Eclerx Services Limited · NSE:ECLERX
Eclerx Services — Q3 FY2009 Earnings Presentation
16 slides from Eclerx Services's earnings presentation, Jan 19, 2009
Slide 1: Financial Performance Q3 FY 09
Financial Performance Q3 FY 09 January 19, 2009 eClerx – An ISO/IEC 27001:2005 Certified Company 1 Confidential eClerx – An ISO / IEC 27001:2005 Certified Company
Slide 2: Financial Summary
Financial Summary Metrics Q3 FY 09 Y-o-Y Q-o-Q YTD FY 09 Y-o-Y Total Revenue (INR M) 481.5 39% 7% 1,461.6 67% Revenue Opg Revenue (INR M) 515.5 56% 5% 1,430.0 69% Opg Revenue (USD M) 10.5 26% 4% 31.6 51% EBITDA (INR M) 204.8 31% 13% 582.8 56% Profit OPM (INR M) 213.1 70% 59% 491.3 59% Net Profit (IN
Slide 3: Quarter Highlights
Quarter Highlights Key Accomplishments Strong performance during the quarter in a challenging global environment – Substantially all revenue lost from bankruptcy of a top 5 client replaced by revenue increase from its successor entities and other clients Q3 vs Q2 FY 09 Revenue Bridge -1.4 -0.3 1.3 1
Slide 4: Quarter Highlights
Quarter Highlights Key Accomplishments Ranked by Forbes as one of the 200 Best Under a Billion Asian companies – Also featured in Dun & Bradstreet's list of top IT and ITES companies in India Total number of clients at 52 vs 50 in Q3-08 compared with prior year – 1 new client added in Q3; 6 lost to
Slide 5: Other Updates
Other Updates Final treatment of bad debt provision arising from client bankruptcy completed – Total outstanding receivables at the time – Rs 49.1M ($1.03M) – Provision of all Rs 49.1 M made in Q2 – Provision of Rs 26.3 M ($0.56M) reversed on receiving cure payment in Q3 – Balance amount of Rs 22.8M
Slide 6: Other Updates
Other Updates Taxation Updates – Demand notice received from Indian Income Tax Department – Rs 11.5M for AY 06-07, related to calculation of export revenue eligible for tax exemption – We have filed appeal with CIT and are confident of a favorable result – For FY 09, direct tax provisions made for S
Slide 7: Highly Liquid Balance Sheet
Highly Liquid Balance Sheet Total Cash and Cash Equivalents of Rs 1,105M, zero debt on balance sheet – Equivalent to Rs 58.4 per share Trailing 12 months EPS – Basic: Rs 33.1 – Diluted: Rs 32.8 Book value per share of Rs 90.9 Utilization of IPO proceeds Planned as per Utilization up to Particulars B
Slide 8: Investment Portfolio
Investment Portfolio Cash and Bank Balance Investment Portfolio Equivalent Average Bank Name Currency Amount (M) Inv Type Scheme Amount INR (M) Returns USD 2.12 102.88 Birla Sunlife Dividend MF 3.2% 73.27 EURO 0.23 15.43 Reinvestment Bank of India LIC Mutual Fund Liquid GBP 0.20 13.73 MF 7.3% 147.98
Slide 9: P&L Comparison: YTD FY 09 vs YTD FY 08
P&L Comparison: YTD FY 09 vs YTD FY 08 Figures in Rs Millions Operating P&L 9 Mths FY 09 % of OPR 9 Mths FY 08 % of OPR Operating Revenue 1,430.0 844.6 Cost of Revenues Employee Cost 556.4 38.9% 350.4 41.5% General Administration and Management Rent 70.0 4.9% 26.1 3.1% Legal & Professional Fees 36.8
Slide 10: OPM Bridging Analysis: YTD FY 09 vs YTD FY 08
OPM Bridging Analysis: YTD FY 09 vs YTD FY 08 -2.3% -2.2% 8.4% -2.4% -2.7% -1.0% 36.6% 34.4% YTD FY 08 AR Prov Emp Cost Rent Other G&A Dep & Goodwill Exc Rate YTD FY 09 Amort 10 eClerx – An ISO/IEC 27001:2005 Certified Company August 09
Slide 11: P&L Comparison: Q3 FY 09 vs Q2 FY 09
P&L Comparison: Q3 FY 09 vs Q2 FY 09 Figures in Rs Millions Operating P&L Q3 FY 09 % of OPR Q2 FY 09 % of OPR Operating Revenue 515.5 491.0 Cost of Revenues Employee Cost 200.0 38.8% 184.4 37.6% General Administration and Management Rent 24.0 4.6% 23.4 4.8% Legal & Professional Fees 10.6 2.1% 13.3 2
Slide 12: PAT Bridge: Q3 FY 09 vs Q2 FY 09
PAT Bridge: Q3 FY 09 vs Q2 FY 09 69.9 -6.5 -69.5 15.5 5.2 6.5 140.8 161.9 Q2 FY 09 Opg Inc before Rev of AR Prov Goodwill Amort Forex Loss Investment Tax Q3 FY 09 exceptional items Income Forex loss of Rs 50M in Q3 as compared to profit of Rs 20M in Q2, QoQ variance of Rs 70M – Maturity of hedges: L
Slide 13: Revenue Quality
Revenue Quality Metrics YTD FY 09 Q3 FY 09 YTD FY 08 USD 76% 79% 90% Currency Concentration EURO 18% 16% 4% (%) GBP 6% 5% 6% North America 61% 62% 72% Geographic Concentration Europe 36% 36% 24% ROW 3% 2% 4% Client Concentration Top 5 76% 81% 84% FTE 71% 70% 76% Billing Mix SEZ Revenue 26% 30% - Sig
Slide 14: Staff Update
Staff Update Employee Base 1776 1527 1021 620 FY06 FY 07 FY 08 FY 09 (YTD Dec'08) Attrition % 37.0% 35.1% 29.6% 23.0% FY06 FY 07 FY 08 FY 09 (YTD Dec'08) 14 eClerx – An ISO/IEC 27001:2005 Certified Company August 09
Slide 15: FY 10 Challenges and Opportunities
FY 10 Challenges and Opportunities Deepening global recession Financial services impact quite progressed Full impact of government support on business models yet to be understood Expect focus to move to non-banking sector with increased defaults / business failures in 09 Consolidation trend continue
Slide 16: Thanks
Thanks 16 eClerx – An ISO/IEC 27001:2005 Certified Company August 09