Eclerx Services Limited · NSE:ECLERX
Eclerx Services — eClerx — Q4 FY2018 Earnings Presentation
15 slides from Eclerx Services's earnings presentation, May 23, 2018
Slide 1: Financial Performance - FY18 Q4
Data. Domain. Delivery. eClerx Financial Performance - FY18 Q4 23rd May, 2018 0
Slide 2: Financial Summary
Financial Summary Metrics FY18 Q4 Q-o-Q FY18 Y-o-Y OPG revenue (USD mm) 52.5 7% 198.6 2% Revenue OPG revenue (INR mm) 3,611 6% 13,651 3% Total revenue (INR mm) 3,781 11% 14,049 4% OPM (INR mm) 676 (13%) 3,185 (24%) EBITDA (INR mm)* 975 7% 4,065 (17%) Profit Operating EBITDA (INR mm)* 805 (11%) 3,667
Slide 3: Other Income – FY18 vs. FY17
Other Income – FY18 vs. FY17 Figures in INR millions. Other Income FY18 FY17 FY16 Investment Income 292.4 267.3 98.9 Revaluation and Realised Gain 59.8 (130.0) 257.8 Other Misc. Income 46.1 51.1 5.8 Total 398.3 188.4 362.5 • Increase in other income primarily due to favorable exchange rate movement
Slide 4: Hedge Updates
Hedge Updates Current Hedge Status • Total outstanding hedges now $141.3 mm at average INR 68.8/$; 100% forwards Contract Year Currency Amount (mn) Avg. Rate (INR) Total FY19 USD 109.22 68.8 FY19 H1 $61.41 69.0 FY19 H2 $47.81 68.5 Forwards Total FY20 USD 32.12 68.8 FY20 H1 $25.47 68.7 FY20 H2 $6.65
Slide 5: P&L Comparison: FY18 vs. FY17
P&L Comparison: FY18 vs. FY17 Figures in INR millions. Operating P&L FY18 OPR (%) FY17 OPR (%) Operating Revenue 13,650.6 13,300.3 Cost of Revenues Delivery and Support Employees Cost 6,179.5 45.3% 5,246.8 39.4% General and Administrative Expenses Facilities (Rent and Electricity) 632.2 4.6% 600.7 4
Slide 6: OPM Bridging Analysis: Y-o-Y FY18 vs. FY17
OPM Bridging Analysis: Y-o-Y FY18 vs. FY17 31.4% 5.6% 2.4% 0.4% 0.01% 0.4% 23.3% 8.4% FY17 Delivery Cost S&D G&A Fx Depreciation FY18 • Delivery Cost: Increase in Onshore delivery due to addition of TwoFour and Onshore delivery centre • S&D: Increase in senior management hires and higher travel cost
Slide 7: Balance Sheet & Other Updates
Balance Sheet & Other Updates • Total Cash and Cash equivalents of INR 6,002 mm vs INR 7,815 mm for FY’18 Q3; ̶ Equivalent to INR 157.3 per share vs INR 197.3 for FY’18 Q3 ̶ Net operating cash flow in FY’18 is INR 2,982.7 mm vs INR 3,124.3 mm in FY17 ̶ Capex during FY’18 Q4 is INR 65.5 mm vs INR 54.
Slide 8: Key Business Metrics
Key Business Metrics Metrics FY 18 Q4 FY 18 Q3 FY 18 Q2 FY 18 Q1 FY 17 Q4 FY 17 Q3 FY 17 Q2 FY 17 Q1 USD 79% 83% 82% 84% 84% 75% 73% 72% Currency Contribution* (%) EURO 13% 10% 10% 9% 10% 17% 19% 19% GBP 6% 6% 6% 6% 6% 7% 8% 9% North America 59% 65% 65% 69% 67% 69% 68% 66% Geographic Concentration*
Slide 9: Revenue Mix Trends – Consol
Revenue Mix Trends – Consol 50% 42% 40% $5.3 28% 30% 25% $12.1 $4.1 $4.9 20% $3.7 $3.2 $3.7 $4.4 $9.7 $9.4 $9.2 $9.2 $3.5 $8.7 10% $7.7 $7.9 11% 3% 0% -1% -3% -1.4% 0% -5.4% -4.0% -8% -4% -2.7% -10% -7.2% -9.4% -20% FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 Emerging (others) Em
Slide 10: Human Resources Update
Human Resources Update Headcount 9,164 9,223 9,091 9,429 8,942 8,815 78 78 82 81 80 60 64 85 460 8,189 78 463 86 58 423 431 89 387 618 1,153 601 615 613 617 240 259 367 1,005 178 284 7,709 7,762 7,740 7,592 7,825 7,497 7,095 FY15 FY16 FY17 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 Offshore Delivery Onshore De
Slide 11: Forward-looking statements
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 12: Balance Sheet Abstract
Balance Sheet Abstract Figures in INR millions. Particulars March 31, 2018 March 31, 2017 % of Change Shareholder's Funds Capital 381 397 (3.9%) Minority Interest 5 4 19.9% Reserves and Surplus 11,666 11,756 (1%) Total Shareholder's Funds 12,053 12,158 (1%) Application of Funds Fixed Assets 3,435 3,
Slide 13: Financial Summary – Quarterly View
Financial Summary – Quarterly View Metrics FY18 Q4 FY18 Q3 FY18 Q2 FY18 Q1 FY17 Q4 FY17 Q3 OPG revenue (USD mm) 52.5 48.9 48.3 48.8 47.9 47.2 Revenue OPG revenue (INR mm) 3,611 3,399 3,309 3,332 3,315 3,247 Total revenue (INR mm) 3,781 3,405 3,450 3,413 3,243 3,359 OPM (INR mm) 676 778 835 895 979 9
Slide 14: P&L Comparison – Quarterly View
P&L Comparison – Quarterly View Figures in INR millions. FY18 OPR FY18 OPR FY18 OPR FY18 OPR FY17 OPR Operating P&L Q4 (%) Q3 (%) Q2 (%) Q1 (%) Q4 (%) Operating Revenue 3,611 3,399 3,309 3,332 3,315 Cost of Revenues Delivery and Support Employees Cost 1,712 47% 1,547 46% 1,490 45% 1,432 43% 1,316 40
Slide 15: Key Business Metrics – Quarterly View
Key Business Metrics – Quarterly View Metrics FY 18 Q4 FY 18 Q3 FY 18 Q2 FY 18 Q1 FY 17 Q4 FY 17 Q3 FY 17 Q2 FY 17 Q1 FY16 Q4 USD 7.4% 1.2% -0.9% 1.9% 1.5% -3.5% -2.6% -1.1% -2.0% Revenue Growth (%) Constant Currency 6.5% 1.1% -1.8% 1.4% 1.6% -2.6% 0.8% -1.6% -2.5% USD 79% 83% 82% 84% 84% 75% 73% 72