Slide 1: HCL Technologies Earnings Presentation Q4 & Annual FY'15
HCL TECHNOLOGIES EARNINGS PRESENTATION | Q4 & ANNUAL - FY’15 -1- WHERE VALUES DRIVE VELOCITY
Slide 2: Performance Snapshot
Performance Snapshot Anant Gupta -2- WHERE VALUES DRIVE VELOCITY
Slide 3: Performance Trends (Last 3 Financial Years)
PERFORMANCE TRENDS (LAST 3 FINANCIAL YEARS) REVENUE EBIT 1,292 1,324 5,952 5,360 4,686 925 In USD Mn In USD Mn FY '13 FY '14 FY '15 FY '13 FY '14 FY '15 NET INCOME CLIENT CATEGORY 1,164 1,037 In USD Mn 732 FY '13 FY '14 FY '15 -3- WHERE VALUES DRIVE VELOCITY
Slide 4: Consistent and Broad Based Growth
CONSISTENT AND BROAD BASED GROWTH REVENUE GROWTH (IN CONSTANT CURRENCY) 30-Jun-15 GROWTH ENGINES Full Year YoY Growth in US$ QoQ (FY’15 over FY’14) KEY MILESTONES IN FISCAL 2015 Revenues 2.9% 15.1% Infrastructure Revenue exceed USD 2 bn milestone Engineering and R&D Services Revenue exceed Ameri
Slide 5: From Gen 2.0 Outsourcing to 21st Century Enterprise
FROM GEN 2.0 OUTSOURCING TO 21ST CENTURY ENTERPRISE LEVERAGING SERVICE–LINE CAPABILITY TO DELIVER OUTCOMES Client 21st Century Demands Gen 1 Gen 2 Enterprise Building Leveraging Capabilities: Service Line Capabilities to Innovation Deliver: Product ESO Monetization Business Outcomes EFaaS / Process
Slide 6: IDC MarketScape: Digital Transformation Consulting and Systems Integration 2015
IDC MARKETSCAPE: WORLDWIDE DIGITAL TRANSFORMATION CONSULTING AND SYSTEMS INTEGRATION SERVICES 2015 VENDOR ASSESSMENT IDC MarketScape Digital Transformation Consulting and Systems Integration Services Market ACCORDING TO THE REPORT Buyers rate HCL very highly for its ability to optimize the ratio o
Slide 7: Performance Snapshot
Performance Snapshot Steve Cardell Application Services & Diversified Industries -7- WHERE VALUES DRIVE VELOCITY
Slide 8: Performance Snapshot: IAS/ESI Highlights
PERFORMANCE SNAPSHOT IAS/ESI – HIGHLIGHTS Annual FY‘15 FINANCIAL PERFORMANCE GROWTH DRIVERS & MARKET SHARES (in Constant Currency) Application Services up 1.4% QoQ in Q4’15 and up 7.7% YoY in Investment in disruptive technologies as the impact of digital FY’15 transformation becomes more prevale
Slide 9: Performance Snapshot: CSLMPS Highlights
PERFORMANCE SNAPSHOT CSLMPS – HIGHLIGHTS Annual FY’15 FINANCIAL PERFORMANCE GROWTH DRIVERS & MARKET SHARES (in Constant Currency) Manufacturing up 1.1% QoQ in Q4’15 and 13.9% YoY in FY’15. Manufacturing – Companies striving to become truly digitally led enterprises through potential of automatio
Slide 10: Performance Snapshot
Performance Snapshot Rahul Singh Financial Services - 10 - WHERE VALUES DRIVE VELOCITY
Slide 11: Performance Snapshot: Financial Services Highlights
PERFORMANCE SNAPSHOT FINANCIAL SERVICES – HIGHLIGHTS Annual FY’15 FINANCIAL PERFORMANCE GROWTH DRIVERS & MARKET SHARES (in Constant Currency) Financial Services up 2.1% QoQ in Q4’15 and Key wins in vendor consolidation programs underpinning client 16.6% YoY in FY’15. satisfaction and strong deli
