TDCX Inc. (NYSE: TDCX) (“TDCX” or the “Company”), an
award-winning digital customer experience (CX) solutions provider
for technology and blue-chip companies, today announced its
unaudited financial results for the second quarter ended June 30,
2022.
Second Quarter 2022 Financial Highlights
- Total Revenue of US$116.6 million, up 23.3% year-on-year
- Profit for the period was US$19.3 million, up 19.6%
year-on-year
- Adjusted Net Income4 of US$21.8 million, up 35.5%
year-on-year
- Adjusted EBITDA1,3 of US$36.1 million, up 23.0%
year-on-year
- Q2 2022 Adjusted EBITDA margin1,3 of 31.0%, compared with 31.1%
for Q2 2021
- Year-to-date Net Cash from Operating Activities of US$76.1
million, up 98.0% year-on-year
Mr. Laurent Junique, Chief Executive Officer and Founder of
TDCX, said, “Southeast Asia’s fundamentals remain attractive to
companies seeking long term growth. Given our established network,
local market expertise and robust talent pool, we continue to
attract and to support clients in realizing their growth ambitions
in this region.
“We continue to see our business development efforts take
flight, adding 25 new logos since the start of the year. Among our
new clients are two Southeast Asian market leaders, specifically a
leading regional airline and one of the region’s largest integrated
car e-commerce platforms. Such logo wins reflect our strengths in
this region and our deep sector expertise.”
(US$ million, except for
%)2
Q2 2021
Q2 2022
% Change
Revenue
94.5
116.6
+23.3%
Profit for the period
16.1
19.3
+19.6%
Adjusted Net Income4
16.1
21.8
+35.5%
Adjusted EBITDA1,3
29.3
36.1
+23.0%
Adjusted EBITDA
Margins1,3
(%)
31.1%
31.0%
Business Highlights
Strong Client Additions
- Signed up 25 new logos since the start of the year, more than
triple the 8 logos in H1 2021
- New logo wins in Q2 2022 include a leading regional airline, as
well as one of Southeast Asia’s largest integrated car e-commerce
platforms
- 60 clients with campaigns that have been launched as of June
30, 2022, a 40% increase as compared with 43 launched clients as of
June 30, 2021
- Revenue contribution from new economy5 clients stood at 93% for
H1 2022
Full Year 2022 Outlook Reiterated
For the full year 2022, TDCX expects its financial results to
be:
2022 Outlook
Revenue (in millions)
S$650m to S$675m6 (unchanged)
Revenue growth (YoY)
Range: 17.1% to 21.6% (unchanged)
Adjusted EBITDA margin1,3
Approximately 30.0% to 32.0%
(unchanged)
_______________________________
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 = S$1.3918 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
“Adjusted Net Income” represents profit
for the period before equity-settled share-based payment expense
incurred in connection with our Performance Share Plan, net of any
tax impact of such adjustments. “Adjusted Net Income margin”
represents Adjusted Net Income as a percentage of revenue.
5
“New economy” refers to high growth
industries that are on the cutting edge of digital technology and
are the driving forces of economic growth.
6
Full year 2022 Outlook remains unchanged
in Singapore dollars. This equates to US$467m to US$485m, using the
FX rate of US$1 = S$1.3918, being the approximate rate in effect as
of June 30, 2022. Previously, this was US$480m to US$499m, using
the FX rate of US$1 = S$1.3534m, being the approximate rate in
effect as of March 31, 2022.
Webcast and Conference Call Information
The TDCX senior management will host a conference call to
discuss the second quarter 2022 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:
August 24, 2022, 8:00 AM (U.S. Eastern
Time)
August 24, 2022, 8:00 PM (Singapore / Hong
Kong Time)
Webcast link:
https://webinars.on24.com/q4/TDCX_Q2_2022
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.
Singapore-headquartered 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 16,000 employees across 26 campuses
globally, specifically Singapore, 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$1.3918 to US$1.00, the approximate rate in effect as
of June 30, 2022. 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 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 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 helps us to identify underlying trends in our
operating results, enhancing our understanding of past performance
and future prospects.
“Adjusted Net Income” represents profit for the period before
equity-settled share-based payment expense incurred in connection
with our Performance Share Plan, net of any tax impact of such
adjustments. “Adjusted Net Income margin” represents Adjusted Net
Income as a percentage of revenue.
