Q3 2013 Revenue grew by 15.7% QoQ; up 22.4% YoY in ` terms ...
Financial Release September 30, 2013
Q3 2013 Revenue grew by 15.7% Q-o-Q; up 22.4% Y-o-Y in ` terms Gross margin up 130 basis points Q-o-Q; EBIT margin up 20 basis points EBIT up 17% Q-o-Q and 36% Y-o-Y at ` 137.9 Crores; margin at 22.2% Q3 2013 Profit after Tax up 17% Y-o-Y at ` 98.7 Crores; Diluted EPS: ` 3.28
Hexaware met guidance for Q3 2013 as revenue grew to $ 98.8 mn up 4.2% sequentially in $ terms (up 15.7% in ` terms to ` 621 Crores)
Q3 2013 Gross margin up 130 bps Q-o-Q to 40.7%
EBITDA margin for Q3 2013 at 23.8%; up 10 bps on Q-o-Q basis
Q3 2013 EBIT margin at 22.2%; expanded by 20 bps Q-o-Q
Q3 2013 Profit after Tax (PAT) grew to ` 98.7 Crores
Q3 2013 Diluted Earnings per share (EPS) at ` 3.28; up from ` 3.26 for Q2 ’13
Return on Equity (RoE) at 33% at the end of Q3 2013
Cash & Cash equivalents at the end of Sept 2013 at ` 490 Crores
Days of Sales Outstanding (DSO) was 54 days at the end of Q3 2013
13 new clients added in Q3 2013; 225 active clients currently
Global Headcount increased by 250 to 8,950 at the end of Sept 2013; 83 freshers added during the quarter
Attrition for the quarter ended September 2013 was at 12.3%
Mumbai – November 11, 2013: Hexaware Technologies Limited, a leading global provider of IT, BPO and Consulting services has reported healthy performance for the third quarter of the calendar year ended September 30, 2013. “Hexaware has delivered solid results in the quarter. With the uptick seen in the business environment, the Company is poised to continue on its growth path” remarked Atul Nishar, Chairman, Hexaware Technologies Limited. “This has been a good quarter with healthy revenue growth, stable profit margins and a steady addition of 13 new clients and robust increase of 250 personnel to our talented human capital. We will continue to strengthen our field organization as well as our domain and technology competencies”, stated P. R. Chandrasekar, CEO and Vice Chairman, Hexaware Technologies Limited. Business Updates During the previous quarter, the Company added 13 new clients across all its key focus areas. Of these, 3 clients were added in the Banking and Financial Services (BFS) Domain and 6 clients were added in the Healthcare & Insurance (H&I) space and one client in the Travel and
For immediate release
1
www.hexaware.com
Financial Release September 30, 2013 Transportation Vertical. Of the 13 clients added in Q3 2013, 5 customers are based in Americas, 3 in Europe and 5 in Asia Pacific (APAC) region. From a horizontal service line perspective, 4 clients were won in Enterprise Solutions space, 3 clients each in Business Intelligence and Business Analytics (BI/ BA) Horizontal, Quality Assurance and Testing Services (QATS) and 1 client each in Business Process Outsourcing (BPO) and Remote Infrastructure Management Services (Remote IMS) service line. Foreign Exchange Cover The Company has hedges worth $ 205 mn at an effective rate of ` 57.96 and € 11 mn at an effective exchange rate of ` 76.39 maturing over the course of the next eight quarters (from October 2013 to July 2015). Recognitions in SMAC Arena Hexaware has been mentioned as one of the sample vendors of Cloud-Driven Business and IT Services, in the Gartner report titled “Hype Cycle for Bank Operations Innovation, 2013” dated 24 July 2013 by analyst Mary Knox. Hexaware has been mentioned as one of the sample vendors of Cloud-Driven Business and IT Services in the Gartner report titled “Hype Cycle for IT Infrastructure and Outsourcing Services, 2013” dated 31 July 2013 by analyst Christine Tenneson. Hexaware has been mentioned as system integrators/cloud HCM vendors that have deployed cloud-based talent management solutions in the Gartner report titled “Best Practices in Deploying Talent Management in the Cloud” dated 11 September 2013 by analysts Sunil Padmanabh, Ron Hanscome. Awards and Recognition Hexaware has been the winner of 'Special Commendation' for the Golden Peacock Award for Excellence in Corporate Governance, 2013. Caliber Point, a wholly owned subsidiary of Hexaware has been mentioned as the winners of the ‘Best Outsourcing Service Provider’ Award at the Asian Outsourcing Excellence Awards 2013. The award is a testimony to Caliber Point’s strategy of providing world class business process solutions bundling business services, BPM, analytics, IT and business consulting to companies in the verticals of healthcare, financial services, insurance, telecom among others. Hexaware has been mentioned as one of the sample vendors of Knowledge Process Services in the Gartner report titled “Hype Cycle for Application Services, 2013” dated 31 July 2013 by analyst Frances Karamouzis Hexaware has been mentioned as one of the sample vendors of Knowledge Process Services in the Gartner report titled “Hype Cycle for Business Process Services and Outsourcing, 2013” dated 30 July 2013 by analysts Morgan Yeates and Jacqueline Heng. Hexaware has been mentioned as one of the Mid-Tier full IT services near shore- and offshore-based providers in the Gartner report titled “Competitive Landscape: Application Testing Services” dated 31 July 2013 by analysts Susanne Matson, Gilbert van der Heiden and Patrick J. Sullivan. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings.
For immediate release
2
www.hexaware.com
Financial Release September 30, 2013 Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. About Hexaware Hexaware is a leading global provider of IT & BPO and consulting services. The Company focuses on key domains such as Banking, Financial Services, Insurance, Travel, Transportation, Logistics, Life Sciences and Healthcare. Our business philosophy, “Your Success is Our Focus”, is demonstrated through the success we ensure for our clients. Hexaware focuses on delivering business results and leveraging technology solutions by specializing in Business Intelligence & Analytics, Enterprise Solutions, Quality Assurance and Testing Services, Remote Infrastructure Management Services and Legacy Modernization. Founded in 1990, Hexaware has a well-established global delivery model armed with proven proprietary tools and methodologies, skilled human capital and SEI CMMI-Level 5 certification. For additional information logon to www.hexaware.com Safe Harbor Statement Certain statements in this press release concerning our future growth prospects are forwardlooking 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 uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. For more information contact: Sreedatri Chatterjee Hexaware Technologies Limited Tel: +91 (22) 6654 2682 / 83 e-mail: [email protected]
For immediate release
3
www.hexaware.com
Financial Release September 30, 2013 Consolidated Audited Income Statement (as per Indian GAAP) Head
` Mn
Quarterly Data Q3 13
Revenues Direct Costs Gross Profit Selling, General And Administration EBITDA Depreciation and Amortization Operating Profit = EBIT Other Income (net) Forex Gains / (Losses)
Q2 13
QoQ%
Q3 12
YoY%
6,211
5,366
15.7%
5,075
22.4%
3,683
3,252
13.2%
3,067
20.1%
2,527
2,114
19.6%
2,008
25.8%
1,050
841
24.8%
910
15.4%
1,477
1,272
16.1%
1,098
34.5%
98
94
5.3%
88
11.7%
1,379
1,179
17.0%
1,010
36.5%
67
102
-34.0%
94
-28.4%
(40)
N.A
(187)
(39)
N.A
Profit Before Tax
1,259
1,242
1.4%
1,066
18.2%
Provision for Tax
272
262
3.6%
225
21.0%
987
979
0.8%
841
17.4%
Profit After Tax
Key Ratios
Q3 13
Q2 13
QoQ%
Q3 12
YoY%
Gross Margin
40.7%
39.4%
1.3%
39.6%
1.1%
SG&A to Revenue
16.9%
15.7%
1.2%
17.9%
-1.0%
EBITDA
23.8%
23.7%
