Eclerx Services Limited · NSE:ECLERX
Eclerx Services — Q3 FY19 Earnings Presentation
16 slides from Eclerx Services's earnings presentation, Jan 31, 2019
Slide 1: Exchange cover letter: revised earnings presentation
eClery eClerxlSECD/SE/2019/016 January 31,2019 SSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Plot No. C/1, Phiroze Jeejeebhoy Towers, Block G, Bandra - Kurla CO'nlplex 25th Floor, Dalal Street, Bandra (East), Fort, Mumbai - 400001 Mumbai - 40
Slide 2: Financial Performance – YTD FY19
Data. Domain. Delivery. eClerx Financial Performance – YTD FY19 31st January, 2019 Presented to:
Slide 3: Financial Summary
Financial Summary Metrics FY19 Q3 Q-o-Q FY19 YTD Y-o-Y OPG revenue (USD mm) 50.2 0.3% 149.5 2.4% Revenue OPG revenue (INR mm) 3,576 0% 10,655 6% Total revenue (INR mm) 3,572 -5% 11,028 7% EBITDA (INR mm) 667 -35% 2,659 -14% Operating EBITDA (INR mm) 671 -19% 2,286 -20% Profit OPM (INR mm) 548 -25% 1
Slide 4: Other Income – FY19 Q3 vs. FY19 Q2
Other Income – FY19 Q3 vs. FY19 Q2 Figures in INR millions. Other Income FY19 Q3 FY19 Q2 FY19 Q1 FY18 Q4 FY18 Q3 Investment Income 100.0 79.3 67.5 82.7 69.9 Revaluation and Realised Gain (108.8) 109.3 98.3 57.8 (70.8) Other Misc. Income 4.6 4.1 19.1 29.1 7.1 Total (4.2) 192.7 184.9 169.6 6.2 • Decre
Slide 5: Hedge Updates
Hedge Updates Current Hedge Status • Total outstanding hedges now $146.5 mm at average INR 71.7/$; 100% forwards • Very positive hedge rate trajectory from Q2 onwards Contract Year Amount (USD mn) Avg. Rate (INR) FY19 Q1 $31.0 69.2 Matured Forwards FY19 Q2 $30.4 68.7 FY19 Q3 $32.7 69.0 FY19 Q4 $29.5
Slide 6: P&L Comparison: FY19 Q3 vs. FY19 Q2
P&L Comparison: FY19 Q3 vs. FY19 Q2 Figures in INR millions. Operating P&L FY19 Q3 OPR (%) FY19 Q2 OPR (%) Operating Revenue 3,576 3,559 Cost of Revenues Delivery and Support Employees Cost 1,830 51.2% 1,730 48.6% General and Administrative Expenses Facilities (Rent and Electricity) 211 5.9% 130 3.6
Slide 7: P&L Comparison: FY19 Q3 vs. Avg last 4Q
P&L Comparison: FY19 Q3 vs. Avg last 4Q Figures in INR millions. Average Last Operating P&L FY19 Q3 OPR (%) OPR (%) Comments 4 Qtrs. 3% drop in Hedge rate realization, Operating Revenue 3,576 3,522 instead of 6% favorable spot movement Cost of Revenues Staff utilisation drop by 70 bps and Delivery a
Slide 8: OPM Bridging Analysis: Q-o-Q FY19 Q3 vs. FY19 Q2
OPM Bridging Analysis: Q-o-Q FY19 Q3 vs. FY19 Q2 20.5% 0.4% 2.2% 2.7% 0.1% 15.3% 0.6% Q2FY19 S&D G&A Delivery Cost Depreciation Fx & hedges Q3FY19 • Delivery cost higher due to new upfront investments in onshore delivery • S&D lower due to lower BD cost in the quarter • Higher G&A due to one off cos
Slide 9: Balance Sheet & Other Updates
Balance Sheet & Other Updates • Total Cash and Cash equivalents of INR 7,219 mm vs INR 6,531 mm for FY’19 Q2; ̶ Equivalent to INR 190.1 per share vs INR 172.0 for FY’19 Q2 ̶ Net operating cash flow in Q3FY’19 is INR 1050.6 mm vs INR 937.0 mm in FY’19 Q2 ̶ Capex during FY’19 Q2 is INR 76.8 mm vs INR
Slide 10: Key Business Metrics
Key Business Metrics FY 19 FY 19 FY 19 FY 18 FY 18 FY 18 FY 18 FY 17 FY 17 FY 17 FY 17 Metrics Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 USD 0.3% 1.6% -6.2% 7.4% 1.2% -0.9% 1.9% 1.5% -3.5% -2.6% -1.1% Revenue Growth (%) Constant Currency 0.7% 2.2% -5.7% 6.5% 1.1% -1.8% 1.4% 1.6% -2.6% 0.8% -1.6% USD 82% 82%
Slide 11: Revenue Mix Trends – Consol
Revenue Mix Trends – Consol 0% $5.3 0% 41.9% $4.2 $5.0 $4.9 $4.1 $4.9 0% $12.1 $3.7 28.2% $10.5 $10.3 $10.0 $9.7 $9.4 0% $8.7 11.1% 18.1% 0% 11% 2.1% 0.5% -2.7% -1.4% 0% -4.9% 4.0% -3% -5.4% -4.0% 0% FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 Emerging (others) Emerging ($ 0.5 mm) Strate
Slide 12: Human Resources Update
Human Resources Update Headcount 9,429 9,363 78 9,583 86 9,520 87 78 8,815 91 91 78 81 91 406 393 460 444 58 640 641 387 618 638 617 367 453 520 366 178 7,825 7,746 7,907 7,788 7,497 FY17 FY18 FY19 Q1 FY19 Q2 FY19 Q3 Offshore Delivery Onshore Delivery Support Services Tech Services R&D BD Offshore A
Slide 13: Thank You
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 14: Balance Sheet Abstract
Balance Sheet Abstract Figures in INR millions. Particulars Dec 31, 2018 March 31, 2018 % of Change Shareholder's Funds Capital 379 381 (1%) Minority Interest 6 5 14% Reserves and Surplus 12,801 11,666 10% Total Shareholder's Funds 13,186 12,053 9% Application of Funds Fixed Assets 3,469 3,435 1% De
Slide 15: Financial Summary – Quarterly View
Financial Summary – Quarterly View Metrics FY19 Q3 FY19 Q2 FY19 Q1 FY18 Q4 FY18 Q3 OPG revenue (USD mm) 50.2 50.2 49.2 52.5 48.9 Revenue OPG revenue (INR mm) 3,576 3,559 3,519 3,611 3,399 Total revenue (INR mm) 3,752 3,752 3,704 3,781 3,405 OPM (INR mm) 548 728 690 676 778 EBITDA (INR mm) 667 1,024
Slide 16: P&L Comparison – Quarterly View
P&L Comparison – Quarterly View Figures in INR millions. FY19 OPR FY19 OPR FY19 OPR FY18 OPR FY18 OPR Operating P&L Q3 (%) Q2 (%) Q1 (%) Q4 (%) Q3 (%) Operating Revenue 3,576 3,559 3,519 3,611 3,399 Cost of Revenues Delivery and Support Employees 1,830 51% 1,730 49% 1,725 49% 1,712 47% 1,547 46% Cos