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 June
30,
2022
2021
US$’000
S$’000
S$’000
Revenue
116,580
162,256
131,565
Employee benefits expense
(75,704
)
(105,365
)
(80,672
)
Depreciation expense
(6,679
)
(9,296
)
(9,899
)
Rental and maintenance
expense
(1,707
)
(2,376
)
(2,839
)
Recruitment expense
(2,541
)
(3,536
)
(2,534
)
Transport and travelling
expense
(284
)
(395
)
(305
)
Telecommunication and technology
expense
(2,042
)
(2,842
)
(2,053
)
Interest expense
(338
)
(471
)
(2,826
)
Other operating expense
(1,450
)
(2,018
)
(3,341
)
Share of profit from an
associate
40
56
18
Interest income
303
422
90
Other operating income
653
909
1,017
Profit before income
tax
26,831
37,344
28,221
Income tax expenses
(7,576
)
(10,544
)
(5,805
)
Profit for the period
19,255
26,800
22,416
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
7,001
9,743
(1,041
)
Total comprehensive income for
the period
26,256
36,543
21,375
Profit
attributable to:
- Owners of TDCX Inc.
19,254
26,799
22,416
- Non-controlling interests
1
1
—
19,255
26,800
22,416
Total
comprehensive income attributable to:
- Owners of TDCX Inc.
26,255
36,542
21,375
- Non-controlling interests
1
1
—
26,256
36,543
21,375
Basic earnings per share (in US$
or S$) (1)
0.13
0.19
0.18
Diluted earnings per share (in
US$ or S$) (1)
0.13
0.19
0.18
_______________________________
(1) Basic and diluted earnings per
share
For the three months ended June
30,
2022
2021
Weighted average number of
ordinary shares for the purposes of basic earnings per share
145,596,995
123,500,000
Weighted average number of
ordinary shares for the purposes of diluted earnings per share
145,596,995
123,500,000
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$1.3918 to
US$1.00, the approximate rate of exchange at June 30, 2022. 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 June 30, 2022 and
2021
Revenue. Our revenues increased by 23.3% to S$162.3
million (US$116.6 million) for the three months ended June 30, 2022
from S$131.6 million for the three months ended June 30, 2021
primarily due to a 19.1% increase in revenue from providing
omnichannel Customer Experience (“CX”) solutions, and a 54.0%
increase in revenues from providing sales and digital marketing
services.
- Our revenues from omnichannel CX solutions increased by 19.1%
to S$95.3 million (US$68.5 million) from S$80.0 million for the
same period of 2021 primarily due to higher business volumes driven
by the expansion of existing campaigns by clients in the fintech
and technology verticals. In addition, business volumes of our top
two travel and hospitality vertical clients benefited from the
gradual recovery from the impact of the COVID-19 pandemic, although
the recovery has not reached pre-pandemic levels.
- Our revenues from sales and digital marketing services
increased by 54.0% to S$39.1 million (US$28.1 million) from S$25.4
million for the same period of 2021 primarily due to the expansion
of existing campaigns for our key clients in the digital
advertising and media vertical.
- Our revenues from content, trust and safety services increased
by 5.9% to S$27.0 million (US$19.4 million) from S$25.5 million for
the same period of 2021 primarily due to an increase in business
volumes from a client in the travel and hospitality vertical.
- Our revenues from our other service fees increased by 24.5% to
S$0.9 million (US$0.6 million) from S$0.7 million for the same
period of 2021 primarily due to higher business volumes from
existing clients and higher contribution from new clients.
The following table sets forth our service provided by amount
for the three months ended June 30, 2022 and 2021.
For the three months ended June
30,
2022
2021
US$’000
S$’000
S$’000
Revenue by service
Omnichannel CX solutions *
68,490
95,325
80,005
Sales and digital marketing
28,061
39,055
25,357
Content, trust and safety *
19,384
26,979
25,482
Other service fees * #
645
897
721
Total revenue
116,580
162,256
131,565
* In the second quarter of 2022, we have renamed our “content
monitoring and moderation” services as “content, trust and safety”
services and reclassified certain of our revenues from our
omnichannel CX solution services and our other service fees under
content, trust and safety services. Accordingly, we reclassified
our segment revenues for all periods presented herein on a
comparable basis except where otherwise noted. See “Segment
Reclassification” below.
# Other service fees comprise revenue from other business
process services and revenue from other services.
