Eclerx Services Limited · NSE:ECLERX
Eclerx Services — FY2016 Earnings Presentation
15 slides from Eclerx Services's earnings presentation, May 20, 2016
Slide 1: Financial Performance FY16
Presented to: Financial Performance Data | Domain | Delivery FY16 May 20, 2016
Slide 2: Financial Summary
Financial Summary Metrics FY16 Q4 Q-o-Q FY16 Y-o-Y Total revenue (INR mm) 3,521 1% 13,547 39% Revenue OPG revenue (INR mm) 3,432 0% 13,143 40% OPG revenue (USD mm) 50.8 -2% 199.4 30% EBITDA (INR mm) 1,497 16% 5,272 52% Profit OPM (INR mm) 1,269 15% 4,361 64% Net profit (INR mm) 1,083 22% 3,630 58% E
Slide 3: Other Income – FY16 vs. FY15
Other Income – FY16 vs. FY15 Other Income FY16 FY15 Investment & Other Income 92.4 208.1 Hedge Gain / (Loss) (11.51) 111.01 Revaluation and Realised Gain 322.7 4.5 Total 403.6 323.5 Figures in INR million Lower Investment Income due to lower investible surplus available post acquisition and fall in
Slide 4: Hedge Updates
Hedge Updates Current Hedge Status Total outstanding hedges now $124.7 mm at average INR 70.73/$; 100% forwards – 2.5 times quarter revenue vs. average of 2.4 times in preceding 4 quarters. – Since CLX has natural hedge, so effective hedge ratio will remain low Contract Year Currency Amount (mn) Ave
Slide 5: P&L Comparison: FY16 vs. FY15
P&L Comparison: FY16 vs. FY15 Operating P&L FY16 OPR (%) FY15 OPR (%) Operating Revenue 13,143.2 9,421.2 Cost of Revenues Employee Cost 5,007.1 38.1% 3,464.1 36.8% General and Administrative Expenses Rent 474.7 3.6% 364.5 3.9% Communication Expenses 181.8 1.4% 138.8 1.5% Legal and Professional Fees
Slide 6: OPM Bridging Analysis: FY16 vs. FY15
OPM Bridging Analysis: FY16 vs. FY15 1.3% 1.3% 2.5% 33.2% 28.2% 3.1% 3.1% FY'15 Emp. Cost Exc. Rate S&D Exp. G&A Dep & Goodwill FY'16 Amortz. • Emp Cost: Increase in employee cost due to integration of CLX • S&D: Lower Bonus and lower Travel & Marketing expenses for CLX compared to rest of eClerx •
Slide 7: Balance Sheet & Other Updates
Balance Sheet & Other Updates Total Cash and Cash equivalents of INR 5,447.9 mm; vs INR 4,408 mm for FY’15 — Equivalent to INR 133.6 per share vs INR 108.9 for FY’15 — Net operating cash flow in FY’16 is INR 4,254.4 mm vs 2,431.7 FY’15 — Capex during FY’16 is INR 485.1 mm (FY’15 INR 485.0 mm) Traili
Slide 8: Key Business Metrics
Key Business Metrics Metrics FY 16 FY15 FY14 FY13 FY12 FY11 USD 74% 83% 81% 82% 78% 75% Currency Contribution* (%) EURO 18% 12% 14% 13% 18% 21% GBP 8% 5% 5% 4% 3% 3% North America 68% 76% 74% 74% 67% 61% Geographic Concentration* Europe 28% 20% 22% 20% 26% 32% Debtors (including unbilled) DSO 73 day
Slide 9: Revenue Mix Trends
Revenue Mix Trends 140% 131% 120% $46.8 100% 80% 72% 39% 60% $20.3 29% 40% 31% $14.6 12% $11.3 14.3% 20% 12% 8% $6.6 21% 0% FY 12 FY'13 FY'14 FY 15 FY 16 Emerging ($ mm) Top 10 % Emerging % Top 10 client Y-o-Y USD growth of 14.3% (Organic 11.8%) Top 10 client Y-o-Y CC growth of 16.8% (Organic 14.2%)
Slide 10: Human Resources Update
Human Resources Update Delivery & Support 8,100 8,862 6,836 1,153 5,954 1,005 4,405 871 656 470 7,709 5,965 7,095 3,935 5,298 FY12 FY13 FY14 FY15 FY16 Operations HC Support Services BD / Sales 89 80 76 62 46 FY12 FY13 FY14 FY15 FY16 * FY16 Q1 onwards includes CLX- Realignment of onshore delivery rol
Slide 11: Forward-looking statements
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 March 31, 2016 March 31, 2015 % of Change Shareholder’s Funds Capital 407.9 303.5 34.4% Minority Interest 5.9 - - Reserves and Surplus 10,455.2 6,846.5 53% Total Shareholder's Funds 10,868.9 7,150.0 52% Application of Funds Fixed Assets 3,397.8 1,681.8 102% Deferre
Slide 13: Financial Summary – Quarterly View
Financial Summary – Quarterly View Metrics FY16 Q4 FY16 Q3 FY16 Q2 FY16 Q1 FY15 Q4 Total Revenue (INR mn) 3,521 3,485 3,399 3,142 2,610 Revenue Opg Revenue (INR mn) 3,432 3,443 3,285 2,983 2,513 Opg Revenue (USD mn) 50.8 51.8 50.2 46.4 40.7 EBITDA (INR mn) 1,497 1,288 1,335 1,152 826 Profit OPM (INR
Slide 14: P&L Comparison – Quarterly View
P&L Comparison – Quarterly View FY16 OPR FY16 OPR FY16 OPR FY16 OPR FY15 OPR Operating P&L Q4 (%) Q3 (%) Q2 (%) Q1 (%) Q4 (%) Operating Revenue 3,432 3,443 3,285 2,983 2,513 Cost of Revenues Employee Cost 1,189 35% 1,361 40% 1,266 39% 1,191 40% 949 38% General and Administrative Expenses Rent 113 3%
Slide 15: Revenue Quality – Quarterly View
Revenue Quality – Quarterly View FY16 FY16 FY16 FY16 FY15 FY15 FY15 FY15 Metrics Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenue Growth USD -2.0% 3.2% 8.1% 14.2% 4.6% 2.1% 5.1% 2.0% (%) Constant Currency -2.5% 4.2% 7.7% 4.0% 6.3% 3.1% 5.6% 1.9% USD 72% 73% 74% 76% 85% 83% 82% 81% Currency EURO 19% 18% 18% 15% 10% 1