TDCX Inc. (NYSE: TDCX) (“TDCX” or the “Company”), a leading
high-growth digital customer experience solutions provider for
technology and blue-chip companies, today announced its unaudited
financial results for the fourth quarter and full year ended
December 31, 2021.
Full Year 2021 Financial Highlights
- Achieved record Revenue, Profit for the year and Adjusted
EBITDA1,3
- Total revenue of US$410.7 million, representing 27.7%
year-on-year growth
- Profit for the period of US$76.8 million, representing 20.6%
year-on-year growth
- Adjusted EBITDA1,3 of US$136.9 million, representing 29.4%
year-on-year growth
- FY2021 Adjusted EBITDA margin1,3 of 33.3%, compared to 32.9%
for FY2020
Fourth Quarter 2021 Financial Highlights
- Total revenue of US$114.5 million, representing 28.8%
year-on-year growth
- Profit for the period of US$21.3 million, representing 7.0%
year-on-year growth. This included a US$3.9 million equity-settled
share-based payment expense under the TDCX Performance Share Plan,
which commenced in the fourth quarter of 2021
- Adjusted EBITDA1,3 of US$39.9 million, representing 26.1%
year-on-year growth
Mr. Laurent Junique, Chief Executive Officer and Founder of
TDCX, said, “We end the year on a high note with record revenue and
earnings. In 2021, we successfully listed on the New York Stock
Exchange, welcomed our highest number of new clients in a year from
high-growth sectors and delivered operationally by increasing
headcount by 30 per cent and expanding into new geographies.
“These achievements are the result of our unwavering commitment
and focus on pursuing long-term, quality growth. It is also a
testament to our ability to solve complex customer experience
challenges for new economy players and to help established firms
transform their customer experiences.
“We are confident that these factors provide us with an even
stronger foundation for growth. This is only the beginning of an
exciting journey for TDCX. We thank our stakeholders for their
continued support.”
FY2020
FY2021
% Change
Q4 2020
Q4 2021
% Change
Revenue
(US$ million)2
321.6
410.7
+27.7%
88.9
114.5
+28.8%
Profit for the Period (US$
million) 2
63.7
76.8
+20.6%
19.9
21.3
+7.0%
Adjusted EBITDA1,2,3
(US$ million)
105.7
136.9
+29.4%
31.6
39.9
+26.1%
Adjusted EBITDA
Margins1,3
(%)
32.9%
33.3%
35.6%
34.8%
Business Highlights
Accelerated Client Additions
- Added 20 new logos in FY2021, more than double the nine logos
added in FY2020
- 52 clients as at 31 December 2021, a 37% increase compared with
38 as at 31 December 2020
- Revenue contribution from new economy4 clients stood at 93.1%
for FY2021
Continued Geographic Expansion
- Opened new office in South Korea in Q4 2021, with three
projects launched
- Recognized maiden revenue contribution from Romania, India and
South Korea in Q4 2021
Full year 2022 Outlook
For the full year 2022, TDCX expects its financial results to
be:
2022 Outlook
Revenue (in millions)2
US$510 to US$519
or S$689 to S$702
Revenue growth (YoY) at
midpoint
25.3%
Adjusted EBITDA margin1,3
Approximately 30.0% to 32.0%
________________________
1 Adjusted EBITDA or Adjusted EBITDA
margins are supplemental non-IFRS financial measures and should not
be considered in isolation or as a substitute for financial results
reported under IFRS (see "Reconciliations of non-IFRS financial
measures to the nearest comparable IFRS measures" in the Form 6-K
or presentation slides for more details).
2 FX rate of US$1 = SG$1.3517 assumed in
converting financials from SG dollar to US dollar.
3 Adjusted EBITDA represents profit for
the period before interest expense, interest income, income tax
expense, depreciation expense and equity-settled share-based
payment expense incurred in connection with our Performance Share
Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a
percentage of revenue.
4 “new economy” refers to high growth
industries that are on the cutting edge of digital technology and
are the driving forces of economic growth
Webcast and Conference Call Information
The TDCX senior management will host a conference call to
discuss the fourth quarter and full year 2021 unaudited financial
results.
A live webcast of this conference call will be available on
TDCX’s website. Access information on the conference call and
webcast is as follows:
Date and time:
March 9, 2022, 7:30 AM (U.S. Eastern
Time)
March 9, 2022, 8:30 PM (Singapore / Hong
Kong Time)
Webcast link:
https://webinars.on24.com/q4/TDCXFourthQuarter2021
Dial in numbers:
USA Toll Free: +1 855 2656958
UK Toll Free +44 0 800 0156371
Singapore: +65 3158 0246
Hong Kong: +852 5808 0984
International: +1 718 7058796
A replay of the conference call will be available at TDCX’s
investor relations website (investors.tdcx.com). An archived
webcast will be available at the same link above.
About TDCX INC.