0.1%
21.6%
2.2%
Operating / EBIT Margin
22.2%
22.0%
0.2%
19.9%
2.3%
Profit before tax
20.3%
23.1%
-2.8%
21.0%
-0.7%
Profit after Tax
15.9%
18.2%
-2.3%
16.6%
-0.7%
Basic
3.30
3.28
0.02
2.84
0.46
Diluted
3.28
3.26
0.02
2.80
0.48
EPS-INR
For immediate release
4
www.hexaware.com
Financial Release September 30, 2013
For immediate release
5
www.hexaware.com
Financial Release September 30, 2013 Financial and Operational Metrics Performance Review Revenue Growth
`, Mn
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Revenue from Operations %, q-o-q Other Income Vertical Split
%
6,211 16 67
%
%
FY 12
35.5
34.4
33.7
32.3
30.5
18.8 16.3 29.1 100.0
19.5 15.9 29.1 100.0
19.6 16.0 30.0 100.0
20.2 16.3 29.8 100.0
20.1 15.2 32.4 100.0
20.5 16.3 32.7 100.0 FY 12
36.4
38.1
37.9
35.8
38.4
37.8
29.6 14.1
29.0 13.0
29.1 12.0
30.1 11.6
30.6 9.8
30.4 10.2
9.9
10.2
11.0
12.8
11.6
11.9
4.1
4.3
4.3
4.0
4.3
4.5
5.9
5.4
5.7
5.7
5.3
5.2
100.0
100.0
100.0
100.0
100.0
100.0
67.1 26.3 6.6 100.0
66.8 26.3 6.9 100.0
69.2 23.2 7.6 100.0
65.1 27.4 7.5 100.0
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Onsite Offshore Total
19,482 34 403
35.8
65.5 28.1 6.4 100.0 %
5,075 1 94
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Americas Europe Asia Pacific Total Onsite: Offshore Mix
5,023 (1) 93
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Application Development & Maintenance (ADM) Enterprise Solutions Quality Assurance and Testing Services (QATS)/ Testing Business Intelligence & Analytics Business Process Management (BPM) Remote Infrastructure Management Services (Remote IMS) Total Geography
5,077 1 95
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Banking and Financial Services Travel & Transportation Healthcare & Insurance Emerging Segments Total Service Lines Split
5,366 6 102
FY 12
53.6 46.4 100.0
52.5 47.5 100.0
52.4 47.7 100.0
54.6 45.4 100.0
53.4 46.6 100.0
FY 12 65.4 27.3 7.3 100.0 FY 12 53.7 46.3 100.0
Client data Repeat Business
%
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 96.2
Clients billed
No
No
93.4
93.2
219
216
218
217
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 13
For immediate release
94.6
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 225
Clients added
95.6
6
14
11
11
12
FY 12 47
www.hexaware.com
Financial Release September 30, 2013 DSO
Days Billed Including Unbilled Accruals
Revenue Concentration
%
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 54 47 53 66 56 69 63 71 77 77 Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Top 1 Top 5 Top 10
15.6 40.0 54.3
13.8 37.9 53.1
13.0 36.8 51.2
11.7 36.0 51.1
14.8 36.3 50.9
Client Size
Nos (Last Twelve Months) Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 More than $ 1 Mn + 53 53 55 55 57 Between $ 1 to 5 Mn 37 37 40 40 43 Between $ 5 to 10 Mn 8 8 7 7 7 Between $ 10 to 20 Mn 5 5 5 5 4 Over $ 20 Mn 3 3 3 3 3
People Numbers
IT Services % Billable Personnel Onsite Offshore Total Marketing (Incl. Sales Support) Others (Incl. Tech. Support) Grand Total
Utilization
%
%
20.1% 71.8% 91.9% 2.0%
18.8% 72.9% 91.7% 2.0%
18.1% 73.6% 91.7% 2.0%
17.1% 75.2% 92.3% 1.9%
17.1% 75.1% 92.2% 2.0%
6.1%
6.3%
6.3%
5.8%
5.8%
100.0%
100.0%
100.0%
100.0%
100.0%
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 71.8
70.9
70.6
63.9
67.6
12.3
11.0
9.9
8.7
67.4
8.4
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Period Closing rate Period average rate
For immediate release
FY 12
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Last Twelve Months
Rupee Dollar Rate
14.2 37.0 51.3
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Including Trainees
Attrition Rate
FY 12
62.61 62.91
7
59.39 56.57
54.29 53.96
55.00 54.36
52.86 54.68
FY 12 55.00 53.41
www.hexaware.com
Financial Release September 30, 2013
