Slide 1: HCL Technologies Earnings Presentation
HCL TECHNOLOGIES EARNINGS PRESENTATION JANUARY- MARCH ‘16 QUARTER AND FINANCIAL YEAR (9 MONTHS) ENDED 31ST MARCH, 2016 -1- WHERE VALUES DRIVE VELOCITY
Slide 2: Performance Snapshot
Performance Snapshot ANANT GUPTA -2- WHERE VALUES DRIVE VELOCITY
Slide 3: Performance Trends
PERFORMANCE TRENDS (FOR 12 MONTHS ENDED MARCH 31, 2016) REVENUE EBIT 6,235 1,356 5,822 5,180 In USD Mn In USD Mn 1,251 1,207 2014 2015 2016 2014 2015 2016 NET INCOME CLIENT CATEGORY 7 8 6 1,190 19 Number Of Clients 1,118 14 17 943 29 In USD Mn 18 22 144 109 122 233 183 206 2014 2015 2016 2014 2015 2
Slide 4: Consistent and Broad Based Growth
CONSISTENT AND BROAD BASED GROWTH REVENUE GROWTH (IN CONSTANT CURRENCY) Quarter Ended 12 Months Ended GROWTH ENGINES Segments 31-Mar-16 31-Mar-16 Broad based Growth QoQ YoY Consolidated 1.7% 11.6% Americas, Europe, Americas 3.7% 14.4% Geo Drivers ROW (other than India) Europe -2.4% 9.8% ROW 1.3% 3.2
Slide 5: Changing IT Market Dynamics
CHANGING IT MARKET DYNAMICS Gartner: IT Services Market to Grow 3.8% in 2016 in Positive Industry Deal Flow with 20% YoY Growth – Constant Currency ISG Scorecard 1Q16 ACV YoY This Quarter: IT Services Growth Rates (CY Basis) 2015 2016 2017 ($B) Change Global Market Total ■ 20% YoY 6.1 20% Constant C
Slide 6: The 21st Century Business
THE 21ST CENTURY BUSINESS TRADITIONAL ENTERPRISES FACING CHALLENGES IN THE DIGITAL AGE … S&P 500 Sales Growth Rate by Year S&P 500 Earnings Growth Rate by Year Average Company Lifespan on S&P 500 9.4% 15.8% 56 12.4% 75% of S&P 500 will be replaced by 2027 3.8% 4.2% 2.1% 2.2% 25 -0.5% 18 -3.1% -15.4%
Slide 7: HCL's Differentiated Play for the 21st Century
HCL’S DIFFERENTIATED PLAY FOR THE 21ST CENTURY 2010 – 2015 2016 – 2020 Output–Based Models Outcome–Based Models Discrete Service Lines Integrated Offerings for 21st Century Enterprise Applications Services Enterprise Digitalization ■ 'BEYONDigital' Services to Build Unique Unified Experiences Infras
Slide 8: Performance Snapshot: Consumer and Commercial Industries
Performance Snapshot CONSUMER AND COMMERCIAL INDUSTRIES -8- WHERE VALUES DRIVE VELOCITY
Slide 9: Performance Snapshot: Consumer and Commercial Industries
PERFORMANCE SNAPSHOT CONSUMER AND COMMERCIAL INDUSTRIES Performance Highlights Performance Drivers Revenue Growth 31-Mar-16 ■ Deep mining in accounts with high headroom for growth ■ Investments in solutions and consulting, such as E–Services Suite. (Constant Currency) QoQ YoY LTM YoY ■ Establishing
Slide 10: Performance Snapshot: Financial Services
Performance Snapshot RAHUL SINGH Financial Services - 10 - WHERE VALUES DRIVE VELOCITY
Slide 11: Performance Snapshot: Financial Services
PERFORMANCE SNAPSHOT FINANCIAL SERVICES Performance Highlights Performance Drivers Revenue Growth 31-Mar-16 ■ Clients preference to look for Gen 2/3 vendors throws up opportunities (Constant Currency) QoQ YoY LTM YoY ■ Redefined Next–gen services propositions to enhance value. ■ Demand for IT simpli
Slide 12: Performance Snapshot: Infrastructure Services
Performance Snapshot C VIJAY KUMAR Infrastructure Services - 12 - WHERE VALUES DRIVE VELOCITY
Slide 13: Performance Snapshot: Infrastructure Services
PERFORMANCE SNAPSHOT INFRASTRUCTURE SERVICES Performance Highlights Performance Drivers Revenue Growth 31-Mar-16 ■ Successfully completed all the deliverables for Service Commencement Date for Volvo Group engagement at the end (Constant Currency) QoQ YoY LTM YoY of the quarter. ■ Won several engagem
Slide 14: Financial Analysis
Financial Analysis ANIL CHANANA - 14 - WHERE VALUES DRIVE VELOCITY
Slide 15: Consolidated Income Statement (in US$ Million)
CONSOLIDATED INCOME STATEMENT (IN US$ MILLION) Q3, FY’16 12 Months Ended March 31, 2016 Revenue at US$ 1,587 Mn; up 1.7% QoQ in constant currency Revenue at US$ 6,235 Mn; up 11.6% YoY in constant currency for 12 EBIT at $ 329 Mn; up by 4.9% QoQ Months ended Mar 31,2016 Annualized GAAP EPS (D
Slide 16: Cash Conversion
CASH CONVERSION ON LTM BASIS Net Income to Operating Cash Flow EBITDA to Free Cash Flow 70% 97% 76% 50% Mar '15 Mar '16 Mar '15 Mar '16 - 16 - WHERE VALUES DRIVE VELOCITY
Slide 17: Hedge Details
HEDGE DETAILS AS ON In US$ Million 31-Dec-15 31-Mar-16 Total Hedges 1,127 1,043 Balance Sheet Hedges 240 224 Cash Flow Hedges 887 819 Less than or equal to 1 Year 730 640 More than 1 Year 157 179 Rate (USD/INR) Booked Rate (Forward) 66.97 67.42 Less than 1 Year 66.24 66.68 More than 1 Year 68.97 69.
Slide 18: Forex Gain/Loss & OCI
FOREX GAIN/ LOSS & OCI FX Gain/ Loss for the Quarter in US$ Million 31-Mar-16 Cash flow hedge loss (A) (1.9) Net gain on Foreign currency exposure (B) 2.2 TOTAL (A) + (B) 0.4 OCI Position as of 31-Mar-16 in US$ Million 31-Mar-16 OCI (Upto 12 months) 2.7 OCI (Greater than 12 months) (1.2) TOTAL (befo
Slide 19: Tax Provision
TAX PROVISION Financial Year ended 9 Months Ended Particulars (in US$ Mn) 30-Jun-15 31-Mar-16 Total Tax Expense 306 223 Earnings before Tax 1,470 1,063 Effective Tax Rate 20.8% 21.0% - 19 - WHERE VALUES DRIVE VELOCITY
Slide 20: Q&A
Q&A - 20 - WHERE VALUES DRIVE VELOCITY