Slide 1: HCL Technologies Earnings Presentation Second Quarter FY'16
HCL TECHNOLOGIES EARNINGS PRESENTATION | SECOND QUARTER FY’16 -1- WHERE VALUES DRIVE VELOCITY
Slide 2: Performance Snapshot
Performance Snapshot ANANT GUPTA -2- WHERE VALUES DRIVE VELOCITY
Slide 3: Performance Trends (Calendar Year Basis)
PERFORMANCE TRENDS (CALENDAR YEAR BASIS) REVENUE EBIT 6,139 1,373 5,692 1,239 5,010 1,104 In USD Mn In USD Mn 2013 2014 2015 2013 2014 2015 NET INCOME CLIENT CATEGORY 6 7 7 1,184 Number Of Clients 1,103 12 16 19 868 In USD Mn 37 42 30 140 121 107 2013 2014 2015 2013 2014 2015 100 Million Dollar + 50
Slide 4: Consistent and Broad Based Growth
CONSISTENT AND BROAD BASED GROWTH REVENUE GROWTH (IN CONSTANT CURRENCY) 31-Dec-15 GROWTH ENGINES Growth in US$ QoQ CY (YoY) Broad based Growth Revenues 2.1% 13.5% Americas 5.5% 13.8% Europe -2.4% 15.1% Geo Drivers Europe, Americas ROW -3.4% 7.9% Application Services 2.0% 6.4% Engineering and R&D Inf
Slide 5: State of the Market
STATE OF THE MARKET Gartner: IT Services Market to Grow 3.8% in 2016 Key Industry Predictions for 2016 and Beyond in Constant Currency IT Services Growth Rates (CY Basis) 2015 2016 2017 1. By 2017, 40% of services managed by IT will be business services oriented to augmented experience and smart pro
Slide 6: HCL – Business and IT Services Strategic Play
HCL – BUSINESS AND IT SERVICES STRATEGIC PLAY 2016 – 2020 Digitalization Next–Gen ITO Internet of Things HCL Outcome – Business Model Transformation DryICE: 3rd Generation Consumer and Industrial IoT Based Models Automation Platform Strategic Front–Office to Back–Office Smart Machine Solutions Play
Slide 7: Performance Snapshot: Financial Services
Performance Snapshot RAHUL SINGH Financial Services -7- WHERE VALUES DRIVE VELOCITY
Slide 8: Performance Snapshot Financial Services – Highlights
PERFORMANCE SNAPSHOT FINANCIAL SERVICES – HIGHLIGHTS Quarterly Performance Highlights Quarterly Performance Drivers Revenue Growth 31-Dec-15 ■ Adoption of Digital and FinTech innovations, key themes driving New investments from FSIs (Constant Currency) QoQ YoY CY YoY ■ Continued Focus on vendor cons
Slide 9: Performance Snapshot: Infrastructure Services
Performance Snapshot C VIJAY KUMAR Infrastructure Services -9- WHERE VALUES DRIVE VELOCITY
Slide 10: Performance Snapshot Infrastructure Services – Highlights
PERFORMANCE SNAPSHOT INFRASTRUCTURE SERVICES – HIGHLIGHTS Quarterly Performance Highlights Quarterly Performance Drivers Revenue Growth 31-Dec-15 ■ Gained momentum in NORAM through transf ormation driven total outsourcing engagements. (Constant Currency) QoQ YoY CY YoY ■ Growth in Gen 2.0 outsourcin
Slide 11: Financial Analysis
Financial Analysis ANIL CHANANA - 11 - WHERE VALUES DRIVE VELOCITY
Slide 12: Profit & Loss Statement (USD)
PROFIT & LOSS STATEMENT (USD) Q2, FY’16 Revenue at US$ 1,566 Mn; up 1.4% QoQ in reported currency Constant currency revenue growth at 2.1% QoQ and 13.5% on CY YoY EBIT at $ 314 Mn, up by 5.0% QoQ Annualized GAAP EPS (Diluted) – INR 54 Income Statement Growth 31-Dec-14 30-Sep-15 31-Dec-15 (US
Slide 13: Hedge Details
HEDGE DETAILS (US$ Mn) 30-Sep-15 31-Dec-15 Total Hedges 1,268 1,127 Balance Sheet Hedges 296 240 Cash Flow Hedges 972 887 Less than or equal to 1 Year 818 730 More than 1 Year 154 157 Rate (USD/INR) Booked Rate (Forward) 66.57 66.97 Less than 1 Year 65.73 66.24 More than 1 Year 68.30 68.97 MTM Rate
Slide 14: Forex Gain/Loss & OCI
FOREX GAIN/ LOSS & OCI FX Gain/ Loss for the Quarter in US$ Mn 31-Dec-15 Cash f low hedge loss (A) (1.1) Net gain on Foreign currency exposure (B) 2.8 TOTAL (A) + (B) 1.7 OCI Position as of Dec’15 in US$ Mn 31-Dec-15 OCI (Upto 12 months) (2.0) OCI (Greater than 12 months) (3.7) TOTAL (before Tax ben
Slide 15: Tax Provision
TAX PROVISION EFFECTIVE TAX RATE ESTIMATED FOR FY’16 IS 21%-22% AND FY’17 IS 22%-23% 6 Months Ended Particulars (US$ Mn) FY ’15 Dec ’15 Total Tax Expense 306 149 Earnings before Tax 1,470 704 Effective Tax Rate 20.8% 21.2% - 15 - WHERE VALUES DRIVE VELOCITY
Slide 16: Q&A
Q&A - 16 - WHERE VALUES DRIVE VELOCITY