Slide 1: HCL Technologies First Quarter Results FY 2009-10
HCL Technologies Quarterly Results 2009-10 F i r s t 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, O c t o b e r 28, 2 0 0 9 Q1 Revenues at Rs.3,031 Cr; up 28.9% YoY; up 4.2% QoQ EBIT at Rs.547 Cr; up 29.4% YoY; up 4.3% QoQ Net Income at Rs.320 Cr Q1 Revenues
Slide 2: Results Highlights
Results Highlights Highlights for the Quarter (INR) Revenue at Rs.3,031 crore; up 28.9% YoY and 4.2% sequentially ? EBIT at Rs.547 crore; up 29.4% YoY and 4.3% sequentially ? Net Income before forex loss at Rs.470 crore, up 7.9% YoY and 12.3% sequentially ? Forex loss for the quarter at Rs. 151 cror
Slide 3: Overview
Overview HCL continues to respond well to the changing market dynamics. The financial performance and strategic actions in the past few quarters is a testimony to the solidity of its fundamentals, and effectiveness of its strategy. HCL continues to create innovation and growth in a challenging marke
Slide 4: Business Highlights
Business Highlights QoQ Revenue Growth Rate - % 15% QoQ growth % 10% 11.3% 7.6% 5% 5.1% 5.2% -0.1% 3.8% 1.2% 0% Mar'08 Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Sep'09 -5% YoY Revenue Growth Rate - % 40% 31.8% YoY growth % 30% 26.8% 25.8% 20% 17.2% 21.0% 18.2% 10% 11.7% 0% Mar'08 Jun'08 Sep'08 Dec'08 Mar'0
Slide 5: Key Catalysts for Growth
Key Catalysts for Growth • HCL has witnessed positive growth in US and Europe • Infrastructure Services and Custom Application recorded accelerated growth reaffirming HCL’s dominant market position • Growth recorded in Media Publishing & Entertainment (MPE) followed by Retail & CPG, Financial Servic
Slide 6: Multi-service; Multi-year; Multi-million dollar deals
Multi-serivce; Multi-year; Multi-million dollar deals • New wins during this quarter include EFH, American Family Insurance, U.S. Food Service, NetApp, Xerox-XIM amongst others Transformation @ HCL • HCL participates as a panelist in the session “Towards a Green Recovery” as part of the World Econom
Slide 7: Business Highlights
Business Highlights • HCL AXON completed a carve-out of Enterprise Solutions SAP practice of the UCS Group in South Africa. The carve-out deepens HCL AXON’s SAP capabilities with best-in-class SAP Retail Industry Solutions (IS), bringing in proven competency in IS Retail and further increase the glo
Slide 8: Financials
Financials Unaudited consolidated financial results for the quarter ended 30th September, 2009 drawn under US GAAP Consolidated Income Statement Amt. in US $ million Income Statement Quarter ending… Growth 30-Sep-08 30-Jun-09 30-Sep-09 YoY QoQ Revenues 500.9 607.2 630.1 25.8% 3.8% Direct Costs 305.9
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) 30-Sep-08 30-Jun-09 30-Sep-09 Options at market price 0.5 0.5 0.0 Options at less than market price 3.9 3.3 4.2 Total 4.3 3.8 4.2 T
Slide 10: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Amt. in US $ million Particulars Period ended 30-Sep-09 CASH FLOWS FROM OPERATING ACTIVITIES Net Income 66.5 Adjustments to Reconcile Net Income to Net Cash provided by Operating Activities Depreciation and Amortization 29.5 (Profit) /Loss on Redemption of Mutual Fun
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 30-Sep-08 30-Jun-09 30-Sep-09 YoY QoQ Revenues 444.4 548.6 571.3 28.5% 4.1% Direct Costs 269.2 339.8 357.4 Gross Profits 175.2 208.8 2
Slide 12: Software Services and Infrastructure Services
A1. Software Services Amt. in US $ million Quarter ended Growth% Particulars 30-Sep-08 30-Jun-09 30-Sep-09 YoY QoQ Revenues 365.4 441.5 448.8 22.8% 1.6% Direct Costs 216.0 267.1 272.9 Gross Profits 149.4 174.4 175.9 SG & A 65.1 69.5 65.3 EBITDA 84.3 104.9 110.6 31.2% 5.4% Depreciation 12.5 11.8 13.6
Slide 13: Revenue Analysis
Revenue Analysis Geographic Mix (Quarter ended) 30-Sep-08 30-Jun-09 30-Sep-09 LTM US 57.0% 58.9% 58.7% 59.5% Europe 29.0% 28.5% 29.0% 28.1% Asia Pacific 14.0% 12.6% 12.3% 12.4% Service Offering Mix (Quarter ended) 30-Sep-08 30-Jun-09 30-Sep-09 LTM Enterprise Application Services 10.9% 23.6% 21.9% 20