Slide 12: Performance Snapshot: Business Services Highlights
PERFORMANCE SNAPSHOT BUSINESS SERVICES – HIGHLIGHTS Q4 and Annual FY’15 FINANCIAL PERFORMANCE GROWTH DRIVERS & MARKET SHARES (in Constant Currency) Business Services Focused business strategy around Domain, Digitization & Automation: o up 4.0% QoQ in Q4’15 o Vertical Business Service focusing on
Slide 13: Performance Snapshot
Performance Snapshot C Vijay Kumar Infrastructure Services - 13 - WHERE VALUES DRIVE VELOCITY
Slide 14: Performance Snapshot: Infrastructure Services Highlights
PERFORMANCE SNAPSHOT INFRASTRUCTURE SERVICES – HIGHLIGHTS Q4 and Annual FY’15 FINANCIAL PERFORMANCE GROWTH DRIVERS & MARKET SHARES (in Constant Currency) Infrastructure Revenue exceed USD 2 bn milestone ITO deal pipeline continues to look very healthy across all the geographies. HCL continues to
Slide 15: Financial Analysis
Financial Analysis Anil Chanana - 15 - WHERE VALUES DRIVE VELOCITY
Slide 16: Profit & Loss Statement (USD)
PROFIT & LOSS STATEMENT (USD) Q4, FY’15 Annual, FY’15 Revenue at US$ 5,952 Mn. It is up 15.1% YoY for Full Year Revenue at US$ 1,538 Mn; up 3.2% QoQ FY’15 in constant currency EBIT at $ 309 Mn; EBIT at $ 1,324 Mn; Annualized GAAP EPS (Diluted) – INR 50 GAAP EPS (Diluted) – INR 51 up 14%
Slide 17: Receivables & DSO
RECEIVABLES & DSO Particulars 30-Jun-14 31-Mar-15 30-Jun-15 Receivables (in US$ Mn) 1,281 1,509 1,490 -Billed 944 1,029 1,031 -Unbilled 336 480 459 DSO (in Days) 82 91 87 -Billed 60 62 60 -Unbilled 22 29 27 - 17 - WHERE VALUES DRIVE VELOCITY
Slide 18: Profit to Cash Conversion
PROFIT TO CASH CONVERSION Average OCF/NI ~ 100% 1,164 1,087 1,037 974 834 in USD Mn 732 FY'13 FY'14 FY'15 Net Income Operating Cash flow - 18 - WHERE VALUES DRIVE VELOCITY
Slide 19: Hedge Details
HEDGE DETAILS (US$ Mn) 31-Mar-15 30-Jun-15 Balance Sheet Hedges 441 475 Cash Flow Hedges 963 928 Less than or equal to 1 Year 657 713 More than 1 Year 306 215 Rate (USD/INR) Booked Rate (Forward) 65.76 66.17 Less than 1 Year 64.19 65.04 More than 1 Year 67.42 67.83 MTM Rate applied 66.95 67.61 Mix –
Slide 20: Forex Gain/Loss & OCI
FOREX GAIN/ LOSS & OCI FX Gain/ Loss for the Quarter in US$ Mn 30-Jun-15 Cash flow hedge loss (A) (0.6) Net gain on Foreign currency exposure (B) 6.5 TOTAL (A) + (B) 5.9 OCI Position as of Jun’15 in US$ Mn 30-Jun-15 OCI (Upto 12 months) (2.0) OCI (Greater than 12 months) (5.9) TOTAL (before Tax bene
Slide 21: Tax Provision
TAX PROVISION EFFECTIVE TAX RATE ESTIMATED FOR FY’16 IS 21%-22% AND FY’17 IS 22%-23% Particulars (US$ Mn) FY ’14 FY ’15 Total Tax Expense 252 306 Earnings before Tax 1,289 1,470 Effective Tax Rate 19.6% 20.8% - 21 - WHERE VALUES DRIVE VELOCITY
Slide 22: Q&A
Q&A - 22 - WHERE VALUES DRIVE VELOCITY