10,672 |
|
6.0 |
% |
Income tax expense |
5,419 |
|
7,146 |
|
4.5 |
% |
|
7,952 |
|
4.5 |
% |
Interest expense |
453 |
|
597 |
|
0.4 |
% |
|
549 |
|
0.3 |
% |
Interest income |
(2,666 |
) |
(3,515 |
) |
(2.2 |
%) |
|
(1,426 |
) |
(0.8 |
%) |
EBITDA and EBITDA margin |
35,562 |
|
46,893 |
|
29.5 |
% |
|
42,757 |
|
24.2 |
% |
Adjustment: |
|
|
|
|
|
|
|||||
Equity-settled share-based payment (net reversal) / expense (1) |
(4,255 |
) |
(5,610 |
) |
(3.5 |
%) |
|
4,112 |
|
2.3 |
% |
Net foreign exchange loss (2) |
1,343 |
|
1,771 |
|
1.1 |
% |
|
6,025 |
|
3.4 |
% |
Acquisition-related professional fees (3) |
107 |
|
141 |
|
0.1 |
% |
|
— |
|
— |
|
Adjusted EBITDA and Adjusted EBITDA margin |
32,757 |
|
43,195 |
|
27.2 |
% |
|
52,894 |
|
29.9 |
% |
For the Full Year ended |
|||||||||||
2023 |
2022 (5) |
||||||||||
US$’000 |
S$’000 |
Margin |
S$’000 |
Margin |
|||||||
Revenue |
499,280 |
|
658,351 |
|
— |
|
|
664,120 |
|
— |
|
Profit for the period and net profit margin |
91,120 |
|
120,150 |
|
18.3 |
% |
|
104,938 |
|
15.8 |
% |
Adjustments for: |
|
|
|
|
|
|
|||||
Depreciation and amortization expense |
33,069 |
|
43,605 |
|
6.6 |
% |
|
39,731 |
|
6.0 |
% |
Income tax expense |
19,948 |
|
26,304 |
|
4.0 |
% |
|
37,049 |
|
5.5 |
% |
Interest expense |
1,651 |
|
2,177 |
|
0.3 |
% |
|
1,936 |
|
0.3 |
% |
Interest income |
(8,867 |
) |
(11,692 |
) |
(1.8 |
%) |
|
(3,348 |
) |
(0.5 |
%) |
EBITDA and EBITDA margin |
136,921 |
|
180,544 |
|
27.4 |
% |
|
180,306 |
|
27.1 |
% |
Adjustment: |
|
|
|
|
|
|
|||||
Equity-settled share-based payment (net reversal) / expense (1) |
(6,907 |
) |
(9,108 |
) |
(1.4 |
%) |
|
19,465 |
|
2.9 |
% |
Net foreign exchange gain (2) |
(323 |
) |
(426 |
) |
(0.1 |
%) |
|
(1,761 |
) |
(0.2 |
%) |
Acquisition-related professional fees (3) |
1,271 |
|
1,676 |
|
0.3 |
% |
|
— |
|
— |
|
Adjusted EBITDA and Adjusted EBITDA margin |
130,962 |
|
172,686 |
|
26.2 |
% |
|
198,010 |
|
29.8 |
% |
_______________________________
(1) Refer to equity-settled share-based payment expense (or net reversal) arising from TDCX Performance Share Plan.
(2) Refer to realized and unrealized losses or gains resulting from changes in exchange rates between the functional currency and the currency in which a foreign currency transaction is denominated, net of unrealized losses or gains resulting from change in fair value of derivatives. The amount of adjustment for net foreign exchange loss or gain previously reported in prior periods did not include unrealized losses or gains resulting from change in fair value of derivatives. In order to place the current disclosure in the appropriate context and enhance its comparability, similar adjustments have been made for net foreign exchange loss and net foreign exchange gain for the three months and full year ended
(3) Refer to fees incurred on third-party service providers in connection with a discontinued acquisition.
(4) The reported amounts for Adjusted EBITDA for the three months ended
(5) The reported amounts for Adjusted EBITDA for the full year ended
Adjusted Net Income and Adjusted Net Income margin
“Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense (or net reversal) incurred in connection with our Performance Share Plan, net foreign exchange gain or loss and acquisition-related professional fees, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue.