Slide 14: Constant Currency (CC) Reporting
Constant Currency (CC) Reporting Reported JAS 08 OND 08 JFM 09 AMJ 09 JAS 09 Revenue ($ mn) 500.9 507.0 564.4 607.2 630.1 Growth QoQ -0.1% 1.2% 11.3% 7.6% 3.8% Growth YoY 17.2% 11.7% 18.2% 21.0% 25.8% Constant Currency (QoQ) JAS 08 OND 08 JFM 09 AMJ 09 JAS 09 Revenue ($ mn) 512.3 540.8 572.2 586.2 6
Slide 15: Client Metrics
Client Metrics Client Data (LTM) 30-Sep-08 30-Jun-09 30-Sep-09 QoQ Change Number of Clients Active Client Relationship 295 367 373 6 New Client Relationship 29 37 28 Accounting for > 5% of revenue 2 2 1 (1) Number of Million Dollar Clients (LTM) 30-Sep-08 30-Jun-09 30-Sep-09 QoQ YoY Change Change 10
Slide 16: Operational Metrics - Software Services
Operational Metrics - Software Services Software Services (Quarter Ended) 30-Sep-08 30-Jun-09 30-Sep-09 Efforts Offshore 74.9% 71.7% 71.9% Onsite 25.1% 28.3% 28.1% Revenue Offshore 52.0% 41.2% 41.5% Onsite 48.0% 58.8% 58.5% Utilization Offshore - Including trainees 74.4% 76.2% 76.0% Offshore - Exclu
Slide 17: Employee Metrics
Employee Metrics Manpower Details 30-Sep-08 30-Jun-09 30-Sep-09 Total Employee Count 52,714 54,216 54,443 IT Services (Software Services [A1] + Infrastructure Services [A2]) 39,550 42,416 43,081 Technical 34,695 37,544 38,211 Support 4,855 4,872 4,870 Gross addition 3,469 1,353 2,612 Net addition 2,
Slide 18: Employee Metrics - Software and Infrastructure Services
A1. Software Services 30-Sep-08 30-Jun-09 30-Sep-09 Software Services - Total 31,271 32,364 32,312 Technical 27,282 28,353 28,382 Support 3,989 4,011 3,930 Gross addition 2,007 844 1,520 Net addition 880 (538) (52) Gross lateral employee addition 1,767 322 1,063 Attrition (LTM) 14.2% 12.9% 12.7% A2.
Slide 19: Facility Details
Facility Details As on 30th September 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 330,127 2,922 Noida(NCR) 1,936,012 21,861 31 Chennai 2,528,946 23,456 480,871 3,033 27 Ba
Slide 20: Cash & Cash Equivalent, Investments and Borrowing
Cash & Cash Equivalent, Investments and Borrowing Amt. in US $ million 30-Sep-09 A. Cash and Cash Equivalent 74.2 B. Fixed Deposit with Banks 289.6 C. Investment Securities, held to maturity 4.2 D. Mutual Funds Liquid Schemes 200.9 Total (A+B+C+D) 568.9 Amt. in US $ million A. Details of Cash & Cash
Slide 21: Cash & Cash Equivalent, Investments and Borrowing
Cash & Cash Equivalent, Investments and Borrowing Amt. in US $ million B. Fixed Deposit with Banks 30-Sep-09 Bank of India 77.9 Bank of Baroda 73.5 State Bank of India 52.6 Canara Bank 43.0 Punjab National Bank 34.5 Corporation Bank 7.5 Others 0.5 Total Fixed Deposit with Banks 289.6 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. 48.11 for the quarter ended on 30 Sep 2009; US $1 = Rs. 47.90 for the quarter ended on 30 Jun 2009; US$ 1 = Rs. 46.95 fo
Slide 23: 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 Rs. Crores) 30-Sep-08 30-Jun-09 30-Sep-09 Options at market price 2.2 2.5 0.0 Options at less than market price 18.2 16.7 20.1 Total 20.4 19
Slide 24: Segment wise Profitability
Segment wise Profitability A. Consolidated IT Services (Software Services [A1] & Infrastructure Services [A2]) Amt. in Rs crores Quarter ended Growth% Particulars 30-Sep-08 30-Jun-09 30-Sep-09 YoY QoQ Revenues 2,086.6 2,627.9 2,748.5 31.7% 4.6% Direct Costs 1,264.0 1,627.7 1,719.5 Gross Profits 822.
Slide 25: Software Services and Infrastructure Services (INR)
A1. Software Services Amt. in Rs crores Quarter ended Growth% Particulars 30-Sep-08 30-Jun-09 30-Sep-09 YoY QoQ Revenues 1,715.7 2,114.8 2,159.1 25.8% 2.1% Direct Costs 1,014.1 1,279.6 1,312.9 Gross Profits 701.6 835.3 846.2 SG & A 305.7 332.7 314.0 EBITDA 395.9 502.5 532.2 34.4% 5.9% Depreciation 5
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 Kunal Takalkar Ronit Dutta kunal.takalkar@adfactorspr.com ronit.dutta@hcl.in +91-98110073217 +91- 9711002816 HCL