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 third quarter ended September
30, 2022.
Third Quarter 2022 Financial Highlights
- Total revenue of US$120.5 million, up 16.1% year-on-year
- Profit for the period was US$21.6 million, up 2.3%
year-on-year
- Adjusted Net Income4, which excludes the impact of share-based
compensation for a like-for-like comparison, was US$24.2 million,
up 15.0% year-on-year
- Year-to-date Net Cash from Operating Activities of US$90.8
million, up 53.1% year-on-year
Mr. Laurent Junique, Chief Executive Officer and Founder of
TDCX, said, “We rounded off this quarter with a strong set of
results, fueled by our solid execution capabilities. Our global
expansion plans continue unabated with the addition of two new
campuses, one in Iloilo, Philippines and another in Istanbul,
Türkiye. This brings us to a total of 27 campuses globally as we
continue building our network. We also see greater contribution
from our four newer geographies, namely Colombia, India, Romania
and South Korea, making up close to 10 per cent of the year-on-year
growth in revenue for Q3 2022 against Q3 2021.
“This quarter, we are proud to have had our industry-leading
practices recognized. We were named a leader by global technology
research and advisory firm, ISG, in their ISG Provider Lens™
Contact Center – Customer Experience Services Singapore/Malaysia
2022 report. The report acknowledged our capabilities, positioning
us at the top of the quadrant.
“On the ESG front, we deepened our commitment to bringing
positive transformation to the community with the launch of the
TDCX Foundation. Through the Foundation, we will be able to help
drive greater social impact for disadvantaged communities.”
(US$ million, except for
%)2
Q3 2021
Q3 2022
% Change
Revenue
103.8
120.5
+16.1%
Profit for the period
21.1
21.6
+2.3%
Adjusted Net Income4
21.1
24.2
+15.0%
Adjusted EBITDA1,3
36.9
38.3
+3.9%
Adjusted EBITDA Margins1,3
(%)
35.5
%
31.8
%
Business Highlights
Strong Client Additions
- Signed up 31 new logos since the start of the year, 55% higher
than the 20 logos for the same period in 2021
- 72 clients with campaigns that have been launched as of
September 30, 2022, a 50% increase as compared with 48 launched
clients as of September 30, 2021
- Revenue contribution from new economy5 clients stood at 93% for
9M 2022
ESG Efforts
- Launched the TDCX Foundation as part of our commitment to
support disadvantaged communities
- Supported the launch of Google Cloud’s Point Carbon Zero
Program to catalyze the incubation and adoption of climate fintech
solutions in Asia over the next three years
- Recognized as one of the Circle of Excellence Awardees for the
Sustainability Company of the Year at the Asia CEO Awards 2022
Full Year 2022 Outlook Reiterated at the Mid-point; Range
Narrowed
For the full year 2022, TDCX expects its financial results to
be:
2022 Outlook
Revenue (in millions)
S$655m - S$670m6
(Midpoint unchanged at
S$662.5m;
Range narrowed from S$650m -
S$675m)
Revenue growth (YoY)
Range: 18.0% - 20.7%
(Midpoint unchanged at 19.3%;
Range narrowed from 17.1% -
21.6%)
Adjusted EBITDA margin1,3
Approximately 30.0% - 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 "Reconciliation 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$1.4340, being the approximate rate in
effect as of September 30, 2022, 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 Using the FX rate of US$1 = S$1.4340, being the approximate
rate in effect as of Sep 30, 2022, this equates to US$457m to
US$467m. Using the FX rate of US$1 = US$1.3918, being the
approximate rate in effect as of Jun 30, 2022, this equates to
US$471m to US$481m.
