Eclerx Services Limited · NSE:ECLERX
Eclerx Services — Q4 FY2020 Earnings Presentation
18 slides from Eclerx Services's earnings presentation, Jun 9, 2020
Slide 1: Financial Performance – Q4FY20
Financial Performance – Q4FY20 June 9th, 2020
Slide 2: Financial Summary
Financial Summary Metrics FY20 Q4 Q-o-Q FY20 Y-o-Y OPG revenue (USD mm) 47.7 -7.9% 200.5 -0.1% Revenue OPG revenue (INR mm) 3,509 -6.5% 14,376 0.5% Total revenue (INR mm) 3,679 -4.9% 14,830 0.3% EBITDA (INR mm) 945 -17.6% 3,702 4.0% Profit EBIT (INR mm)* 760 -21.7% 2,993 -3.9% Net profit (INR mm) 55
Slide 3: Other Income – FY20 Q4 vs. FY20 Q3
Other Income – FY20 Q4 vs. FY20 Q3 Figures in INR millions. Other Income FY20 Q4 FY20 Q3 FY20 Q2 FY20 Q1 FY19 Q4 Investment Income 88.9 84.4 71.8 88.2 104.6 Revaluation Income* 75.9 22.3 24.6 (13.5) (15.9) Others* 5.1 8.0 (9.3) 7.8 7.0 Total 169.9 114.7 87.1 82.5 95.7 * Gain/Loss regrouped as other
Slide 4: P&L Comparison: FY20 Q4 vs. FY20 Q3
P&L Comparison: FY20 Q4 vs. FY20 Q3 Figures in INR millions. Operating P&L FY20 Q4 OPR (%) FY20 Q3 OPR (%) Total Revenue 3,679 3,869 Operating Revenue 3,509 3,754 Cost of Revenues Delivery and Support Employees Cost 1,889 53.8% 1,887 50.3% General and Administrative Expenses Facilities (Rent and Ele
Slide 5: Hedge Updates
Hedge Updates Current Hedge Status • Total outstanding hedges now $127.25 mm at average INR 75.17/$; 100% forwards Contract Year Currency Amount (mm) Avg. Rate (INR) FY20 Q1 $30.3 69.9 FY20 Q2 $29.9 71.4 Matured Forwards FY20 Q3 $29.0 72.5 FY20 Q4 $27.7 73.5 Total FY20 USD $116.8 71.8 FY21 Q1 $23.7
Slide 6: EBIT Bridging Analysis: Q-o-Q FY20 Q4 vs. FY20 Q3
EBIT Bridging Analysis: Q-o-Q FY20 Q4 vs. FY20 Q3 Figures in INR millions. 42.2 229.9 61.5 28.0 9.2 759.9 6.3 15.3 (1.9) (189.9) Q3 FY20 G&A S&D Core Inv. & other SEIS FX Reval. India Onshore Depreciation Q4 FY20 revenue income Change Employee Employee Cost Cost • G&A increase due to Legal & Profess
Slide 7: Balance Sheet & Other Updates
Balance Sheet & Other Updates • Total Cash and Cash equivalents of INR 7,703 mm vs INR 7,398 mm for FY’19 ̶ Equivalent to INR per share 213.4 FY’20 vs INR 195.8 for FY’19 ̶ Net operating cash flow in FY’20 is INR 3,328 mm vs INR 2,062 mm in FY’19 ̶ Capex during FY’20 is INR 274.0 mm vs INR 511.6 mm
Slide 8: Capital Allocation Approach
Capital Allocation Approach • Expect to see higher flow of inorganic opportunities in the short to medium term - COVID has created headwinds for some target areas and also moderated valuations - We believe that risk reward may turn incrementally more favourable as a result - Will continue to look ag
Slide 9: Covid-19 Impact and Initiatives
Covid-19 Impact and Initiatives • Ensuring employee safety while activating our BCP plan has been the prime focus - Have swiftly ramped up WFH capacity, so that supply side no longer a constraint in May’20 - Gradual return to office with skeletal staff starting June - Implementing safe Return-to-off
Slide 10: Key Business Metrics
