Slide 1: Q2 2010 – Financial Results Analyst Meet
Q2 2010 – Financial Results Analyst Meet July 29, 2010 Mumbai
Slide 2: Safe Harbour
Safe Harbour 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 uncertainti
Slide 3: Q2 2010 - Key Headlines
Q2 2010 - Key Headlines 4 © Hexaware Technologies. All rights reserved.
Slide 4: Q2 2010 – Key Headlines
Q2 2010 – Key Headlines • Hexaware reports 13% Q-o-Q revenue growth • Signs transformational IT deal, largest contract till date worth $ 110 mn • Additionally, wins an extension worth $ 60 mn with another strategic client • Added 12 new clients during the quarter • Headcount increased by 727 to 6,03
Slide 5: Q2 2010 - Results
Q2 2010 - Results 6 © Hexaware Technologies. All rights reserved.
Slide 6: Q2 2010 - Key Highlights
Q2 2010 - Key Highlights • Revenue from operations stood at $ 54.9 mn (` 2,512 mn) exceeding the upper- end of the revenue guidance of $ 53 mn. – Q-o-Q increase of 13.1 % in $ terms and Q-o-Q increase of 13.2 % in ` terms – In constant currency terms, Hexaware delivered $ 55.9 mn (` 2,558 mn) an inc
Slide 7: Q2 2010 - New Client Wins
Q2 2010 - New Client Wins 12 new Hexaware clients added in the quarter; 156 active clients Revenues from New Clients is: 5.5% (compared to 4.1% in last quarter) Americas – 5 Geography EU – 1 APAC – 6 BFSI – 1 Verticals TTHL – 2 QATS – 1 PSFT – 4 Horizontals BPO – 2 ORCL – 1 BA / BI – 1 New account w
Slide 8: Business Updates - USD 110m deal
Business Updates • USD 110m deal – Client • North American • Fortune 500 • Existing Customer – Deal Contours • USD 110m over 5-year period • Incremental business: USD 70m (Existing: USD 40m) • Revenue stream of USD 20+m per annum – Scope and Services • Peak Head Count: 500 • 13 Countries Globally •
Slide 9: Business Update - Contract Extension worth USD 60m
Business Update • Contract Extension worth USD 60m – Client • Global Client • Existing Customer – Deal Contours • Extension of USD 60m over 3-year period • Recurring revenue stream of USD 20m per annum – Scope and Services • Countries: USA, UK and certain regions in APAC • ADM, ERP – PSFT, BA/ BI, Q
Slide 10: Revenue Guidance for Q3 2010
Revenue Guidance for Q3 2010 Revenue range: USD 58m – USD 59m Equates to: 5.5% - 7.5% revenue growth Exchange Rates Assumptions: Currently prevalent 1 GBP = 1.55 USD and 1 EUR = 1.30 USD 11 © Hexaware Technologies. All rights reserved.
Slide 11: Q2 2010 - Analysis
Q2 2010 - Analysis 12 © Hexaware Technologies. All rights reserved.
Slide 12: Q2 2010 – P & L Consolidated Income Statement
Q2 2010 – P & L Consolidated Income Statement (as per Indian GAAP) ` Mn Quarterly Data Head Q2 10 Q1 10 QoQ% Q2 09 YoY% Gross Revenues 2,512 2,220 13.2% 2,591 -3.0% Direct Costs 1,659 1,420 16.8% 1,357 22.3% Gross Profit 853 799 6.7% 1,234 -30.8% Selling / General And Administration 683 617 10.7% 67
Slide 13: Revenue Variance Analysis
Q2 2010 - Revenue Variance Analysis 57.0 7.77 56.0 54.9 USD, Mn------------> 55.0 (0.40) 54.0 (0.99) 53.0 52.0 51.0 Red: Decreases 50.0 Green: Increases 49.0 48.6 48.0 47.0 46.0 Revenue Revenue Bill Rates Currency Volume Q1 10 Q2 10 Impact Cross- Quarterly Revenue Growth: 13% sequential Constant Cur
Slide 14: EBIT Margin Analysis
Q2 2010 – EBIT Margin Analysis 6.0 5.5 Red: Decreases 5.0 Green: Increases %---------------> 1.1 4.4 4.0 (1.9) 2.0 3.0 (1.2) 2.0 (0.5) 1.0 (0.7) 0.0 Leverage Wage Hikes EBIT Q1 10 FX Impact Bill Rates Productivity EBIT Q2 10 Utilization SG&A & Op Eff Drop 15 © Hexaware Technologies. All rights reser
Slide 15: Balance Sheet as on June 30, 2010
Balance Sheet as on June 30, 2010 Consolidated Balance Sheet (as per Indian GAAP) ` Mn As at June As at Mar As at June Head 30 2010 31 2010 30 2009 Liabilities Equity Share Capital 290 290 288 Reserves 8,850 8,628 8,135 Forex MTM 45 (32) (941) Borrowings 798 640 192 Total 9,983 9,526 7,674 Assets Gr
Slide 16: Q2 2010 – Financial Updates
Q2 2010 – Financial Updates • Net Worth at ` 9,186 mn (` 63.4 per share) • Cash: ` 30.7 per share • Foreign Exchange Hedges: – Company has forward contracts worth USD 19 mn at an average rate of `. 40.60 spread for the next quarter – For the subsequent nine quarters, the company has hedges worth: •
Slide 17: Field Updates
Field Updates 18 © Hexaware Technologies. All rights reserved.
Slide 18: Business: Growth Areas in Americas
Business: Growth Areas in Americas Leadership in Consolidate our presence as premier provider in Oracle/PeopleSoft, Focus Areas Testing (QATS), Capital markets and TTHL New Domain Develop BI/BA , BPO and Healthcare to drive next level of growth Growth Areas New Service Enhance capability in Remote I
Slide 19: Market Commentary: Americas
Market Commentary: Americas Farming • Top accounts showing robust growth • Appointment of dedicated client partners for all Strategic Accounts • Cross selling into focused vertical accounts by vertical sales owners • Introduced Key Account Unit resulting in significant account penetration Hunting •
Slide 20: Thank You
Thank You 21 © Hexaware Technologies. All rights reserved.