Slide 1: Hexaware – Q3 2009 Results
Hexaware – Q3 2009 Results Analyst Meet October 2009 Mumbai
Slide 2: Safe Harbour
Safe Harbour 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 uncertainti
Slide 3: Hexaware meets top-end of Q3 '09 guidance; continues strong operational performance
Hexaware meets top-end of Q3 ’09 guidance; continues strong operational performance • Q3 ’09 Revenue increased by 1.6% q-o-q to Rs. 2,632 mn (up by 1.7% at $ 54.5 mn) • Profit after Tax increased by 4.7% sequentially to Rs. 413 mn ($8.5 mn) • Operating Margin(EBIT) increased by 230 basis points on a
Slide 4: Financial Performance
Financial Performance 4 © Hexaware Technologies. All rights reserved.
Slide 5: Q3 - P & L (in INR)
Q3 - P & L ( in INR) Consolidated Income Statement (as per Indian GAAP) INR Mn Quarterly Data Head Q3 09 Q2 09 QoQ% Q3 FY08 YoY% Gross Revenues 2,632 2,591 1.6% 2,946 -10.7% • USD revenue 1.7% QoQ; INR Direct Costs 1,365 1,357 0.6% 1,712 -20.3% Gross Profit 1,267 1,234 2.7% 1,234 2.6% revenue 1.6%
Slide 6: Q3 2009 – Revenue Variance Analysis
Q3 2009 – Revenue Variance Analysis 55.0 0.7 54.5 54.0 0.2 53.6 USD, Mn 53.0 52.0 Revenue Revenue of Forex Business Impact Volume Impact Q2 09 Q3 09 Rates of 6 © Hexaware Technologies. All rights reserved.
Slide 7: Q3 2009 – EBIT Margin Variance Analysis
Q3 2009 – EBIT Margin Variance Analysis 22.0 0.1 21.1 %---------------> 1.2 21.0 20.0 1.1 19.0 18.7 18.0 Depreciation Realization Improved SG&A Margin Q2 Margin Q3 Operating Operating 09 09 7 © Hexaware Technologies. All rights reserved.
Slide 8: Balance sheet (INR)
Balance sheet (INR) Consolidated Balance Sheet (as per Indian GAAP) INR Mn As at Sept 30 As at June 30 As at Sept 30 Head 2009 2009 2008 Liabilities Equity Share Capital 288 288 288 Reserves 8,460 8,135 7,417 Forex MTM (748) (941) (1,020) Borrowings 180 192 188 Total 8,180 7,674 6,873 Assets Gross F
Slide 9: Q3 2009 – Financial Strength
Q3 2009 – Financial Strength • The cash balance increased by INR 213m sequentially to INR 4,019m at the end of Q3 2009 • The investments increase to INR 3,523m • Capital expenditure: Rs 32.7 mn (Rs 44.5 mn last quarter) • DSO stays flat at 57 days • Net Worth at INR 8,000 mn (INR 55.7 per share) • C
Slide 10: Update on For-Ex & Tax Rates
Update on For-Ex & Tax Rates • For-Ex: – The Company has forward contracts worth USD 103 mn at an average rate of Rs. 40.60 spread over the next four quarters. – For the subsequent four quarters, the company has hedges worth: • USD 19 mn at an average rate of Rs. 49.94 • Hedges worth EUR 5 mn at an
Slide 11: Operational Performance
Operational Performance 11 © Hexaware Technologies. All rights reserved.
Slide 12: Q3 2009 - Metrics
Q3 2009 - Metrics • 9 new Hexaware clients added in the quarter; 159 active clients • Repeat Business at 96.4% (97.3 % in previous quarter) • Bill rates averaged $70.12/ hour ($66.28 in Q2 09 an increase of 2.0%) and $23.74/ hour ($23.02 in Q2 09 an increase of 2.18%) for onsite and offshore work re
Slide 13: Q3 09 New Client Addition – Segment
Q3 09 New Client Addition – Segment 4 3 5 APAC EV EU 2 NA BFSI 4 3 2 2 1 1 ADM BPO BTO BA & BI ES 13 © Hexaware Technologies. All rights reserved.
Slide 14: Deals Closed in Q3 2009
Deals Closed in Q3 2009 • 3 deals with TCV > USD 15m each – Life Sciences & Healthcare Space in the Americas – BFSI Space in Europe – BFSI Space in Americas • 2 deals with TCV > USD 5m each – TTHL Space in the Americas – Emerging Vertical in the Americas Deals worth in excess of USD 80m signed up in
Slide 15: Sales & Marketing - Investments made
Sales & Marketing - Investments made • Investments made in 2009 – 7 new sales members in Americas • 2 in Banking • 2 in Capital Markets • 1 in Manufacturing • 2 in Life Sciences & Healthcare – 4 new sales members in Caliber Point • 1 for FSO and 1 for FAO in Americas • 2 for HRO; 1 in Americas and 1
Slide 16: Investments continue to be made …
Investments continue to be made … • In Q1 2009, Hexaware Launched Remote IMS as a new horizontal • In H1 2009, Hexaware has invested in establishing Life Sciences & Manufacturing Verticals from Sales & Execution perspective • In Q3 ’09, Hexaware announced the launch of a new service offering - ERP S
Slide 17: Awards & Recognitions
Awards & Recognitions • Hexaware was ranked 18th in the NASSCOM Top 20 IT Software and Services Exporters from India (2008-2009). • Hexaware Technologies has been selected for a "Special Commendation" by the Jury for the Golden Peacock Award for Excellence in Corporate Governance for the year 2009.
Slide 18: Awards & Recognitions
Awards & Recognitions • Hexaware Technologies was covered in a Gartner's report "The Gartner BI, PM and IM Services Vendor Guide" by Susanne Matson et al, 10 September 2009. • Hexaware was covered in a Gartner's report "BPO for Analytics in Banking and Investment Services" by Peter Redshaw, 18 Augus
Slide 19: Summary
Summary • Q4 2009 Guidance – Same guidance as for Q3 2009 – We expect revenues in USD 52.5m – USD 54.5m range 19 © Hexaware Technologies. All rights reserved.
Slide 20: Thank You
Thank You 20 © Hexaware Technologies. All rights reserved.