Slide 1: Investor Update Q4 2014
Passionate Employees Innovative Investor Update Services Q4 2014 Feb 2015 Delighted Customers © Hexaware Technologies. All rights reserved. www.hexaware.com
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 Revenue: Healthy QoQ growth in Q4 2014 Profitability metrics: Margin expansion QoQ across the board: Gross Margin, EBITDA Margin and PAT Margin 120.0 6.1% CQGR 114.5 40.0% 36.8% 37.3% 37.4% 115.0 36.2% 110.0 35.0% 110.0 30.0% 10
Slide 5: Increasing Depth in Client Relationships
Increasing Depth in Client Relationships Q4 - 2013 Q4 - 2014 $50 + 1 1 $30$- 20+ $50 1 1 $20 - $30 2 3 $10 - $20 5 3 $5 - $10 7 13 $1 - $5 39 40 >$1 55 61 Last twelve months revenue in US$ million © Hexaware Technologies. All rights reserved. | www.hexaware.com 5
Slide 6: Consistent Return on Equity
Consistent Return on Equity Return on Equity (ROE) 35% 30% 29% 29% 27% 25% 23% 20% 15% 10% 5% 0% Q1 Q2 Q3 Q4 © Hexaware Technologies. All rights reserved. | www.hexaware.com 6
Slide 7: Shareholder Metrics
Shareholder Metrics Dividend Payout: well above industry Total Shareholder Returns: Stock price as at the end of each quarter end in 2014 Dividend declared for the year Share Price Movement in 2014 12.0 11.1 210 9.5 200 201.2 199.7 10.0 190 8.0 180 6.0 5.4 170 4.0 160 158.3 4.0 150 150.5 2.0 140 130
Slide 8: Business Updates
Business Updates New Client Adds in Q4 2014 New Wins in Q4 2014 1) Data Management in Capital Markets Geography Client Add # 2) End to End ownership for Maintenance Americas 3 of Enterprise HCM Applications Europe 6 3) Back Office Support in Leading Travel Asia Pacific 1 Service Provider © Hexaware
Slide 9: Employee Metrics: Promising
Employee Metrics: Promising Utilization in a narrow band Employee Attrition: well below industry Net addition during the year 2014: 1,162 Includes trainees; 53% of net additions in 2014 are fresh graduate engineers Employee Attrition Technical Utilization 75.0% 74.6% 16.0% 14.1% 74.0% 14.0% 13.0% 12
Slide 10: Awards & Recognition
Awards & Recognition During the last quarter, Hexaware was presented the IDC Insights Award 2014 for “Excellence in Employee Engagement”. Hexaware’s data scientists have been very active in various crowdsourcing analytics forums and data analytics challenges, such as Kaggle, CrowdAnalytix, Dextra, e
Slide 11: Financial Update
www.hexaware.com Financial Update © Hexaware Technologies. All rights reserved.
Slide 12: Revenue Walk
Revenue Walk • Q4 2014(OND) Revenue in US$ terms at $ 114.5 mn; up 4.1% QoQ; & up 14.4 % YoY – Volume growth: 5.6% – Foreign Exchange Impact: - 1.07% (cross currency headwind: 107 basis points) – Constant currency growth is 5.1% • INR Revenue for the quarter at INR 712 crores; up 6.1% QoQ; and 14.8
Slide 13: EBITDA Margin Walk
EBITDA Margin Walk • EBITDA margin for the quarter was 19.9%; up 190 bps from 18.0% in Q3 2014 (JAS) • Gross margin for Q4 2014 at 37.4%; up10 bps from Q3 2014 – Offshore Increment: (42) bps – FX Gains : +34 bps – Other cost reductions : +9 bps • SG&A at 17.5% for Q4 2014 vs 19.3 % last quarter, imp
Slide 14: Forex Gains / (Losses)
Forex Gains / (Losses) • Loss of $ 2.4 Mn this quarter vs loss of $560k in Q3 2014. • Loss in forex mainly on account of old partial term hedges. • Company has stopped taking partial term hedges for last one year. • All outstanding partial hedges converted into full term hedges in current quarter. •
Slide 15: Others
Others Exception Item • Renewed a large IT Service contract with additional scope • Five year duration • Absorbed few customer employees with related obligations. • Exceptional Item represents the value of such employee obligations based on crystalized restructuring plan of these employees. • This i
Slide 16: Balance Sheet Update
Balance Sheet Update • Cash and Cash Equivalents* at US$ 78.4 Mn (INR 4,939 Mn) • DSO for Q4 2014 at 47 days, 63 days including unbilled • Fourth interim dividend: – INR 2.5 per share (125%) – Dividend Payout including taxes INR 906.3 mn ($ 14.38 Mn) – Dividend Payout Ratio: 104% • Capital Expenditu
Slide 17: Thank you
Passionate Employees Innovative Services Thank you Delighted Customers © Hexaware Technologies. All rights reserved. | www.hexaware.com