TDCX provides transformative digital CX solutions, enabling
world-leading and disruptive brands to acquire new customers, to
build customer loyalty and to protect their online communities.
TDCX helps clients achieve their customer experience aspirations
by harnessing technology, human intelligence and its global
footprint. It serves clients in fintech, gaming, technology, home
sharing and travel, digital advertising and social media, streaming
and e-commerce. TDCX’s expertise and strong footprint in Asia has
made it a trusted partner for clients, particularly high-growth,
new economy companies, looking to tap the region’s growth
potential.
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.
TDCX employs more than 14,000 employees across 26 campuses
globally, specifically Singapore, where it is headquartered,
Malaysia, Thailand, Philippines, Mainland China, Hong Kong, South
Korea, Japan, India, Romania, Spain and Colombia. For more
information, please visit: www.tdcx.com.
Convenience Translation
The Company’s financial information is stated in Singapore
dollars, the legal currency of Singapore. Unless otherwise noted,
all translations from Singapore dollars to U.S. dollars and from
U.S. dollars to Singapore dollars in this press release were made
at a rate of S$1.3517 to US$1.00, the approximate rate in effect as
of December 31, 2021. We make no representation that any Singapore
dollar or U.S. dollar amount could have been, or could be,
converted into U.S. dollars or Singapore dollar, as the case may
be, at any particular rate, the rate stated herein, or at all.
Non-IFRS Financial Measure
To supplement our consolidated financial statements, which are
prepared and presented in accordance with IFRS, we use the
following non-IFRS financial measure to help evaluate our operating
performance:
“EBITDA” represents profit for the year/period before interest
expense, interest income, income tax expense and depreciation
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 expense and equity-settled share-based payment expense
incurred in connection with our Performance Share Plan. “Adjusted
EBITDA margin” represents Adjusted EBITDA as a percentage of
revenue. We believe that EBITDA, EBITDA margin, Adjusted EBITDA and
Adjusted EBITDA margin help us to identify underlying trends in our
operating results, enhancing our understanding of past performance
and future prospects.
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, 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 U.S.
Private Securities Litigation Reform Act of 1995. In some cases,
you can identify these forward-looking statements by the use of
words such as “outlook,” “believes,” “expects,” “potential,”
“continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,”
“intends,” “trends,” “plans,” “estimates,” “anticipates” or the
negative version of these words or other comparable words. Among
other things, the outlook for the full year, the business outlook
and quotations from management in this announcement, as well as the
Company’s strategic and operational plans, contain forward-looking
statements. The Company may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company’s beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the performance of TDCX’s largest
clients; the successful implementation of its business strategy;
its ability to compete effectively; its ability to maintain its
pricing, control costs or continue to grow its business; the
effects of the novel coronavirus (COVID-19) on its business; the
continued service of its founder and certain of its key employees
and management; its ability to attract and retain enough highly
trained employees; its exposure to various risks in Southeast Asia;
its contractual relationship with key clients; clients and
prospective clients’ spending on omnichannel CX solutions; its
spending on employee salaries and benefits expenses; and its
involvement in any disputes, legal, regulatory, and other
proceedings arising out of its business operations. Further
information regarding these and other risks is included in the
Company’s filings with the SEC. All information provided in this
press release and in the attachments is as of the date of this
press release, and the Company undertakes no obligation to update
any forward-looking statement, except as required under applicable
law.
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT
OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Three Months ended
December 31,
2021
2020
US$’000
S$’000
US$’000
S$’000
Revenue
114,495
154,763
88,906
120,174
Employee benefits expense
(72,260)
(97,674)
(50,945)
(68,863)
Depreciation expense
(7,106)
(9,605)
(6,594)
(8,913)
Rental and maintenance
expense
(1,548)
(2,092)
(1,793)
(2,423)
Recruitment expense
(2,471)
(3,340)
(1,650)
(2,230)
Transport and travelling
expense
(352)
(476)
(172)
(232)
Telecommunication and technology
expense
(1,844)
(2,493)
(1,251)
(1,691)
Interest expense
(1,453)
(1,964)
(582)
(787)
Other operating expense
(1,885)
(2,548)
(3,086)
(4,171)
Share of profit from an
associate
17
23
145
196
Interest income
186
251
125
169
Other operating income
1,887
2,551
1,468
1,984
Profit before income
tax
27,666
37,396
24,571
33,213
Income tax expenses
(6,325)
(8,550)
(4,625)
(6,251)
Profit for the period
21,341
28,846
19,946
26,962
Item that will not be
reclassified to profit or loss:
Remeasurement of retirement
benefit obligation
204
276
(134)
(181)
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
(2,089)
(2,824)
(792)
(1,071)
Total comprehensive income for
the period
19,456
26,298
19,020
25,710
Profit
attributable to:
- Owners of the Group
21,341
28,846
19,947
26,964
- Non-controlling interests
-
-
(1)
(2)
21,341
28,846
19,946
26,962
Total
comprehensive income attributable to:
- Owners of the Group
19,456
26,298
19,021
25,711
- Non-controlling interests
-
-
(1)
(1)
19,456
26,298
19,020
25,710
Basic earnings per share (in US$
or S$)
0.15(1)
0.20(1)
0.16
0.22
Diluted earnings per share (in
US$ or S$)
0.15(1)
0.20(1)
0.16
0.22
______________________
(1) On October 1, 2021, we completed our
initial public offering ("IPO") of 19,358,957 American Depositary
Shares (“ADSs”), each representing one Class A ordinary share of
TDCX, and, on October 12, 2021, the underwriters exercised their
overallotment option in respect of 2,903,843 ADSs pursuant to the
option granted to the underwriters to purchase additional ADSs. On
August 26, 2021, we adopted the TDCX Performance Share Plan (the
“PSP”), which allows us to offer Class A ordinary shares or ADSs to
our employees, officers, executive directors and consultants. On
November 1, 2021, we issued awards to the first batch of
participants of the PSP. We started recognizing the related
equity-settled share-based payment expenses in the fourth quarter
of 2021. Our earnings per share for the three months ended December
31, 2021 and for the full year ended December 31, 2021 includes the
equity-settled share-based payment expenses under the PSP. As of
December 31, 2021, none of the awards have vested.
