eClerx Services Limited · NSE:ECLERX
eClerx Services — Q3 FY2018 Earnings Presentation
15 slides from eClerx Services's earnings presentation, Jan 30, 2018
Slide 1: Financial Performance - FY18 Q3
Data. Domain. Delivery. eClerx Financial Performance - FY18 Q3 30th Jan, 2018 0
Slide 2: Financial Summary
Financial Summary Metrics FY18 Q3 Q-o-Q FY18 YTD Y-o-Y OPG revenue (USD mm) 48.9 1% 146 0% Revenue OPG revenue (INR mm) 3,399 3% 10,039 1% Total revenue (INR mm) 3,405 -7% 10,492 2% OPM (INR mm) 778 -7% 2,508 -21% EBITDA (INR mm)* 911 -30% 3,295 -14% Profit Operating EBITDA (INR mm)* 904 -5% 2,862 -
Slide 3: Other Income – FY18 Q3 vs. FY18 Q2
Other Income – FY18 Q3 vs. FY18 Q2 Other Income FY18 Q3 FY18 Q2 FY18 Q1 FY17 Q4 FY17 Q3 Investment Income 69.9 69.7 70.2 59.1 76.7 Revaluation and Realized Gain (70.8) 55.9 16.9 (133.9) 40.4 Other Misc. Income 7.1 14.8 (4.9) 2.2 (4.2) Total 6.2 140.4 82.2 (72.6) 112.9 Figures in INR millions. • Drop
Slide 4: Hedge Updates
Hedge Updates Current Hedge Status • Total outstanding hedges now $142.3 mm at average INR 69.3/$; 100% forwards - 2.9 times quarter revenue vs. average of 2.8 times in preceding 4 quarters Contract Year Currency Amount (mn) Avg. Rate (INR) USD 30.79 70.0 FY18 Q4 Euro 0.65 86.3 Total FY18 Q4 – Equiv
Slide 5: P&L Comparison: FY18 Q3 vs. FY18 Q2
P&L Comparison: FY18 Q3 vs. FY18 Q2 Figures in INR millions. Operating P&L FY18 Q3 OPR (%) FY18 Q2 OPR (%) Operating Revenue 3,398.7 3,308.8 Cost of Revenues Delivery and Support Employees Cost 1,546.6 45.5% 1,489.7 45.0% General and Administrative Expenses Facilities (Rent and Electricity) 158.9 4.
Slide 6: OPM Bridging Analysis: Q-o-Q FY18 Q3 vs. FY18 Q2
OPM Bridging Analysis: Q-o-Q FY18 Q3 vs. FY18 Q2 25.2% 1.1% 0.7% 0.6% 0.1% 0.1% 23.0% 2.4% FY18 Q2 S&D Exp. G&A Del & Supp Emp. Dep Exc. Rate FY18 Q3 Cost • S&D: Increase due to increase in BD staff • G&A: Increase in Professional fees due to SEIS, recruitment and rental expenses • Del & Supp Emp. C
Slide 7: Balance Sheet & Other Updates
Balance Sheet & Other Updates • Total Cash and Cash equivalents of INR 7,815 mm vs INR 7,696 mm for FY’18 Q2; ̶ Equivalent to INR 197.3 per share vs INR 194.1 for FY’18 Q2 ̶ Net operating cash flow in FY’18 YTD is INR 2,318.2 mm (includes SEIS impact of INR 121.9) vs INR 2,475.1 mm in FY17 YTD ̶ Cap
Slide 8: Key Business Metrics
Key Business Metrics Metrics FY 18 Q3 FY 18 Q2 FY 18 Q1 FY 17 Q4 FY 17 Q3 USD 83% 82% 84% 84% 75% Currency Contribution* (%) EURO 10% 10% 9% 10% 17% GBP 6% 6% 6% 6% 7% North America 65% 65% 69% 67% 69% Geographic Concentration* Europe 28% 29% 26% 28% 27% Debtors (including unbilled) DSO 89 days 81 d
Slide 9: Revenue Mix Trends – Consol
Revenue Mix Trends – Consol 35% 30% 28.2% 25% $13.8 $14.3 20% $12.3 $12.4 15% $11.2 11.4% 10% 5% -1.1% 0% -3.4% -5% -7.9% -2.7% -5.4% -4.0% -10% -7.2% -9.4% -15% FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 Emerging ($ mm) Strategic (Top 10 %) Emerging % • Strategic (Top 10) clients Y-o-Y drop of -4.0% i
Slide 10: Human Resources Update
Human Resources Update Headcount 9,164 9,223 8,942 8,815 78 9,091 82 80 60 64 85 8,189 78 463 86 58 423 431 89 387 1,153 601 615 613 617 240 259 1,005 178 284 7,709 7,497 7,762 7,740 7,592 7,095 FY15 FY16 FY17 FY18 Q1 FY18 Q2 FY18 Q3 Offshore Delivery Onshore Delivery Support Services Tech Services
Slide 11: Forward-looking statements disclaimer
This presentation contains forward-looking statements, inter-alia, to enable investors to comprehend company’s prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically make, contain forward-looking statements that set out anticipate
Slide 12: Balance Sheet Abstract
Balance Sheet Abstract Particulars Dec 31, 2017 Sep 30, 2017 % of Change Shareholder’s Funds Capital 396.1 396.5 -0.1% Minority Interest 8.2 8.0 - Reserves and Surplus 13,864.0 13,312.7 4% Total Shareholder's Funds 14,268.4 13,717.3 4% Application of Funds Fixed Assets 3,377.4 3,465.8 -3% Deferred T
Slide 13: Financial Summary – Quarterly View
Financial Summary – Quarterly View Metrics FY18 Q3 FY18 Q2 FY18 Q1 FY17 Q4 FY17 Q3 OPG revenue (USD mm) 48.9 48.4 48.8 47.9 47.2 Revenue OPG revenue (INR mm) 3,399 3,309 3,332 3,315 3,247 Total revenue (INR mm) 3,405 3,673 3,414 3,243 3,359 OPM (INR mm) 778 835 895 979 910 EBITDA (INR mm) 911 1,298
Slide 14: P&L Comparison – Quarterly View
P&L Comparison – Quarterly View FY18 OPR FY18 OPR FY18 OPR FY17 OPR Operating P&L Q3 (%) Q2 (%) Q1 (%) Q4 (%) Operating Revenue 3,399 3,309 3,332 3,315 Cost of Revenues Delivery and Support Employees Cost 1,547 46% 1,490 45% 1,432 43% 1,316 40% General and Administrative Expenses Facilities (Rent an
Slide 15: Key Business Metrics – Quarterly View
Key Business Metrics – Quarterly View FY18 FY18 FY18 FY17 FY17 FY17 FY17 FY16 FY16 Metrics Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Revenue Growth USD 1.2% -0.9% 1.9% 1.5% -3.5% -2.6% -1.1% -2.0% 3.2% (%) Constant Currency 1.1% -1.8% 1.4% 1.6% -2.6% -0.4% -0.6% -2.5% 4.2% USD 83% 82% 84% 84% 75% 73% 72% 72% 73% C