Eclerx Services Limited · NSE:ECLERX
Eclerx Services — Q2 FY11 Earnings Presentation
11 slides from Eclerx Services's earnings presentation, Oct 21, 2010
Slide 1: Financial Performance H1 FY11
Financial Performance H1 FY11 October 21, 2010 eClerx – An ISO/IEC 27001:2005 Certified Company 0 Confidential eClerx – An ISO/IEC 27001:2005 Certified Company
Slide 2: Financial Summary
Financial Summary Metrics Q2 FY11 Q-o-Q H1 FY11 Y-o-Y Total Revenue (INR mn) 861 3% 1698 61% Revenue Opg Revenue (INR mn) 823 7% 1594 37% Opg Revenue (USD mn) 18.0 7% 34.8 43% EBITDA (INR mn) 336 4% 685 94% Profit OPM (INR mn) 275 3% 542 26% Net Profit (INR mn) 276 6% 569 103% EBITDA (%) 39% 3% 40%
Slide 3: Other Updates: Current Hedge Status
Other Updates Current Hedge Status Consistent policy of hedging receivables for next 12-18 months Contract Year Currency Amount (mn) Average Rate (INR) USD $17.4 48.1 FY11 EUR €4.7 62.9 Total FY11 – Equiv USD $23.9 47.3 Forward USD $21.8 48.1 FY12 EUR €5.1 60.3 Total FY12 – Equiv USD $28.8 46.9 FY11
Slide 4: Highly Liquid Balance Sheet
Highly Liquid Balance Sheet Total Cash and Cash equivalents of INR 1,164 mn, zero debt on balance sheet – Equivalent to INR 40.5 per share – Decrease in cash over Q1 due to Annual Dividend payout Trailing 12 months EPS – Basic: INR 35.9 – Diluted: INR 34.5 Book value per share of INR 86.1 Utilizatio
Slide 5: P&L Comparison: H1 FY11 vs. H1 FY10
P&L Comparison: H1 FY11 vs. H1 FY10 Figures in INR Millions Operating P&L H1 FY11 OPR (%) H1 FY10 OPR (%) Operating Revenue 1,593.7 1,166.8 Cost of Revenues Employee Cost 729.0 45.7% 483.7 41.5% General Administration and Management Rent 61.8 3.9% 48.5 4.2% Communication Expenses 34.1 2.1% 29.3 2.5%
Slide 6: OPM Bridging Analysis: H1 FY11 vs. H1 FY10
OPM Bridging Analysis: H1 FY11 vs. H1 FY10 37.0% 4.4% 1.3% 0.3% 34.0% 0.5% 1.8% H1 FY10 Exc. Rate Emp. Cost S&M Exp. Dep G&A H1 FY11 Note: Bridging analysis in constant currency, impact of currency movements shown in exchange rate. Higher capacity utilization helped drive scaling in G&A and deprecia
Slide 7: NPM Bridging Analysis: H1 FY11 vs. H1 FY10
NPM Bridging Analysis: H1 FY11 vs. H1 FY10 26.6% 33.5% 3.0% 0.8% 0.1% 10.8% H1 FY10 OPM Tax Inv Inc Forex Gain H1 FY11 Increase in tax rate due to increase in MAT from 15% in FY10 to 18% in FY11 Forex gain due to favorable rates from hedges – Average hedge realization at Rs. 48.0 6 eClerx – An ISO/I
Slide 8: Revenue Quality
Revenue Quality Metrics H1 FY11 H1 FY10 USD 76% 73% Currency Concentration (%) EURO 21% 23% GBP 3% 4% North America 62% 61% Geographic Concentration Europe 32% 35% ROW 6% 4% Debtors DSO 65 days 52 days Client Concentration Top 5 87% 80% FTE 84% 69% Billing Mix SEZ Revenue 55% 38% 7 eClerx – An ISO/I
Slide 9: Status Update
Status Update India Headcount 3,331 2,863 1,973 1,527 1,021 FY07 FY08 FY09 FY10 H1 FY11 Onsite Headcount 24 22 19 17 7 FY07 FY08 FY09 FY10 H1 FY11 Attrition 43.8% 37.0% 35.1% 30.5% 26.8% FY07 FY08 FY09 FY10 H1 FY11 8 eClerx – An ISO/IEC 27001:2005 Certified Company October 10
Slide 10: Outlook
Outlook Significant change ahead for the banking industry – Basel II (albeit diluted), Dodd-Frank, EU directives – increased capital, cost, regulation, reporting – Challenged Q3/Q4 earnings, further pressure on cost, reduction in discretionary spend – More focus on BPO/KPO but vendors will face pres
Slide 11: Thank You
Thank You 10 eClerx – An ISO/IEC 27001:2005 Certified Company October 10