Webcast and Conference Call Information
The TDCX senior management will host a conference call to
discuss the third 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:
November 22, 2022, 7:30 AM (U.S. Eastern
Time)
November 22, 2022, 8:30 PM (Singapore /
Hong Kong Time)
Webcast link:
https://events.q4inc.com/earnings/TDCX/Q3-2022
Dial in numbers:
USA Toll Free: +1 855 9796 654
United States (Local): +1 646 664 1960
Singapore: +65 3163 4602
Hong Kong: +852 580 33 413
UK Toll Free +44 0800 640 6441
All other locations: +44 20 3936 2999
Participant Access
Code:
501559
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 17,400 employees across 27 campuses
globally, specifically Singapore, Malaysia, Thailand, Philippines,
Mainland China, Hong Kong, South Korea, Japan, India, Romania,
Spain, Colombia and Türkiye. 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$1.4340 to US$1.00, the approximate rate in effect as
of September 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 STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the three months ended
September 30,
2022
2021
US$’000
S$’000
S$’000
Revenue
120,481
172,770
148,798
Employee benefits expense
(78,330
)
(112,325
)
(86,583
)
Depreciation expense
(7,118
)
(10,207
)
(10,409
)
Rental and maintenance
expense
(1,847
)
(2,648
)
(2,063
)
Recruitment expense
(3,105
)
(4,452
)
(3,029
)
Transport and travelling
expense
(269
)
(386
)
(452
)
Telecommunication and technology
expense
(2,148
)
(3,080
)
(2,413
)
Interest expense
(299
)
(429
)
(2,703
)
Other operating expense
(3,898
)
(5,590
)
(3,972
)
Share of profit from an
associate
43
61
35
Interest income
860
1,233
119
Other operating income
4,725
6,775
2,558
Profit before income
tax
29,095
41,722
39,886
Income tax expenses
(7,531
)
(10,799
)
(9,653
)
Profit for the period
21,564
30,923
30,233
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
(4,797
)
(6,880
)
(2,523
)
Total comprehensive income for
the period
16,767
24,043
27,710
Profit
attributable to:
- Owners of TDCX Inc.
21,563
30,922
30,232
- Non-controlling interests
1
1
1
21,564
30,923
30,233
Total
comprehensive income attributable to:
- Owners of TDCX Inc.
16,766
24,042
27,709
- Non-controlling interests
1
1
1
16,767
24,043
27,710
Basic earnings per share (in US$
or S$) (1)
0.14
0.21
0.24
Diluted earnings per share (in
US$ or S$) (1)
0.14
0.21
0.24
_______________________________
(1) Basic and diluted earnings per
share
For the three months ended
September 30,
2022
2021
Weighted average number of
ordinary shares for the purposes of
basic earnings per share
144,943,516
123,500,000
Weighted average number of
ordinary shares for the purposes of
diluted earnings per share
144,943,516
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$1.4340 to
US$1.00, the approximate rate of exchange at September 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 September 30, 2022 and
2021
Revenue. Our revenue increased by 16.1% to S$172.8
million (US$120.5 million) for the three months ended September 30,
2022 from S$148.8 million for the three months ended September 30,
2021 primarily due to a 13.0% increase in revenue from providing
omnichannel Customer Experience (“CX”) solutions, and a 32.2%
increase in revenue from providing sales and digital marketing
services.
- Our revenues from omnichannel CX solutions increased by 13.0%
to S$100.9 million (US$70.4 million) from S$89.3 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 key
travel and hospitality clients continue to gain recovery momentum
following the reopening of borders during the first half of
2022.
- Our revenues from sales and digital marketing services
increased by 32.2% to S$42.8 million (US$29.8 million) from S$32.4
million for the same period of 2021 primarily due to the expansion
of existing campaigns for our key digital advertising and media
clients.
- Our revenues from content, trust and safety services increased
by 6.4% to S$28.1 million (US$19.6 million) from S$26.4 million for
the same period of 2021 primarily due to an increase in business
volumes.
- Our revenues from our other service fees increased by 38.5% to
S$1.0 million (US$0.7 million) from S$0.7 million for the same
period of 2021 primarily due to higher business volumes from
existing clients and higher contribution from new clients.
The following table sets forth our service provided by amount
for the three months ended September 30, 2022 and 2021.
For the three months ended
September 30,
2022
2021
US$’000
S$’000
S$’000
Revenue by service
Omnichannel CX solutions *
70,364
100,902
89,320
Sales and digital marketing
29,846
42,799
32,371
Content, trust and safety *
19,566
28,058
26,377
Other service fees * #
705
1,011
730
Total revenue
120,481
172,770
148,798
* In the second quarter of 2022, we renamed our “content
monitoring and moderation” services as “content, trust and safety”
services which entailed some reclassification of certain of our
revenues from our omnichannel CX solutions services and our other
service fees into 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 29.7% to S$112.3 million (US$78.3 million) from S$86.6
million for the same period of 2021 due to higher employee count,
employee wage adjustments pursuant to dynamics of the talent
markets that we operate in and cost of living inflation, and
share-based payment expense arising from the implementation of our
performance share plan in November 2021. Our average number of
employees in the third quarter of 2022 increased 24.5% compared to
the same period of 2021 as a result of business volumes expansion
of current campaigns over the course of 2022, and staffing
requirements of new campaign launches in the first half of
2022.
