R Systems International Limited · NSE:RSYSTEMS
R Systems International — Q4 2009 Earnings Presentation
19 slides from R Systems International's earnings presentation, Nov 22, 2010
Slide 1: R Systems International Limited – Review of Q4 & YTD 2009 Results
R Systems International Limited Review of Q4 & YTD 2009 Results 1 www. rsystems.com
Slide 2: Disclaimer
Disclaimer “Investors are cautioned that this presentation contains forward looking statements that involve risks and uncertainties. The Company undertakes no obligation publicly to update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Actu
Slide 3: Key Highlights
Key Highlights Q4-2009 • Consolidated revenue Rs 76.3 crores (US$ 16.4 mn.); QoQ decline 3.1% and YoY decline 21.2%. • EBITDA Rs 9.4 crores (US$ 1.9 mn); QoQ growth 3.0% and YoY decline 35.2%. • Net profit Rs 6.7 crores (US$ 1.4 mn.); QoQ decline 12.2% and YoY decline 23.7%. FY 2009 • Consolidat
Slide 4: Key Highlights – Environment
Key Highlights – Environment Our Experience: • Recession has resulted in volume decline in all our business; • Loss of 3 USD 1 million+ customers during 2009 in Europe & USA (Tech Support); • Added 2 USD 1 million+ software customers; • No price pressure across markets; • License earned from produ
Slide 5: Consolidated Results (Un-audited)
Consolidated Results (Un-audited) (Figures in mn except per share data) Particulars Q4 2009 Q4 2008 Q3 2009 INR US$ INR US$ INR US$ Revenues 762.76 16.42 968.42 19.14 786.77 16.32 Cost of Revenues 450.39 9.70 566.10 11.10 475.65 9.86 Gross Margin 312.37 6.72 402.32 8.04 311.12 6.46 % of Revenue 40.9
Slide 6: Gross Margins Analysis Q4-09
Gross Margins Analysis Q4-09 Movement in Gross Margin 100% 0.28% 0.32% % Q4-09 Vs Q3-09 80% Gross Margin % in Q3-09 39.54 60% 40% 2.57% Increase in Utilization 2.57 20% Increase in Licensing Revenue 0.32 0% -20% -0.85% Decrease in Communication & 0.28 other -40% -60% Increase in Leave, Gratuity & (0
Slide 7: Forex Impact Over QoQ Revenues and Gross Margins
Forex Impact Over QoQ Revenues and Gross Margins (Q4 09 vs Q3 09) FX Revenue QoQ % Impact % Rs. in Avg. On Impact -4.00% -3.54% crs Change Revenue On QoQ in (Rs. In Revenue -3.50% FX/INR crs.) parity -3.00% -2.50% US$ 44.8 -3.54 (16.47) -2.09 -2.09% -2.00% EURO 20.2 -0.46 (0.93) -0.12 -1.50% Sing$ 5
Slide 8: Consolidated FY 2009 Results (Un-audited)
Consolidated FY 2009 Results (Un-audited) ( Figures in mn. except per share data) Particulars Jan to Dec 09 Jan to Dec 08 INR US$ INR US$ Revenues 3,275.25 67.85 3,593.92 82.03 Cost of Revenues 1,950.73 40.41 2,176.86 49.69 Gross Margin 1,324.52 27.44 1,417.06 32.34 % of Revenue 40.44% 39.43% SG & A
Slide 9: Gross Margins Analysis 2009 Vs 2008
Gross Margins Analysis 2009 Vs 2008 Movement in Gross Margin % 2009 Vs 2008 0.43% 100% 1.07% 80% 60% Gross Margin % in 2008 39.43 40% 2.48% Rupee Depreciation 2.48 20% 0% Increase in Licensing Revenue 1.07 -20% -2.83% -40% Decrease in COGS Travel 0.43 -60% -80% Impact on Salary due to lower (2.83) -
Slide 10: Forex Impact Over Revenues and Gross Margins (FY 2009 Vs FY 2008)
Forex Impact Over QoQ Revenues and Gross Margins (FY 2009 Vs FY 2008) Currency Revenue YoY % Impact % 12.00% Rs. in Avg. On Impact 10.17% crs Change Revenue On (Rs. In Revenue 10.00% crs.) 8.00% US$ 197.9 10.17 18.3 5.08 5.77% EURO 90.3 4.91 4.2 1.17 6.00% 4.91% 5.08% S$ 21.3 5.77 1.1 0.32 4.00% INR
Slide 11: Goodwill Impairment – FY 2009
Goodwill Impairment – FY 2009 R Systems technical support business in the US and Europe was severely affected by loss of 3 key customers ; Considering the declining volume, R Systems Board decided in Q2-2009 to record goodwill impairment charge to write-off all the goodwill of Rs 20.9 Crs or US$
Slide 12: Revenues and Margins, Historical Trend
Revenues and Margins, Historical Trend 120.0 16.0 15.0 14.8 14.0 100.0 12.3 12.0 12.4 12.2 Rs in Crores 11.6 10.1 12.0 96.8 80.0 92.1 90.1 90.6 10.0 79.9 78.7 76.3 % 82.5 60.0 8.0 6.0 40.0 4.0 20.0 2.0 - - Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Revenue 79.9 90.6 92.1 96.8 90.1 82.5 78.7 76.
Slide 13: Consolidated Key Balance Sheet Data
Consolidated Key Balance Sheet Data Rupees in Crores except “DSO” 2009 2008 Share Holders’ Funds 167.4 171.7 Receivables 49.7 79.0 Receivables in days “DSO” 68 67 Cash & Bank 87.2 63.6 Net Current Assets 117.9 101.9 Fixed Assets (net) 53.0 74.7 Secured Loans 1.4 3.3 13 www. rsystems.com
Slide 14: Quarter-wise Revenue Break-Down 2009
Quarter-wise Revenue Break-Down 2009 By Geography Client Concentration * South East Asian Countries 14 www. rsystems.com
Slide 15: Revenue Break-Down YOY
Revenue Break-Down YOY By Geography Client Concentration * South East Asian Countries 15 www. rsystems.com
Slide 16: Technical Head Count and Utilization
Technical Head Count and Utilization Reduction in head count by 375 during Year 2009 is resultant of corrective measures in place to improve utilization to cater the impact of steep decline in Reduced head count in Q3 09 to adjust to environment and improve utilization business volumes. 16 www. rsys
Slide 17: Summing Up and Looking Ahead
Summing Up and Looking Ahead • Business volumes were impacted by global recession during the year 2009; • We have combated volume loss with resizing and cost management to preserve cash; • We are investing in technology, sales and marketing for recovery. • We are committed to return back to growth i
Slide 18: Contact Information
Contact Information Suresh Kumar Bhutani Compliance Officer Noida, India Tel # 0120 - 4082633 Worldwide Fax # 0120 - 2587123 Headquarter Email: suresh.bhutani@rsystems.com El Dorado Hills-CA, USA Shankar Seetharaman Chief Financial Officer Pune, India Tel # 020 - 22952520 Email: shankar.seetharaman@
Slide 19: Thank You For Your Support
Thank You For Your Support 19 www. rsystems.com
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