Slide 1: HCL Technologies Quarterly Results 2009-10
HCL Technologies Quarterly Results 2009-10 T h i r 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, April 21, 2 0 1 0 Q3 Revenues at US$ 685 mn; up 21.4% YoY EBIT at US$ 111 mn; up 19.9% YoY Net Income at US$ 77 mn; up 78.1% YoY Q3 Revenues at Rs. 3,076 Crores;
Slide 2: Financial Highlights
Financial Highlights Highlights for the Quarter (US$) Revenue at US$ 685 mn; up 21.4% YoY & 5.1% sequentially ? Revenue on constant currency basis, up 16.2% YoY & 6.9% sequentially ? EBIT at US$ 111 mn; up 19.9% YoY & 2.6% sequentially ? Net Income at US$ 77 mn; up 78.1% YoY & 20.1% sequentially ? A
Slide 3: Corporate Overview
Corporate Overview HCL continues to perform well and is on a high growth trajectory built on strong business fundamentals. “The new post-recession era will be marked by transformational changes in the world of business and its impact on the development of society. We decided to explore this new emer
Slide 4: Business Highlights
Business Highlights Overall Company IT Services QoQ Revenue Growth Rate % QoQ Revenue Growth Rate % 12.0% 15.0% 11.3% 14.4% 11.0% 13.0% 10.0% QoQ growth % QoQ growth % 9.0% 11.0% 8.0% 7.6% 9.0% 7.0% 8.0% 6.6% 6.0% 5.1% 7.0% 5.0% 3.8% 5.0% 4.1% 4.0% 3.4% 4.0% 3.0% 3.0% Mar'09 Jun'09 Sep'09 Dec'09 Mar
Slide 5: Key Catalysts for Growth
Key Catalysts for Growth Revenue grew 6.9% QoQ ? IT Services leading the revenue growth at 8.2% QoQ ? Revenue growth across all IT Services offerings namely, Enterprise Applications at 2.5% QoQ, ? Engineering and R&D at 11.1% QoQ, Custom Applications at 5.4% QoQ and Infrastructure Services at 16.3%
Slide 6: Multi-service, multi-year, multi-million dollar deals
Multi-service, multi-year, multi-million dollar deals • During JFM 10 quarter, HCL won 13 new deals, both outsourcing and transformational in nature from . diverse verticals across US, Europe and Asia. • The deals signed include Commonwealth of Virginia, Vodafone, Advanstar, Saint Gobain, Terasen In
Slide 7: Recognitions
Recognitions • ARC Advisory Group featured HCL IP Solution approach on building Bolt-On Frameworks like FraME – Framework for Manufacturing Execution, Visible Demand, EAD – Enterprise Analytics Dashboard and HCL’s Green Design Workbench amongst others and recommends HCL for its approach in reducing
Slide 8: Business Highlights
Business Highlights • HCL opened its regional headquarters for the Middle East operations in Dubai, UAE. The new facility is housed in the state-of-the art Dubai Internet City. This headquarter will serve as the regional hub for more than 25 large organizations that HCL services in the Middle East.
Slide 9: Geo Overview
Geo Overview US Overview US business has posted an industry leading growth of 9.6% QoQ. HCL successfully executed its ‘Go-To- Market’ strategy that entails delivering end to end IT outsourcing solutions and providing business transformational value to its customers. This highly differentiated strate
Slide 10: Financials
Financials Unaudited consolidated financial results for the quarter ended 31st March, 2010 drawn under US GAAP Consolidated Income Statement Amt. in US $ million Income Statement Quarter ending… Growth 31-Mar-09 31-Dec-09 31-Mar-10 YoY QoQ Revenues 564.4 651.7 685.2 21.4% 5.1% Direct Costs 355.2 419
Slide 11: 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-Mar-09 31-Dec-09 31-Mar-10 Options at market price 0.5 0.0 0.0 Options at less than market price 3.5 5.2 5.3 Total 4.0 5.2 5.3 T
Slide 12: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Amt. in US $ million Particulars Period ended 31-March-10 CASH FLOWS FROM OPERATING ACTIVITIES Net Income 207.0 Adjustments to Reconcile Net Income to Net Cash provided by Operating Activities Depreciation and Amortization 83.2 (Profit) /Loss on Redemption of Mutual
Slide 13: 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-Mar-09 31-Dec-09 31-Mar-10 YoY QoQ Revenues 508.1 594.1 633.2 24.6% 6.6% Direct Costs 319.0 377.6 411.5 Gross Profits 189.1 216.5 2
Slide 14: Software Services and Infrastructure Services
A1. Software Services Amt. in US $ million Quarter ended Growth% Particulars 31-Mar-09 31-Dec-09 31-Mar-10 YoY QoQ Revenues 422.7 462.1 481.4 13.9% 4.2% Direct Costs 263.0 284.2 301.7 Gross Profits 159.6 177.8 179.6 SG & A 66.6 68.5 69.9 EBITDA 93.0 109.3 109.7 18.0% 0.4% Depreciation 12.0 13.7 13.0
Slide 15: Revenue Analysis
