Eclerx Services Limited · NSE:ECLERX
Eclerx Services — Q1 FY2018 Earnings Presentation
15 slides from Eclerx Services's earnings presentation, Aug 11, 2017
Slide 1: Financial Performance - FY18 Q1
Data. Domain. Delivery. eClerx Financial Performance - FY18 Q1 11th Aug, 2017
Slide 2: Financial Summary
Financial Summary Metrics FY18 Q1 Q-o-Q Y-o-Y OPG revenue (USD mm) 48.8 2% -3% Revenue OPG revenue (INR mm) 3,332 0% -2% Total revenue (INR mm) 3,414 5% -3% OPM (INR mm) 895 -9% -21% Profit EBITDA (INR mm) 1,086 4% -20% Net profit (INR mm) 794 6% -17% OPM (%) 27% -3% -7% Margin EBITDA (%) 32% 0% -7%
Slide 3: Other Income – FY18 Q1 vs. FY17 Q4
Other Income – FY18 Q1 vs. FY17 Q4 Other Income FY18 Q1 FY17 Q4 FY17 Q3 FY17 Q2 FY17 Q1 Investment & Other Income 65.3 61.3 72.5 84.7 60.9 Hedge Gain / (Loss) - - - - - Revaluation and Realised Gain 16.9 (133.9) 40.4 (36.6) 39.1 Total 82.2 (72.6) 112.9 48.1 100.0 Figures in INR millions. • Increase
Slide 4: Hedge Updates
Hedge Updates Current Hedge Status • Total outstanding hedges now $139.6 mm at average INR 71.0/$; 100% forwards - 2.9 times quarter revenue vs. average of 2.8 times in preceding 4 quarters Contract Year Currency Amount (mn) Avg. Rate (INR) USD 79.54 71.3 FY18 Euro 3.41 84.1 FY18 Q2– Equiv USD $30.8
Slide 5: P&L Comparison: FY18 Q1 vs. FY17 Q4
P&L Comparison: FY18 Q1 vs. FY17 Q4 Operating P&L FY18 Q1 OPR (%) FY17 Q4 OPR (%) Operating Revenue 3,331.7 3,315.1 Cost of Revenues Delivery and Support Employees Cost 1,431.8 43.0% 1,316.4 39.7% General and Administrative Expenses Facilities (Rent and Electricity) 152.1 4.6% 151.6 4.6% Administrat
Slide 6: OPM Bridging Analysis: Q-o-Q FY18 Q1 vs. FY17 Q4
OPM Bridging Analysis: Q-o-Q FY18 Q1 vs. FY17 Q4 2.4% 1.5% 0.2% 0.5% 0.9% 29.5% 26.9% 4.1% 1.5% FY17 Q4 Del & Supp Emp. Exc. Rate S&D Exp. G&A Dep FY18 Q1 Cost • Delivery & Support Employees Cost: Increase primarily due to annual wage hike & Increase in both Onshore and offshore delivery employees •
Slide 7: Balance Sheet & Other Updates
Balance Sheet & Other Updates • Total Cash and Cash equivalents of INR 6,429 mm vs INR 6,060 mm for FY’17 Q4; ̶ Equivalent to INR 161.9 per share vs INR 152.6 for FY’17 Q4 ̶ Net operating cash flow in FY’18 Q1 is INR 387 mm vs INR 649 mm in FY17 Q4 ̶ Capex during FY’18 Q1 is INR 87.3 mm vs INR 43.3
Slide 8: Key Business Metrics
Key Business Metrics Metrics FY 18 Q1 FY 17 Q4 FY 17 Q3 FY 17 Q2 FY 17 Q1 USD 84% 84% 75% 73% 72% Currency Contribution* (%) EURO 9% 10% 17% 19% 19% GBP 6% 6% 7% 8% 9% North America 69% 67% 69% 68% 66% Geographic Concentration* Europe 26% 28% 27% 29% 30% Debtors (including unbilled) DSO 88 days 85 d
Slide 9: Revenue Mix Trends – Consol
Revenue Mix Trends – Consol 30% 25% 25% 20% $12.9 $12.4 $12.3 $12.4 15% $11.2 10% 5% 3% 0% -1.1% 0% -2.7% -5% -4% -7.9% -7.2% -3.4% -10% -9.4% -15% FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 Emerging ($ mm) Top 10 % Emerging % • Top 10 client Y-o-Y drop of -2.7% in USD & -2.6% in CC • Emerging client Y
Slide 10: Human Resources Update
Human Resources Update Delivery & Support 8,862 8,737 9,053 8,100 1,153 1,084 6,836 1,005 1,062 871 7,095 7,709 7,675 7,969 5,965 FY14 FY15 FY16 FY17 FY18 Q1 Delivery HC Support Services Selling & Distribution 89 80 78 78 76 FY14 FY15 FY16 FY17 FY18 Q1 * FY16 and onwards includes CLX- Realignment of
Slide 11: Forward-looking statements disclaimer
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 12: Balance Sheet Abstract
Balance Sheet Abstract Particulars Jun 30, 2017 Mar 31, 2017 % of Change Shareholder’s Funds Capital 397.2 397.1 0.0% Minority Interest 6.0 4.5 Reserves and Surplus 12,591.6 11,756.4 7% Total Shareholder's Funds 12,994.8 12,158.0 7% Application of Funds Fixed Assets 3,341.0 3,269.1 2% Deferred Tax A
Slide 13: Financial Summary – Quarterly View
Financial Summary – Quarterly View Metrics FY18 Q1 FY17 Q4 FY17 Q3 FY17 Q2 FY17 Q1 Opg Revenue (USD mn) 48.8 47.9 47.2 48.9 50.2 Revenue Opg Revenue (INR mn) 3,332 3,315 3,247 3,335 3,403 Total Revenue (INR mn) 3,414 3,243 3,359 3,383 3,503 OPM (INR mn) 895 979 910 1,141 1,140 Profit EBITDA (INR mn)
Slide 14: P&L Comparison – Quarterly View
P&L Comparison – Quarterly View FY18 OPR FY17 OPR FY17 OPR FY17 OPR Operating P&L Q1 (%) Q4 (%) Q3 (%) Q2 (%) Operating Revenue 3,332 3,315 3,247 3,335 Cost of Revenues Delivery and Support Employees Cost 1,432 43% 1,316 40% 1,339 41% 1,266 38% General and Administrative Expenses Facilities (Rent an
Slide 15: Key Business Metrics – Quarterly View
Key Business Metrics – Quarterly View FY18 FY17 FY17 FY17 FY17 FY16 FY16 FY16 Metrics Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Revenue Growth USD 1.9% 1.5% -3.5% -2.6% -1.1% -2.0% 3.2% 8.1% (%) Constant Currency 1.4% 1.6% -2.6% 0.8% -1.6% -2.5% NA NA USD 84% 84% 75% 73% 72% 72% 73% 74% Currency EURO 9% 10% 17% 19% 1