R Systems International Limited · NSE:RSYSTEMS

R Systems International — Q2 2010 Earnings Presentation

14 slides from R Systems International's earnings presentation, Dec 1, 2010

  1. Slide 1: Review of Q2 2010 Results

    R Systems International Limited Review of Q2 2010 Results 1 www. rsystems.com

  2. 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. othe

  3. Slide 3: Key Highlights Q2 2010

    Key Highlights Q2 2010 • Consolidated revenue Rs 68.48 crores (US$ 15.01 mn.); QoQ decline 5.4% and YoY decline 16.9%; • EBITDA Rs 3.41 crores ((US$ 0.75 mn); ) QQoQ Q decline 45.4% and YoY decline 59.3%; • PAT Rs 1.14 crores (US$ 0.25 mn) compared to Rs 6.58 crores (US$ 1.43 mn) in Q1, 2010, while

  4. Slide 4: Consolidated Results (Un-audited)

    Consolidated Results (Un‐audited) ( Figures in mn. mn except per share data) Particulars Q2 2010 Q2 2009 Q1 2010 INR US$ INR INR INR US$ Revenues 684.82 15.01 824.89 16.96 724.25 15.79 Cost of Revenues 442.33 9.69 513.52 10.55 457.21 9.97 Gross Margin 242.49 5.32 311.37 6.41 267.04 5.82 35.41% 37.75

  5. Slide 5: Forex Impact Over QoQ Revenues and Gross Margins (Q2 10 Vs Q1 10)

    Forex Impact Over QoQ Revenues and Gross Margins (Q2 10 Vs Q1 10) ‐10.00% FX Revenue QoQ % Impact % ‐8.71% Rs. in Avg. On Impact crs Change Revenue On QoQ ‐8.00% in (Rs In (Rs. Revenue FX/INR crs.) parity ‐6.00% US$ 44 8 44.8 -0 58% -0.58% (0 26) (0.26) -0 36% -0.36% ‐44.00% 00% EURO 12.0 -8.71% (1.

  6. Slide 6: Gross Margins Analysis Q2-10 Vs Q1-10

    Gross Margins Analysis Q2‐10 Vs Q1‐10 Movement in Gross Margin % Q2-10 Vs Q1-10 100% 80% 60% 0.91% 40% Gross Margin % in Q1-10 36.87 20% 0% Impact of Increased Gratuity limit (0.85) -0.85% -20% Rupee Appreciation (0.58) -40% -0.58% Decrease in Utilization (0.48) -60% -0.48% -80% Decrease in licensin

  7. Slide 7: Revenues and Margins, Historical Trend

    Revenues and Margins, Historical Trend 100.0 16.0 14.8 90.0 14 0 14.0 90.1 11.6 12.4 80.0 12.0 70.0 10.1 76.3 78.7 10.0 Rs in Croress 60 0 60.0 8.6 82.5 50.0 8.0 % 72.4 5.0 40.0 6.0 30.0 4.0 20.0 68.5 2.0 10 0 10.0 - - Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Revenue 90.1 82.5 78.7 76.3 72.4 68.5 EBITDA

  8. Slide 8: Net Assets and Cash and Bank Balance, Historical Trend

    Net Assets and Cash and bank balance , Hi Historical i l Trend T d 200.0 180 0 180.0 173.1 174.6 165.1 167 4 167.4 157.7 159.0 160.0 140.0 Rs in Croress 120.0 100.0 80.0 87 2 87.2 83 3 83.3 85.2 60.0 81.8 71.9 73.2 40.0 20 0 20.0 ‐ Q1‐09 * Q2‐09 Q3‐09 Q4‐09 Q1‐10 Q2‐10 Net Assets 157.7 159.0 165.1 1

  9. Slide 9: Consolidated Key Balance Sheet Data

    Consolidated Key Balance Sheet Data Rupees in Crores except “DSO” As at June As at Mar 30 2010 31, 30, 31 2010 Share Holders’ Funds 174.6 173.1 Receivables 48.2 54.5 Receivables in days “DSO” 65 61 Cash & Bank 85.2 83.3 Net Current Assets 126.7 123.7 Fixed Assets (net) 48.7 50.8 Secured Loans 1.0 1.

  10. Slide 10: Quarterly Revenue Break-Down

    Quarterly Revenue Break‐Down Byy Geography g p y Client Concentration 44% 42% 42% 4% 45% 100% 6% 5% 5% 6% 7% 40% 90% 9% 10% 10% 33% 35% 30% 31% 80% 18% 30% 28% 22% 22% 70% 25% 20% 19% 60% 20% 50% 15% 8% 10% 7% 6% 40% 57% 61% 5% 30% 52% 0% 20% Year 09 Year- Q1 10 Q1-10 Q2 10 Q2-10 10% The Largest Cli

  11. Slide 11: Technical Head Count and Utilization

    Technical Head Count and Utilization 2,500 2,089 80.0% 69.8% 1 974 1,974 68.4% 65 4% 65.4% 64.5% 67 1% 67.1% 1,830 1,705 70.0% 62.4% 2,000 1,719 1,686 60.0% 1,500 50.0% 1 000 1,000 40.0% 30.0% 500 20.0% ‐ 10.0% Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 11 www. rsystems.

  12. Slide 12: Summing Up and Looking Ahead

    Summing Up and Looking Ahead • Billing rates still holding firm across markets, markets new orders have also been won at comparable prices; • Europe p tech‐support pp business is ggettingg back on track to operating p gpprofitability; y • We have enlarged the sales team to focus on US and Europe mar

  13. Slide 13: Contact Information

    Contact Information Suresh Kumar Bhutani Noida, India p y Secretaryy & Company Worldwide Compliance Officer Headquarter Tel # 0120 - 4082633 Fax # 0120 - 4082699 Email: suresh.bhutani@rsystems.com El Dorado Hills-CA, USA Shankar Seetharaman Chief Financial Officer Pune, India Tel # 020 - 22952520 Em

  14. Slide 14: Thank You

    Thank Th k You Y For Your Support 14 www. rsystems.com

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