Slide 1: Investor Update Q1 2018
Investor Update Q1 2018 3rd May 2018 © Hexaware Technologies. All rights reserved. | www.hexaware.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 un
Slide 3: Business Update Q1
Business Update Q1 www.hexaware.com | © Hexaware Technologies. All rights reserved. 3
Slide 4: Key Financials for Q1 2018
Key Financials for Q1 2018 GROWTH GROWTH Q1 2018 Q4 2017 QoQ YoY Revenue 162.2 156.1 3.9% 12.1% EBITDA * (before ESOP cost) 26.5 26.3 1.0% 4.7% EBITDA * % 16.4% 16.8% -0.5% -1.2% EBITDA (after ESOP cost) 25.1 24.8 1.0% 2.3% EBITDA % 15.5% 15.9% -0.4% -1.5% PAT 20.7 18.8 10.3% 20.3% PAT % 12.8% 12.0%
Slide 5: Revenue Analysis - QoQ
Revenue Analysis - QoQ 3.5% Volume Growth 1.00 162.2 4.90 0.58 (0.34) 160 156.1 USD Mn---------------> 155 150 Increases Decreases 145 140 Volume Bill Rates Revenue Q4 17 Revenue Q1 18 Calendar FX www.hexaware.com | © Hexaware Technologies. All rights reserved. 5
Slide 6: Gross Margin Analysis - QoQ
Gross Margin Analysis - QoQ 0.51 0.17 34.00 33.7 (0.15) (0.14) 33.7 (0.39) 33.00 Increases 32.00 Decreases SG&A 45 bps QoQ 31.00 Sales investment / promotion / (116) increment / others Other Cost Utilisation Bill Rates H1B Visa Forex gain GM Q4 17 GM Q1 18 Increase Volume Leverage 63 Forex Impact
Slide 7: Movement of Top Customers
Movement of Top 20 Customers Top 20 Accounts by LTM Revenue Q1 2018 vs. Q1 2017 In Out • Specialized Payment Products and • Foremost Healthcare Solutions provider Services Provider • World’s leading Airline • Global Banking & Financial Services Co. • Premier Chain of Fitness Centers • Multinational
Slide 8: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q1 2017 Q1 2018 CONTRIBUTION GROWTH TOP CLIENTS GROWTH QoQ $50+ 3 3 Top 5 Clients -0.8% 2.0% $30 - $50 0 0 $20 - $30 2 1 Top 10 Clients -0.2% 3.6% $10 - $20 3 6 Top 20 Clients -0.3% 3.5% Other Clients 0.3% 4.7% $5 - $10 6 10 $1 - $5 67 69 REVENUE REVENUE TOP
Slide 9: NN Wins
NN Wins USD 28 million NN Deal wins in Q1-18 Cost optimization leveraging automation across Finance & Accounts and software development for a global Test administration service provider Remote Infrastructure Monitoring & Support Services for a global law firm Enterprise monitoring & DevOps services
Slide 10: Employee Metrics
Employee Metrics UTILIZATION * EMPLOYEE ATTRITION Utilization maintained at high levels Attrition at low levels 16.6% 16.5% 16.1% 80.8% 80.9% 81.3% 16.0% 79.7% 14.9% 78.6% 78.9% 13.8% 13.7% 13.1% 13.4% 74.1% 69.6% 70.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 2
Slide 11: APAC, GTT and IMS led Growth
APAC, GTT and IMS led Growth APAC Europe, PS, 12% IMS, 13% ADM, , 12% M&C, 15% BPS, 7% 13% BFS, 44% BIBA, 36% 14% North America, ES, 11% H&I, 16% DA, 19% 75% GTT, 13% HORIZONTAL GROWTH GROWTH (1) QoQ YoY GROWTH GROWTH VERTICAL QoQ YoY ADM 0.3% 11.4% BFS 2.1% 14.6% GROWTH GROWTH ES 4.7% 0.3% GEOGRAPH
Slide 12: Finance Update
Finance Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 12
Slide 13: Revenue
Revenue Q1 2018 • CC revenue at $161.2 mn; 3.3% QoQ; 10.1% YoY • $ Revenue at $162.2 mn; 3.9% QoQ; 12.1% YoY • ₹ Revenue at Rs 10,490 mn; 4.4% QoQ; 9.2% YoY Revenue ($ Mn) QoQ Growth 162.2 5.4% 2.05% CQGR 3.9% 156.1 154.0 152.6 1.3% 0.9% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2017 Q3 2017 Q4
Slide 14: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Outstanding Hedge Position Currency Pair Amount (Mn.) Avg. Rate USDINR ($) 177.78 70.03 EURNR (€) 6.60 84.51 GBPNR (£) 11.60 94.18 Total ($) 202.39 Note - 1.Hedges outstanding are full-term hedges. 2. EUR converted @ 1.2399/USD & GBP converted @ 1.4158/USD. 3. Av
Slide 15: Forex Gain/(Loss)
Forex Gain/(Loss) 3.20 3.00 Total Gain/(Loss) • As compared to the forex gain of $1.98 Mn in Q4’17, the forex 2.40 gain this quarter was $ 3.00 USD Mn-----------> Mn. 1.51 1.61 • Forex gains expected are 1.60 ~$1.51 Mn in Q2’18 and ~$1.61 Mn in Q3’18 at exchange rate of INR 65.1750 / USD. 0.80 - Q1'
Slide 16: Balance Sheet Updates
Balance Sheet Updates CASH & CASH EQUIVALENTS Cash and Cash Equivalents at US$ 94.03 Mn ( ` 6,129 Mn) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for Q1 2018 at 47 days; 74 days including unbilled DIVIDEND INR 1.00 per share (50%) (Committed to capital return of INR 8 / share for the year) D
Slide 17: Thank you
Innovative Services Passionate Employees Thank you Delighted Customers © Hexaware Technologies. All rights reserved. | www.hexaware.com