Details of Cash and Cash Equivalents Bank / Institution Name HDFC Ltd Canara Bank Bank of America IDBI Bank Ltd Bank of Baroda Commerz bank Axis Bank ABN Amro Bank Kotak Bank Punjab National bank DBS bank The Royal Bank of Scotland HDFC Bank Ltd National Australia Bank Ltd BANAMEX HSBC Bank Ltd Banco Santander ICICI bank Ltd Rabo CITI Bank Metropolitian Bank Scotia Bank UBS Bank Societe Generale Bawag P.S.K. Bank IndusInd Bank Andhra Bank Handelsbanken Bank of India Bradesco Mizuho Bank UCO Bank State Bank of India
Current Account 0.14 424.70 70.51 3.63 8.31 5.40 46.75 13.30 35.11 26.37 31.91 19.61 24.47 1.40 21.05 13.16 12.73 10.46 7.40 4.55 3.28 2.75 2.15 1.22 1.13 1.12 0.53 0.23 0.03 -
CASH Grand Total
0.06 793.47
Details of Investments in Mutual Funds HDFC ICICI Prudential SBI Birla Sun Life L&T Grand Total
For immediate release
` Mn Deposit Account 700.00 483.50 190.93 252.50 153.45 148.50 110.74 100.00 67.50 14.09 33.82 10.00 15.03 4.86 20.00 --2,304.91
Total 700.00 483.64 424.70 261.43 252.50 157.09 148.50 119.05 105.40 67.50 60.84 47.12 45.11 41.40 31.91 24.47 24.47 21.40 21.05 13.16 12.73 10.46 7.40 4.55 3.28 2.75 2.15 1.22 1.13 1.12 0.53 0.23 0.03 0.06 3,098.38
` Mn 578.15 369.31 333.32 306.65 220.20 1,807.63
8
www.hexaware.com
Financial Release September 30, 2013
Consolidated Audited Income Statement (as per Indian GAAP) Head Revenues Direct Costs Gross Profit Selling / General And Administration EBITDA Depreciation and Amortization Operating Profit = EBIT Other Income (net) Forex Gains / (Losses)
USD K
Quarterly Data Q3 13
Q2 13
98,777
94,813
4.2%
92,816
6.4%
58,555
57,503
1.8%
56,084
4.4%
40,222
37,310
7.8%
36,731
9.5%
16,709
14,873
12.3%
16,636
0.4%
23,513
22,437
4.8%
20,095
17%
1,566
1,655
-5.3%
1,617
-3.1%
21,947
20,782
5.6%
18,479
19%
1,058
1,816
-41.8%
1,722
-38.6%
(2,949)
(621)
QoQ%
N.A
Q3 12
(694)
YoY%
N.A
Profit Before Tax
20,055
21,978
-8.7%
19,506
2.8%
Provision for Tax
4,334
4,615
-6.1%
4,122
5.1%
Profit After Tax
15,722
17,363
-9.5%
15,384
2.2%
Key Ratios
Q3 13
Q2 13
QoQ%
Q3 12
YoY%
Gross Margin
40.7%
39.4%
1.3%
39.6%
1.1%
SG&A to Revenue
16.9%
15.7%
1.2%
17.9%
-1.0%
EBITDA Margin
23.8%
23.7%
0.1%
21.7%
2.1%
Operating / EBIT Margin
22.2%
21.9%
0.3%
19.9%
2.3%
Profit before Tax Margin
20.3%
23.2%
-2.9%
21.0%
-0.7%
Profit after Tax Margin
15.9%
18.3%
-2.4%
16.6%
-0.7%
For immediate release
9
www.hexaware.com
Q3 2013 Revenue grew by 15.7% Q-o-Q; up 22.4% Y-o-Y in ` terms Gross margin up 130 basis points Q-o-Q; EBIT margin up 20 basis points EBIT up 17% Q-o-Q and 36% Y-o-Y at ` 137.9 Crores; margin at 22.2% Q3 2013 Profit after Tax up 17% Y-o-Y at ` 98.7 Crores; Diluted EPS: ` 3.28
Hexaware met guidance for Q3 2013 as revenue grew to $ 98.8 mn up 4.2% sequentially in $ terms (up 15.7% in ` terms to ` 621 Crores)
Q3 2013 Gross margin up 130 bps Q-o-Q to 40.7%
EBITDA margin for Q3 2013 at 23.8%; up 10 bps on Q-o-Q basis
Q3 2013 EBIT margin at 22.2%; expanded by 20 bps Q-o-Q
Q3 2013 Profit after Tax (PAT) grew to ` 98.7 Crores
Q3 2013 Diluted Earnings per share (EPS) at ` 3.28; up from ` 3.26 for Q2 ’13
Return on Equity (RoE) at 33% at the end of Q3 2013
Cash & Cash equivalents at the end of Sept 2013 at ` 490 Crores
Days of Sales Outstanding (DSO) was 54 days at the end of Q3 2013
13 new clients added in Q3 2013; 225 active clients currently
Global Headcount increased by 250 to 8,950 at the end of Sept 2013; 83 freshers added during the quarter
Attrition for the quarter ended September 2013 was at 12.3%