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT
OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Full Year ended December
31,
2021
2020
US$’000
S$’000
US$’000
S$’000
Revenue
410,741
555,198
321,612
434,723
Employee benefits expense
(251,301)
(339,683)
(190,860)
(257,985)
Depreciation expense
(29,484)
(39,853)
(24,462)
(33,065)
Rental and maintenance
expense
(7,274)
(9,832)
(7,844)
(10,603)
Recruitment expense
(8,052)
(10,884)
(5,922)
(8,005)
Transport and travelling
expense
(1,081)
(1,461)
(1,113)
(1,504)
Telecommunication and technology
expense
(6,530)
(8,826)
(4,664)
(6,305)
Interest expense
(6,225)
(8,414)
(2,262)
(3,058)
Other operating expense
(8,231)
(11,126)
(11,716)
(15,836)
Gain on disposal of a
subsidiary
-
-
541
731
Share of profit from an
associate
75
101
145
196
Interest income
402
544
439
594
Other operating income
4,672
6,315
5,559
7,514
Profit before income
tax
97,712
132,079
79,453
107,397
Income tax expenses
(20,889)
(28,237)
(15,760)
(21,303)
Profit for the period
76,823
103,842
63,693
86,094
Item that will not be
reclassified to profit or loss:
Remeasurement of retirement
benefit obligation
204
276
(134)
(181)
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
(4,809)
(6,500)
530
717
Total comprehensive income for
the period
72,218
97,618
64,089
86,630
Profit
attributable to:
- Owners of the Group
76,822
103,841
63,692
86,093
- Non-controlling interests
1
1
1
1
76,823
103,842
63,693
86,094
Total
comprehensive income attributable to:
- Owners of the Group
72,217
97,617
64,088
86,629
- Non-controlling interests
1
1
1
1
72,218
97,618
64,089
86,630
Basic earnings per share (in US$
or S$)
0.601
0.811
0.52
0.70
Diluted earnings per share (in
US$ or S$)
0.601
0.811
0.52
0.70
_____________________
(1) On October 1, 2021, we completed our IPO of 19,358,957 ADSs,
each representing one Class A ordinary share of TDCX, and, on
October 12, 2021, the underwriters exercised their overallotment
option in respect of 2,903,843 ADSs pursuant to the option granted
to the underwriters to purchase additional ADSs. On August 26,
2021, we adopted the TDCX Performance Share Plan (the “PSP”), which
allows us to offer Class A ordinary shares or ADSs to our
employees, officers, executive directors and consultants. On
November 1, 2021, we issued awards to the first batch of
participants of the PSP. We started recognizing the related
equity-settled share-based payment expenses in the fourth quarter
of 2021. Our earnings per share for the three months ended December
31, 2021 and for the full year ended December 31, 2021 includes the
equity-settled share-based payment expenses under the PSP. As of
December 31, 2021, none of the awards have vested.
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 Singapore and have been made at the rate of S$1.3517 to
US$1.00, the approximate rate of exchange at December 31, 2021.
Such translations should not be construed as representations that
the Singapore Dollar amounts could be converted into USD at that or
any other rate.
Comparison of the Three Months Ended December 31, 2021 and
2020
Revenue. Our revenues increased by 28.8% to S$154.8
million (US$114.5 million) for the three months ended December 31,
2021 from S$120.2 million for the three months ended December 31,
2020 primarily due to a 23.6% increase in revenue from providing
omnichannel Customer Experience (“CX”) solutions, and a 71.8%
increase in revenues from providing sales and digital marketing
services.