For the three months ended |
||||||||||
2023 |
2022 (4) |
|||||||||
US$’000 |
S$’000 |
Margin |
S$’000 |
Margin |
||||||
Profit for the period and net profit margin |
24,244 |
|
31,969 |
|
20.1 |
% |
|
25,010 |
14.2 |
% |
Adjustment for: |
|
|
|
|
|
|
||||
Equity-settled share-based payment (net reversal) / expense (1) |
(4,255 |
) |
(5,610 |
) |
(3.5 |
%) |
|
4,112 |
2.3 |
% |
Net foreign exchange loss (2) |
1,097 |
|
1,447 |
|
0.9 |
% |
|
4,466 |
2.5 |
% |
Acquisition-related professional fees (3) |
107 |
|
141 |
|
0.1 |
% |
|
— |
— |
|
Adjusted Net Income and Adjusted Net Income margin |
21,193 |
|
27,947 |
|
17.6 |
% |
|
33,588 |
19.0 |
% |
For the Full Year ended |
|||||||||||
2023 |
2022 (5) |
||||||||||
US$’000 |
S$’000 |
Margin |
S$’000 |
Margin |
|||||||
Profit for the period and net profit margin |
91,120 |
|
120,150 |
|
18.3 |
% |
|
104,938 |
|
15.8 |
% |
Adjustment for: |
|
|
|
|
|
|
|||||
Equity-settled share-based payment (net reversal) / expense (1) |
(6,907 |
) |
(9,108 |
) |
(1.4 |
%) |
|
19,465 |
|
2.9 |
% |
Net foreign exchange gain (2) |
(265 |
) |
(349 |
) |
(0.1 |
%) |
|
(1,291 |
) |
(0.2 |
%) |
Acquisition-related professional fees (3) |
1,271 |
|
1,676 |
|
0.3 |
% |
|
— |
|
— |
|
Adjusted Net Income and Adjusted Net Income margin |
85,219 |
|
112,369 |
|
17.1 |
% |
|
123,112 |
|
18.5 |
% |
_______________________________
(1) Refer to equity-settled share-based payment expense (or net reversal) arising from TDCX Performance Share Plan.
(2) Refer to realized and unrealized losses or gains resulting from changes in exchange rates between the functional currency and the currency in which a foreign currency transaction is denominated, net of unrealized losses or gains resulting from change in fair value of derivatives and net of tax effects. The amount of adjustment for net foreign exchange loss or gain previously reported in prior periods did not include unrealized losses or gains resulting from change in fair value of derivatives. In order to place the current disclosure in the appropriate context and enhance its comparability, similar adjustments have been made for net foreign exchange loss and net foreign exchange gain for the three months and full year ended
(3) Refer to fees incurred on third-party service providers in connection with a discontinued acquisition.
(4) The reported amounts for Adjusted Net Income for the three months ended
(5) The reported amounts for Adjusted Net Income for the full year ended
Adjusted EPS
“Adjusted EPS” represents earnings available to shareholders excluding the impact of equity-settled share-based payment expense (or net reversal), net foreign exchange gain or loss and acquisition-related professional fees.
Adjusted EPS is calculated as earnings available to shareholders excluding the impact of equity-settled share-based payment expense (or net reversal), net foreign exchange gain or loss and acquisition-related professional fees, divided by the diluted weighted-average number of shares outstanding.
