Slide 1: FY 2009 - Annual Results Analyst Meet
FY 2009 - Annual Results Analyst Meet Mumbai February 2010
Slide 2: Safe Harbour
Safe Harbour Certain statements on this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainti
Slide 3: Agenda: Headlines
Agenda Headlines 3 © Hexaware Technologies. All rights reserved.
Slide 4: Headlines – for FY 2009
Headlines – for FY 2009 – Revenue from operations stood at Rs. 10,386 mn ($ 214.7 mn) • Y-o-Y decrease of 9.8% in INR terms and Y-o-Y decrease of 18.3% in $ terms – Net Profit after Tax at Rs. 1,342 mn ($ 27.9 mn) • Y-o-Y increase of 127.5% in INR terms and Y-o-Y increase of 107.4 % in $ terms – Ope
Slide 5: Headlines – for Q4 2009
Headlines – for Q4 2009 – Hexaware met revenue guidance with revenues of Rs. 2,520 mn ($ 54 mn) • Q-o-Q decrease of 4.2% in INR terms and Q-o-Q decrease of 0.9% in $ terms – Net Profit after Tax was Rs. 360 mn ($7.7 mn) • Q-o-Q decrease of 12.8% in INR terms and Q-o-Q decrease of 9.4% in $ terms – G
Slide 6: Financial Performance
Agenda Financial Performance 6 © Hexaware Technologies. All rights reserved.
Slide 7: Q4 2009 – P&L (in INR Mn)
Q4 2009 – P&L (in INR Mn) Consolidated Income Statement (as per Indian GAAP) INR Mn Quarterly Data Head Q4 09 Q3 09 QoQ% Q4 08 YoY% Gross Revenues 2,520 2,632 -4.2% 3,059 -17.6% Direct Costs 1,435 1,365 5.1% 1,739 -17.5% Gross Profit 1,086 1,267 -14.3% 1,319 -17.7% SG&A Costs 635 644 -1.5% 770 -17.5
Slide 8: Q4 2009 – Revenue Analysis
Q4 2009 – Revenue Analysis 55.0 54.5 0.9 54.0 54.0 53.0 USD, Mn (1.4) Red: Decreases Green: Increases 52.0 51.0 50.0 Business Mix Working days Revenue Q4 Revenue Q3 Impact of 09 09 In USD terms 8 © Hexaware Technologies. All rights reserved.
Slide 9: Q4 2009 – Operating Margin Analysis
Q4 2009 – Operating Margin Analysis In % of revenue terms 9 © Hexaware Technologies. All rights reserved.
Slide 10: FY 2009 – P&L (in INR Mn)
FY 2009 – P&L (in INR Mn) Consolidated Income Statement (as per Indian GAAP) INR Mn Head FY 09 FY 08 YoY% Gross Revenues 10,386 11,519 -9.8% Direct Costs 5,642 7,061 -20.1% Gross Profit 4,743 4,458 6.4% Selling / General And Administration 2,720 3,231 -15.8% EBITDA 2,023 1,227 64.9% Depreciation and
Slide 11: Balance Sheet (as at December 31, 2009)
Balance Sheet (as at December 31, 2009) Consolidated Balance Sheet (as per Indian GAAP) INR Mn As at Dec 31 As at Sept 30 As at Dec 31 Head 2009 2009 2008 Liabilities Equity Share Capital 290 288 288 Reserves 8,613 8,460 7,572 Forex MTM (405) (748) (1,234) Borrowings 163 180 195 Total 8,660 8,180 6,
Slide 12: Q4 2009 – Financial Update
Q4 2009 – Financial Update • The cash balance increased by INR 243m sequentially to INR 4,262m at the end of Q4 2009 • The investments comprise of INR 2,599m and INR 1,269m • Capital expenditure: Rs 46.1 mn (Rs 32.7 mn last quarter) • DSO stays improves further to 56 days • Net Worth at INR 8,497 mn
Slide 13: Update on For-Ex & Tax Rates
Update on For-Ex & Tax Rates • For-Ex: – The Company has forward contracts worth USD 70.5 mn at an average rate of Rs. 40.58 spread over the next three quarters. – For the subsequent nine quarters, the company has hedges worth: • USD 60 mn at an average rate of Rs. 47.45 • EUR 17 mn at an average ra
Slide 14: Business Updates
Agenda Business Updates 14 © Hexaware Technologies. All rights reserved.
Slide 15: Key Highlights of 2009
Key Highlights of 2009 • Improvement in technical utilization; Attained a level of ~ 75% • Reduced SG&A on a y-o-y basis despite strengthening the focus Verticals and Horizontals • Closed the year with PAT of USD 27.9m; after FX- related losses of USD 12.6m in 2009 • Added 330 fresh graduate enginee
Slide 16: Key Initiatives
Key Initiatives • Launch of Remote IMS in Q2 2009 – Currently servicing 11 customers • Launch of Shared Services Delivery Model in H2 2009 – Currently servicing 4 customers • Innovation Council – First Commercial Sale of Hexaware’s own IP framework (Akiva) • Strengthening the front-end – Investments
Slide 17: Business Areas
Business Areas • Focussed Verticals: – Banking, Capital Markets and Insurance – Travel (Airlines), Transportation and Logistics – Healthcare and – Manufacturing • Existing Arrowheads – ERP – Peoplesoft, Oracle and SAP – Quality Assurance & Testing Services – Business Intelligence / Business Analytic
Slide 18: Strengthening the Horizontals Front-End
Strengthening the Horizontals Front-End – Enterprise Solutions • Added practitioners in the Americas and in the United Kingdom – BPO • Recruited the practice head for F&A Outsourcing • Inducted the practice head for HRO Services • Added the practice head for Analytics • Strengthened the field sales
Slide 19: New Client Additions in 2009
New Client Additions in 2009 • 35 clients added in 2009 EV, 51% BFSI, 34% BFSI TTHL EV TTHL, 14% APAC, 29% NA NA, 51% EU APAC EU, 20% Healthy mix across all Geographies and Verticals 19 © Hexaware Technologies. All rights reserved.
Slide 20: Summary: Q1 2010 Guidance
Summary • Q1 2010 Guidance – We expect revenues in USD 48.0m – USD 50.0m range – Exchange Rates: • 1 GBP = 1.60 USD and 1 EUR = 1.40 USD – While Q1 ’10 will be soft, we expect the revenue growth to pick up from Q2 ‘10 20 © Hexaware Technologies. All rights reserved.