- Our revenues from omnichannel CX service solutions increased by
23.6% to S$96.1 million (US$71.1 million) from S$77.7 million for
the same period in 2020 primarily due to higher business volumes
driven by the expansion of existing campaigns. In addition,
business volumes of our top two travel and hospitality sector
clients benefited from the mild recovery from the impact of the
COVID-19 pandemic whereby our revenue grew by 16%, as compared to
the same period in 2020.
- Our revenues from sales and digital marketing services
increased by 71.8% to S$34.6 million (US$25.6 million) from S$20.2
million for the same period in 2020 primarily due to the expansion
of existing campaigns for our key clients in our digital
advertising and media vertical.
- Our revenues from content monitoring and moderation services
increased by 3.4% to S$21.7 million (US$16.0 million) from S$20.9
million for the same period last year primarily due to higher
business volumes from an existing client in our digital advertising
and media vertical.
- Our revenues from our other service fees increased by 80.0% to
S$2.4 million (US$1.8 million) from S$1.3 million for the same
period in 2020 primarily due to higher contribution from existing
and new clients.
The following table sets forth our service provided by amount
for the three months ended December 31, 2021 and 2020.
For the Three Months ended
December 31,
2021
2020
US$’000
S$’000
US$’000
S$’000
Revenue by service
Omnichannel CX solutions
71,076
96,074
57,509
77,735
Sales and digital marketing
25,622
34,632
14,916
20,162
Content monitoring and
moderation
16,025
21,660
15,495
20,945
Other service fees
1,772
2,397
986
1,332
Total revenue
114,495
154,763
88,906
120,174
Employee Benefits Expense. Our employee benefits expense
increased by 41.8% to S$97.7 million (US$72.3 million) from S$68.9
million for the same period in 2020 primarily tracking the increase
in staff force, equity-settled share-based payment expense arising
from the maiden implementation of our performance share plan (an
employee share award plan) in November 2021, employee compensation
adjustment with respect to individual employee performance and cost
of living, talent retention and recruitment, and recognition bonus
accorded to employees involved in the successful initial public
offering. Our average number of employees in the three months ended
December 31, 2021 increased 28.6% compared to the same period in
2020, as a result of business volumes expansion of current
campaigns in 2021 and staffing requirements of new campaign
launches in the second half of 2021.
Depreciation Expense. Our depreciation expense increased
by 7.8% to S$9.6 million (US$7.1 million) from S$8.9 million for
the same period in 2020 primarily due to depreciation on capital
expenditures invested in new and expansion capacities in India,
Colombia, Thailand and the Philippines to support the growth of our
business. In addition, there was increased depreciation on
renovations and right-of-use assets with respect to our property
leases in Spain and Japan to replace the co-working space
membership occupied previously. These were partially offset by
certain of our assets being fully depreciated during the
period.
Rental and Maintenance Expense. Our rental and
maintenance expense decreased by 13.7% to S$2.1 million (US$1.5
million) from S$2.4 million for the same period in 2020 primarily
due to the termination of certain co-working space memberships,
pursuant to the relocation of our operations to own leased and
fitted out office spaces.
Recruitment Expense. Our recruitment expense increased by
49.8% to S$3.3 million (US$2.5 million) from S$2.2 million for the
same period in 2020 primarily due to increased expenses relating to
higher referral and placement fees, and higher expenses associated
with immigration, work permits and onboarding of foreign employees
induced by COVID-19-related procedural regulations implemented by
governmental authorities of respective countries to support the
expansion of offshore campaigns in our Singapore, Philippines,
Malaysia and Thailand offices.
Transport and Travelling Expense. Our transport and
travelling expense increased by 105.2% to S$0.5 million (US$0.4
million) from S$0.2 million for the same period in 2020 primarily
due to listing-related travel expenditure.
Telecommunication and Technology Expense. Our
telecommunication and technology expense increased by 47.4% to
S$2.5 million (US$1.8 million) from S$1.7 million for the same
period in 2020 primarily due to business volume expansion of our
campaigns.
Interest Expense. Our interest expense increased by
149.6% to S$2.0 million (US$1.5 million) from S$0.8 million for the
same period in 2020 primarily due to the recognition of the
remaining unamortized term loan facility fees following the full
repayment of the loan on October 7, 2021.
Other Operating Expense. Our other operating expense
decreased by 38.9% to S$2.5 million (US$1.9 million) from S$4.2
million for the same period in 2020 primarily due to lower foreign
exchange losses suffered and the forfeiture of upfront deposits
paid by our subsidiary in Japan in the same period in 2020 due to
early termination of its co-working space membership commitment.
These were partially offset by increased premium expense related to
directors’ and officers’ liability insurance policy following the
initial public offering.