For the three months ended |
|||||||||||||
|
2023 |
|
2022 (4) |
||||||||||
|
Amount |
Per Share |
Amount |
Per Share |
|
Amount |
Per Share |
||||||
|
US$’000 |
US$ |
S$’000 |
S$ |
|
S$’000 |
S$ |
||||||
Reported earnings available to shareholders and EPS |
24,242 |
|
0.17 |
|
31,967 |
|
0.22 |
|
|
25,010 |
0.17 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
||||||
Equity-settled share-based payment (net reversal) / expense (1) |
(4,255 |
) |
(0.03 |
) |
(5,610 |
) |
(0.04 |
) |
|
4,112 |
0.03 |
|
|
Net foreign exchange loss (2) |
1,097 |
|
0.01 |
|
1,447 |
|
0.01 |
|
|
4,466 |
0.03 |
|
|
Acquisition-related professional fees (3) |
107 |
|
—* |
141 |
|
—* |
|
— |
— |
|
|||
Adjusted earnings available to shareholders and Adjusted EPS |
21,191 |
|
0.15 |
|
27,945 |
|
0.19 |
|
|
33,588 |
0.23 |
|
For the Full Year ended |
|||||||||||||
|
2023 |
|
2022 (5) |
||||||||||
|
Amount |
Per Share |
Amount |
Per Share |
|
Amount |
Per Share |
||||||
|
US$’000 |
US$ |
S$’000 |
S$ |
|
S$’000 |
S$ |
||||||
Reported earnings available to shareholders and EPS |
91,076 |
|
0.63 |
|
120,092 |
|
0.83 |
|
|
104,936 |
|
0.72 |
|
Adjustments for: |
|
|
|
|
|
|
|
||||||
Equity-settled share-based payment (net reversal) / expense (1) |
(6,907 |
) |
(0.05 |
) |
(9,108 |
) |
(0.06 |
) |
|
19,465 |
|
0.13 |
|
Net foreign exchange gain (2) |
(265 |
) |
—* |
(349 |
) |
—* |
|
(1,291 |
) |
—* |
|||
Acquisition-related professional fees (3) |
1,271 |
|
0.01 |
|
1,676 |
|
0.01 |
|
|
— |
|
— |
|
Adjusted earnings available to shareholders and Adjusted EPS |
85,175 |
|
0.59 |
|
112,311 |
|
0.78 |
|
|
123,110 |
|
0.85 |
|
|
|
|
|
|
|
|
|
* Amount is immaterial on a per share basis.
_________________________
(1) Refer to equity-settled share-based payment expense arising from TDCX Performance Share Plan.
(2) Refer to realized and unrealized losses or gains resulting from changes in exchange rates between the functional currency and the currency in which a foreign currency transaction is denominated, net of unrealized losses or gains resulting from change in fair value of derivatives and net of tax effects. The amount of adjustment for net foreign exchange loss or gain previously reported in prior periods did not include unrealized losses or gains resulting from change in fair value of derivatives. In order to place the current disclosure in the appropriate context and enhance its comparability, similar adjustments have been made for net foreign exchange loss and net foreign exchange gain for the three months and full year ended
(3) Refer to fees incurred on third-party service providers in connection with a discontinued acquisition.
(4) The reported amounts for Adjusted EPS for the three months ended
(5) The reported amounts for Adjusted EPS for the full year ended
Revenue at Constant Currency and Revenue Growth at Constant Currency
Revenue at constant currency, which is revenue adjusted for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Revenue at constant currency is calculated by translating the revenue of our local subsidiaries in each period in the respective local functional currencies to TDCX Inc.’s and its consolidated subsidiaries’ (together, the “Group”) presentation currency, using the average currency conversion rates in effect during the comparable prior period (rather than at the actual currency conversion rates in effect during the current reporting period). Revenue growth at constant currency means the period-over-period change in revenue at constant currency compared against revenue in the prior period.
|
For the three months ended |
|
|
|
|
||
2023 |
2023 |
2022 |
|
|
|
|
|
|
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
As
|
At
|
As reported |
|
Revenue
|
Foreign
|
Revenue
|
|
|
|
|
|
|
|
|
Revenue |
158,804 |
167,318 |
176,671 |
|
(10.1)% |
4.8% |
(5.3)% |
|
For the Full Year ended |
|
|
|
|
||
2023 |
2023 |
2022 |
|
|
|
|
|
|
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
As
|
At
|
As reported |
|
Revenue
|
Foreign
|
Revenue
|
|
|
|
|
|
|
|
|
Revenue |
658,351 |
684,143 |
664,120 |
|
(0.9)% |
3.9% |
3.0% |
The Company has not reconciled non-IFRS forward-looking revenue growth at constant currency to its most directly comparable IFRS measure, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. The revenue growth outlook indicated for 2024 is calculated and presented at constant currency, as it would require unreasonable efforts to predict factors that are out of the Company’s control or are not readily predictable, such as currency exchange movements over the course of an entire year.
The Company uses revenue at constant currency and revenue growth at constant currency, which are supplemental non-IFRS financial measures, to provide better comparability of revenue trends period-over-period (without the impact of fluctuations in foreign currency exchange rates) because it is a global company that transacts business in multiple currencies and reports financial information in the Group’s functional reporting currency. Foreign currency exchange rate fluctuations affect the amounts reported by the Company in the Group’s functional reporting currency with respect to its foreign revenues. Generally, when the Group’s functional reporting currency dollar either strengthens or weakens against other currencies, revenue at constant currency rates and revenue growth at constant currency rates will be higher or lower than revenue and revenue growth reported at actual exchange rates.
