Hcl Technologies Limited · NSE:HCLTECH
Hcl Technologies — Q2 FY2010 Earnings Presentation
27 slides from Hcl Technologies's earnings presentation, Jan 25, 2010
Slide 1: HCL Technologies Second Quarter Results FY 2009-10
HCL Technologies Quarterly Results 2009-10 S e c o n d Q u a r t e r R e s u l t s F Y 2009-10 Investor Release N o i d a, N C R, I n d i a, J a n u a r y 25, 2 0 1 0 Q2 Revenues at Rs.3,033 Crores; up 22.8% YoY EBIT at Rs.502 Crores; up 13.9% YoY Net Income at Rs.297 Crores Q2 Revenues at US$ 652 m
Slide 2: Financial Highlights
Financial Highlights Highlights for the Quarter (INR) Revenue at Rs.3,033 crores; up 22.8% YoY and marginally up sequentially ? EBIT at Rs.502 crores; up 13.9% YoY and lower 8.1% sequentially ? Net Income at Rs. 297 crores ? Announces dividend of Re. 1 per share, 28th consecutive quarter of dividend
Slide 3: Overview
Overview HCL continues to perform well in the current market environment and is well placed to continue its balanced growth trajectory in the coming times. “2010 marks the end of the first decade of the millennium which began and ended with a recession and in its course brought about fundamental shi
Slide 4: Business Highlights
Business Highlights QoQ Revenue Growth Rate % 12% 11.3% QOQ growth % 10% 8% 7.6% 6% 3.8% 4% 3.4% 2% 1.2% 0% Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 YoY Revenue Growth Rate % 30% 25.8% 25% 21.0% 28.5% YoY growth % 20% 15% 18.2% 11.7% 10% 5% 0% Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 EBIT Trends 109.5 113.7 120
Slide 5: Key Catalysts for Growth
Key Catalysts for Growth HCL has reported 4.9% of CQGR growth in the last three quarters ? In this period, HCL’s broad based portfolio of businesses witnessed a well balanced CQGR ? across verticals & geographies Infrastructure and Custom Application recorded continued momentum of positive growth ?
Slide 6: Multi-service, multi-year, multi-million dollar deals
Multi-service, multi-year, multi-million dollar deals • During October - December 2009, HCL won 12 new outsourcing deals. These include 2 large deals from financial services vertical. Deal wins have been predominantly from UK & US markets Transformation @ HCL • Shiv Nadar was conferred the 'CNBC Asi
Slide 7: Business Highlights
Business Highlights • HCL opened a Global Development Center in Brazil to service growing client base in Latin America, North America and Europe • HCL launched XpressMigrate suite of offerings for Windows 7 migration enabling enterprises to minimize risk, bring higher visibility and reduce Windows 7
Slide 8: Financials
Financials Unaudited consolidated financial results for the quarter ended 31st December, 2009 drawn under US GAAP Consolidated Income Statement Amt. in US $ million Income Statement Quarter ending… Growth 31-Dec-08 30-Sep-09 31-Dec-09 YoY QoQ Revenues 507.0 630.1 651.7 28.5% 3.4% Direct Costs 307.5
Slide 9: Consolidated Balance Sheet
Note: - The above result does not take into account non cash employee stock options charge computed under FAS 123R, as per details given here:- Particulars (in US $ mn) 31-Dec-08 30-Sep-09 31-Dec-09 Options at market price 0.5 0.0 0.0 Options at less than market price 3.7 4.2 5.2 Total 4.2 4.2 5.2 T
Slide 10: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Amt. in US $ million Particulars Period ended 31-Dec-09 CASH FLOWS FROM OPERATING ACTIVITIES Net Income 130.3 Adjustments to Reconcile Net Income to Net Cash provided by Operating Activities Depreciation and Amortization 58.7 (Profit) /Loss on Redemption of Mutual Fu
Slide 11: Segment wise Profitability
Segment wise Profitability A. Consolidated IT Services (Software Services [A1] & Infrastructure services [A2]) Amt. in US $ million Quarter ended Growth% Particulars 31-Dec-08 30-Sep-09 31-Dec-09 YoY QoQ Revenues 444.1 571.3 594.1 33.8% 4.0% Direct Costs 267.3 357.4 377.6 Gross Profits 176.8 213.9 2
Slide 12: Software Services and Infrastructure Services
A1. Software Services Amt. in US $ million Quarter ended Growth% Particulars 31-Dec-08 30-Sep-09 31-Dec-09 YoY QoQ Revenues 359.6 448.8 462.1 28.5% 3.0% Direct Costs 210.9 272.9 284.2 Gross Profits 148.7 175.9 177.8 SG & A 62.8 65.3 68.5 EBITDA 85.9 110.6 109.3 27.3% -1.2% Depreciation 11.3 13.6 13.