Employee Benefits Expense. Our employee benefits expense
increased by 30.6% to S$105.4 million (US$75.7 million) from S$80.7
million for the same period of 2021 due to higher employee count,
employee compensation adjustments pursuant to cost of living
inflation and the dynamics of the talent markets that we operate
in, and share-based payment expense arising from the implementation
of our performance share plan in November 2021. Our average number
of employees in the second quarter of 2022 increased 23.3% compared
to the same period of 2021 as a result of business volumes
expansion of current campaigns over the course of 2021 and first
quarter of 2022, and staffing requirements of new campaign launches
in the second half of 2021 and first quarter of 2022.
Depreciation Expense. Our depreciation expense decreased
by 6.1% to S$9.3 million (US$6.7 million) from S$9.9 million for
the same period of 2021 primarily due to certain office renovation
assets in Singapore, Thailand and Philippines being fully
depreciated during the period. These were partially offset by
depreciation on capital expenditures invested in new and expansion
capacities to support the growth of our business.
Rental and Maintenance Expense. Our rental and
maintenance expense decreased by 16.3% to S$2.4 million (US$1.7
million) from S$2.8 million for the same period of 2021 primarily
due to the termination of certain co-working space memberships in
Japan, pursuant to the relocation of our operations to leased and
fitted-out office spaces.
Recruitment Expense. Our recruitment expense increased by
39.5% to S$3.5 million (US$2.5 million) from S$2.5 million for the
same period of 2021 primarily due to accelerated hiring activities
contributing to higher hiring fees, and increased expenses related
to immigration, work permits and onboarding of foreign nationality
employees induced by COVID-19-related procedural regulations
implemented by governmental authorities of respective countries to
support the expansion of campaigns in our Malaysia, Thailand and
Japan offices.
Transport and Travelling Expense. Our transport and
travelling expense increased by 29.5% to S$0.4 million (US$0.3
million) from S$0.3 million for the same period of 2021 primarily
due to more business travel following the opening of borders in
many countries.
Telecommunication and Technology Expense. Our
telecommunication and technology expense increased by 38.4% to
S$2.8 million (US$2.0 million) from S$2.1 million for the same
period of 2021 primarily in tandem with business volume expansion
of our existing campaigns and new projects’ launches.
Interest Expense. Our interest expense decreased by 83.3%
to S$0.5 million (US$0.3 million) from S$2.8 million for the same
period of 2021 primarily due to reduced bank borrowings during the
period.
Other Operating Expense. Our other operating expense
decreased by 39.6% to S$2.0 million (US$1.5 million) from S$3.3
million for the same period of 2021 primarily due to higher foreign
exchange gains recognized, offset by increased legal and
professional fees.
Share of Profit from an Associate. Our share of profit
from an associate was insignificant for the three months ended June
30, 2022 and 2021.
Other Operating Income. Our other operating income
decreased by 10.6% to S$0.9 million (US$0.7 million) from S$1.0
million for the same period of 2021 primarily due to a decrease in
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 32.3% to S$37.3 million
(US$26.8 million) from S$28.2 million for the corresponding period
of 2021.
Income Tax Expenses. Our income tax expenses increased by
81.6% to S$10.5 million (US$7.6 million) from S$5.8 million for the
same period of 2021. The higher income tax expenses were mainly due
to higher taxes from our subsidiary in Malaysia as a result of a
one-off “prosperity tax” enacted by the local government for fiscal
2022, suspension of income tax holiday in our subsidiary in the
Philippines and higher taxable profits of our subsidiaries in the
Philippines and Thailand.
Profit for the Period. As a result of the foregoing, our
profit for the period increased by 19.6% to S$26.8 million (US$19.3
million) from S$22.4 million for the same period of 2021.
Share Repurchase Program
On March 14, 2022, we announced that the board of directors had
approved a US$30.0 million share repurchase program. The share
repurchase program commenced on March 14, 2022. The repurchase
program has no expiration date and may be suspended, modified or
discontinued at any time without prior notice. We expect to fund
repurchases under this program with our existing cash balance.
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. We did not make any repurchase of ADSs in the year ended
December 31, 2021.
From March 14, 2022 to March 31, 2022, we purchased 106,200 ADSs
at a cost of US$1.3 million under our share repurchase program.
From April 1, 2022 to June 30, 2022, we purchased 587,123 ADSs at a
cost of US$5.5 million. From July 1, 2022 to August 22, 2022, we
purchased 352,489 ADSs at a cost of US$3.0 million.
Segment Reclassification
In the second quarter of 2022, we have renamed our “content
monitoring and moderation” services as “content, trust and safety”
services. The change reflects the industry’s broader view that
content moderation services are part of a larger group of services
that includes other trust and safety related services and helps
enhance our ability to track our performance.
