Eclerx Services Limited · NSE:ECLERX

Eclerx Services — FY2011 Earnings Presentation

18 slides from Eclerx Services's earnings presentation, May 18, 2011

  1. Slide 1: Financial Performance FY11

    Financial Performance FY11 May 18, 2011 eClerx – An ISO/IEC 27001:2005 Certified Company 0 Confidential eClerx – An ISO / IEC 27001:2005 Certified Company

  2. Slide 2: Financial Summary

    Financial Summary Metrics FY11 Q4 Q-o-Q FY11 Y-o-Y Total Revenue (INR mn) 1,029 10% 3,661 49% Revenue Opg Revenue (INR mn) 955 10% 3,421 33% Opg Revenue (USD mn) 21.1 8% 75.4 37% EBITDA (INR mn) 475 12% 1,586 77% Profit OPM (INR mn) 374 10% 1,255 34% Net Profit (INR mn) 398 11% 1,327 80% EBITDA (%)

  3. Slide 3: Financial Summary (Contd..)

    Financial Summary (Contd..)  Very Strong 2011 – USD revenues 37% Y-o-Y; – Q-o-Q – momentum maintained with 8% growth – Operating margin maintained at 37% – considerable achievement – Net Profit up 80% Y-o-Y, driven by favorable hedge outcomes – EPS of Rs. 42.6, after accounting exception – up 65% Y

  4. Slide 4: Accounting Exceptional Item

    Accounting Exceptional Item  Igentica Travel Solutions (ITS) was acquired by eClerx in 2008 – Net consideration paid was GBP 1,428K – ITS accrued revenue of GBP 754K in 2008 for 8 month period post acquisition – Difference of GBP 1,479K between purchase price and net assets booked to goodwill per G

  5. Slide 5: Other Updates

    Other Updates Current Hedge Status Consistent policy of hedging receivables for next 12-18 months Contract Year Currency Amount (mn) Average Rate (INR) USD $36.0 47.92 FY12 Euro €12.8 61.86 Total FY12 – Equiv USD $54.1 46.46 Forward USD $14.5 48.75 FY13 Euro €4.7 64.15 Total FY13 – Equiv USD $21.1 4

  6. Slide 6: Highly Liquid Balance Sheet

    Highly Liquid Balance Sheet  Total Cash and Cash equivalents of INR 1,794 mn, zero debt on balance sheet – Equivalent to INR 62.2 per share  Trailing 12 months EPS – Basic: INR 48.6 (after exceptional item INR 45.0) – Diluted: INR 46.3 (after exceptional item INR 42.9)  Book value per share of IN

  7. Slide 7: P&L Comparison: FY11 vs. FY10

    P&L Comparison: FY11 vs. FY10 Operating P&L FY11 OPR (%) FY10 OPR (%) Operating Revenue 3,421.0 2,570.2 Cost of Revenues Employee Cost 1,476.5 43.2% 1,077.8 41.9% General Administration and Management Rent 136.6 4.0% 100.2 3.9% Communication Expenses 71.4 2.1% 58.4 2.3% Legal and Professional Fees 9

  8. Slide 8: OPM Bridging Analysis: FY11 vs. FY10

    OPM Bridging Analysis: FY11 vs. FY10 0.8% 0.3% 0.2% 2.9% 2.0% 36.3% 36.7% FY10 Exc. Rate G&A Emp. Cost S&M Exp. Dep. FY11  Higher and efficient capacity utilization helped drive a scaling in G&A and depreciation costs – Especially notable given significant new capacity addition at Airoli Note: Brid

  9. Slide 9: NPM Bridging Analysis: FY11 vs. FY10

    NPM Bridging Analysis: FY11 vs. FY10 0.4% 0.3% 2.8% 0.8% 6.5% 29.8% 33.4% FY10 Exceptional Tax Forex Gain Inv. Inc. OPM FY11 Item  Significant other income driven by hedging gains this year against losses in the previous year 8 Confidential eClerx – An ISO/IEC 27001:2005 Certified Company July 11

  10. Slide 10: Revenue Quality

    Revenue Quality Metrics FY11 FY10 USD 75% 73% EURO 21% 23% Currency Concentration (%) GBP 3% 4% Other 1% 0% North America 61% 61% Geographic Concentration Europe 32% 34% ROW 7% 5% Debtors DSO 59 days 57 days Client Concentration Top 5 87% 82% FTE 88% 73% Billing Mix SEZ Revenue 59% 42% 9 Confidentia

  11. Slide 11: Status Update

    Status Update Head Count 3,658 2,863 1,973 1,527 1,021 FY 07 FY 08 FY 09 FY 10 FY 11 Attrition 37.0% 38.7% 35.1% 30.5% 26.8% FY 07 FY 08 FY 09 FY 10 FY 11 10 Confidential eClerx – An ISO/IEC 27001:2005 Certified Company July 11

  12. Slide 12: The Year That Was – 2011

    The Year That Was – 2011  USD 75 mn revenue, 85 mn run rate – meaningful numbers in the KPO and midcap space  Inclusion in the BSE midcap index  Substantially upgraded sales and marketing effort  Airoli built out completed – whilst largest facility to date, first phase fully utilized in less tha

  13. Slide 13: FY12 – Emerging Themes

    FY12 – Emerging Themes  Increased business activity – Business activity and confidence are both up in our client markets +  Increased business investments in our clients markets – In Financial Services, companies are being forced to change business models given regulation – New businesses being en

  14. Slide 14: Thank You

    Thank You 13 Confidential eClerx – An ISO/IEC 27001:2005 Certified Company July 11

  15. Slide 15: Balance Sheet Abstract

    Balance Sheet Abstract Particulars March 31, 2011 March 31, 2010 Change (%) Shareholder’s Funds Capital 288.5 190.3 52% Stock Option Outstanding and Stock Options Pending Allotment 3.3 2.5 35% Reserves and Surplus 2,091.9 1,806.0 16% Total Shareholder’s Funds 2,383.8 1,998.8 19% Application of Funds

  16. Slide 16: Financial Summary – Quarterly View

    Financial Summary – Quarterly View Metrics FY10 Q3 FY10 Q4 FY11 Q1 FY11 Q2 FY11 Q3 FY11 Q4 Total Revenue (INR mn) 670 739 837 861 933 1,029 Revenue Opg. Revenue (INR mn) 691 713 771 823 872 955 Opg. Revenue (USD mn) 14.9 15.8 16.8 18.0 19.6 21.1 EBITDA (INR mn) 258 287 349 336 426 475 Profit OPM (IN

  17. Slide 17: Revenue Quality – Quarterly View

    Revenue Quality – Quarterly View Metrics FY10 Q3 FY10 Q4 FY11 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY10 USD 71% 75% 76% 75% 75% 75% 75% 73% Currency EURO 25% 21% 20% 21% 21% 21% 21% 23% Concentration (%) GBP 3% 4% 3% 4% 3% 3% 3% 4% Other – – – 1% 1% 1% 1% 0% North America 60% 63% 63% 60% 58% 61% 61% 61%

  18. Slide 18: P&L Comparison – Quarterly View

    P&L Comparison – Quarterly View FY10 OPR FY10 OPR FY11 OPR FY11 OPR FY11 OPR FY11 OPR Operating P&L Q3 (%) Q4 (%) Q1 (%) Q2 (%) Q3 (%) Q4 (%) Operating Revenue 690.5 712.9 770.8 822.9 872.0 955.4 Cost of Revenues Employee Cost 282.0 40.8% 312.3 43.8% 358.2 46.5% 370.8 45.1% 366.7 42.0% 380.8 39.9% G

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