Depreciation Expense. Our depreciation expense decreased
slightly by 1.9% to S$10.2 million (US$7.1 million) from S$10.4
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 increased by 28.4% to S$2.6 million (US$1.8
million) from S$2.1 million for the same period of 2021 primarily
due to rental expenses incurred in new site set up in Korea. In
addition, we had to increase our leasing of computer equipment to
cope with the growth in our key clients’ campaigns in the
Philippines, Thailand and Malaysia.
Recruitment Expense. Our recruitment expense expanded by
47.0% to S$4.5 million (US$3.1 million) from S$3.0 million for the
same period of 2021 primarily due to accelerated hiring activities
thereby raising hiring costs to support the campaign needs in our
Malaysia and Singapore offices.
Transport and Travelling Expense. Our transport and
travelling expense decreased by 14.6% to S$0.4 million (US$0.3
million) from S$0.5 million for the same period of 2021 mainly due
to lower accommodation and transportation expenses.
Telecommunication and Technology Expense. Our
telecommunication and technology expense increased by 27.6% to
S$3.1 million (US$2.1 million) from S$2.4 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 84.1%
to S$0.4 million (US$0.3 million) from S$2.7 million for the same
period of 2021 primarily due to reduced bank borrowings during the
period.
Other Operating Expense. Our other operating expense
increased by 40.7% to S$5.6 million (US$3.9 million) from S$4.0
million for the same period of 2021 primarily due to additional
fees incurred in the Philippines arising from the unit exceeding
the work-from-home cap imposed by the local fiscal incentive
administrative body, and increased legal, compliance and
professional fees.
Share of Profit from an Associate. Our share of profit
from an associate was insignificant for the three months ended
September 30, 2022 and 2021.
Interest Income. Our interest income increased by 936.1%
to S$1.2 million (US$0.9 million) from S$0.1 million for the same
period of 2021 primarily due to an increase in interest-bearing
deposits.
Other Operating Income. Our other operating income
increased by 164.9% to S$6.8 million (US$4.7 million) from S$2.6
million for the same period of 2021 primarily due to foreign
exchange gains recognized.
Profit Before Income Tax. As a result of the foregoing,
our profit before income tax increased by 4.6% to S$41.7 million
(US$29.1 million) from S$39.9 million for the corresponding period
of 2021.
Income Tax Expenses. Our income tax expenses increased by
11.9% to S$10.8 million (US$7.5 million) from S$9.7 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 for the Malaysian operations, suspension of the income tax
break previously availed to the Philippines unit arising from the
unit exceeding the work-from-home cap imposed by the local fiscal
incentive administrative body 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 2.3% to S$30.9 million (US$21.6
million) from S$30.2 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 July 1, 2022 to November 21, 2022, we purchased 352,489
ADSs at a cost of US$3.0 million.
Warrant Agreement with Airbnb
On September 2, 2022, we entered into a warrant agreement with
Airbnb Ireland Unlimited Company (“Airbnb”), whereby TDCX Inc.
granted Airbnb warrants to purchase up to 490,000 of the TDCX
Inc.’s American Depositary Shares subject to vesting, adjustment
and other terms and conditions set forth therein. The vesting of
the warrants is subject to satisfaction of certain fee milestones
with respect to services provided to Airbnb under the Master
Services Agreement which commenced August 1, 2021.
Subsequent Event
On October 13, 2022, we completed the restructuring of our Hong
Kong associated company into a wholly-owned subsidiary. This was
funded from our existing cash balance and we believe that such a
restructuring enables TDCX Inc. and its subsidiaries (the “Group”)
to better tap into opportunities in the Greater China area. The
financial impact is not expected to be material.
Segment Reclassification
In the second quarter of 2022, we 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 of 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.
Reclassifications and comparative figures
In prior periods, we reported foreign exchange gains or losses
on a net basis under “other operating expenses” line item.
