Eclerx Services Limited · NSE:ECLERX
Eclerx Services — H1 FY2018 Earnings Presentation
15 slides from Eclerx Services's earnings presentation, Nov 1, 2017
Slide 1: Financial Performance - FY18 H1
Data. Domain. Delivery. eClerx Financial Performance - FY18 H1 01st Nov, 2017 0
Slide 2: Financial Summary
Financial Summary Metrics FY18 Q2 Q-o-Q FY18 H1 Y-o-Y OPG revenue (USD mm) 48.4 -1% 97.2 -2% Revenue OPG revenue (INR mm) 3,309 -1% 6,640 -1% Total revenue (INR mm) 3,673 8% 7,087 3% OPM (INR mm) 835 -7% 1,730 -24% EBITDA (INR mm)* 1,298 20% 2,384 -11% Profit Operating EBITDA (INR mm)* 954 -5% 1,958
Slide 3: Other Income – FY18 Q2 vs. FY18 Q1
Other Income – FY18 Q2 vs. FY18 Q1 Other Income FY18 Q2 FY18 Q1 FY17 Q4 FY17 Q3 FY17 Q2 Investment Income 69.7 70.2 59.1 76.7 70.7 Revaluation and Realized Gain 55.9 16.9 (133.9) 40.4 (36.6) Other Misc. Income 14.8 (4.9) 2.2 (4.2) 14.0 Total 140.4 82.2 (72.6) 112.9 48.1 Figures in INR millions. • Dr
Slide 4: Hedge Updates
Hedge Updates Current Hedge Status • Total outstanding hedges now $141.8 mm at average INR 70.0/$; 100% forwards - 2.9 times quarter revenue vs. average of 2.8 times in preceding 4 quarters Contract Year Currency Amount (mn) Avg. Rate (INR) USD 59.79 70.4 FY18 Euro 1.25 84.5 FY18 H2– Equiv USD $61.2
Slide 5: P&L Comparison: FY18 Q2 vs. FY18 Q1
P&L Comparison: FY18 Q2 vs. FY18 Q1 Figures in INR millions. Operating P&L FY18 Q2 OPR (%) FY18 Q1 OPR (%) Operating Revenue 3,308.8 3,331.7 Cost of Revenues Delivery and Support Employees Cost 1,489.7 45.0% 1,431.8 43.0% General and Administrative Expenses Facilities (Rent and Electricity) 152.9 4.
Slide 6: OPM Bridging Analysis: Q-o-Q FY18 Q2 vs. FY18 Q1
OPM Bridging Analysis: Q-o-Q FY18 Q2 vs. FY18 Q1 2.3% 0.4% 0.1% 0.4% 0.5% 26.9% 25.2% 2.7% 1.0% FY18 Q1 Del & Supp Emp. Dep. G&A Exc. Rate S&D Exp. FY18 Q2 Cost • Delivery & Support Employees Cost: Increase primarily due Increase in Onshore delivery employees & Lower offshore staff Utilisation • S&D
Slide 7: Balance Sheet & Other Updates
Balance Sheet & Other Updates • Total Cash and Cash equivalents of INR 7,696 mm vs INR 6,429 mm for FY’18 Q1; ̶ Equivalent to INR 194.1 per share vs INR 161.9 for FY’18 Q1 ̶ Net operating cash flow in FY’18 H1 is INR 1,771 mm (includes SEIS impact of INR 121.85) vs INR 1,662 mm in FY17 H1 ̶ Capex du
Slide 8: Key Business Metrics
Key Business Metrics Metrics FY 18 Q2 FY 18 Q1 FY 17 Q4 FY 17 Q3 FY 17 Q2 USD 82% 84% 84% 75% 73% Currency Contribution* (%) EURO 10% 9% 10% 17% 19% GBP 6% 6% 6% 7% 8% North America 65% 69% 67% 69% 68% Geographic Concentration* Europe 29% 26% 28% 27% 29% Debtors (including unbilled) DSO 81 days 88 d
Slide 9: Revenue Mix Trends – Consol
Revenue Mix Trends – Consol 11.2% $13.8 $12.4 $12.3 $12.4 $11.2 0% -1.1% -2.7% -4% -5.4% -7.9% -3.4% -7.2% -9.4% FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 Emerging ($ mm) Top 10 % Emerging % • Top 10 client Y-o-Y drop of -5.4% in USD & -5.5% in CC • Emerging client Y-o-Y growth in USD by 11.2% & and 9
Slide 10: Human Resources Update
Human Resources Update Headcount 9,164 9,223 8,942 8,815 78 82 80 78 60 64 8,189 423 463 58 89 387 1,153 601 615 617 240 259 1,005 178 7,709 7,497 7,762 7,740 7,095 FY15 FY16 FY17 FY18 Q1 FY18 Q2 Offshore Delivery Onshore Delivery Support Services Tech Services R&D BD Offshore Attrition 40.8% 34.8%
Slide 11: Forward-looking statements disclaimer
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 Particulars Sep 30, 2017 Jun 30, 2017 % of Change Shareholder’s Funds Capital 396.5 397.2 -0.2% Minority Interest 8.0 6.0 - Reserves and Surplus 13,312.7 12,591.6 6% Total Shareholder's Funds 13,717.3 12,994.8 6% Application of Funds Fixed Assets 3,465.8 3,341.0 4% Deferred Ta
Slide 13: Financial Summary – Quarterly View
Financial Summary – Quarterly View Metrics FY18 Q2 FY18 Q1 FY17 Q4 FY17 Q3 FY17 Q2 OPG revenue (USD mm) 48.4 48.8 47.9 47.2 48.9 Revenue OPG revenue (INR mm) 3,309 3,332 3,315 3,247 3,335 Total revenue (INR mm) 3,673 3,414 3,243 3,359 3,383 OPM (INR mm) 835 895 979 910 1,141 EBITDA (INR mm) 1,298 1,
Slide 14: P&L Comparison – Quarterly View
P&L Comparison – Quarterly View FY18 OPR FY18 OPR FY17 OPR FY17 OPR Operating P&L Q2 (%) Q1 (%) Q4 (%) Q3 (%) Operating Revenue 3,309 3,332 3,315 3,247 Cost of Revenues Delivery and Support Employees Cost 1,490 45% 1,432 43% 1,316 40% 1,339 41% General and Administrative Expenses Facilities (Rent an
Slide 15: Key Business Metrics – Quarterly View
Key Business Metrics – Quarterly View FY18 FY18 FY17 FY17 FY17 FY17 FY16 FY16 FY16 Metrics Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Revenue Growth USD -0.9% 1.9% 1.5% -3.5% -2.6% -1.1% -2.0% 3.2% 8.1% (%) Constant Currency -1.8% 1.4% 1.6% -2.6% -0.4% -0.6% -2.5% 4.2% 7.7% USD 82% 84% 84% 75% 73% 72% 72% 73% 74% C