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
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
ESG Efforts
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
Singapore: +65 3163 4602
UK Toll Free +44 0800 640 6441
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$148.8 million for the three months ended September 30, 2021 primarily due to a 13.0% increase in revenue from providing omnichannel Customer Experience (“CX”) solutions, and a 32.2% increase in revenue from providing sales and digital marketing services.
The following table sets forth our service provided by amount for the three months ended September 30, 2022 and 2021.
For the three months ended
September 30,
2022
2021
US$’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
_______________________________
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.
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