R Systems International Limited · NSE:RSYSTEMS
R Systems International — Q2 2009 Earnings Presentation
16 slides from R Systems International's earnings presentation, 2009
Slide 1: R Systems International Limited – Review of Q2 2009 Results
R Systems International Limited Review of Q2 2009 Results www. rsystems.com 1 Proprietary Proprietary and Confidential Information- Brand names and product names mentioned in this document are trademarks andrespective of their Confidential owners.
Slide 2: Disclaimer
Disclaimer “Investors are cautioned that this presentation contains forward looking statements that involve risks and uncertainties. The Company undertakes no obligation publicly to update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Actu
Slide 3: Key Highlights – Q2 2009
Key Highlights – Q2 2009 Revenues: Rs 82.5 Crs or $ 16.9 mn; Decline QoQ by 8.4% and YoY by 8.9%; EBITDA: Rs 8.4 Crs or $ 1.7 mn; Decline QoQ by 37.3% and YoY by 24.3%; Net Profits Before Exceptional w/o Rs 4.6 Crs or $ 0.96 mn; Cash: Rs 73.2 Crs i.e. Rs 58.5 per share and Share Holder Funds
Slide 4: Goodwill Impairment
Goodwill Impairment: R Systems onshore technical support business is facing pressure as customers are focusing on cost reduction; Considering the declining volume, R Systems Board decided to record non-cash impairment charge to write-off all the goodwill of Rs 20.9 Crs or US$ 4.25 mn associated
Slide 5: Key Highlights – Environment
Key Highlights – Environment Our Experience: Demand environment is weak; Customers are focusing on cost reduction through budget cuts, vendor consolidation, off shoring and other means; Customers are postponing new initiatives; US visa approvals getting difficult; Positive factors: Fun
Slide 6: Consolidated Results (Un-audited)
Consolidated Results (Un-audited) ( Figures in mn except per share data) Q2 2009 Q2 2008 Q1 2009 Particulars INR US$ INR US$ INR US$ Revenues 824.89 16.96 905.59 21.80 900.83 18.15 Cost of revenues 513.52 10.55 552.42 13.29 511.18 10.30 Gross Margin 311.36 6.41 353.17 8.50 389.65 7.85 37.75% 39.00%
Slide 7: Gross Margins Analysis Q2-09
Gross Margins Analysis Q2-09 Movement in Gross 0% Margin % Q2-09 Vs Q1-09 -2.40% Gross Margin % in Q1-09 43.25 ‐25% Increased Provision for (2.40) Employee Costs ‐50% -1.50% Impact of Lower Utilization (1.50) Decrease in License (1.11) ‐75% -1.11% Revenue -0.25% -0.24% Impact of Rupee (0.25) ‐100% A
Slide 8: Revenues and Margins, Historical Trend
Revenues and Margins, Historical Trend Rs in Crores % Revenue & EBITDA Growth in Q2-09 was Deeply Impacted by Volume Decline Resulted from Global Slow Down www. rsystems.com 8 Proprietary Proprietary and Confidential Information- Brand names and product names mentioned in this document are trademark
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Rupees in Crores except “DSO” As at June As at March 30, 2009 31, 2009 Share Holders’ Funds 159.0 178.6 Receivables 54.3 62.5 Receivables in days “DSO” 61 70 Cash & Bank 73.2 71.9 Net Current Assets 108.6 109.6 Fixed Assets (net) 57.6 73.3 Secured Loans 5.2 1.7 www. rsyste
Slide 10: Revenue Break-Down
Revenue Break-Down By Geography Client Concentration 47% 46% 50% 100% 6% 8% 5% 44% 3% 4% 45% 5% 90% 10% 8% 40% 6% 35% 35% 33% 80% 31% 26% 27% 30% 70% 29% 24% 25% 23% 22% 60% 20% 50% 15% 10% 8% 9% 40% 10% 54% 57% 5% 30% 52% 0% 20% Q2-09 Q1-09 Year - 08 The Largest Client 10% 8% 9% 10% Top 3 Clients 2
Slide 11: Technical Head Count and Utilization
Technical Head Count and Utilization 2,290 2,300 2,249 80.0% 69.7% 70.2% 70.6% 69.7% 65.4% 2,161 70.0% 62.4% 2,200 2,080 2,089 60.0% 2,100 50.0% 1,974 2,000 40.0% 30.0% 1,900 20.0% 1,800 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 10.0% Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Reduction in Head Counts by 115 is
Slide 12: Summing Up and Looking Ahead
Summing Up and Looking Ahead Q2-09 Performance was impacted by declining volumes; Near term uncertainties to continue until economy rebounds; volumes likely to maintain downward trend for rest of the year; R Systems plan… www. rsystems.com 12 Proprietary Proprietary and Confidential Informatio
Slide 13: Looking Ahead, R Systems Plan
Looking Ahead, R Systems Plan: Focus on existing customers and align with their needs; Look inwards and make changes to deal with tough external environment Intensify efforts to leverage existing cost structure, assets and platform for revenue growth Cost optimization through infrastructure
Slide 14: Looking Ahead…
Looking Ahead… While R Systems is not going to be immune to weak economy and demand environment, the Company has a strong foundation in OPD, Technical Support, Consumer Finance and Supply Chain with proven capability to create value for buyers as demonstrated by its strong customer roster. Our goal
Slide 15: Contact Information
Contact Information Noida, India Worldwide O’Neil Nalavadi Headquarters Director Finance El Dorado Hills- CA, USA Tel # 1-916 939 5170 Fax # 1- 916 939 6321 El Dorado Hills-CA, Email: Oneil.nalavadi@rsystems.com USA Nand Sardana Chief Compliance Officer & V.P. Finance Noida, India Tel # 0120 - 43035
Slide 16: Thank You For Your Support
Thank You For Your Support www. rsystems.com 16 Proprietary Proprietary and Confidential Information- Brand names and product names mentioned in this document are trademarks andrespective of their Confidential owners.
R Systems International — Q2 2009 Earnings Presentation on 6ix