Hexaware Technologies Limited · NSE:HEXT
Hexaware Technologies — Q3 2018 Earnings Presentation
20 slides from Hexaware Technologies's earnings presentation, Oct 24, 2018
Slide 1: Presentation to Analysts on Q3 2018 financial results
I-'EXAWARE Date: 24th October, 2018 To, To, The Manager Listing, The Manager Listing, Bombay Stock Exchange Limited National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/l, G Block, Fort, Bandra-Kurla Complex Mumbai - 400 023 Bandra (E), Mumbai -
Slide 2: 24th October 2018
24th October 2018 © Hexaware Technologies. All rights reserved. | www.hexa'
Slide 3: Forward-looking statements
eg HEXA Certain statements on this presentation concerning our future growth prospects a forward-looking statements, which involve a number of risks, and uncertainties that co cause actual results to differ materially from those in such forward-looking statements. T risks and uncertainties relating
Slide 4: Business Update Q2
Business Update Q2
Slide 5: Key Financials for Q3 2018
Key Financials for Q3 2018 HEXA'J +~ GROWTH GROWTH Q32018 Q22018 QoQ YoY , Revenue 171.1 II 168.3 I 1.6% '11 1"1.1% EBITDA * (before ESOP cost) 29.9 27.6 8.2% 6.3% EBITDA * % --,~ 17.5% _jL 16.4% ~L I 1.1% ~IL_ .:.0.8% EBITDA (after ESOP cost) 28.6 26.2 9.1% 6.4% EBITDA % -- 16.7% . _jL 15.6% ~'l~ 1
Slide 6: Unseasonal Furloughs
Unseasonal Furloughs Cross currency Delayed transitions/Ramps-ups Supply side issues for talent in US © Hexaware Technologies. All rights reserved. | www.hexaware.c|
Slide 7: Revenue Analysis - QoQ
Revenue Analysis - QoQ HEXA\ + 2.7% Volume Growth 8.60 ,,, /\ 175 170 I I 168.3 WI I I(: I •• I (0.57) (0.97) - (2.58) (0.77) (0.94) 171.1 ,, 165 ,,, ,, c i 160 ~ I: 0 Vl 11 Increases ;:) 155 • Decreases 150 145 00 Q) s: •... x Vl Vl 00 rl rtl Vl Q) rl E bO :::l "0 ~ •...0 ~ +' N :::l C rtl tvl (j (
Slide 8: Gross Margin Analysis - QoQ
Gross Margin Analysis - QoQ HEXA'J +~ - 0.58 34.00 (0.21) 0.64 33.5 (0.43) 0.70 33.00 32.6 0.27 (0.37) • 32.00 (0.26) Increases SG&A ~ 13 bps QoQ • Decreases Forex Impact 31.00 00 Vl OJ •.... co x c co c Vl +-' f] 00 Debtors provisioning / ( .-i o Vl ·ffi .-i N cJ +-' co cr::: ""0 C ~ .~ s eo C OJ ~
Slide 9: Movement of Top Customers
Movement of Top 20 Customers HEXA\ + Top 20 Accounts by Q3 Revenue Q3 2018 VS. Q3 2017 In Out f) American investment management f) American outsourcing company company f) European telecommunications company f) Global financial services company f) French multinational insurance company f) Internation
Slide 10: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships HEXA\ + Q32017 Q32018 CONTRIBUTION TOP CLIENTS GROWTH $50+ CD CD $30 - $50 CD CD Top 5 Clients JL -0.3% _jL O.9( Top 10 Clients -0.6% 0.5' $20 - $30 CD CD Top 20 Clients lC J ~ .-1.4%. -II" -"0.7. $10 - $20 ,- -- n~, .,.:"¥tf".-_ . •. - ~\. CD CD Other Client
Slide 11: NN Wins
NN Wins HEXA' + USD 25 million NN Deal wins in Q3-18 f) Application and Infrastructure support for a global banking and financial services company f) Network operations center for an American energy company f) Application support for a Finnish manufacturing and technology company .1._I_1••. II!_ •..
Slide 12: Employee Metrics
Employee Metrics HEXA\ + I ----- UTILIZATION * I I . . --EM-PL()YE-E-ATT-RI-TION --- n ] Steady increase in Utilization Uptaken Attrition 80.9% 81.3% 16.5% 16.1% 80.8% 15. 78.6% 78.9% 14.4% 13.8% 13.7% 13.1% 13.4% 03 04 01 02 03 04 01 02 03 03 04 01 02 03 04 01 02 C 2016 2016 2017 2017 2017 2017 201
Slide 13: Revenue growth by geography
GROWTH -0.2% GEOGRAPHY QoQ YoY -6.6% QoQ 0.9% 9.0% -2.5% North America 2.1% 8.6% -3.9% -11.2% BIBA 9.1% Europe 6.5% 30.3% 11.4% 25.7% 3.7% APAC -7.7% -5.8% 23.3% 5.2% 9.3% 10.0% TOTAL 1.6% 11.1% 1.6%
Slide 14: Guidance: Revenue and EPS
Revenue: 11-12% on reported currency EPS: Above 20% growth for year, based on Sept currency © Hexaware Technologies. All rights reserved. | www.hexaware.q
Slide 15: Finance Update
Finance Update
Slide 16: Revenue
Revenue fj HEXA~ Q32018 • CC revenue at $171.8 mn; l' 2.1% 000; l' 11.8%> YoY • $ Revenue at $171.1 mn; l' 1.6% 000; l' 11.1 % YoY • ~ Revenue at Rs 12,096 mn; l' 6.4% 000; l' 21.8% YoY Revenue ($ Mn) ~QoQGrowth 171.1 3.9% 3.8% 3.1% CQGR 042017 01 2018 022018 032018 042017 Q12018 022018 032018 -I I
Slide 17: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates fJ HEXA~ Outstanding Hedge Position Currency Pair Amount (Mn.) Avg. Rate I USDINR ($) 170.40 70.81 EURNR (€) 6.17 86.91 GBPNR (£) 11.80 97.16 Total ($) 192.94 Note - I.Hedges outstanding are full-term hedges. 2. fUR converted @ 1.1583/USD & GBP converted @ 1.3049
Slide 18: Forex Gain/(Loss)
Forex Gain/{Loss) fJ HEXAV 4.00 • Total Gain/(Loss) 3.30 3.00 • As compared to the ton gain of $ 4.30 Mn in 02'1 the forex gain this quart A.I I 2.00 was $ 3.30 Mn. I I I I I I I I • F a rex Losses expected a I 1.00 -$1.27 Mn in 04'18 a: C :2 -$1.31 Mn in 01'19 c exchange rate of I ~ tJ) ::J 72.49/
Slide 19: Balance Sheet Updates
Balance Sheet Updates fJ HEXAV CASH & CASH EQUIVALENTS Cash and Cash Equivalents at US$ 100.6 Mn ( <' 7,292 Mn) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for 03 2018 at 58 days; 83 days including unbilled DIVIDEND INR 2.50 per share (125%) Dividend Payout including taxes <' 894.67 Mn ($ 12
Slide 20: Innovative Services
Innovative Services HEXAWARE Employees Th rs | Nn K yo | 5 SAAN 7 : a
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