Share of Profit from an Associate. Share of profit from
an associate was negligible for the three months ended December 31,
2021 and for the three months ended December 31, 2020 and is
related to the recognition of the share of profit from an associate
in Hong Kong during the periods.
Other Operating Income. Our other operating income
increased by 28.6% to S$2.6 million (US$1.9 million) from S$2.0
million for the same period in 2020 primarily due to contribution
fee income from our share depositary.
Profit Before Income Tax. As a result of the foregoing,
our profit before income tax increased by 12.6% to S$37.4 million
(US$27.7 million) from S$33.2 million for the same period in
2020.
Income Tax Expenses. Our income tax expenses increased by
36.8% to S$8.6 million (US$6.3 million) from S$6.3 million for the
same period in 2020. The higher income tax expenses were mainly due
to higher taxable profits of several key subsidiaries, higher
dividend taxes from several subsidiaries, and lower tax-exempt
other income received by the Singapore operations in the three
months ended December 31, 2021 than for the same period in
2020.
Profit for the Period. As a result of the foregoing, our
profit for the period increased by 7.0% to S$28.8 million (US$21.3
million) from S$27.0 million for the same period in 2020.
Comparison of Years Ended December 31, 2020 and 2021
Revenue. Our revenues increased by 27.7% to S$555.2
million (US$410.7 million) for the year ended December 31, 2021
from S$434.7 million for the year ended December 31, 2020 primarily
due to a 22.3% increase in revenue from providing omnichannel CX
solutions and a 73.2% increase in revenues from providing sales and
digital marketing services.
- Our revenues from providing omnichannel CX solutions increased
by 22.3% to S$346.6 million (US$256.4 million) for the year ended
December 31, 2021 from S$283.4 million for the year ended December
31, 2020 primarily due to higher revenue from a key client in our
digital advertising and media vertical arising from the expansion
of its existing campaigns, and a sharp growth in business volumes
from a fintech client. During the same period, these gains were
partially offset by lower revenue from clients in the travel and
hospitality sector due to continuous uncertainties in the travel
industry caused by widespread outbreak of COVID-19 variants
throughout the year.
- Our revenues from providing sales and digital marketing
services increased by 73.2% to S$114.7 million (US$84.9 million)
for the year ended December 31, 2021 from S$66.2 million for the
year ended December 31, 2020 primarily due to revenue generated
from the expansion of campaigns for our key clients in our digital
advertising and media vertical.
- Our revenues from providing content monitoring and moderation
services increased by 7.1% to S$85.9 million (US$63.5 million) for
the year ended December 31, 2021 from S$80.2 million in the year
ended December 31, 2020 primarily due to higher regional
multilingual headcount required by a client in our digital
advertising and media vertical.
- Our revenues from our other service fees increased by 63.7% to
S$8.0 million (US$5.9 million) for the year ended December 31, 2021
from S$4.9 million for the year ended December 31, 2020 primarily
due to higher contribution from existing and new clients.
The following table sets forth our service provided by amount
for the year ended December 31, 2021 and 2020.
For the Full Year ended December
31,
2021
2020
US$’000
S$’000
US$’000
S$’000
Revenue by service
Omnichannel CX solutions
256,404
346,582
209,684
283,427
Sales and digital marketing
84,870
114,718
49,000
66,235
Content monitoring and
moderation
63,543
85,890
59,310
80,170
Other service fees
5,924
8,008
3,618
4,891
Total revenue
410,741
555,198
321,612
434,723
Employee Benefits Expense. Our employee benefits expense
increased by 31.7% to S$339.7 million (US$251.3 million) for the
year ended December 31, 2021 from S$258.0 million for the year
ended December 31, 2020 primarily due to the increase in employee
headcount to support business volume, equity-settled share-based
payment expense arising from the introduction, implementation of
our maiden performance share plan (an employee share award plan) in
November 2021 and general employee compensation adjustment with
respect to individual employee performance and cost of living,
talent retention and recruitment. Our average number of employees
in 2021 increased 28.6% from 2020, which grew in tandem with higher
business volume over the course of 2021 coupled with the
commencement of new client campaigns.
Depreciation Expense. Our depreciation expense increased
by 20.5% to S$39.9 million (US$29.5 million) for the year ended
December 31, 2021 from S$33.1 million for the year ended December
31, 2020 primarily due to depreciation on capital expenditure
invested in new and expansion capacities in India, Colombia,
Thailand and the Philippines to support the business growth. In
addition, there was increased depreciation on fit-out renovations
and right-of-use assets with respect to our new office property
leases onboarded in Spain and Japan to replace the co-working space
memberships occupied previously. The above increase was partially
reduced by certain of our renovation and equipment assets being
fully depreciated during the year.
Rental and Maintenance Expense. Our rental and
maintenance expenses decreased by 7.3% to S$9.8 million (US$7.3
million) for the year ended December 31, 2021 from S$10.6 million
for the year ended December 31, 2020 primarily due to the
termination of certain co-working space memberships in Japan and
Spain.
