Eclerx Services Limited · NSE:ECLERX

Eclerx Services — Q3 FY2011 Earnings Presentation

16 slides from Eclerx Services's earnings presentation, Jan 27, 2011

  1. Slide 1: Financial Performance Q3 FY11

    Financial Performance Q3 FY11 January 27, 2011 eClerx – An ISO/IEC 27001:2005 Certified Company 0 Confidential eClerx – An ISO / IEC 27001:2005 Certified Company

  2. Slide 2: Financial Summary

    Financial Summary Metrics Q3 FY11 Q-o-Q YTD FY11 Y-o-Y Total Revenue (INR mn) 933 8% 2632 52% Revenue Opg Revenue (INR mn) 872 6% 2466 33% Opg Revenue (USD mn) 19.6 9% 54.3 39% EBITDA (INR mn) 426 27% 1111 82% Profit OPM (INR mn) 339 23% 881 27% Net Profit (INR mn) 360 30% 929 88% EBITDA (%) 46% 7%

  3. Slide 3: Other Updates: Current Hedge Status

    Other Updates Current Hedge Status Consistent policy of hedging receivables for next 12-18 months Contract Year Currency Amount (mn) Average Rate (INR) USD $8.7 47.9 FY11 EUR € 2.4 62.9 Total FY11 – Equiv USD $11.9 47.9 USD $26.3 48.0 FY12 Forward EUR € 8.3 61.9 Total FY12 – Equiv USD $37.1 47.7 USD

  4. Slide 4: Highly Liquid Balance Sheet

    Highly Liquid Balance Sheet  Total Cash and Cash equivalents of INR 1,509 mn, zero debt on balance sheet – Equivalent to INR 52.4 per share  Trailing 12 months EPS – Basic: INR 41.0 – Diluted: INR 39.2  Book value per share of INR 98.5 Utilization of IPO Proceeds Figures in INR millions Planned a

  5. Slide 5: P&L Comparison: YTD FY11 vs. YTD FY10

    P&L Comparison: YTD FY11 vs. YTD FY10 Figures in INR Millions Operating P&L 9 Month FY11 OPR (%) 9 Month FY10 OPR (%) Operating Revenue 2,465.7 1,857.3 Cost of Revenues Employee Cost 1095.7 44.4% 765.7 41.2% General Administration and Management Rent 97.3 3.9% 73.3 3.9% Communication Expenses 52.8 2

  6. Slide 6: OPM Bridging Analysis: YTD FY11 vs. YTD FY10

    OPM Bridging Analysis: YTD FY11 vs. YTD FY10 37.3% 4.0% 0.4% 2.3% 0.3% 0.3% 35.7% YTD FY10 Exc. Rate Emp. Cost G&A Dep S&M Exp. YTD FY11 Note: Bridging analysis in constant currency, impact of currency movements shown in exchange rate.  Capacity utilization at quarter end was 99% – Maximum capacity

  7. Slide 7: NPM Bridging Analysis: YTD FY11 vs. YTD FY10

    NPM Bridging Analysis: YTD FY11 vs. YTD FY10 28.6% 1.5% 0.6% 0.1% 8.7% 35.3% YTD FY10 OPM Tax Inv Inc Forex Gain YTD FY11  Increase in tax rate due to increase in MAT from 15% in FY10 to 18% in FY11  Forex gain due to favorable rates from hedges 6 Confidential eClerx – An ISO/IEC 27001:2005 Certif

  8. Slide 8: Revenue Quality

    Revenue Quality Metrics Q3 FY11 Q3 FY10 USD 75% 71% EURO 21% 25% Currency Concentration (%) GBP 3% 3% Other 1% - North America 58% 60% Geographic Concentration Europe 34% 35% ROW 8% 5% Debtors DSO 62 days 57 days Client Concentration Top 5 86% 83% FTE 91% 74% Billing Mix SEZ Revenue 62% 46% 7 Confid

  9. Slide 9: Status Update

    Status Update India Headcount 3527 2863 1973 1527 1021 FY 07 FY 08 FY 09 FY 10 YTD FY 11 Attrition 41.5% 37.0% 35.1% 30.5% 26.8% FY 07 FY 08 FY 09 FY 10 YTD FY 11 Q3 attrition at 37% may indicate that attrition is tending town towards longer term averages 8 Confidential eClerx – An ISO/IEC 27001:200

  10. Slide 10: Fund Raising Options

    Fund Raising Options What  Board approval for raising up to 1,000 crores – Long term resources of up to Rs. 500 crores + borrowing of up to Rs. 500 crores – Shareholder ballot process initiated, results due in February Why  We believe that resolutions are important to our ability to raise money qu

  11. Slide 11: Trends and Outlook

    Trends and Outlook  Regulatory landscape is forcing a change in financial services business models – New capabilities for the new world - high technology, change and people investments – High margin businesses eroding whilst costs up (e.g. capital charges, oversight, etc) – Cost reduction top of mi

  12. Slide 12: Thank You

    Thank You 11 Confidential eClerx – An ISO/IEC 27001:2005 Certified Company January 11

  13. Slide 13: Balance Sheet Abstract

    Balance Sheet Abstract December 31, December 31, Particulars % of Change 2010 2009 Shareholder's Funds Capital 288.2 190.2 52% Stock Option Outstanding & Share Application Money 3.0 1.8 65% Reserves and Surplus 2,547.9 1,797.1 42% Total Shareholder's Funds 2,839.1 1,989.1 43% Application of Funds Fi

  14. Slide 14: Financial Summary – Quarterly View

    Financial Summary – Quarterly View Metrics Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Total Revenue (INR mn) 670 739 837 861 933 Revenue Opg Revenue (INR mn) 691 713 771 823 872 Opg Revenue (USD mn) 14.9 15.8 16.8 18.0 19.6 EBITDA (INR mn) 258 287 349 336 426 Profit OPM (INR mn) 260 242 267 275 339 Net

  15. Slide 15: Revenue Quality – Quarterly View

    Revenue Quality – Quarterly View Metrics Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 USD 71% 75% 76% 75% 75% EURO 25% 21% 20% 21% 21% Currency Concentration (%) GBP 3% 4% 3% 4% 3% Other - - - 1% 1% North America 60% 63% 63% 60% 58% Geographic Concentration Europe 35% 31% 30% 33% 34% ROW 5% 6% 7% 6% 8% D

  16. Slide 16: P&L Comparison – Quarterly View

    P&L Comparison – Quarterly View Figures in INR Millions Operating P&L Q3 FY10 OPR (%) Q4 FY10 OPR (%) Q1 FY11 OPR (%) Q2 FY11 OPR (%) Q3 FY11 OPR (%) Operating Revenue 690.5 712.9 770.8 822.9 872.0 Cost of Revenues Employee Cost 282.0 40.8% 312.3 43.8% 358.2 46.5% 370.8 45.1% 366.7 42.0% General Adm

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