Key Business Metrics FY20 FY20 FY 20 FY 20 FY 19 FY 19 FY 19 FY 19 FY 18 Metrics Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 USD 82% 80% 81% 80% 80% 82% 82% 82% 79% EURO 12% 12% 11% 10% 10% 9% 10% 10% 13% Currency Contribution (%) * GBP 5% 6% 6% 7% 7% 7% 6% 6% 6% Others 1% 2% 2% 3% 3% 2% 2% 2% 2% North America 68% 6
Slide 11: Revenue Mix Trends ($mm)
Revenue Mix Trends ($mm) 15% $3.9 $4.4 $3.8 15 $4.4 $14.3 $4.7 13 10% $13.4 $12.9 $12.0 11 $10.8 5% 9 -1% -1.0% 7 -2.8% 5 -5.6% -6% -4.5% 3 -7.5% -11% 1 FY19 Q4 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 Emerging (others) Emerging ($ 0.5 mm + ) Strategic (Top 10 %) Strategic growth is measured at quarterly YoY
Slide 12: Human Resources Update
Human Resources Update Headcount 9,509 91 388 90 8,785 81 8,550 635 85 81 430 85 558 441 638 639 568 7,747 538 6,983 6,766 FY19 Q4 FY20 Q3 FY20 Q4 Offshore Delivery Onshore Delivery Support Services Tech Services R&D BD Offshore Voluntary Attrition 40.9% 35.8% 31.3% FY19Q4 FY20Q3 FY20Q4 Voluntary ww
Slide 13: Thank You
This presentation may contain forward-looking statements, which involves a various risks and uncertainties that could cause our actual results to differ materially from those in such forward- looking statements. The conditions caused by the COVID-19 pandemic could decrease customer’s technology spen
Slide 14: Balance Sheet Abstract
Balance Sheet Abstract Figures in INR millions. Particulars March 31, 2020 March 31, 2019 % Change Shareholder's Funds Capital 361 378 (4%) Minority Interest 6 6 5% Reserves and Surplus 12,701 13,435 (5%) Total Shareholder's Funds 13,068 13,819 Application of Funds Fixed Assets 3,524 3,481 1% Right
Slide 15: P&L Comparison: FY20 vs. FY19
P&L Comparison: FY20 vs. FY19 Figures in INR millions. Operating P&L FY20 OPR (%) FY19 OPR (%) Total Revenue 14,830 14,792 Operating Revenue 14,376 14,306 Cost of Revenues Delivery and Support Employees Cost 7,603 52.9% 7,062 49.4% General and Administrative Expenses Facilities (Rent and Electricity
Slide 16: EBIT Bridging Analysis: Y-o-Y FY20 vs. FY19
EBIT Bridging Analysis: Y-o-Y FY20 vs. FY19 Figures in INR millions. 380.1 310.3 162.5 130.7 318.2 488.0 222.3 262.0 2,993.3 38.0 (540.5) FY19 G&A S&D Core SEIS Inv. & other FX Reval. India Onshore Depreciation FY20 revenue income Change Employee Employee Cost Cost • G&A reduction mainly attributabl
Slide 17: Financial Summary – Quarterly View
Financial Summary – Quarterly View Metrics FY20 Q4 FY20 Q3 FY20 Q2 FY20 Q1 FY19 Q4 OPG revenue (USD mm) 47.7 51.8 50.1 50.9 51.2 Revenue OPG revenue (INR mm) 3,509 3,754 3,565 3,547 3,651 Total revenue (INR mm) 3,679 3,869 3,652 3,630 3,747 EBITDA (INR mm) 945 1,147 867 744 903 Profit EBIT (INR mm)
Slide 18: P&L Comparison – Quarterly View
P&L Comparison – Quarterly View Figures in INR millions. FY20 OPR FY20 OPR FY20 OPR FY20 OPR FY19 OPR Operating P&L Q4 (%) Q3 (%) Q2 (%) Q1 (%) Q4 (%) Total Revenue 3,679 3,869 3,652 3,630 3,747 Operating Revenue 3,509 3,754 3,565 3,547 3,651 Cost of Revenues Delivery and Support Employees Cost 1,88