Recruitment Expense. Our recruitment expense increased by
36.0% to S$10.9 million (US$8.1 million) for the year ended
December 31, 2021 from S$8.0 million for the year ended December
31, 2020 primarily due to increased expenses relating to higher
referral and placement fees, higher expenses associated with
immigration, work permits and onboarding for foreign employees
induced by COVID-19-related procedural regulations implemented by
governmental authorities of respective countries to support
expanded campaigns in our Singapore, Japan, Thailand, Malaysia and
Philippines offices.
Transport and Travelling Expense. Our transport and
travelling expense decreased by 2.9% to S$1.5 million (US$1.1
million) for the year ended December 31, 2021 from S$1.5 million
for the year ended December 31, 2020.
Telecommunication and Technology Expense. Our
telecommunication and technology expense increased by 40.0% to
S$8.8 million (US$6.5 million) for the year ended December 31, 2021
from S$6.3 million for the year ended December 31, 2020 primarily
due to increased costs of telecommunications infrastructure and
software licenses to cope with business volume expansion in
existing and new campaigns.
Interest Expense. Our interest expense increased by
175.1% to S$8.4 million (US$6.2 million) for the year ended
December 31, 2021 from S$3.1 million for the year ended December
31, 2020 primarily due to the interest and facility fees incurred
on the S$252.7 million drawdown of a term loan credit facility on
March 23, 2021. The loan has since been fully paid down on October
7, 2021.
Other Operating Expense. Our other operating expenses
decreased by 29.7% to S$11.1 million (US$8.2 million) for the year
ended December 31, 2021 from S$15.8 million for the year ended
December 31, 2020 primarily due to transaction costs associated
with the initial public offering exercise that was aborted in April
2020 hence, expensed off in the year ended December 31, 2020, the
forfeiture of upfront deposits paid by our subsidiary in Japan due
to premature termination of the rental commitment and lower foreign
exchange loss, offset by higher spending on professional and
advisory fees.
Gain on Disposal of a Subsidiary. There was no disposal
of any subsidiary in the year ended December 31, 2021. In the year
ended December 31, 2020, we recognized a gain on disposal of a
subsidiary of S$0.7 million related to the disposal of a dormant
subsidiary in Indonesia.
Share of Profit from an Associate. Our share of profit
from an associate was insignificant for the year ended December 31,
2021 and for the year ended December 31, 2020.
Other Operating Income. Our other operating income
decreased by 16.0% to S$6.3 million (US$4.7 million) for the year
ended December 31, 2021 from S$7.5 million for the year ended
December 31, 2020 primarily due to lower government grants received
by our Singapore subsidiaries in relation to the COVID-19
pandemic.
Profit Before Income Tax. As a result of the foregoing,
our profit before income tax increased by 23.0% to S$132.1 million
(US$97.7 million) for the year ended December 31, 2021 from S$107.4
million for the year ended December 31, 2020.
Income Tax Expenses. Our income tax expenses increased by
32.5% to S$28.2 million (US$20.9 million) for the year ended
December 31, 2021 from S$21.3 million for the year ended December
31, 2020. The higher income tax expenses were mainly due to higher
taxable profits from several key operating subsidiaries, higher
dividend tax arising from increased distribution of taxable
dividend in 2021 from several subsidiaries, and lower tax-exempt
other income received by the Singapore operations in 2021 compared
to 2020.
Profit for the Year. As a result of the foregoing, our
profit for the year increased by 20.6% to S$103.8 million (US$76.8
million) for the year ended December 31, 2021 from S$86.1 million
for the year ended December 31, 2020.
Other Comprehensive Income. Our other comprehensive
income was a loss of S$6.2 million (US$4.6 million) for the year
ended December 31, 2021, compared to a gain of S$0.5 million for
the year ended December 31, 2020, primarily due to effects of
exchange rate differences on translation of foreign operations.
Total Comprehensive Income for the Year. As a result of
the foregoing, our total comprehensive income for the year
increased by 12.7% to S$97.6 million (US$72.2 million) for the year
ended December 31, 2021 from S$86.6 million for the year ended
December 31, 2020.
Adjustment to the reported September 30, 2021 Q3 Results of
Operations
In our unaudited condensed interim consolidated statements of
profit or loss and other comprehensive income for the three months
ended September 30, 2021 (Q3 financials as reported on our Form 6-K
filing on November 24, 2021), we had erroneously populated the
exchange differences on translation of foreign operations for the
three months ended September 30, 2021 with the cumulative exchange
differences on translation of foreign operations for the nine
months ended September 30, 2021. The exchange differences on
translation of foreign operations for the three months ended
September 30, 2021 should have been a loss of S$2,523,000 instead
of a loss of S$3,671,000 as previously reported and the total
comprehensive income should have been S$27,710,000 instead of
S$26,562,000 as previously reported. There is no change to the
amounts reported for the nine months ended September 30, 2021. This
amendment did not have a material impact on the Company's condensed
interim consolidated statements.