Mumbai – November 11, 2013: Hexaware Technologies Limited, a leading global provider of IT, BPO and Consulting services has reported healthy performance for the third quarter of the calendar year ended September 30, 2013. “Hexaware has delivered solid results in the quarter. With the uptick seen in the business environment, the Company is poised to continue on its growth path” remarked Atul Nishar, Chairman, Hexaware Technologies Limited. “This has been a good quarter with healthy revenue growth, stable profit margins and a steady addition of 13 new clients and robust increase of 250 personnel to our talented human capital. We will continue to strengthen our field organization as well as our domain and technology competencies”, stated P. R. Chandrasekar, CEO and Vice Chairman, Hexaware Technologies Limited. Business Updates During the previous quarter, the Company added 13 new clients across all its key focus areas. Of these, 3 clients were added in the Banking and Financial Services (BFS) Domain and 6 clients were added in the Healthcare & Insurance (H&I) space and one client in the Travel and
For immediate release
1
www.hexaware.com
Financial Release September 30, 2013 Transportation Vertical. Of the 13 clients added in Q3 2013, 5 customers are based in Americas, 3 in Europe and 5 in Asia Pacific (APAC) region. From a horizontal service line perspective, 4 clients were won in Enterprise Solutions space, 3 clients each in Business Intelligence and Business Analytics (BI/ BA) Horizontal, Quality Assurance and Testing Services (QATS) and 1 client each in Business Process Outsourcing (BPO) and Remote Infrastructure Management Services (Remote IMS) service line. Foreign Exchange Cover The Company has hedges worth $ 205 mn at an effective rate of ` 57.96 and € 11 mn at an effective exchange rate of ` 76.39 maturing over the course of the next eight quarters (from October 2013 to July 2015). Recognitions in SMAC Arena Hexaware has been mentioned as one of the sample vendors of Cloud-Driven Business and IT Services, in the Gartner report titled “Hype Cycle for Bank Operations Innovation, 2013” dated 24 July 2013 by analyst Mary Knox. Hexaware has been mentioned as one of the sample vendors of Cloud-Driven Business and IT Services in the Gartner report titled “Hype Cycle for IT Infrastructure and Outsourcing Services, 2013” dated 31 July 2013 by analyst Christine Tenneson. Hexaware has been mentioned as system integrators/cloud HCM vendors that have deployed cloud-based talent management solutions in the Gartner report titled “Best Practices in Deploying Talent Management in the Cloud” dated 11 September 2013 by analysts Sunil Padmanabh, Ron Hanscome. Awards and Recognition Hexaware has been the winner of 'Special Commendation' for the Golden Peacock Award for Excellence in Corporate Governance, 2013. Caliber Point, a wholly owned subsidiary of Hexaware has been mentioned as the winners of the ‘Best Outsourcing Service Provider’ Award at the Asian Outsourcing Excellence Awards 2013. The award is a testimony to Caliber Point’s strategy of providing world class business process solutions bundling business services, BPM, analytics, IT and business consulting to companies in the verticals of healthcare, financial services, insurance, telecom among others. Hexaware has been mentioned as one of the sample vendors of Knowledge Process Services in the Gartner report titled “Hype Cycle for Application Services, 2013” dated 31 July 2013 by analyst Frances Karamouzis Hexaware has been mentioned as one of the sample vendors of Knowledge Process Services in the Gartner report titled “Hype Cycle for Business Process Services and Outsourcing, 2013” dated 30 July 2013 by analysts Morgan Yeates and Jacqueline Heng. Hexaware has been mentioned as one of the Mid-Tier full IT services near shore- and offshore-based providers in the Gartner report titled “Competitive Landscape: Application Testing Services” dated 31 July 2013 by analysts Susanne Matson, Gilbert van der Heiden and Patrick J. Sullivan. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings.
