Eclerx Services Limited · NSE:ECLERX
Eclerx Services — Q2 FY20 Earnings Presentation
15 slides from Eclerx Services's earnings presentation, Nov 7, 2019
Slide 1: Financial Performance – Q2 FY20
Data. Domain. Delivery. eClerx Financial Performance – Q2 FY20 7th November, 2019 Presented to:
Slide 2: Financial Summary
Financial Summary Metrics FY20 Q2 Q-o-Q H1 FY20 Y-o-Y OPG revenue (USD mm) 50.1 -1.6% 101.0 1.7% Revenue OPG revenue (INR mm) 3,565 0.5% 7,112 0.5% Total revenue (INR mm) 3,652 0.6% 7,281 -2.5% EBITDA (INR mm) 867 17% 1,611 -19% Profit EBIT (INR mm) 690 21% 1,263 -30% Net profit (INR mm) 439 10% 837
Slide 3: Other Income – FY20 Q2 vs. FY20 Q1
Other Income – FY20 Q2 vs. FY20 Q1 Figures in INR millions. Other Income FY20 Q2 FY20 Q1 FY19 Q4 FY19 Q3 FY 19 Q2 Investment Income 59.5 88.5 108.1 100.1 79.3 Revaluation and Realised Gain* 39.4 (11.2) (15.9) (103.9) 108.7 Other Misc. Income* (11.9) 5.1 3.6 4.1 4.0 Total 87.1 82.5 95.7 0.2 192.1 * G
Slide 4: Hedge Updates
Hedge Updates Current Hedge Status • Total outstanding hedges now $137 mm at average INR 73.99/$; 100% forwards Contract Year Currency Amount (mm) Avg. Rate (INR) FY19 Q3 $32.7 69.0 FY19 Q4 $29.5 69.0 Matured Forwards Total FY19 USD $123.5 69.0 FY20 Q1 $30.3 69.9 FY20 Q2 $29.9 71.4 FY20 Q3 $29.0 72.
Slide 5: P&L Comparison: FY20 Q2 vs. FY20 Q1
P&L Comparison: FY20 Q2 vs. FY20 Q1 Figures in INR millions. Operating P&L FY20 Q2 OPR (%) FY20 Q1 OPR (%) Total Revenue 3,652 3,630 Operating Revenue 3,565 3,547 Cost of Revenues Delivery and Support Employees Cost 1,910 53.6% 1,923 54.2% General and Administrative Expenses Facilities (Rent and Ele
Slide 6: EBIT Bridging Analysis: Q-o-Q FY20 Q2 vs. FY20 Q1
EBIT Bridging Analysis: Q-o-Q FY20 Q2 vs. FY20 Q1 Figures in INR millions. 26.1 4.8 45.5 Dely. Emp. Cost 12.9 Total Revenue 22.0 Q1 FY20 G&A S&D Core Inv. & other FX Reval. India Onshore Depreciation Q2 FY20 revenue income Change Employee Employee Cost Cost • Lower G&A due to Opex savings from Pune
Slide 7: Balance Sheet & Other Updates
Balance Sheet & Other Updates • Total Cash and Cash equivalents of INR 6,271 mm for Q2FY’20 vs INR 6,067 mm for Q2FY’19 ̶ Equivalent to INR 173.8 per share vs INR 159.2 for Q2FY’19 ̶ Net operating cash flow in Q2FY’20 is INR 1025.8 mm vs INR 937.0 mm in Q2FY’19 ̶ Capex during Q2 FY’20 is INR 69.40 m
Slide 8: ESOP Trust Loan Impairment
ESOP Trust • Set-up in FY’17 to minimize dilution by fulfilling exercise of ESOPs granted post April 2016 (“the Trust”) • As on 30th September 2019, the Trust held 883,605 shares purchased @ 1220.40 average • Company has loaned INR 1,200 mm to the Trust for this purpose Loan Impairment • Significant
Slide 9: Key Business Metrics
Key Business Metrics FY 20 FY 20 FY 19 FY 19 FY 19 FY 19 FY 18 FY 18 FY 18 Metrics Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 USD 81% 80% 80% 82% 82% 82% 79% 83% 82% EURO 11% 10% 10% 9% 10% 10% 13% 10% 10% Currency Contribution (%) * GBP 6% 7% 7% 7% 6% 6% 6% 6% 6% Others 2% 3% 3% 2% 2% 2% 2% 1% 2% North America 67%
Slide 10: Revenue Mix Trends ($mm)
Revenue Mix Trends ($mm) 10% $3.9 $4.4 8% $4.4 $5.0 $13.4 6% $4.9 $12.9 $12.0 4% $10.3 $10.0 2% 0.5% 2.1% -1% -1.0% -2.8% -3% -5% -5.6% -7% FY19 Q2 FY19 Q3 FY19 Q4 FY20 Q1 FY20 Q2 Emerging (others) Emerging ($ 0.5 mm + ) Strategic (Top 10 %) Strategic growth is measured at quarterly YoY level www.ec
Slide 11: Human Resources Update
Human Resources Update Headcount 9,583 86 9,377 9,123 97 406 91 89 376 90 640 422 90 639 453 629 579 572 7,907 7,596 7,321 FY19 Q2 FY20 Q1 FY20 Q2 Offshore Delivery Onshore Delivery Support Services Tech Services R&D BD Offshore Voluntary Attrition 46% 41% 39% FY19Q2 FY20Q1 FY20Q2 #Onshore delivery
Slide 12: Thank You
This presentation contains forward-looking statements, inter-alia, to enable investors to comprehend company’s prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically make, contain forward-looking statements that set out anticipate
Slide 13: EBIT Bridging Analysis: Y-o-Y FY20 Q2 vs. FY19 Q2
EBIT Bridging Analysis: Y-o-Y FY20 Q2 vs. FY19 Q2 Figures in INR millions. 47.9 34.9 70.1 65.7 114.9 73.7 Total Revenue 99.3 Dely. Emp. Cost 180.6 Q2 FY19 G&A S&D Core SEIS Inv. & other FX Reval. India Onshore Depreciation Q2 FY20 revenue income Change Employee Employee Cost Cost • Lower G&A due to
Slide 14: Financial Summary – Quarterly View
Financial Summary – Quarterly View Metrics FY20 Q2 FY20 Q1 FY19 Q4 FY19 Q3 FY19 Q2 OPG revenue (USD mm) 50.1 50.9 51.2 50.2 50.0 Revenue OPG revenue (INR mm) 3,565 3,547 3,651 3,576 3,559 Total revenue (INR mm) 3,652 3,630 3,747 3,577 3,751 EBITDA (INR mm) 867 744 903 667 1,024 Profit EBIT (INR mm)
Slide 15: P&L Comparison – Quarterly View
P&L Comparison – Quarterly View Figures in INR millions. FY20 OPR FY20 OPR FY19 OPR FY19 OPR FY19 OPR Operating P&L Q2 (%) Q1 (%) Q4 (%) Q3 (%) Q2 (%) Total Revenue 3,652 3,630 3,747 3,577 3,751 Operating Revenue 3,565 3,547 3,651 3,576 3,559 Cost of Revenues Delivery and Support Employees Cost 1,91