Our content, trust and safety services are comprised of content
moderating and monitoring services, trust and safety services and
data annotation services. Content moderation and monitoring service
involves the review of content submission for violation of terms of
use or non-compliant with the specifications and guidelines
provided by our clients. Trust and safety services entails our
dedicated and trained resources in assisting our clients to verify,
detect and prevent incidences fraudulent use of clients’ tools so
as to promote users’ confidence in using our clients’ platforms and
tools. Data annotation services provided by us serves to support
the development of our clients’ efforts in machine learning and
automation initiatives and projects.
Revenue for trust and safety related services that were
previously classified under omnichannel CX solutions and other
service fees respectively, which can currently be reasonably
identified and quantified, will now be reported as content, trust
and safety services.
The following table sets forth our services provided by amount
for the three months ended March 31, 2021, June 30, 2021, September
30, 2021, December 31, 2021 and March 31, 2022.
Before the change
For the three months ended
S$ ’000
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
Revenue by service
Omnichannel CX solutions
93,474
96,074
92,820
82,886
74,802
Sales and digital marketing
35,710
34,632
32,371
25,377
22,338
Content monitoring and
moderation
20,917
21,660
21,184
21,382
21,664
Other service fees#
2,322
2,397
2,422
1,920
1,268
Total revenue
152,423
154,763
148,797
131,565
120,072
After the change
For the three months ended
S$ ’000
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
Revenue by service
Omnichannel CX solutions
89,505
92,496
89,320
79,984
72,247
Sales and digital marketing
35,710
34,632
32,371
25,377
22,338
Content, trust and safety
26,408
26,822
26,377
25,482
24,857
Other service fees#
800
813
729
722
630
Total revenue
152,423
154,763
148,797
131,565
120,072
# Other service fees comprise revenue from other business
process services and revenue from other services.
NON-IFRS FINANCIAL MEASURES
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS
are non-IFRS financial measures. TDCX monitors EBITDA, EBITDA
margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net
Income, Adjusted Net Income margin and Adjusted EPS 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, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA
margin
“EBITDA” represents profit for the 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 period before
interest expense, interest income, income tax expense, depreciation
expenses, 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.
For the three months ended June
30,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Revenue
116,580
162,256
—
131,565
—
Profit for the period and net
profit margin
19,255
26,800
16.5%
22,416
17.0%
Adjustments for:
Depreciation expense
6,679
9,296
5.7%
9,899
7.5%
Income tax expenses
7,576
10,544
6.5%
5,805
4.4%
Interest expense
338
471
0.3%
2,826
2.1%
Interest income
(303)
(422)
(0.3%)
(90)
(0.1%)
EBITDA and EBITDA margin
33,545
46,689
28.8%
40,856
31.1%
Adjustment:
Equity-settled share-based
payment expense
2,574
3,582
2.2%
—
—
Adjusted EBITDA and Adjusted
EBITDA margin
36,119
50,271
31.0%
40,856
31.1%
For the six months ended June
30,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Revenue
226,095
314,679
—
251,637
—
Profit for the period and net
profit margin
35,210
49,005
15.6%
44,763
17.8%
Adjustments for:
Depreciation expense
13,545
18,852
6.0%
19,839
7.9%
Income tax expenses
13,147
18,298
5.8%
10,034
4.0%
Interest expense
688
958
0.3%
3,747
1.5%
Interest income
(495)
(689)
(0.2%)
(174)
(0.1%)
EBITDA and EBITDA margin
62,095
86,424
27.5%
78,209
31.1%
Adjustment:
Equity-settled share-based
payment expense
8,273
11,515
3.7%
—
—
Adjusted EBITDA and Adjusted
EBITDA margin
70,368
97,939
31.1%
78,209
31.1%
Adjusted Net Income and Adjusted Net Income margin
“Adjusted Net Income” represents profit for the period before
equity-settled share-based payment expense incurred in connection
with our Performance Share Plan, 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 June
30,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Profit for the period and net
profit margin
19,255
26,800
16.5%
22,416
17.0%
Adjustment for:
Equity-settled share-based
payment expense
2,574
3,582
2.2%
—
—
Adjusted Net Income and Adjusted
Net Income margin
21,829
30,382
18.7%
22,416
17.0%
For the six months ended June
30,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Profit for the period and net
profit margin
35,210
49,005
15.6%
44,763
17.8%
Adjustment for:
Equity-settled share-based
payment expense
8,273
11,515
3.7%
—
—
Adjusted Net Income and Adjusted
Net Income margin
43,483
60,520
19.2%
44,763
17.8%
Adjusted EPS
“Adjusted EPS” represents earnings available to shareholders
excluding the impact of equity-settled share-based payment expense.
