Eclerx Services Limited · NSE:ECLERX
Eclerx Services — Q1 FY2017 Earnings Presentation
16 slides from Eclerx Services's earnings presentation, Aug 29, 2016
Slide 1: Financial Performance – FY17 Q1
Presented to: Financial Performance – FY17 Q1 Data | Domain | Delivery Aug 29, 2016
Slide 2: Financial Summary
Financial Summary Metrics FY17 Q1 Q-o-Q Y-o-Y Total revenue (INR mm) 3,503 0% 12% Revenue OPG revenue (INR mm) 3,403 -1% 14% OPG revenue (USD mm) 50.2 -1% 8% EBITDA (INR mm) 1,360 -5% 15% Profit OPM (INR mm) 1,140 -5% 23% Net profit (INR mm) 959 -5% 27% EBITDA (%) 39% -2% 1% Margin OPM (%) 33% -1% 2
Slide 3: FY17 Q1 IND AS impact on PAT
FY17 Q1 IND AS impact on PAT Figures in INR millions. 16.0 7.9 46.7 959.2 1.5 7.6 914.4 India GAAP Amrtz. of Def. Tax Gratuity Fair valuation ESOP Cost As per Ind AS In-Tangible. (on ESOP & (Ind AS) (MF) (CLX) Amrtz.) Adopted IND-AS since 1st April 2016 Amortization of Intangibles for CLX acquisitio
Slide 4: Other Income – FY17 Q1 vs. FY16 Q4
Other Income – FY17 Q1 vs. FY16 Q4 Other Income FY17 Q1 FY16 Q4 FY16 Q3 FY16 Q2 Investment & Other Income 60.9 40.9 22.2 18.8 Hedge Gain / (Loss) - (0.6) 2.9 (7.8) Revaluation and Realised Gain 39.1 32.7 12.0 97.3 Total 100.1 73.0 37.2 108.3 Note: Previous quarters numbers are restated as per IND AS
Slide 5: Hedge Updates
Hedge Updates Current Hedge Status Total outstanding hedges now $132.3 mm at average INR 71.56/$; 100% forwards – 2.6 times quarter revenue vs. average of 2.4 times in preceding 4 quarters. Contract Year Currency Amount (mn) Average Rate (INR) USD $62.8 70.2 FY17 Euro € 9.7 79.8 Total FY17 – Equiv U
Slide 6: P&L Comparison: FY17 Q1 vs. FY16 Q4
P&L Comparison: FY17 Q1 vs. FY16 Q4 Operating P&L FY17 Q1 OPR (%) FY16 Q4 OPR (%) Operating Revenue 3,403.3 3,431.8 Cost of Revenues Delivery and Support Employee Cost 1,325.4 38.9% 1,224.0 35.7% General and Administrative Expenses Facilities* 152.5 4.5% 144.1 4.2% Administrative Services* 44.3 1.3%
Slide 7: OPM Bridging Analysis: FY17 Q1 vs. FY16 Q4
OPM Bridging Analysis: FY17 Q1 vs. FY16 Q4 35.0% 3.2% 0.4% 0.1% 1.0% 1.3% 33.5% FY16 Q4 Emp. Cost G&A Exc. Rate Dep S&D Exp. FY17 Q1 • Emp Cost: Cost higher primarily due to annual wage hike in Q1 and downward adjustment of Gratuity, Leave Encashment cost in Q4 • G&A: Increase in Professional fees t
Slide 8: Balance Sheet & Other Updates
Balance Sheet & Other Updates Total Cash and Cash equivalents of INR 5,982.4 mm; vs INR 5,448.3 mm for FY’16 Q4 — Equivalent to INR 146.5 per share vs INR 133.6 for FY’16 Q4 — Net operating cash flow in FY’17 Q1 is INR 554.1 mm vs INR 828.5 mm in FY16 Q1 — Capex during FY’17 Q1 is INR 61.1 mm vs 157
Slide 9: Key Business Metrics
Key Business Metrics Metrics FY 17 Q1 FY 16 Q4 FY 16 Q3 FY 16 Q2 FY 16 Q1 FY 15 Q4 USD 72% 72% 73% 74% 76% 85% Currency Contribution* (%) EURO 19% 19% 18% 18% 15% 10% GBP 9% 9% 9% 8% 9% 5% North America 66% 67% 67% 67% 72% 78% Geographic Concentration* Europe 30% 30% 29% 29% 25% 18% Debtors (includi
Slide 10: Revenue Mix Trends - Consol
Revenue Mix Trends - Consol First year of CLX Acquisition 180% 160% 153% 136% 125% 140% 129% $12.9 $12.1 120% $12.4 $12.4 100% $10.3 80% 60% 37% 45% 37% $5.5 40% $5.1 37% $4.5 25% $4.9 18% 12% 14% 14% 20% 6% 9% 9% 6% 3% 0% FY15 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1 Emerg
Slide 11: Human Resources Update
Human Resources Update Delivery & Support 8,100 8,862 8,827 6,836 1,153 1,164 5,954 1,005 871 656 7,095 7,709 7,663 5,298 5,965 FY13 FY14 FY15 FY16 FY17 Q1 Operations HC Support Services BD / Sales 89 80 76 77 62 FY13 FY14 FY15 FY16 FY17 Q1 * FY16 and onwards includes CLX- Realignment of onshore del
Slide 12: Forward-looking statements
This presentation contains forward-looking statements, inter-alia, to enable investors to comprehend company’s prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically make, contain forward-looking statements that set out anticipate
Slide 13: Balance Sheet Abstract
Balance Sheet Abstract Particulars June 30, 2016 March 31, 2016 % of Change Shareholder’s Funds Capital 408.3 407.9 0.1% Minority Interest 5.8 5.9 - Reserves and Surplus 11,421.3 9,261.5 23% Total Shareholder's Funds 11,835.4 9,675.3 22% Application of Funds Fixed Assets 3,621.8 3,650.0 -1% Deferred
Slide 14: Financial Summary – Quarterly View
Financial Summary – Quarterly View Metrics FY17 Q1 FY16 Q4 FY16 Q3 FY16 Q2 FY16 Q1 Total Revenue (INR mn) 3,503 3,505 3,481 3,393 3,127 Revenue Opg Revenue (INR mn) 3,403 3,432 3,443 3,285 2,983 Opg Revenue (USD mn) 50.2 50.8 51.8 50.2 46.4 EBITDA (INR mn) 1,360 1,427 1,262 1,292 1,187 Profit OPM (I
Slide 15: P&L Comparison – Quarterly View
P&L Comparison – Quarterly View FY17 OPR FY16 OPR FY16 OPR FY16 OPR FY16 OPR Operating P&L Q1 (%) Q4 (%) Q3 (%) Q2 (%) Q1 (%) Operating Revenue 3,403 3,432 3,443 3,285 2,983 Cost of Revenues Employee Cost 1,326 39% 1,224 36% 1,366 40% 1,273 39% 1,168 39% General and Administrative Expenses Rent 123
Slide 16: Revenue Quality – Quarterly View
Revenue Quality – Quarterly View FY17 FY16 FY16 FY16 FY16 FY15 FY15 FY15 Metrics Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Revenue Growth USD -1.1% -2.0% 3.2% 8.1% 14.2% 4.6% 2.1% 5.1% (%) Constant Currency -0.6% -2.5% 4.2% 7.7% 4.0% 6.3% 3.1% 5.6% USD 72% 72% 73% 74% 76% 85% 83% 82% Currency EURO 19% 19% 18% 18% 15%