NON-IFRS FINANCIAL MEASURES
EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA
margin are non-IFRS financial measures. TDCX monitors EBITDA,
EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin because
they assist the Company in comparing its operating performance on a
consistent basis by removing the impact of items not directly
resulting from its core operations. “EBITDA” represents profit for
the year/period before interest expense, interest income, income
tax expense, and depreciation 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 expense, and
equity-settled share-based payment expense incurred in connection
with our Performance Share Plan. “Adjusted EBITDA margin”
represents Adjusted EBITDA as a percentage of revenue. The Company
believes that EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted
EBITDA margin help us to identify underlying trends in our
operating results, enhancing our understanding of past performance
and future prospects.
While the Company believes that EBITDA, EBITDA margin, Adjusted
EBITDA and Adjusted EBITDA margin 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 EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA
margin 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 or 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.
Reconciliation of non-IFRS financial measures to the nearest
comparable IFRS measures
For the Three Months ended
December 31,
2021
2020
US$’000
S$’000
Margin
US$’000
S$’000
Margin
Revenue
114,495
154,763
—
88,906
120,174
—
Profit for the period and net
profit margin
21,341
28,846
18.6%
19,946
26,962
22.4%
Adjustments:
Depreciation expense
7,106
9,605
6.2%
6,594
8,913
7.4%
Income tax expenses
6,325
8,550
5.5%
4,625
6,251
5.2%
Interest expense
1,453
1,964
1.3%
582
787
0.7%
Interest income
(186)
(251)
(0.2%)
(125)
(169)
(0.1%)
EBITDA and EBITDA margin
36,039
48,714
31.5%
31,622
42,744
35.6%
Adjustment:
Equity-settled share-based
payment expense
3,850
5,204
3.4%
—
—
—
Adjusted EBITDA and Adjusted
EBITDA margin
39,889
53,918
34.8%
31,622
42,744
35.6%
For the Full Year ended December
31,
2021
2020
US$’000
S$’000
Margin
US$’000
S$’000
Margin
Revenue
410,741
555,198
—
321,612
434,723
—
Profit for the period and net
profit margin
76,823
103,842
18.7%
63,693
86,094
19.8%
Adjustments for:
Depreciation expense
29,484
39,853
7.2%
24,462
33,065
7.6%
Income tax expenses
20,889
28,237
5.1%
15,760
21,303
4.9%
Interest expense
6,225
8,414
1.5%
2,262
3,058
0.7%
Interest income
(402)
(544)
(0.1%)
(439)
(594)
(0.1%)
EBITDA and EBITDA margin
133,019
179,802
32.4%
105,738
142,926
32.9%
Adjustment:
Equity-settled share-based
payment expense
3,850
5,204
0.9%
—
—
—
Adjusted EBITDA and Adjusted
EBITDA margin
136,869
185,006
33.3%
105,738
142,926
32.9%
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
Singapore and have been made at the rate of S$1.3517 to US$1.00,
the approximate rate of exchange at December 31, 2021. Such
translations should not be construed as representations that the
Singapore Dollar amounts could be converted into USD at that or any
other rate.
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
As of December 31, 2021
As of December 31, 2020
US$’000
S$’000
US$’000
S$’000
ASSETS
Current assets
Cash and cash equivalents
231,669
313,147
44,246
59,807
Fixed deposits
6,555
8,860
5,717
7,727
Trade receivables
68,477
92,561
27,313
36,919
Contract assets
36,521
49,365
34,654
46,842
Other receivables
9,780
13,220
9,068
12,257
Financial asset measured at fair
value through profit or loss
17,743
23,983
—
—
Income tax receivable
13
17
—
—
Total current assets
370,758
501,153
120,998
163,552
Non-current assets
Pledged deposits
337
456
1,759
2,377
Other receivables
3,530
4,771
4,346
5,874
Plant and equipment
29,377
39,709
30,022
40,581
Right-of-use assets
24,532
33,160
21,618
29,221
Deferred tax assets
1,437
1,943
1,169
1,580
Investment in an associate
235
318
169
229
Total non-current assets
59,448
80,357
59,083
79,862
Total assets
430,206
581,510
180,081
243,414
LIABILITIES AND EQUITY
Current liabilities
Other payables
28,924
39,096
27,521
37,200
Bank loans
10,244
13,847
17,881
24,170
Lease liabilities
10,764
14,550
10,849
14,664
Provision for reinstatement
cost
2,710
3,663
334
452
Income tax payable
10,886
14,715
9,808
13,257
Total current liabilities
63,528
85,871
66,393
89,743
Non-current
liabilities