Commencing from the third quarter of 2022, foreign exchange gains
for the relevant quarter is reported under “other operating income”
line item while foreign exchange losses for the relevant quarter is
reported under “other operating expenses” line item. Accordingly,
reclassifications relating to foreign exchange gains and losses
have been made to prior period’s financial statements to enable
comparability with the current period’s financial statements and
therefore, certain line items have been amended in the unaudited
condensed interim consolidated statement of profit or loss and
other comprehensive income. Comparative figures have been adjusted
to conform to the current period’s presentation. The items were
reclassified as follows:
Previously
reported
After
reclassification
S$’000
S$’000
For the
three months ended September 30,
2021:
Other operating income
1,020
2,558
Other operating expenses
(2,434)
(3,972)
For the
nine months ended September 30,
2021:
Other operating income
3,764
5,640
Other operating expenses
(8,578)
(10,454)
NON-IFRS FINANCIAL MEASURES
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS
are non-IFRS financial measures. TDCX monitors EBITDA, EBITDA
margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net
Income, Adjusted Net Income margin and Adjusted EPS because they
assist the Company in comparing its operating performance on a
consistent basis by removing the impact of items not directly
resulting from its core operations.
EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA
margin
“EBITDA” represents profit for the period before interest
expense, interest income, income tax expense, and depreciation
expense. “EBITDA margin” represents EBITDA as a percentage of
revenue. “Adjusted EBITDA” represents profit for the period before
interest expense, interest income, income tax expense, depreciation
expenses, and equity-settled share-based payment expense incurred
in connection with our Performance Share Plan. “Adjusted EBITDA
margin” represents Adjusted EBITDA as a percentage of revenue.
For the three months ended
September 30,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Revenue
120,481
172,770
—
148,798
—
Profit for the period and net
profit
margin
21,564
30,923
17.9
%
30,233
20.3
%
Adjustments for:
Depreciation expense
7,118
10,207
5.9
%
10,409
7.0
%
Income tax expenses
7,531
10,799
6.3
%
9,653
6.5
%
Interest expense
299
429
0.2
%
2,703
1.8
%
Interest income
(860
)
(1,233
)
(0.7
%)
(119
)
(0.1
%)
EBITDA and EBITDA margin
35,652
51,125
29.6
%
52,879
35.5
%
Adjustment:
Equity-settled share-based
payment expense
2,676
3,837
2.2
%
—
—
Adjusted EBITDA and Adjusted
EBITDA
margin
38,328
54,962
31.8
%
52,879
35.5
%
For the nine months ended
September 30,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Revenue
339,923
487,449
—
400,435
—
Profit for the period and net
profit
margin
55,737
79,928
16.4
%
74,996
18.7
%
Adjustments for:
Depreciation expense
20,264
29,059
6.0
%
30,248
7.6
%
Income tax expenses
20,291
29,097
6.0
%
19,687
4.9
%
Interest expense
967
1,387
0.3
%
6,450
1.6
%
Interest income
(1,340
)
(1,922
)
(0.4
%)
(293
)
(0.1
%)
EBITDA and EBITDA margin
95,919
137,549
28.2
%
131,088
32.7
%
Adjustment:
Equity-settled share-based
payment expense
10,706
15,352
3.1
%
—
—
Adjusted EBITDA and Adjusted
EBITDA
margin
106,625
152,901
31.4
%
131,088
32.7
%
Adjusted Net Income and Adjusted Net Income margin
“Adjusted Net Income” represents profit for the period before
equity-settled share-based payment expense incurred in connection
with our Performance Share Plan, net of any tax impact of such
adjustments. “Adjusted Net Income margin” represents Adjusted Net
Income as a percentage of revenue.
For the three months ended
September 30,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Profit for the period and net
profit
margin
21,564
30,923
17.9
%
30,233
20.3
%
Adjustment for:
Equity-settled share-based
payment
expense
2,676
3,837
2.2
%
—
—
Adjusted Net Income and Adjusted
Net
Income margin
24,240
34,760
20.1
%
30,233
20.3
%
For the nine months ended
September 30,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Profit for the period and net
profit margin
55,737
79,928
16.4
%
74,996
18.7
%
Adjustment for:
Equity-settled share-based
payment
expense
10,706
15,352
3.1
%
—
—
Adjusted Net Income and Adjusted
Net
Income margin
66,443
95,280
19.5
%
74,996
18.7
%
Adjusted EPS
“Adjusted EPS” represents earnings available to shareholders
excluding the impact of equity-settled share-based payment expense.
