Slide 1: Investor Update Q3 2014
www.hexaware.com Investor Update Q3 2014 © Hexaware Technologies. All rights reserved.
Slide 2: Safe harbor statement
Safe harbor statement Certain statements on this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and un
Slide 3: Business Update
www.hexaware.com Business Update © Hexaware Technologies. All rights reserved.
Slide 4: Healthy broad-base revenue growth; profitability metrics outgrow revenue
Healthy broad-base revenue growth Profitability metrics outgrow revenue Profitability metrics: Revenue: Healthy QoQ growth in Q3 2014 Margin expansion QoQ across the board: Gross Margin, EBITDA Margin and PAT Margin 115.0 Gross Margin EBITDA PAT 40.0% 37.3% 110.0 36.8% 110.0 36.2% 35.0% 7.1% CQGR 10
Slide 5: Progress made in Client Size
Progress made in Client Size Q3 2013 Q3 2014 • 1 client > $ 50 m+ • 1 client > $ 30 m+ $ 20+ 3 4 $10 - $20 5 4 $5 - $10 8 11 $1 - $5 37 42 > $1 53 61 Last twelve months revenue in US$ million © Hexaware Technologies. All rights reserved. | www.hexaware.com 5
Slide 6: Consistent Return on Equity
Consistent Return on Equity Return on Equity (RoE) 29% 28% 28% 27% 26% 26% 25% 24% 24% 23% 22% 21% 20% Q1 2014 Q2 2014 Q3 2014 © Hexaware Technologies. All rights reserved. | www.hexaware.com 6
Slide 7: Shareholder Metrics
Shareholder Metrics Dividend Payout: well above industry Total Shareholder Returns: 2014 includes the interim dividend of the first three Stock price as at the end of each quarter end in 2014 quarters alone [ ` 3.00 + ` 1.60 + ` 2.35 = ` 6.95] Share Price Movement in 2014 Dividend declared for the y
Slide 8: Business Updates
Business Updates New Client Adds in Q3 2014 New Wins in Q3 2014 Geography Client Add # 1) Data Management in Capital Markets Americas 4 2) End to End ownership of Enterprise Europe 3 Financial Applications Asia Pacific 3 3) MRO Analytics; Data Migration and Application Modernization for Airlines © H
Slide 9: Employee Metrics: Promising
Employee Metrics: Promising Utilization in a narrow band Employee Attrition: well below industry Net addition during the year 2014: 843 Attrition has remained in the 12% - 13% band for Includes trainees; 45% of net additions in 2014 are more than a year now fresh graduate engineers Technical Utiliza
Slide 10: Awards & Recognition
Awards & Recognition • Hexaware BPS has won the award for ‘Operational Excellence and Quality in BPO Industry’ category at the recent summit for Asia Pacific HRM Congress Awards, 2014. This award aims to honor organizations who have significantly impacted or influenced the society, the corporate wor
Slide 11: Financial Update
www.hexaware.com Financial Update © Hexaware Technologies. All rights reserved.
Slide 12: Revenue Walk
Revenue Walk • Q3 2014 Revenue in US$ terms at $ 110 mn; up 7.9% QoQ; & up 11.4 % YoY – Volume growth: 6.6% – Foreign Exchange Impact: - 0.64% (cross currency headwind: 64 basis points) • ` Revenue for the quarter at ` 671 crores; up 9.9% QoQ; and 8.0 % YoY © Hexaware Technologies. All rights reserv
Slide 13: Profit Margin Walk
Profit Margin Walk • EBITDA margin for the quarter was 18.0%; up 140 bps from 16.6% in Q2 2014 • Gross margin for Q3 2014 at 37.3%; up110 bps from Q2 2014 – Bill rate: +113 bps – Offshore Increment: (52) bps – FX Gains and other factors: +49 bps • SG&A at 19.3% for Q3 2014 vs 19.6 % last quarter, im
Slide 14: Balance Sheet Update
Balance Sheet Update • Cash and Cash Equivalents at US$ 67.80 mn ( ` 4,187 mn) • DSO for Q3 2014 at 47 days, 68 days including unbilled. • Third interim dividend: – ` 2.35 per share ( 117.5%) – Dividend Payout including taxes ` 851.6 mn ($ 13.79 Mn) – Dividend Payout Ratio: 99% • Capital Expenditure
Slide 15: Thank you
Thank you © 2014 Hexaware Technologies Limited. All rights reserved. For internal circulation only. © Hexaware Technologies. All rights reserved. | www.hexaware.com