Adjusted EPS is calculated as earnings available to shareholders
excluding the impact of equity-settled share-based payment expense
divided by our diluted weighted-average number of shares
outstanding.
For the three months ended June
30,
2022
2021
Amount
Per Share
Amount
Per Share
Amount
Per Share
US$’000
US$
S$’000
S$
S$’000
S$
Earnings available to
shareholders and EPS
19,254
0.13
26,799
0.19
22,416
0.18
Adjustments for:
Equity-settled share-based
payment expense
2,574
0.02
3,582
0.02
—
—
Earnings available to
shareholders after adjustments and Adjusted EPS
21,828
0.15
30,381
0.21
22,416
0.18
For the six months ended June
30,
2022
2021
Amount
Per Share
Amount
Per Share
Amount
Per Share
US$’000
US$
S$’000
S$
S$’000
S$
Earnings available to
shareholders and EPS
35,209
0.24
49,004
0.34
44,763
0.36
Adjustments for:
Equity-settled share-based
payment expense
8,273
0.06
11,515
0.08
—
—
Earnings available to
shareholders after adjustments and Adjusted EPS
43,482
0.30
60,519
0.42
44,763
0.36
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 and Adjusted EPS
help us to identify underlying trends in our operating results,
enhancing our understanding of past performance and future
prospects.
While the Company believes that the 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 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 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.
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$1.3918 to US$1.00,
the approximate rate of exchange at June 30, 2022. Such
translations should not be construed as representations that the
Singapore Dollar amounts could be converted into USD at that or any
other rate.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
For the six months ended June
30,
2022
2021
US$’000
S$’000
S$’000
Revenue
226,095
314,679
251,637
Employee benefits expense
(150,320
)
(209,215
)
(155,426
)
Depreciation expense
(13,545
)
(18,852
)
(19,839
)
Rental and maintenance
expense
(3,335
)
(4,642
)
(5,677
)
Recruitment expense
(4,559
)
(6,345
)
(4,515
)
Transport and travelling
expense
(420
)
(585
)
(533
)
Telecommunication and technology
expense
(3,931
)
(5,471
)
(3,920
)
Interest expense
(688
)
(958
)
(3,747
)
Other operating expense
(3,285
)
(4,572
)
(6,144
)
Share of profit from an
associate
53
74
43
Interest income
495
689
174
Other operating income
1,797
2,501
2,744
Profit before income
tax
48,357
67,303
54,797
Income tax expenses
(13,147
)
(18,298
)
(10,034
)
Profit for the period
35,210
49,005
44,763
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
6,199
8,627
(1,153
)
Total comprehensive income for
the period
41,409
57,632
43,610
Profit
attributable to:
- Owners of the Group
35,209
49,004
44,763
- Non-controlling interests
1
1
—
35,210
49,005
44,763
Total
comprehensive income attributable to:
- Owners of the Group
41,408
57,631
43,610
- Non-controlling interests
1
1
—
41,409
57,632
43,610
Basic earnings per share (in US$
or S$) (1)
0.24
0.34
0.36
Diluted earnings per share (in
US$ or S$) (1)
0.24
0.34
0.36
________________________________
(1) Basic and diluted earnings
per share
For the six months ended June
30,
2022
2021
Weighted average number of
ordinary shares for the purposes of basic earnings per share
145,670,692
123,500,000
Weighted average number of
ordinary shares for the purposes of diluted earnings per share
145,670,692
123,500,000
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$1.3918 to
US$1.00, the approximate rate of exchange at June 30, 2022. Such
translations should not be construed as representations that the
Singapore Dollar amounts could be converted into USD at that or any
other rate.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of June 30, 2022
As of December 31, 2021
US$’000
S$’000
S$’000
ASSETS
Current assets
Cash and cash equivalents
276,329
384,595
313,147
Fixed and pledged deposits
4,880
6,792
8,860
Trade receivables
48,786
67,900
92,561
Contract assets
40,142
55,869
49,365
Other receivables
10,412
14,492
13,220
Financial assets measured at fair