Bank loans
2,192
2,963
11,938
16,136
Lease liabilities
15,803
21,361
13,186
17,823
Provision for reinstatement
cost
3,243
4,384
4,156
5,617
Defined benefit obligation
1,271
1,718
1,062
1,435
Deferred tax liabilities
1,115
1,507
95
129
Total non-current liabilities
23,624
31,933
30,437
41,140
Capital, reserves and
non-controlling interests
Share capital
14
19
*
*
Share premium
371,670
502,387
—
—
Reserves
(203,600)
(275,206)
(14,680)
(19,843)
Retained earnings
174,955
236,486
97,929
132,371
Equity attributable to owners of
the Group
343,039
463,686
83,249
112,528
Non-controlling interests
15
20
2
3
Total equity
343,054
463,706
83,251
112,531
Total liabilities and
equity
430,206
581,510
180,081
243,414
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 Singapore and have been made at
the rate of S$1.3517 to US$1.00, the approximate rate of exchange
at December 31, 2021. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH
FLOWS
For the Full Year ended December
31,
For the Full Year ended December
31,
2021
2020
US$’000
S$’000
US$’000
S$’000
Operating activities
Profit before income tax
97,712
132,079
79,453
107,397
Adjustments for:
Depreciation expense
29,484
39,853
24,462
33,065
Gain on early termination of
right-of-use assets
(21)
(29)
(127)
(171)
Reversal of loss allowance on
trade and other receivables
(1)
(2)
—
—
Equity-settled share-based
payment expense
3,850
5,204
—
—
Reinstatement cost
(5)
(7)
—
—
Bank loan transaction cost
308
416
40
54
Interest income
(402)
(544)
(439)
(594)
Interest expense
6,225
8,414
2,262
3,058
Retirement benefit service
cost
458
619
345
466
Loss on disposal and write-off of
plant and equipment
156
211
2
3
Rent concession
—
—
(385)
(521)
Gain on disposal of a
subsidiary
—
—
(541)
(731)
Share of profit from an
associate
(75)
(101)
(145)
(196)
Operating cash flows before
movements in working capital
137,689
186,113
104,927
141,830
Trade receivables
(42,171)
(57,003)
14,130
19,099
Contract assets
(2,959)
(4,000)
(14,843)
(20,063)
Other receivables
(497)
(672)
(3,704)
(5,007)
Other payables
3,360
4,542
7,032
9,505
Cash generated from
operations
95,422
128,980
107,542
145,364
Interest received
402
544
439
594
Income tax paid
(19,015)
(25,703)
(11,471)
(15,505)
Income tax refunded
3
4
23
31
Net cash from operating
activities
76,812
103,825
96,533
130,484
Investing activities
Purchase of plant and
equipment
(15,276)
(20,648)
(12,822)
(17,332)
Proceeds from sales of plant and
equipment
93
126
2
3
Payment for restoration of
office
(317)
(428)
—
—
Increase in fixed deposits
(928)
(1,255)
(5,079)
(6,865)
Increase in pledged deposits
1,397
1,888
(195)
(263)
Disposal of a subsidiary
—
—
(7)
(9)
Repayment from an associate
—
—
580
784
Dividend income from
associate
10
13
—
—
Investment in financial assets
measured at fair value through profit or loss
(17,633)
(23,835)
—
—
Net cash used in investing
activities
(32,654)
(44,139)
(17,521)
(23,682)
Financing activities
Dividends paid
—
—
(54,409)
(73,545)
Dividends paid to non-controlling
interests
(130)
(176)
—
—
Drawdown of bank loans
186,919
252,658
8,878
12,000
Distribution to founder
(186,456)
(252,033)
—
—
Repayment of lease
liabilities
(14,524)
(19,632)
(10,524)
(14,225)
Interest paid
(5,065)
(6,847)
(1,053)
(1,424)
Repayment of bank loan
(204,605)
(276,564)
(4,498)
(6,080)
Bank loan transaction cost
paid
(267)
(361)
—
—
Proceeds from issuance of
shares
371,685
502,406
—
—
Proceeds from capital call on
non-fully paid-up share capital from non-controlling interests
143
193
—
—
Net cash from (used in) financing
activities
147,700
199,644
(61,606)
(83,274)
Net increase in cash and cash
equivalents
191,858
259,330
17,406
23,528
Effect of foreign exchange rate
changes on cash held in foreign currencies
(4,435)
(5,990)
266
359
Cash and cash equivalents at
beginning of year
44,246
59,807
26,574
35,920
Cash and cash equivalents at
end of year
231,669
313,147
44,246
59,807
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 Singapore and have been made at
the rate of S$1.3517 to US$1.00, the approximate rate of exchange
at December 31, 2021. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220309005498/en/
For enquiries, please contact:
Investors / Analysts: Jason Lim +65-9799-6550
lim.jason@tdcx.com
Media: Eunice Seow +65-8432-8388 eunice.seow@tdcx.com
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