Slide 13: Revenue Analysis
Revenue Analysis Geographic Mix (Quarter ended) 31-Dec-08 30-Sep-09 31-Dec-09 LTM US 59.5% 58.7% 57.0% 58.8% Europe 27.3% 29.0% 29.5% 28.7% Asia Pacific 13.2% 12.3% 13.5% 12.5% Service Offering Mix (Quarter ended) 31-Dec-08 30-Sep-09 31-Dec-09 LTM Enterprise Application Services 12.5% 21.9% 22.4% 23
Slide 14: Constant Currency (CC) Reporting
Constant Currency (CC) Reporting Reported OND 08 JFM 09 AMJ 09 JAS 09 OND 09 Revenue ($ mn) 507.0 564.4 607.2 630.1 651.7 Growth QoQ 1.2% 11.3% 7.6% 3.8% 3.4% Growth YoY 11.7% 18.2% 21.0% 25.8% 28.5% Constant Currency (QoQ) OND 08 JFM 09 AMJ 09 JAS 09 OND 09 Revenue ($ mn) 540.8 572.2 586.2 621.3 64
Slide 15: Client Metrics
Client Metrics Client Data (LTM) 31-Dec-08 30-Sep-09 31-Dec-09 Number of Clients Active Client Relationship 315 373 399 New Client Relationship 26 28 36 Accounting for > 5% of revenue 2 1 1 Number of Million Dollar Clients (LTM) 31-Dec-08 30-Sep-09 31-Dec-09 QoQ YoY Change Change 100 Million dollar
Slide 16: Operational Metrics - Software Services
Operational Metrics - Software Services Software Services (Quarter Ended) 31-Dec-08 30-Sep-09 31-Dec-09 Efforts Offshore 75.3% 71.9% 71.5% Onsite 24.7% 28.1% 28.5% Revenue Offshore 53.5% 41.5% 40.9% Onsite 46.5% 58.5% 59.1% Utilization Offshore - Including trainees 74.5% 76.0% 76.4% Offshore - Exclu
Slide 17: Employee Metrics
Employee Metrics Manpower Details 31-Dec-08 30-Sep-09 31-Dec-09 Total Employee Count 55,018 54,443 55,688 IT Services (Software Services [A1] + Infrastructure Services [A2]) 42,268 43,081 44,772 Technical 37,265 38,211 39,717 Support 5,003 4,870 5,055 Gross addition 2,216 2,612 3,590 Net addition 2,
Slide 18: Employee Metrics - Software and Infrastructure Services
A1. Software Services 31-Dec-08 30-Sep-09 31-Dec-09 Software Services - Total 33,298 32,312 33,455 Technical 29,174 28,382 29,383 Support 4,124 3,930 4,072 Gross addition 1,275 1,520 2,595 Net addition 2,027 (52) 1,143 Gross lateral employee addition 922 1,063 1,989 Attrition (LTM) 13.4% 12.7% 12.9%
Slide 19: Facility Details
Facility Details As on 31st December 2009 Completed Work in Progress Land Available Built Up area Built Up area for expansion - Delivery Locations No. of seats No. of seats in acres (Sq. ft.) (Sq. ft.) Gurgoan 285,127 2,510 Noida(NCR) 1,936,012 21,861 31 Chennai 2,558,096 24,006 418,166 2,414 27 Ban
Slide 20: Cash & Cash Equivalent, Investments and Borrowing
Cash & Cash Equivalent, Investments and Borrowing Amt. in US $ million 31-Dec-09 A. Cash and Cash Equivalent 73.0 B. Fixed Deposit with Banks 186.0 C. Investment Securities, held to maturity 4.3 D. Mutual Funds Liquid Schemes 134.6 Total (A+B+C+D) 397.9 A. Details of Cash & Cash Equivalent Amt. in U
Slide 21: Cash & Cash Equivalent, Investments and Borrowing
Cash & Cash Equivalent, Investments and Borrowing B. Fixed Deposit with Banks Amt. in US $ million 31-Dec-09 Bank of Baroda 36.4 Bank of India 32.2 Canara Bank 33.7 Corporation Bank 4.1 Punjab National Bank 40.9 State Bank of India 37.7 Others 0.9 Total Fixed Deposit with Banks 186.0 C. Investment S
Slide 22: Financials in INR as per convenience translation
Financials in INR as per convenience translation (The financials in INR are based on a convenience translation using the closing rate as of the last day of the quarter: US$1 = Rs.46.53 for the quarter ended on 31 Dec 2009; US $1 = Rs. 48.11 for the quarter ended on 30 Sep 2009; US$ 1 = Rs. 48.70 for
Slide 23: Consolidated Balance Sheet (INR)
Note: - The above result does not take into account non cash employee stock options charge computed under FAS 123R, as per details given here:- Particulars (in Rs. Crores) 31-Dec-08 30-Sep-09 31-Dec-09 Options at market price 2.3 0.0 0.0 Options at less than market price 18.0 20.1 24.2 Total 20.3 20
Slide 24: Segment wise Profitability (INR)
Segment wise Profitability A. Consolidated IT Services (Software Services [A1] & Infrastructure Services [A2]) Amt. in Rs crores Quarter ended Growth% Particulars 31-Dec-08 30-Sep-09 31-Dec-09 YoY QoQ Revenues 2,162.5 2,748.5 2,764.3 27.8% 0.6% Direct Costs 1,301.6 1,719.5 1,757.1 Gross Profits 860.
Slide 25: Software Services and Infrastructure Services (INR)
A1. Software Services Amt. in Rs crores Quarter ended Growth% Particulars 31-Dec-08 30-Sep-09 31-Dec-09 YoY QoQ Revenues 1,751.1 2,159.1 2,150.0 22.8% -0.4% Direct Costs 1,027.1 1,312.9 1,322.5 Gross Profits 724.0 846.2 827.5 SG & A 306.0 314.0 318.9 EBITDA 418.0 532.2 508.6 21.7% -4.4% Depreciation
Slide 26: About HCL Technologies
About HCL Technologies HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on ‘transformational outsourcing’, underlined by
Slide 27: Talk to me
Talk to me For details, contact: MEDIA RELATIONS INVESTOR RELATIONS Geetanjali Bhatia Sanjay Mendiratta geetanjali.bhatia@hcl.in sanjay.mendiratta@hcl.in +91- 98119 87765 +91- 9312065108 Zulfia Nafees Ronit Dutta zulfian@hcl.in ronit.dutta@hcl.in +91-9810495138 +91- 9711002816 Kunal Takalkar kunal.t