Hcl Technologies Limited · NSE:HCLTECH

Hcl Technologies — Q1 FY'16 Earnings Presentation

17 slides from Hcl Technologies's earnings presentation, September 2015

  1. Slide 1: HCL Technologies Earnings Presentation First Quarter FY'16

    HCL TECHNOLOGIES EARNINGS PRESENTATION | FIRST QUARTER FY’16 -1- WHERE VALUES DRIVE VELOCITY

  2. Slide 2: Performance Snapshot

    Performance Snapshot ANANT GUPTA -2- WHERE VALUES DRIVE VELOCITY

  3. Slide 3: Performance Trends (LTM Basis)

    PERFORMANCE TRENDS (LTM BASIS) REVENUE EBIT 1,332 1,280 6,063 5,523 4,843 1,015 In USD Mn In USD Mn SEP '13 SEP '14 SEP '15 SEP '13 SEP '14 SEP '15 NET INCOME CLIENT CATEGORY 1,118 1,120 800 In USD Mn SEP '13 SEP '14 SEP '15 -3- WHERE VALUES DRIVE VELOCITY

  4. Slide 4: Consistent and Broad Based Growth

    CONSISTENT AND BROAD BASED GROWTH REVENUE GROWTH (IN CONSTANT CURRENCY) GROWTH ENGINES 30-Sep-15 Growth in US$ QoQ YoY Broad based Growth Revenues 1.2% 13.5% Americas 0.7% 12.3% Europe 5.6% 18.2% Geo Drivers: Europe, Americas ROW -8.4% 5.8% Application Services 0.1% 6.4% Growth Services: Engineering

  5. Slide 5: State of the Market

    STATE OF THE MARKET Gartner: IT Services Market to Grow 3.7% in 2015 in Rebid Market: Cloud/IUS will be Key Factors in Renewals Constant Currency 2015–19 CAGR IT Services Growth Rates (CY15) 2014 2015 2016 $150Bn* Worth of Renewals Over 2016, 2017 and 2018 (*Source ISG: Non Government and BPO) Cloud

  6. Slide 6: HCL – Business and IT Services Strategic Play

    HCL – BUSINESS AND IT SERVICES STRATEGIC PLAY 2016 – 2020 Digitalization Next–Gen ITO Internet of Things HCL Outcome – Business Model Transformation Hybrid Cloud SIAM Consumer IoT Based Models Strategic Front–Office to Back–Office DryIce: Automation with Industrial IoT Play Orchestration Customer Ex

  7. Slide 7: Performance Snapshot: Financial Services

    Performance Snapshot RAHUL SINGH Financial Services -7- WHERE VALUES DRIVE VELOCITY

  8. Slide 8: Performance Snapshot: Financial Services Highlights

    PERFORMANCE SNAPSHOT FINANCIAL SERVICES – HIGHLIGHTS Q1 FY’16 FINANCIAL PERFORMANCE GROWTH DRIVERS & MARKET SHARES (in Constant Currency)  Financial Services up 7.7% YoY in Q1’16  Focus on Vendor Consolidation: Highlight synergies, Tool and Frameworks, Outcome driven Commercial constructs etc.  H

  9. Slide 9: Performance Snapshot: Infrastructure Services

    Performance Snapshot C Vijay Kumar Infrastructure Services -9- WHERE VALUES DRIVE VELOCITY

  10. Slide 10: Performance Snapshot: Infrastructure Services Highlights

    PERFORMANCE SNAPSHOT INFRASTRUCTURE SERVICES – HIGHLIGHTS Q1 ’16 FINANCIAL PERFORMANCE GROWTH DRIVERS & MARKET SHARES (in Constant Currency)  Infrastructure Services up 16.3% YoY in Q1’16  Increased Deal sizes due to the end to end Multi- geography requirements with clients entrusting the entire I

  11. Slide 11: Financial Analysis

    Financial Analysis ANIL CHANANA - 11 - WHERE VALUES DRIVE VELOCITY

  12. Slide 12: Profit & Loss Statement (USD)

    PROFIT & LOSS STATEMENT (USD) Q1, FY’16  Constant currency revenue growth at 1.2% QoQ and 15.3% on LTM YoY  EBIT (Ex Adj.) at $ 317 Mn;  Revenue at US$ 1,545 Mn; up 0.5% QoQ in reported currency  Annualized GAAP EPS (Diluted) – INR 52 Income Statement 30-Sep-15 Ex Adj. 30-Sep-14 30-Jun-15 30-Sep

  13. Slide 13: Profit to Cash Conversion

    PROFIT TO CASH CONVERSION 1,118 1,128 1,120 Average OCF/NI ~ 100% 979 933 800 in USD Mn SEP '13 SEP '14 SEP '15 Net Income Operating Cash flow FY’15 Q.E Sep’14 Q.E Sep’15 OCF/ NI 84% 68% 77% FCF/ EBITDA 56% 41% 50% - 13 - WHERE VALUES DRIVE VELOCITY

  14. Slide 14: Hedge Details

    HEDGE DETAILS (US$ Mn) 30-Jun-15 30-Sep-15 Balance Sheet Hedges 475 296 Cash Flow Hedges 928 972 Less than or equal to 1 Year 713 818 More than 1 Year 215 154 Rate (USD/INR) Booked Rate (Forward) 66.17 66.57 Less than 1 Year 65.04 65.73 More than 1 Year 67.83 68.30 MTM Rate applied 67.61 68.71 Mix –

  15. Slide 15: Forex Gain/Loss & OCI

    FOREX GAIN/ LOSS & OCI FX Gain/ Loss for the Quarter in US$ Mn 30-Sep-15 Cash flow hedge loss (A) (1.6) Net gain on Foreign currency exposure (B) 4.9 TOTAL (A) + (B) 3.4 OCI Position as of Sep’15 in US$ Mn 30-Sep-15 OCI (Upto 12 months) (7.3) OCI (Greater than 12 months) (6.1) TOTAL (before Tax bene

  16. Slide 16: Tax Provision

    TAX PROVISION EFFECTIVE TAX RATE ESTIMATED FOR FY’16 IS 21%-22% AND FY’17 IS 22%-23% Particulars (US$ Mn) FY ’15 Q.E Sep ’15 Total Tax Expense 306 72 Earnings before Tax 1,470 336 Effective Tax Rate 20.8% 21.5% - 16 - WHERE VALUES DRIVE VELOCITY

  17. Slide 17: Q&A

    Q&A - 17 - WHERE VALUES DRIVE VELOCITY

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