Adjusted EPS is calculated as earnings available to shareholders
excluding the impact of equity-settled share-based payment expense
divided by the diluted weighted-average number of shares
outstanding.
For the three months ended
September 30,
2022
2021
Amount
Per
Share
Amount
Per
Share
Amount
Per
Share
US$’000
US$
S$’000
S$
S$’000
S$
Earnings available to
shareholders and EPS
21,563
0.14
30,922
0.21
30,232
0.24
Adjustments for:
Equity-settled share-based
payment
expense
2,676
0.01
3,837
0.03
—
—
Earnings available to
shareholders after
adjustments and Adjusted EPS
24,239
0.15
34,759
0.24
30,232
0.24
For the nine months ended
September 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
55,736
0.38
79,926
0.55
74,995
0.61
Adjustments for:
Equity-settled share-based
payment
expense
10,706
0.07
15,352
0.11
—
—
Earnings available to
shareholders after
adjustments and Adjusted EPS
66,442
0.45
95,278
0.66
74,995
0.61
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$1.4340 to US$1.00,
the approximate rate of exchange at September 30, 2022. Such
translations should not be construed as representations that the
Singapore Dollar amounts could be converted into USD at that or any
other rate.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the nine months ended
September 30,
2022
2021
US$’000
S$’000
S$’000
Revenue
339,923
487,449
400,435
Employee benefits expense
(224,226
)
(321,540
)
(242,009
)
Depreciation expense
(20,264
)
(29,059
)
(30,248
)
Rental and maintenance
expense
(5,084
)
(7,290
)
(7,740
)
Recruitment expense
(7,529
)
(10,797
)
(7,544
)
Transport and travelling
expense
(677
)
(971
)
(985
)
Telecommunication and technology
expense
(5,963
)
(8,551
)
(6,333
)
Interest expense
(967
)
(1,387
)
(6,450
)
Other operating expense
(9,039
)
(12,962
)
(10,454
)
Share of profit from an
associate
94
135
78
Interest income
1,340
1,922
293
Other operating income
8,420
12,076
5,640
Profit before income
tax
76,028
109,025
94,683
Income tax expenses
(20,291
)
(29,097
)
(19,687
)
Profit for the period
55,737
79,928
74,996
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
1,219
1,747
(3,676
)
Total comprehensive income for
the period
56,956
81,675
71,320
Profit
attributable to:
- Owners of the Group
55,736
79,926
74,995
- Non-controlling interests
1
2
1
55,737
79,928
74,996
Total
comprehensive income attributable to:
- Owners of the Group
56,955
81,673
71,319
- Non-controlling interests
1
2
1
56,956
81,675
71,320
Basic earnings per share (in US$
or S$) (1)
0.38
0.55
0.61
Diluted earnings per share (in
US$ or S$) (1)
0.38
0.55
0.61
_______________________________
- Basic and diluted earnings per share
For the nine months ended
September 30,
2022
2021
Weighted average number of
ordinary shares for the purposes of basic
earnings per share
145,425,637
123,500,000
Weighted average number of
ordinary shares for the purposes of diluted
earnings per share
145,425,637
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$1.4340 to
US$1.00, the approximate rate of exchange at September 30, 2022.