The Company believes that non-IFRS financial measures such as EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin, Adjusted EPS, revenue at constant currency and revenue growth at constant currency help us to identify underlying trends in our operating results, enhancing our understanding of past performance and future prospects.
While the Company believes that such non-IFRS financial measures provide useful information to investors in understanding and evaluating the Company’s results of operations in the same manner as its management, the Company’s use of such non-IFRS financial measures have limitations as analytical tools and you should not consider these in isolation or as a substitute for analysis of the Company’s results of operations or financial condition as reported under IFRS.
TDCX’s non-IFRS financial measures do not reflect all items of income and expense that affect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-IFRS measures may differ from the non-IFRS information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-IFRS financial measures to the nearest IFRS performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the company’s financial information in its entirety and not rely on any single financial measure.
The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
||||||
|
For the Full Year ended |
|||||
|
2023 |
2022 |
||||
|
US$’000 |
S$’000 |
S$’000 |
|||
Revenue |
499,280 |
|
658,351 |
|
664,120 |
|
Employee benefits expense |
(321,986 |
) |
(424,571 |
) |
(436,350 |
) |
Depreciation and amortization expense |
(33,069 |
) |
(43,605 |
) |
(39,731 |
) |
Rental and maintenance expense |
(9,116 |
) |
(12,021 |
) |
(9,980 |
) |
Recruitment expense |
(7,666 |
) |
(10,109 |
) |
(14,201 |
) |
Transport and travelling expense |
(1,192 |
) |
(1,572 |
) |
(1,637 |
) |
Telecommunication and technology expense |
(10,394 |
) |
(13,705 |
) |
(11,822 |
) |
Interest expense |
(1,651 |
) |
(2,177 |
) |
(1,936 |
) |
Other operating expense (1) |
(15,161 |
) |
(19,991 |
) |
(14,699 |
) |
Share of profit from an associate |
- |
|
- |
|
139 |
|
Interest income |
8,867 |
|
11,692 |
|
3,348 |
|
Other operating income |
3,156 |
|
4,162 |
|
4,736 |
|
Profit before income tax |
111,068 |
|
146,454 |
|
141,987 |
|
Income tax expenses |
(19,948 |
) |
(26,304 |
) |
(37,049 |
) |
Profit for the year |
91,120 |
|
120,150 |
|
104,938 |
|
Item that will not be reclassified to profit or loss: |
|
|
|
|||
Remeasurement of retirement benefit obligation |
(36 |
) |
(47 |
) |
924 |
|
Item that may be reclassified subsequently to profit or loss: |
|
|
|
|||
Exchange differences on translation of foreign operations |
(11,062 |
) |
(14,586 |
) |
(14,432 |
) |
Total comprehensive income for the year |
80,022 |
|
105,517 |
|
91,430 |
|
|
|
|
|
|||
Profit attributable to: |
|
|
|
|||
- Owners of the Group |
91,076 |
|
120,092 |
|
104,936 |
|
- Non-controlling interests |
44 |
|
58 |
|
2 |
|
|
91,120 |
|
120,150 |
|
104,938 |
|
|
|
|
|
|||
Total comprehensive income attributable to: |
|
|
|
|||
- Owners of the Group |
79,978 |
|
105,459 |
|
91,428 |
|
- Non-controlling interests |
44 |
|
58 |
|
2 |
|
|
80,022 |
|
105,517 |
|
91,430 |
|
|
|
|
||||
Basic earnings per share (in S$) (2) |
0.63 |
|
0.83 |
|
0.72 |
|
Diluted earnings per share (in S$) (2) |
0.63 |
|
0.83 |
|
0.72 |
|
_______________________________
(1) We reported foreign exchange gains or losses, as applicable, on a net basis for the relevant period under the “other operating expense” line item.
