Hcl Technologies Limited · NSE:HCLTECH
Hcl Technologies — Q2 FY'17 Earnings Presentation
21 slides from Hcl Technologies's earnings presentation, September 2016
Slide 1: HCL Technologies Earnings Presentation Second Quarter FY'17
HCL TECHNOLOGIES EARNINGS PRESENTATION | SECOND QUARTER FY’17 -1- WHERE VALUES DRIVE VELOCITY
Slide 2: Performance Snapshot
Performance Snapshot C VIJAYAKUMAR -2- WHERE VALUES DRIVE VELOCITY
Slide 3: Performance Trends on LTM Basis
PERFORMANCE TRENDS ON LTM BASIS REVENUE HEADCOUNT 6,566 109,795 6,063 105,571 Number of Employees 5,523 95,522 4,843 87,196 In USD Mn SEP'13 SEP'14 SEP'15 SEP'16 SEP'13 SEP'14 SEP'15 SEP'16 EBIT NET INCOME 1,332 1,338 1,182 1,280 1,118 1,120 1,015 In USD Mn In USD Mn 800 SEP'13 SEP'14 SEP'15 SEP'16
Slide 4: Consistent and Broad Based Growth
CONSISTENT AND BROAD BASED GROWTH REVENUE GROWTH (IN CONSTANT CURRENCY) Quarter Ended 12 Months Ended GROWTH ENGINES Segments 30-Sep-16 30-Sep-16 Broad based Growth QoQ LTM YoY Consolidated 2.8% 10.6% Americas 5.5% 14.9% Geo Drivers Americas and Europe Europe -2.1% 8.2% ROW 2.0% -6.1% Application Se
Slide 5: HCL Growth Strategy for FY'17 & Beyond
HCL GROWTH STRATEGY FOR FY’17 & BEYOND HCL 21CE Business Type Highlights Application Services Existing Core Services with strong market momentum Autonomics DRYiCE™ Mode 1 Infrastructure Services Large under–serviced market opportunities Agile & Lean + Service Oriented Engineering and R&D Services Co
Slide 6: Performance Snapshot Service Lines Q2'17
PERFORMANCE SNAPSHOT SERVICE LINES Q2’17 Growth in CC QoQ YoY ■ A Fortune 500 specialty retailer engaged HCL to transform its business and IT applications landscape by deploying standardized SAP template across Application UK and multiple European countries 1.4% 5.6% ■ HCL won a deal with a leading
Slide 7: Experience-Centric and Outcome-Oriented: BEYONDigital, IoT WorKS, Cloud and Cyber Security
EXPERIENCE–CENTRIC AND OUTCOME–ORIENTED BEYONDIGITAL™, IOT WORKS™, CLOUD AND CYBER SECURITY BEYONDigital™ IoT WorKS™ ■ BEYONDigitalTM – Integrated end-to-end model for digital transformation ■ IoT WorKSTM: End–to–end IoT solutions and offerings for tangible ■ 'Design Studio‘, a state-of-the-art faci
Slide 8: Ecosystem Driven
ECOSYSTEM DRIVEN ■ HCL Mode 3 growth strategy is ecosystem–driven, leveraging innovative IP–partnerships to build products and platform business, targeting specific next–generation opportunities in the market. ■ As announced last quarter, HCL and IBM entered into a 15 year strategic IP–partnership i
Slide 9: Performance Snapshot
Performance Snapshot RAHUL SINGH -9- WHERE VALUES DRIVE VELOCITY
Slide 10: Performance Snapshot: Financial Services
PERFORMANCE SNAPSHOT FINANCIAL SERVICES Performance Highlights Performance Drivers Revenue Growth 30-Sep-16 ■ Focused New Account/ Geo ■ Focus on Digital strategy UX & Customer Experience New agreement signed with Data and Analytics (Constant Currency) QoQ YoY LTM YoY Top 5 Global bank IT si
Slide 11: Performance Snapshot
Performance Snapshot KARAN PURI - 11 - WHERE VALUES DRIVE VELOCITY
Slide 12: Performance Snapshot: Consumer & Commercial Industries
PERFORMANCE SNAPSHOT CONSUMER & COMMERCIAL INDUSTRIES Performance Highlights Performance Drivers Revenue Growth 30-Sep-16 ■ Establishing leading position in BEYONDigital™ & Modern Applications space in Telecom, Retail CPG and Life Sciences & Healthcare, TTLH, Oil & Gas, Energy & Utilities, Aero & De
Slide 13: Financial Analysis
Financial Analysis ANIL CHANANA - 13 - WHERE VALUES DRIVE VELOCITY
Slide 14: Consolidated Income Statement (in US$ Million)
CONSOLIDATED INCOME STATEMENT (IN US$ MILLION) Q2, FY’17 Revenue at US$ 1,722 Mn; up 1.9% QoQ in reported currency Constant currency revenue growth at 2.8% QoQ and 10.6% on LTM YoY EBIT at $ 347 Mn, up by 15.9% YoY Annualized GAAP EPS (Diluted) – INR 57 Income Statement Growth 30-Sep-15 30-J
Slide 15: FY'17 Guidance
FY’17 GUIDANCE GUIDANCE Revenue Guidance ■ FY’17 Revenues are expected to grow between 12.0% to 14.0%* in Constant Currency *Revenue Guidance is based on FY’16 (April to March) average exchange rates The above constant currency guidance translates to 11.0% to 13.0% in USD terms based on September 30
Slide 16: Purchase of Property and Equipment
PURCHASE OF PROPERTY AND EQUIPMENT 9 months period ended 3 months period 3 months period ended Particulars Mar 31,2016 ended June 30, 2016 Sept 30,2016 Software IP 138.0 77.1 Other Assets 139.4 43.8 59.5 Cash Outflow on Purchases 139.4 181.8 136.6 Property and Equipment (Net) 31-Mar-16 30-Jun-16 30-
Slide 17: Cash Conversion
CASH CONVERSION ON LTM BASIS CASH CONVERSION 103% 87% 59% 56% Sep'15 Sep'16 FCF to EBITDA OCF to NI - 17 - WHERE VALUES DRIVE VELOCITY
Slide 18: Hedge Details
HEDGE DETAILS AS ON In US$ Million 30-Jun-16 30-Sep-16 Total Hedges 1,113 1,157 Balance Sheet Hedges 209 144 Cash Flow Hedges 904 1,013 Less than or equal to 1 Year 674 778 More than 1 Year 230 235 Rate (USD/INR) Booked Rate (Forward) 67.99 68.30 Less than 1 Year 67.29 67.76 More than 1 Year 69.97 7
Slide 19: Forex Gain/Loss & OCI
FOREX GAIN/ LOSS & OCI FX Gain/ Loss for the Quarter in US$ Million 30-Sep-16 Cash flow hedge gain (A) 1.4 Net gain on Foreign currency exposure (B) 3.3 TOTAL (A) + (B) 4.6 OCI Position as of 30-Sep-16 in US$ Million 30-Sep-16 OCI (Upto 12 months) 22.1 OCI (Greater than 12 months) 4.3 TOTAL (before
Slide 20: Tax Provision
TAX PROVISION EFFECTIVE TAX RATE ESTIMATED FOR FY’17 IS ~21% Financial Year ended Quarter Ended Particulars (in US$ Mn) 31-Mar-16 30-Sep-16 Total Tax Expense 223 80 Earnings before Tax 1,063 382 Effective Tax Rate 21.0% 21.1% - 20 - WHERE VALUES DRIVE VELOCITY
Slide 21: Q&A
Q&A - 21 - WHERE VALUES DRIVE VELOCITY