For immediate release
2
www.hexaware.com
Financial Release September 30, 2013 Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. About Hexaware Hexaware is a leading global provider of IT & BPO and consulting services. The Company focuses on key domains such as Banking, Financial Services, Insurance, Travel, Transportation, Logistics, Life Sciences and Healthcare. Our business philosophy, “Your Success is Our Focus”, is demonstrated through the success we ensure for our clients. Hexaware focuses on delivering business results and leveraging technology solutions by specializing in Business Intelligence & Analytics, Enterprise Solutions, Quality Assurance and Testing Services, Remote Infrastructure Management Services and Legacy Modernization. Founded in 1990, Hexaware has a well-established global delivery model armed with proven proprietary tools and methodologies, skilled human capital and SEI CMMI-Level 5 certification. For additional information logon to www.hexaware.com Safe Harbor Statement Certain statements in this press release concerning our future growth prospects are forwardlooking 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 uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. For more information contact: Sreedatri Chatterjee Hexaware Technologies Limited Tel: +91 (22) 6654 2682 / 83 e-mail: [email protected]
For immediate release
3
www.hexaware.com
Financial Release September 30, 2013 Consolidated Audited Income Statement (as per Indian GAAP) Head
` Mn
Quarterly Data Q3 13
Revenues Direct Costs Gross Profit Selling, General And Administration EBITDA Depreciation and Amortization Operating Profit = EBIT Other Income (net) Forex Gains / (Losses)
Q2 13
QoQ%
Q3 12
YoY%
6,211
5,366
15.7%
5,075
22.4%
3,683
3,252
13.2%
3,067
20.1%
2,527
2,114
19.6%
2,008
25.8%
1,050
841
24.8%
910
15.4%
1,477
1,272
16.1%
1,098
34.5%
98
94
5.3%
88
11.7%
1,379
1,179
17.0%
1,010
36.5%
67
102
-34.0%
94
-28.4%
(40)
N.A
(187)
(39)
N.A
Profit Before Tax
1,259
1,242
1.4%
1,066
18.2%
Provision for Tax
272
262
3.6%
225
21.0%
987
979
0.8%
841
17.4%
Profit After Tax
Key Ratios
Q3 13
Q2 13
QoQ%
Q3 12
YoY%
Gross Margin
40.7%
39.4%
1.3%
39.6%
1.1%
SG&A to Revenue
16.9%
15.7%
1.2%
17.9%
-1.0%
EBITDA
23.8%
23.7%
0.1%
21.6%
2.2%
Operating / EBIT Margin
22.2%
22.0%
0.2%
19.9%
2.3%
Profit before tax
20.3%
23.1%
-2.8%
21.0%
-0.7%
Profit after Tax
15.9%
18.2%
-2.3%
16.6%
-0.7%
Basic
3.30
3.28
0.02
2.84
0.46
Diluted
3.28
3.26
0.02
2.80
0.48
EPS-INR
For immediate release
4
www.hexaware.com
Financial Release September 30, 2013
For immediate release
5
www.hexaware.com
Financial Release September 30, 2013 Financial and Operational Metrics Performance Review Revenue Growth
`, Mn
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Revenue from Operations %, q-o-q Other Income Vertical Split
%
6,211 16 67
%
%
FY 12
35.5
34.4
33.7
32.3
30.5
18.8 16.3 29.1 100.0
19.5 15.9 29.1 100.0
19.6 16.0 30.0 100.0
20.2 16.3 29.8 100.0
20.1 15.2 32.4 100.0
20.5 16.3 32.7 100.0 FY 12
36.4
38.1
37.9
35.8
38.4
37.8
29.6 14.1
29.0 13.0
29.1 12.0
30.1 11.6
30.6 9.8
30.4 10.2
9.9
10.2
11.0
12.8
11.6
11.9
4.1
4.3
4.3
4.0
4.3
4.5
5.9
5.4
5.7
5.7
5.3
5.2
100.0
100.0
100.0
100.0
100.0
100.0
67.1 26.3 6.6 100.0