(2) Basic and diluted earnings per share
For the Full Year ended |
||
|
2023 |
2022 |
Weighted average number of ordinary shares for the purposes of basic earnings per share |
144,785,247 |
145,298,557 |
Weighted average number of ordinary shares for the purposes of diluted earnings per share |
144,825,713 |
145,298,557 |
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
|||||||
As of |
As of
|
||||||
US$’000 |
S$’000 |
S$’000 |
|||||
ASSETS |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|||
Cash and cash equivalents |
342,671 |
|
451,849 |
|
389,100 |
|
|
Fixed and pledged deposits |
- |
|
- |
|
6,551 |
|
|
Trade receivables |
81,711 |
|
107,744 |
|
88,808 |
|
|
Contract assets |
39,469 |
|
52,044 |
|
58,808 |
|
|
Other receivables |
10,706 |
|
14,117 |
|
15,885 |
|
|
Financial assets measured at fair value through profit or loss |
42,803 |
|
56,440 |
|
29,776 |
|
|
Income tax receivable |
194 |
|
256 |
|
354 |
|
|
Total current assets |
517,554 |
|
682,450 |
|
589,282 |
|
|
|
|
|
|
|
|||
Non-current assets |
|
|
|
|
|
||
Pledged deposits |
453 |
|
597 |
|
584 |
|
|
|
|
2,052 |
|
2,706 |
|
2,924 |
|
Other receivables |
4,870 |
|
6,421 |
|
5,019 |
|
|
Plant and equipment |
23,368 |
|
30,813 |
|
41,292 |
|
|
Right-of-use assets |
30,912 |
|
40,760 |
|
35,236 |
|
|
Deferred tax assets |
2,535 |
|
3,342 |
|
3,463 |
|
|
Total non-current assets |
64,190 |
|
84,639 |
|
88,518 |
|
|
Total assets |
581,744 |
|
767,089 |
|
677,800 |
|
|
|
|
|
|
|
|||
LIABILITIES AND EQUITY |
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
||
Trade payables (1) |
|
2,388 |
|
3,149 |
|
5,354 |
|
Accrued operating expenses (1) |
34,708 |
|
45,766 |
|
44,369 |
|
|
Lease liabilities |
20,306 |
|
26,775 |
|
17,818 |
|
|
Provision for reinstatement cost |
1,742 |
|
2,297 |
|
5,282 |
|
|
Income tax payable |
8,596 |
|
11,335 |
|
16,560 |
|
|
Total current liabilities |
67,740 |
|
89,322 |
|
89,383 |
|
|
|
|
|
|
|
|||
Non-current liabilities |
|
|
|
|
|
||
Lease liabilities |
12,773 |
|
16,843 |
|
20,644 |
|
|
Provision for reinstatement cost |
5,302 |
|
6,992 |
|
3,572 |
|
|
Defined benefit obligation |
1,918 |
|
2,529 |
|
1,497 |
|
|
Deferred tax liabilities |
896 |
|
1,182 |
|
852 |
|
|
Total non-current liabilities |
20,889 |
|
27,546 |
|
26,565 |
|
|
|
|
|
|
|
|||
Capital, reserves and non-controlling interests |
|
|
|
|
|
||
Share capital |
15 |
|
20 |
|
19 |
|
|
Reserves |
142,502 |
|
187,903 |
|
219,590 |
|
|
Retained earnings |
350,567 |
|
462,257 |
|
342,260 |
|
|
Equity attributable to owners of the Group |
493,084 |
|
650,180 |
|
561,869 |
|
|
Non-controlling interests |
31 |
|
41 |
|
(17 |
) |
|
Total equity |
493,115 |
|
650,221 |
|
561,852 |
|
|
|
|
|
|
|
|||
Total liabilities and equity |
581,744 |
|
767,089 |
|
677,800 |
|
The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of financial position above are included solely for the convenience of readers outside of
(1) As at
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS |
|||||||
For the Full Year ended |
|||||||
2023 |
|
2022 |
|||||
US$’000 |
S$’000 |
|
S$’000 |
||||
Operating activities |
|
|
|||||
Profit before income tax |
111,068 |
|
146,454 |
|
|
141,987 |
|
Adjustments for: |
|
|
|
|
|||
Depreciation and amortization expense |
33,069 |
|
43,605 |
|
|
39,731 |
|
Impairment loss on plant and equipment |
275 |
|
362 |
|
|
— |
|
Allowance on trade and other receivables |
