Slide 1: Investor Update Q2 2018
Investor Update Q2 2018 24th July 2018 © Hexaware Technologies. All rights reserved. | www.hexaware.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 un
Slide 3: Our 4 year Journey
Our 4 year Journey © Hexaware Technologies. All rights reserved. | www.hexaware.com 3
Slide 4: Fastest organically growing IT services company
Fastest organically growing IT services company… Revenue Growth 165 PAT Growth 173 178 162 159 149 147 134 141 135 131 150 151 153 122 115 117 110 110 105 100 99 142 136 133 127 123 122 119 119 112 113 108 100 200 Market Cap 251 EPS Growth 186 175 156 148 160 158 144 144 127 128 129 112 113 108 109
Slide 5: Business Update Q2
Business Update Q2 www.hexaware.com | © Hexaware Technologies. All rights reserved. 5
Slide 6: Key Financials for Q2 2018
Key Financials for Q2 2018 GROWTH GROWTH Q2 2018 Q1 2018 QoQ YoY Revenue 168.3 162.2 3.8% 10.3% EBITDA * (before ESOP cost) 27.6 26.5 4.0% 3.6% EBITDA * % 16.4% 16.4% 0.0% -1.1% EBITDA (after ESOP cost) 26.2 25.1 4.3% 5.7% EBITDA % 15.6% 15.5% 0.1% -0.6% PAT 22.7 20.7 9.5% 19.5% PAT % 13.5% 12.8% 0.
Slide 7: Revenue Analysis - QoQ
Revenue Analysis - QoQ 4.9% Volume Growth 2.78 0.11 170 168.3 5.06 (1.50) (0.36) 165 USD Mn---------------> 162.2 160 155 Increases Decreases 150 145 FX (mainly cross Volume Bill Rates Revenue Q1 18 Mix Revenue Q2 18 Calendar currency) www.hexaware.com | © Hexaware Technologies. All rights reserved.
Slide 8: Gross Margin Analysis - QoQ
Gross Margin Analysis - QoQ 0.84 (0.12) 34.00 33.7 0.52 (0.74) (0.14) 33.00 (0.51) 32.6 (0.97) Increases 32.00 Decreases SG&A 117 bps QoQ 31.00 Volume Leverage 66 Utilisation Bill Rates project efficiency H1B Visa Mix Forex gain Calendar GM Q1 18 GM Q2 18 Other cost inc & Forex Impact 46 gain in Q
Slide 9: Movement of Top 20 Customers
Movement of Top 20 Customers Top 20 Accounts by LTM Revenue Q2 2018 vs. Q2 2017 In Out • A Multinational printer company • Large American Fitness brand • A large European insurance company • Global Banking & Financial Services Co. • A European telecom company • Human Capital Management company • A G
Slide 10: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q2 2017 Q2 2018 CONTRIBUTION GROWTH TOP CLIENTS GROWTH QoQ $50+ 3 3 Top 5 Clients 0.33% 4.6% $30 - $50 0 0 $20 - $30 2 1 Top 10 Clients -0.02% 3.7% $10 - $20 3 6 Top 20 Clients -0.01% 3.7% Other Clients 0.01% 3.8% $5 - $10 7 12 $1 - $5 66 71 Q2 18 Top 20 acco
Slide 11: NN Wins
NN Wins USD 41 million NN Deal wins in Q2-18 Revenue Cycle Management for an American not for profit healthcare company Automation led services for a UK based financial services company Automation services for a Multinational Swiss bank > Development and Testing services for an analytics company 2 m
Slide 12: Employee Metrics
Employee Metrics UTILIZATION * EMPLOYEE ATTRITION Planned reduction in Utilization Attrition at low levels 16.6% 16.5% 16.1% 80.8% 80.9% 81.3% 79.7% 14.9% 14.4% 78.6% 78.9% 78.2% 13.8% 13.7% 13.1% 13.4% 74.1% 70.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2017 2017 2017 2
Slide 13: NA, M&C and BPS led Growth
NA, M&C and BPS led Growth APAC, IMS, Europe, 10.3% PS, 12.9% BPS, ADM, M&C, 16.1% 13.8% 12.7% BFS, 42.8% BIBA, 7.2% 36.6% 13.5% North America, ES, 10.5% DA, 77.0% H&I, 17.1% 18.4% GTT, 11.1% HORIZONTAL GROWTH GROWTH (1) QoQ YoY GROWTH GROWTH VERTICAL QoQ YoY ADM 5.8% 10.7% BFS 1.8% 9.0% GROWTH GROW
Slide 14: Guidance
Guidance • Revenue 12% to 13% growth • EPS 13% to 14% © Hexaware Technologies. All rights reserved. | www.hexaware.com 14
Slide 15: Finance Update
Finance Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 15
Slide 16: Revenue
Revenue Q2 2018 • CC revenue at $169.8 mn; 4.7% QoQ; 9.9% YoY • $ Revenue at $168.3 mn; 3.8% QoQ; 10.3% YoY • ₹ Revenue at Rs 11,367 mn; 8.4% QoQ; 15.6% YoY Revenue ($ Mn) QoQ Growth 168.3 3.9% 3.8% 3.0% CQGR 162.2 156.1 154.0 1.3% 0.9% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2017 Q4 2017 Q1
Slide 17: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Outstanding Hedge Position Currency Pair Amount (Mn.) Avg. Rate USDINR ($) 179.18 70.14 EURNR (€) 6.60 85.61 GBPNR (£) 12.58 95.37 Total ($) 203.41 Note - 1.Hedges outstanding are full-term hedges. 2. EUR converted @ 1.1651/USD & GBP converted @ 1.3147/USD. 3. Av
Slide 18: Forex Gain/(Loss)
Forex Gain/(Loss) 5.00 Total Gain/(Loss) 4.30 • As compared to the forex gain 4.00 of $ 3.00 Mn in Q1’18, the forex gain this quarter was $ USD Mn-----------> 4.30 Mn. 3.00 • Forex gains expected are ~$0.76 Mn in Q3’18 and 2.00 ~$0.59 Mn in Q4’18 at exchange rate of INR 68.47/ USD. 1.00 0.76 0.59 -
Slide 19: Balance Sheet Updates
Balance Sheet Updates CASH & CASH EQUIVALENTS Cash and Cash Equivalents at US$ 108.41 Mn ( ` 7,423 Mn) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for Q1 2018 at 47 days; 75 days including unbilled DIVIDEND INR 2.50 per share (125%) Dividend Payout including taxes ` 894.66 Mn ($ 13.07 Mn) Ta
Slide 20: Thank you
Innovative Services Passionate Employees Thank you Delighted Customers © Hexaware Technologies. All rights reserved. | www.hexaware.com