Eclerx Services Limited · NSE:ECLERX
Eclerx Services — Q3 FY10 Earnings Presentation
12 slides from Eclerx Services's earnings presentation, Jan 28, 2010
Slide 1: Financial Performance Q3 FY10
Financial Performance Q3 FY10 January 28, 2010 eClerx – An ISO/IEC 27001:2005 Certified Company 0 Confidential eClerx – An ISO / IEC 27001:2005 Certified Company
Slide 2: Financial Summary
Financial Summary Metrics Q3 FY10 Q-o-Q YTD FY10 Y-o-Y Total Revenue (INR M) 670 17% 1,726 18% Revenue Opg Revenue (INR M) 691 11% 1,857 30% Opg Revenue (USD M) 14.9 16% 39.2 24% EBITDA (INR M) 258 28% 611 5% Profit OPM (INR M) 260 10% 692 41% Net Profit (INR M) 213 32% 493 6% EBITDA % 39% 3% 35% 4%
Slide 3: Quarter Highlights
Quarter Highlights Strong growth momentum – now nudging $58M in revenue run rate Up from $50M at the exit of the previous quarter Strategy of increasing share of wallet for strategic clients starting to bear fruit Increasing diversity of services provided and stakeholders touched ‘Criticality’ measu
Slide 4: Other Updates
Other Updates Current Hedge Status Consistent policy of hedging receivables for next 12-18 months Contract Year Currency Amount (M) Average Rate (INR) USD $ 6.0 M 50.39 FY10 Euro € 1.5 M 66.52 Total FY10 – Equiv USD $ 8.1 M 49.64 USD $ 22.5 M 49.49 Forward FY11 Euro € 3.9 M 69.17 Total FY11 – Equiv
Slide 5: Highly Liquid Balance Sheet
Highly Liquid Balance Sheet Total Cash and Cash equivalents of INR 1,242 M, zero debt on balance sheet – Equivalent to INR 65.3 per share Trailing 12 months EPS – Basic: 34.2 – Diluted: 33.5 Book value per share of INR 104.6 Utilization of IPO Proceeds Figures in INR Millions Planned as per Utilizat
Slide 6: P&L Comparison: YTD FY10 vs YTD FY09
P&L Comparison: YTD FY10 vs YTD FY09 Figures in INR Millions Operating P&L 9 Month FY10 % of OPR 9 Month FY09 % of OPR Operating Revenue 1,857.3 1,430.0 Cost of Revenues Employee Cost 765.7 41.2% 556.4 38.9% General Administration and Management Rent 73.3 3.9% 70.0 4.9% Communication Expenses 43.1 2
Slide 7: OPM Bridging Analysis: YTD FY10 vs YTD FY09
OPM Bridging Analysis: YTD FY10 vs YTD FY09 2.9% 2.4% -4.2% 2.1% 34.4% -1.1% 0.8% 37.3% YTD FY 09 Emp Cost S&M Exp Dep Bad Debt Prov Other G&A Exc Rate YTD FY 10 Note – Bridging analysis in constant currency, impact of currency movements shown in exchange rate Solid operational performance in FY10 –
Slide 8: NPM Bridging Analysis: YTD FY10 vs YTD FY09
NPM Bridging Analysis: YTD FY10 vs YTD FY09 0.2% 0.2% 2.9% -6.4% 31.7% 28.6% YTD FY 09 OPM Inv Inc Tax Forex Losses YTD FY 10 Lower effective tax rate in FY10, despite increase in MAT tax rate due to higher SEZ revenue contribution Forex losses should reduce going forward, given more favorable rates
Slide 9: Revenue Quality
Revenue Quality Metrics YTD FY10 YTD FY09 USD 72% 76% Currency Concentration (%) EURO 24% 18% GBP 4% 6% North America 61% 61% Geographic Concentration Europe 35% 36% ROW 4% 3% Client Concentration Top 5 81% 76% FTE 71% 71% Billing Mix SEZ Revenue 41% 26% 8 eClerx – An ISO/IEC 27001:2005 Certified Co
Slide 10: Status Update
Status Update Headcount 2577 1973 1527 1021 FY07 FY08 FY09 YTD FY10 Attrition 37% 35% 27% 28% FY07 FY08 FY09 YTD FY10 9 eClerx – An ISO/IEC 27001:2005 Certified Company January 10
Slide 11: FY11 – Early Indications
FY11 – Early Indications Initiatives to Become Closer to Customer – Upgrading of on-shore team and increase domain relevance (now APAC coverage) – Using on-shore consulting engagement to drive new opportunities and ‘verticalize’ offering – Focus on on-shore / off-shore hybrid programs to open new do
Slide 12: Thanks
Thanks 11 eClerx – An ISO/IEC 27001:2005 Certified Company January 10