Slide 1: Investor Update Q3 2018
Investor Update Q3 2018 24th October 2018 © 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 Q2
Business Update Q2 www.hexaware.com | © Hexaware Technologies. All rights reserved. 3
Slide 4: Key Financials for Q3 2018
Key Financials for Q3 2018 GROWTH GROWTH Q3 2018 Q2 2018 QoQ YoY Revenue 171.1 168.3 1.6% 11.1% EBITDA * (before ESOP cost) 29.9 27.6 8.2% 6.3% EBITDA * % 17.5% 16.4% 1.1% -0.8% EBITDA (after ESOP cost) 28.6 26.2 9.1% 6.4% EBITDA % 16.7% 15.6% 1.1% -0.7% PAT 24.27 22.69 6.9% 10.2% PAT % 14.2% 13.5%
Slide 5: Revenue Impacts for Q3
Revenue Impacts for Q3 • Unseasonal Furloughs • Cross currency • Delayed transitions/Ramps-ups • Supply side issues for talent in US © Hexaware Technologies. All rights reserved. | www.hexaware.com 5
Slide 6: Revenue Analysis - QoQ
Revenue Analysis - QoQ 2.7% Volume Growth 8.60 175 (0.57) (0.97) 171.1 (2.58) (0.77) 170 168.3 (0.94) USD Mn---------------> 165 160 Increases 155 Decreases 150 145 FX (mainly cross Volume Bill Rates Revenue Q2 18 Furlough Mix Revenue Q3 18 Calendar currency) www.hexaware.com | © Hexaware Technologi
Slide 7: Gross Margin Analysis - QoQ
Gross Margin Analysis - QoQ 0.58 34.00 (0.21) 0.64 33.5 (0.43) 0.70 33.00 32.6 0.27 (0.37) 32.00 (0.26) Increases SG&A 13 bps QoQ Decreases Forex Impact 37 31.00 Debtors provisioning / (43) Utilisation Bill Rates H1B Visa Mix Forex gain Calendar related to projects Increments GM Q2 18 GM Q3 18 Oth
Slide 8: Movement of Top Customers
Movement of Top 20 Customers Top 20 Accounts by Q3 Revenue Q3 2018 vs. Q3 2017 In Out • American investment management • American outsourcing company company • European telecommunications company • Global financial services company • French multinational insurance company • International airline com
Slide 9: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q3 2017 Q3 2018 CONTRIBUTION GROWTH TOP CLIENTS GROWTH QoQ $50+ 3 3 Top 5 Clients -0.3% 0.9% $30 - $50 0 0 $20 - $30 2 1 Top 10 Clients -0.6% 0.5% $10 - $20 4 6 Top 20 Clients -1.4% -0.7% Other Clients 1.4% 5.7% $5 - $10 9 15 $1 - $5 64 70 Q3 18 Top 20 accoun
Slide 10: NN Wins
NN Wins USD 25 million NN Deal wins in Q3-18 Application and Infrastructure support for a global banking and financial services company Network operations center for an American energy company Application support for a Finnish manufacturing and technology company www.hexaware.com | © Hexaware Techno
Slide 11: Employee Metrics
Employee Metrics UTILIZATION * EMPLOYEE ATTRITION Steady increase in Utilization Uptaken Attrition 16.5% 16.1% 80.8% 80.9% 81.3% 15.7% 79.7% 14.9% 14.4% 78.6% 78.9% 79.0% 13.8% 13.7% 78.2% 13.1% 13.4% 74.1% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017 2017 2018 2018
Slide 12: EU, H&I and IMS led Growth
EU, H&I and IMS led Growth APAC, IMS, Europe, 9.3% PS, 13.3% BPS, ADM, M&C, 14.9% 14.7% 13.3% BFS, 42.5% 36.0% BIBA, 7.4% 14.5% North ES, 9.7% America, H&I, 18.8% DA, 77.4% GTT, 10.5% 17.7% HORIZONTAL GROWTH GROWTH (1) QoQ YoY GROWTH GROWTH VERTICAL ADM -0.2% 10.0% GROWTH GROWTH GEOGRAPHY QoQ YoY ES
Slide 13: Guidance
Guidance • Revenue: – 11-12% on reported currency • EPS: – Above 20% growth for year, based on Sept currency © Hexaware Technologies. All rights reserved. | www.hexaware.com 13
Slide 14: Finance Update
Finance Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 14
Slide 15: Revenue
Revenue Q3 2018 • CC revenue at $171.8 mn; 2.1% QoQ; 11.8% YoY • $ Revenue at $171.1 mn; 1.6% QoQ; 11.1% YoY • ₹ Revenue at Rs 12,096 mn; 6.4% QoQ; 21.8% YoY Revenue ($ Mn) QoQ Growth 171.1 3.9% 168.3 3.8% 3.1% CQGR 162.2 156.1 1.6% 1.3% Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2017 Q1 2018 Q2
Slide 16: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Outstanding Hedge Position Currency Pair Amount (Mn.) Avg. Rate USDINR ($) 170.40 70.81 EURNR (€) 6.17 86.91 GBPNR (£) 11.80 97.16 Total ($) 192.94 Note - 1.Hedges outstanding are full-term hedges. 2. EUR converted @ 1.1583/USD & GBP converted @ 1.3049/USD. 3. Av
Slide 17: Forex Gain/(Loss)
Forex Gain/(Loss) 4.00 Total Gain/(Loss) 3.30 3.00 • As compared to the forex gain of $ 4.30 Mn in Q2’18, the forex gain this quarter USD Mn-----------> 2.00 was $ 3.30 Mn. • Forex Losses expected are 1.00 ~$1.27 Mn in Q4’18 and ~$1.31 Mn in Q1’19 at exchange rate of INR - 72.49/ USD. (1.00) (1.27)
Slide 18: Balance Sheet Updates
Balance Sheet Updates CASH & CASH EQUIVALENTS Cash and Cash Equivalents at US$ 100.6 Mn ( ` 7,292 Mn) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for Q3 2018 at 58 days; 83 days including unbilled DIVIDEND INR 2.50 per share (125%) Dividend Payout including taxes ` 894.67 Mn ($ 12.2 Mn) Tax:
Slide 19: Thank you
Innovative Services Passionate Employees Thank you Delighted Customers © Hexaware Technologies. All rights reserved. | www.hexaware.com