Such translations should not be construed as representations that
the Singapore Dollar amounts could be converted into USD at that or
any other rate.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of September 30, 2022
As of
December 31,
2021
US$’000
S$’000
S$’000
ASSETS
Current assets
Cash and cash equivalents
269,485
386,441
313,147
Fixed and pledged deposits
4,633
6,644
8,860
Trade receivables
61,114
87,637
92,561
Contract assets
43,409
62,249
49,365
Other receivables
9,984
14,317
13,220
Financial assets measured at fair
value through profit or
loss
19,436
27,871
23,983
Income tax receivable
23
33
17
Total current assets
408,084
585,192
501,153
Non-current assets
Pledged deposits
404
579
456
Other receivables
5,762
8,263
4,771
Plant and equipment
28,517
40,893
39,709
Right-of-use assets
22,149
31,761
33,160
Deferred tax assets
1,692
2,427
1,943
Investment in an associate
316
453
318
Total non-current assets
58,840
84,376
80,357
Total assets
466,924
669,568
581,510
LIABILITIES AND EQUITY
Current liabilities
Other payables
37,136
53,253
39,096
Bank loans
381
547
13,847
Lease liabilities
11,411
16,363
14,550
Provision for reinstatement
cost
2,369
3,397
3,663
Derivative financial
liability
1,177
1,688
-
Income tax payable
12,160
17,437
14,715
Total current liabilities
64,634
92,685
85,871
Non-current
liabilities
Bank loans
-
-
2,963
Lease liabilities
12,779
18,325
21,361
Provision for reinstatement
cost
3,535
5,069
4,384
Derivative financial
liability
2,578
3,697
-
Defined benefit obligation
1,519
2,178
1,718
Deferred tax liabilities
357
512
1,507
Total non-current liabilities
20,768
29,781
31,933
Capital, reserves and
non-controlling interests
Share capital
13
19
19
Reserves
160,885
230,708
227,181
Retained earnings
220,609
316,353
236,486
Equity attributable to owners of
the Group
381,507
547,080
463,686
Non-controlling interests
15
22
20
Total equity
381,522
547,102
463,706
Total liabilities and
equity
466,924
669,568
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$1.4340 to US$1.00, the approximate rate of exchange
at September 30, 2022. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF CASH FLOWS
For the nine months ended
September 30,
2022
2021
US$’000
S$’000
S$’000
Operating activities
Profit before income tax
76,028
109,025
94,683
Adjustments for:
Depreciation expense
20,264
29,059
30,248
Gain on early termination of
right-of-use assets
—
—
(84
)
Reversal of allowance on trade
and other receivables
—
—
(488
)
Changes in fair value of
derivatives
—
—
193
Equity-settled share-based
payment expense
10,706
15,352
—
Provision for reinstatement
cost
694
995
(2
)
Bank loan transaction cost
29
41
464
Interest income
(1,340
)
(1,922
)
(293
)
Interest expense
967
1,387
6,450
Retirement benefit service
cost
395
566
464
(Gain) / Loss on disposal of
plant and equipment
(1
)
(1
)
155
Share of profit from an
associate
(94
)
(135
)
(78
)
Operating cash flows before
movements in working capital
107,648
154,367
131,712
Trade receivables
499
716
(22,526
)
Contract assets
(11,283
)
(16,180
)
(3,798
)
Other receivables
(1,672
)
(2,399
)
(4,117
)
Other payables
13,547
19,427
5,493
Cash generated from
operations
108,739
155,931
106,764
Interest received
1,340
1,922
293
Income tax paid
(19,259
)
(27,617
)
(22,003
)
Net cash from operating
activities
90,820
130,236
85,054
Investing activities
Purchase of plant and
equipment
(13,599
)
(19,501
)
(18,268
)
Proceeds from sales of plant and
equipment
35
50
106
Payment for restoration of
office
—
—
(431
)
Increase in fixed deposits
1,210
1,735
645
Increase in pledged deposits
—
—
(12
)
Dividend income from
associate
—
—
13
Investment in financial assets
measured at fair value
through profit or loss
—
—
(23,754
)
Net cash used in investing
activities
(12,354
)
(17,716
)
(41,701
)
Financing activities
Dividends paid
(29
)
(41
)
(176
)
Drawdown of bank loan
—
—
252,654
Distribution to founder
—
—
(252,033
)
Repayment of lease
liabilities
(10,060
)
(14,426
)
(14,795
)
Interest paid
(148
)
(212
)
(5,104
)
Repayment of bank loan
(11,321
)
(16,234
)
(15,208
)
Repurchase of American Depositary
Shares
(9,477
)
(13,590
)
—
Proceeds from issuance of
shares
—
—
16
Net cash used in financing
activities
(31,035
)
(44,503
)
(34,646
)
Net increase in cash and cash
equivalents
47,431
68,017
8,707
Effect of foreign exchange rate
changes on cash held in
foreign currencies
3,681
5,277
(1,631
)
Cash and cash equivalents at
beginning of period
218,373
313,147
59,807
Cash and cash equivalents at
end of period
269,485
386,441
66,883
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$1.4340 to US$1.00, the approximate rate of exchange
at September 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/20221122005338/en/
For enquiries: Investors / Analysts: Jason Lim
lim.jason@tdcx.com
Media: Eunice Seow eunice.seow@tdcx.com
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