value through profit or loss
19,436
27,051
23,983
Income tax receivable
37
51
17
Total current assets
400,022
556,750
501,153
Non-current assets
Pledged deposits
432
601
456
Other receivables
3,366
4,685
4,771
Plant and equipment
25,312
35,229
39,709
Right-of-use assets
23,219
32,316
33,160
Deferred tax assets
1,556
2,166
1,943
Investment in an associate
282
392
318
Total non-current assets
54,167
75,389
80,357
Total assets
454,189
632,139
581,510
LIABILITIES AND EQUITY
Current liabilities
Other payables
32,560
45,317
39,096
Bank loans
2,935
4,085
13,847
Lease liabilities
11,122
15,480
14,550
Provision for reinstatement
cost
2,546
3,544
3,663
Income tax payable
14,350
19,973
14,715
Total current liabilities
63,513
88,399
85,871
Non-current
liabilities
Bank loans
-
-
2,963
Lease liabilities
14,159
19,707
21,361
Provision for reinstatement
cost
2,962
4,122
4,384
Defined benefit obligation
1,481
2,061
1,718
Deferred tax liabilities
1,367
1,902
1,507
Total non-current liabilities
19,969
27,792
31,933
Capital, reserves and
non-controlling interests
Share capital
14
19
19
Reserves
165,569
230,437
227,181
Retained earnings
205,109
285,471
236,486
Equity attributable to owners of
the Group
370,692
515,927
463,686
Non-controlling interests
15
21
20
Total equity
370,707
515,948
463,706
Total liabilities and
equity
454,189
632,139
581,510
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$1.3918 to US$1.00, the approximate rate of exchange
at June 30, 2022. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended June
30,
2022
2021
US$’000
S$’000
S$’000
Operating activities
Profit before income tax
48,357
67,303
54,797
Adjustments for:
Depreciation expense
13,545
18,852
19,839
Gain on early termination of
right-of-use assets
(1
)
(1
)
(85
)
Equity-settled share-based
payment expense
8,273
11,515
—
Provision for reinstatement
cost
(31
)
(43
)
—
Bank loan transaction cost
20
28
246
Interest income
(495
)
(689
)
(174
)
Interest expense
688
958
3,747
Retirement benefit service
cost
274
382
313
(Gain) / Loss on disposal of
plant and equipment
(1
)
(1
)
13
Share of profit from an
associate
(53
)
(74
)
(43
)
Operating cash flows before
movements in working capital
70,576
98,230
78,653
Trade receivables
16,215
22,568
(10,194
)
Contract assets
(5,813
)
(8,091
)
(4,786
)
Other receivables
(2,926
)
(4,072
)
1,170
Other payables
6,747
9,391
181
Cash generated from
operations
84,799
118,026
65,024
Interest received
495
689
174
Income tax paid
(9,181
)
(12,778
)
(11,697
)
Income tax refunded
—
—
4
Net cash from operating
activities
76,113
105,937
53,505
Investing activities
Purchase of plant and
equipment
(5,004
)
(6,965
)
(16,054
)
Proceeds from sales of plant and
equipment
1
2
47
Decrease in fixed deposits
1,244
1,732
—
Increase in pledged deposits
—
—
(12
)
Dividend income from an
associate
—
—
13
Net cash used in investing
activities
(3,759
)
(5,231
)
(16,006
)
Financing activities
Dividends paid
—
—
(177
)
Drawdown of bank loan
—
—
252,651
Distribution to founder
—
—
(252,032
)
Repayment of lease
liabilities
(6,734
)
(9,373
)
(9,915
)
Interest paid
(135
)
(188
)
(2,673
)
Repayment of bank loan
(9,136
)
(12,716
)
(3,410
)
Repurchase of American Depositary
Shares
(6,729
)
(9,366
)
—
Proceeds from issuance of
shares
—
—
16
Net cash used in financing
activities
(22,734
)
(31,643
)
(15,540
)
Net increase in cash and cash
equivalents
49,620
69,063
21,959
Effect of foreign exchange rate
changes on cash held in foreign currencies
1,715
2,385
(604
)
Cash and cash equivalents at
beginning of period
224,994
313,147
59,807
Cash and cash equivalents at
end of period
276,329
384,595
81,162
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$1.3918 to US$1.00, the approximate rate of exchange
at June 30, 2022. 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/20220823005425/en/
For enquiries, please contact:
Investors / Analysts: Jason Lim lim.jason@tdcx.com
Media: Eunice Seow eunice.seow@tdcx.com
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