— |
|
— |
|
|
104 |
|
Changes in fair value of financial assets at FVTPL |
(1,362 |
) |
(1,796 |
) |
|
— |
|
Equity-settled share-based payment (net reversal) / expense |
(6,907 |
) |
(9,108 |
) |
|
19,465 |
|
Provision for reinstatement cost |
— |
|
— |
|
|
387 |
|
Bank loan transaction cost |
33 |
|
43 |
|
|
50 |
|
Interest income |
(8,867 |
) |
(11,692 |
) |
|
(3,348 |
) |
Interest expense |
1,651 |
|
2,177 |
|
|
1,936 |
|
Retirement benefit service cost |
705 |
|
930 |
|
|
753 |
|
Loss on disposal and write-off of plant and equipment |
50 |
|
66 |
|
|
18 |
|
Share of profit from an associate |
— |
|
— |
|
|
(139 |
) |
Fair value gain on previously held equity interest |
— |
|
— |
|
|
(139 |
) |
Operating cash flows before movements in working capital |
129,715 |
|
171,041 |
|
|
200,805 |
|
|
|
|
|
||||
Trade receivables |
(16,276 |
) |
(21,462 |
) |
|
677 |
|
Contract assets |
3,680 |
|
4,852 |
|
|
(12,601 |
) |
Other receivables |
(195 |
) |
(257 |
) |
|
(6,611 |
) |
Trade payables and accrued operating expenses |
1,637 |
|
2,158 |
|
|
17,031 |
|
Cash generated from operations |
118,561 |
|
156,332 |
|
|
199,301 |
|
|
|
|
|
||||
Interest received |
8,867 |
|
11,692 |
|
|
3,348 |
|
Income tax paid |
(23,514 |
) |
(31,006 |
) |
|
(38,140 |
) |
Income tax refunded |
121 |
|
159 |
|
|
42 |
|
Net cash from operating activities |
104,035 |
|
137,177 |
|
|
164,551 |
|
|
|
|
|
||||
Investing activities |
|
|
|
|
|||
Purchase of plant and equipment |
(8,950 |
) |
(11,801 |
) |
|
(24,466 |
) |
Proceeds from sales of plant and equipment |
23 |
|
30 |
|
|
136 |
|
Payment for restoration of office |
(61 |
) |
(81 |
) |
|
— |
|
Placement of fixed deposits |
— |
|
— |
|
|
(154 |
) |
Withdrawal of fixed deposits |
4,796 |
|
6,324 |
|
|
1,900 |
|
Dividend income from associate |
— |
|
— |
|
|
161 |
|
Acquisition of a subsidiary, net of cash acquired |
— |
|
— |
|
|
(4,214 |
) |
Investment in financial assets measured at fair value through profit or loss |
(19,674 |
) |
(25,942 |
) |
|
(3,032 |
) |
Net cash used in investing activities |
(23,866 |
) |
(31,470 |
) |
|
(29,669 |
) |
|
|
|
|
||||
Financing activities |
|
|
|
|
|||
Dividends paid |
(30 |
) |
(39 |
) |
|
(39 |
) |
Drawdown of bank loan |
— |
|
— |
|
|
600 |
|
Repayment of lease liabilities |
(18,178 |
) |
(23,970 |
) |
|
(19,729 |
) |
Interest paid |
— |
|
— |
|
|
(215 |
) |
Repayment of bank loan |
— |
|
— |
|
|
(17,449 |
) |
Repurchase of American Depositary Shares |
(6,998 |
) |
(9,228 |
) |
|
(13,620 |
) |
Proceeds from issuance of shares |
— |
|
— |
|
|
1 |
|
Net cash used in financing activities |
(25,206 |
) |
(33,237 |
) |
|
(50,451 |
) |
|
|
|
|
|
|||
Net increase in cash and cash equivalents |
54,963 |
|
72,470 |
|
|
84,431 |
|
Effect of foreign exchange rate changes on cash held in foreign currencies |
(7,378 |
) |
(9,721 |
) |
|
(8,478 |
) |
Cash and cash equivalents at beginning of period |
295,086 |
|
389,100 |
|
|
313,147 |
|
Cash and cash equivalents at end of period |
342,671 |
|
451,849 |
|
|
389,100 |
|
The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of cash flows above are included solely for the convenience of readers outside of
View source version on businesswire.com: https://www.businesswire.com/news/home/20240306726798/en/
For enquiries, please contact:
Investors / Analysts:
investors@tdcx.com
Media:
eunice.seow@tdcx.com
Source: