Slide 1: HCL Technologies Earnings Presentation | First Quarter FY'17
HCL TECHNOLOGIES EARNINGS PRESENTATION | FIRST QUARTER FY’17 -1- WHERE VALUES DRIVE VELOCITY
Slide 2: Performance Snapshot
Performance Snapshot ANANT GUPTA -2- WHERE VALUES DRIVE VELOCITY
Slide 3: Performance Trends: 4 Year LTM Performance
PERFORMANCE TRENDS 4 YEAR LTM PERFORMANCE REVENUE HEADCOUNT 6,389 107,968 5,360 91,691 84,319 4,152 In USD Mn JUN'12 JUN'14 JUN'16 JUN'12 JUN'14 JUN'16 EBIT NET INCOME 1,292 1,290 1,145 1,037 In USD Mn In USD Mn 679 495 JUN'12 JUN'14 JUN'16 JUN'12 JUN'14 JUN'16 -3- WHERE VALUES DRIVE VELOCITY
Slide 4: RBTC Driving Customer WOW and HCL Growth
RBTC DRIVING CUSTOMER WOW AND HCL GROWTH Managed Services & Fixed Price Projects % 60.9% Repeat business % revenues from existing clients at 96%, up from 92.9% a year earlier 56.1% AMJ15 AMJ16 Client Metrics Positive Client Movement Across Categories Strong Client Relationships NUMBER OF MILLION YoY
Slide 5: Consistent and Broad Based Growth
CONSISTENT AND BROAD BASED GROWTH REVENUE GROWTH (IN CONSTANT CURRENCY) Quarter Ended 12 Months Ended GROWTH ENGINES Segments 30-Jun-16 30-Jun-16 Broad based Growth QoQ LTM YoY Consolidated 6.0% 10.7% Americas 2.0% 13.7% Geo Drivers Americas and Europe Europe 16.9% 10.6% ROW 0.0% -5.0% Application S
Slide 6: HCL's Multi-Modal IT Strategy for 21st Century Enterprise
HCL’S MULTI–MODAL IT STRATEGY FOR 21ST CENTURY ENTERPRISE Operations IT Enterprise IT Business IT From Integrated Next–Gen ITO BEYONDigital Integrated Propositions ‘BEYONDigital’ Services to Build Unique Unified Experiences DryICE: 3rd Generation Applications Services Automation Platform To IoT WorK
Slide 7: Performance Snapshot
Performance Snapshot C VIJAY KUMAR -7- WHERE VALUES DRIVE VELOCITY
Slide 8: Performance Snapshot: Infrastructure Services
PERFORMANCE SNAPSHOT INFRASTRUCTURE SERVICES Performance Highlights Performance Drivers ■ HCL continues to gain momentum through best–in–class Revenue Growth 30-Jun-16 integrated Next–Gen ITO proposition, powered by DryICETM, its third generation autonomics and orchestration platform (Constant Curre
Slide 9: Performance Snapshot: Applications Services
PERFORMANCE SNAPSHOT APPLICATIONS SERVICES Performance Highlights Performance Drivers Revenue Growth 30-Jun-16 ■ Applications business continues to be driven by investments across digitalization, application modernization and cloud. (Constant Currency) QoQ YoY LTM YoY ■ Establishing leading position
Slide 10: Performance Snapshot: Consumer and Commercial Industries
PERFORMANCE SNAPSHOT CONSUMER AND COMMERCIAL INDUSTRIES Performance Highlights Performance Drivers Revenue Growth 30-Jun-16 ■ Impact of digitalization on horizontal as well as domain–specific vertical processes. (Constant Currency) QoQ YoY LTM YoY ■ Establishing leading position in BEYONDigital & Mo
Slide 11: Strategic Partnerships
STRATEGIC PARTNERSHIPS HCL Technologies and a global technology major have entered into a strategic partnership to invest in and grow key workload automation and DevOps software -- to accelerate product roadmap innovation and extend it to hybrid cloud. HCL’s DryICE Autonomics & Orchestration platf
Slide 12: Performance Snapshot
Performance Snapshot RAHUL SINGH - 12 - WHERE VALUES DRIVE VELOCITY
Slide 13: Performance Snapshot: Financial Services
PERFORMANCE SNAPSHOT FINANCIAL SERVICES Performance Highlights Performance Drivers Revenue Growth 30-Jun-16 ■ Rapidly changing preference for Gen 2/3 outsourcing: Demand for incremental value (Constant Currency) QoQ YoY LTM YoY Emergence of Next-gen services propositions (Agile, Managed Services
Slide 14: Financial Analysis
Financial Analysis ANIL CHANANA - 14 - WHERE VALUES DRIVE VELOCITY
Slide 15: Consolidated Income Statement (in US$ Million)
CONSOLIDATED INCOME STATEMENT (IN US$ MILLION) Q1, FY’17 Revenue at US$ 1,691 Mn; up 6.5% QoQ in reported currency Constant currency revenue growth at 6.0% QoQ and 10.7% on LTM YoY EBIT at $ 348 Mn, up by 5.7% QoQ Annualized GAAP EPS (Diluted) – INR 58 Income Statement Growth 30-Jun-15 31-Ma
Slide 16: FY'17 Guidance
FY’17 GUIDANCE Revenue Operating Margin (EBIT) ■ FY’17 Revenues are expected to grow between ■ FY’17 expected Operating Margin (EBIT) range is 12.0% to 14.0%* in Constant Currency from 19.5% to 20.5% *Revenue Guidance is based on FY’16 (April to March) average exchange rates The above constant curre
Slide 17: Cash Conversion
CASH CONVERSION ON LTM BASIS CASH CONVERSION 96% 84% 56% 56% Jun'15 Jun'16 EBITDA to FCF NI to OCF - 17 - WHERE VALUES DRIVE VELOCITY
Slide 18: Hedge Details
HEDGE DETAILS AS ON In US$ Million 31-Mar-16 30-Jun-16 Total Hedges 1,043 1,113 Balance Sheet Hedges 224 210 Cash Flow Hedges 819 904 Less than or equal to 1 Year 640 674 More than 1 Year 179 230 Rate (USD/INR) Booked Rate (Forward) 67.42 67.99 Less than 1 Year 66.68 67.29 More than 1 Year 69.47 69.
Slide 19: Forex Gain/Loss & OCI
FOREX GAIN/ LOSS & OCI FX Gain/ Loss for the Quarter in US$ Million 30-Jun-16 Cash flow hedge gain (A) 1.1 Net gain on Foreign currency exposure (B) 8.8 TOTAL (A) + (B) 9.9 OCI Position as of 30-Jun-16 in US$ Million 30-Jun-16 OCI (Upto 12 months) 5.7 OCI (Greater than 12 months) 1.4 TOTAL (before T
Slide 20: Tax Provision
TAX PROVISION EFFECTIVE TAX RATE ESTIMATED FOR FY’17 IS ~21% Financial Year ended Quarter Ended Particulars (in US$ Mn) 31-Mar-16 30-Jun-16 Total Tax Expense 223 81 Earnings before Tax 1,063 386 Effective Tax Rate 21.0% 21.0% - 20 - WHERE VALUES DRIVE VELOCITY
Slide 21: Q&A
Q&A - 21 - WHERE VALUES DRIVE VELOCITY