Revenue Analysis Geographic Mix (Quarter ended) 31-Mar-09 31-Dec-09 31-Mar-10 LTM US 61.0% 57.0% 59.5% 58.5% Europe 27.6% 29.5% 26.7% 28.4% Asia Pacific 11.4% 13.5% 13.8% 13.1% Service Offering Mix (Quarter ended) 31-Mar-09 31-Dec-09 31-Mar-10 LTM Enterprise Application Services 24.5% 22.4% 21.4% 22
Slide 16: Constant Currency (CC) Reporting
Constant Currency (CC) Reporting Reported JFM 09 AMJ 09 JAS 09 OND 09 JFM 10 Revenue ($ mn) 564.4 607.2 630.1 651.7 685.2 Growth QoQ 11.3% 7.6% 3.8% 3.4% 5.1% Growth YoY 18.2% 21.0% 25.8% 28.5% 21.4% Constant Currency (QoQ) JFM 09 AMJ 09 JAS 09 OND 09 JFM 10 Revenue ($ mn) 572.2 586.2 621.3 645.0 69
Slide 17: Client Metrics
Client Metrics Client Data (LTM) 31-Mar-09 31-Dec-09 31-Mar-10 Number of Clients Active Client Relationship 353 399 404 New Client Relationship 68 36 39 Accounting for > 5% of revenue 2 1 1 Number of Million Dollar Clients (LTM) 31-Mar-09 31-Dec-09 31-Mar-10 QoQ YoY Change Change 100 Million dollar
Slide 18: Operational Metrics - Software Services
Operational Metrics - Software Services Software Services (Quarter Ended) 31-Mar-09 31-Dec-09 31-Mar-10 Efforts Offshore 71.6% 71.5% 72.2% Onsite 28.4% 28.5% 27.8% Revenue Offshore 41.1% 40.9% 41.3% Onsite 58.9% 59.1% 58.7% Utilization Offshore - Including trainees 74.1% 76.4% 76.2% Offshore - Exclu
Slide 19: Employee Metrics
Employee Metrics Manpower Details 31-Mar-09 31-Dec-09 31-Mar-10 Total Employee Count 54,026 55,688 58,129 IT Services (Software Services [A1] + Infrastructure Services [A2]) 42,600 44,772 47,924 Technical 37,666 39,717 42,787 Support 4,934 5,055 5,137 Gross addition 1,578 3,590 5,730 Net addition 33
Slide 20: Employee Metrics - Software and Infrastructure Services
A1. Software Services 31-Mar-09 31-Dec-09 31-Mar-10 Software Services - Total 32,902 33,455 36,169 Technical 28,887 29,383 32,053 Support 4,015 4,072 4,116 Gross addition 622 2,595 4,639 Net addition (396) 1,143 2,714 Gross lateral employee addition 596 1,989 3,882 Attrition (LTM) 13.1% 12.9% 14.1%
Slide 21: Facility Details
Facility Details As on 31st March 2010 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.) Gurgaon 285,127 2,510 - - Noida (NCR) 1,936,012 21,861 741,081 5,800 22 Chennai 2,835,274 25,283 140,
Slide 22: Cash & Cash Equivalent, Investments and Borrowing
Cash & Cash Equivalent, Investments and Borrowing Amt. in US $ million 31-Mar-10 A. Cash and Cash Equivalent 74.2 B. Fixed Deposit with Banks 188.8 C. Deposits with Corporates 22.3 D. Investment Securities, available for sale 220.4 E. Investment Securities, held to maturity 11.1 Grand Total (A+B+C+D
Slide 23: Cash & Cash Equivalent, Investments and Borrowing
Cash & Cash Equivalent, Investments and Borrowing B. Fixed Deposit with Banks Amt. in US $ million 31-Mar-10 - Axis Bank 0.2 - Bank of Baroda 24.2 - Bank of India 62.4 - Canara Bank 23.6 - Corporation Bank 7.3 - Punjab National Bank 31.3 - State Bank of India 22.9 - Union Bank of India 16.9 Total Fi
Slide 24: 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.44.89 for the quarter ended on 31 Mar 2010; US $1 = Rs. 48.70 for the quarter ended on 31 Dec 2009; US$ 1 = Rs. 50.70 for
Slide 25: 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) 31-Mar-09 31-Dec-09 31-Mar-10 Options at market price 2.3 0.0 0.0 Options at less than market price 17.5 24.2 23.9 Total 19.8 24
Slide 26: Segment wise Profitability
Segment wise Profitability A. Consolidated IT Services (Software Services [A1] & Infrastructure Services [A2]) Amt. in Rs crores Quarter ended Growth% Particulars 31-Mar-09 31-Dec-09 31-Mar-10 YoY QoQ Revenues 2,575.8 2,764.3 2,842.4 10.3% 2.8% Direct Costs 1,617.4 1,757.1 1,847.2 Gross Profits 958.
Slide 27: Software Services and Infrastructure Services (INR)
A1. Software Services Amt. in Rs crores Quarter ended Growth% Particulars 31-Mar-09 31-Dec-09 31-Mar-10 YoY QoQ Revenues 2,143.0 2,150.0 2,160.8 0.8% 0.5% Direct Costs 1,333.7 1,322.5 1,354.5 Gross Profits 809.4 827.5 806.3 SG & A 337.8 318.9 313.8 EBITDA 471.5 508.6 492.5 4.4% -3.2% Depreciation 60
Slide 28: 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 29: Talk to me
Talk to me For details, contact: MEDIA RELATIONS INVESTOR RELATIONS Ajay Davessar Sanjay Mendiratta ajay.davessar@hcl.in sanjay.mendiratta@hcl.in +91 - 9650122336 +91- 9312065108 Kunal Takalkar Ronit Dutta kunal.takalkar@adfactorspr.com ronit.dutta@hcl.in +91-98110073217 +91- 9711002816 HCL Technolo