66.8 26.3 6.9 100.0
69.2 23.2 7.6 100.0
65.1 27.4 7.5 100.0
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Onsite Offshore Total
19,482 34 403
35.8
65.5 28.1 6.4 100.0 %
5,075 1 94
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Americas Europe Asia Pacific Total Onsite: Offshore Mix
5,023 (1) 93
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Application Development & Maintenance (ADM) Enterprise Solutions Quality Assurance and Testing Services (QATS)/ Testing Business Intelligence & Analytics Business Process Management (BPM) Remote Infrastructure Management Services (Remote IMS) Total Geography
5,077 1 95
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Banking and Financial Services Travel & Transportation Healthcare & Insurance Emerging Segments Total Service Lines Split
5,366 6 102
FY 12
53.6 46.4 100.0
52.5 47.5 100.0
52.4 47.7 100.0
54.6 45.4 100.0
53.4 46.6 100.0
FY 12 65.4 27.3 7.3 100.0 FY 12 53.7 46.3 100.0
Client data Repeat Business
%
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 96.2
Clients billed
No
No
93.4
93.2
219
216
218
217
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 13
For immediate release
94.6
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 225
Clients added
95.6
6
14
11
11
12
FY 12 47
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Financial Release September 30, 2013 DSO
Days Billed Including Unbilled Accruals
Revenue Concentration
%
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 54 47 53 66 56 69 63 71 77 77 Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Top 1 Top 5 Top 10
15.6 40.0 54.3
13.8 37.9 53.1
13.0 36.8 51.2
11.7 36.0 51.1
14.8 36.3 50.9
Client Size
Nos (Last Twelve Months) Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 More than $ 1 Mn + 53 53 55 55 57 Between $ 1 to 5 Mn 37 37 40 40 43 Between $ 5 to 10 Mn 8 8 7 7 7 Between $ 10 to 20 Mn 5 5 5 5 4 Over $ 20 Mn 3 3 3 3 3
People Numbers
IT Services % Billable Personnel Onsite Offshore Total Marketing (Incl. Sales Support) Others (Incl. Tech. Support) Grand Total
Utilization
%
%
20.1% 71.8% 91.9% 2.0%
18.8% 72.9% 91.7% 2.0%
18.1% 73.6% 91.7% 2.0%
17.1% 75.2% 92.3% 1.9%
17.1% 75.1% 92.2% 2.0%
6.1%
6.3%
6.3%
5.8%
5.8%
100.0%
100.0%
100.0%
100.0%
100.0%
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 71.8
70.9
70.6
63.9
67.6
12.3
11.0
9.9
8.7
67.4
8.4
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Period Closing rate Period average rate
For immediate release
FY 12
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Last Twelve Months
Rupee Dollar Rate
14.2 37.0 51.3
Q3 FY 13 Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12
Including Trainees
Attrition Rate
FY 12
62.61 62.91
7
59.39 56.57
54.29 53.96
55.00 54.36
52.86 54.68
FY 12 55.00 53.41
www.hexaware.com
Financial Release September 30, 2013
Details of Cash and Cash Equivalents Bank / Institution Name HDFC Ltd Canara Bank Bank of America IDBI Bank Ltd Bank of Baroda Commerz bank Axis Bank ABN Amro Bank Kotak Bank Punjab National bank DBS bank The Royal Bank of Scotland HDFC Bank Ltd National Australia Bank Ltd BANAMEX HSBC Bank Ltd Banco Santander ICICI bank Ltd Rabo CITI Bank Metropolitian Bank Scotia Bank UBS Bank Societe Generale Bawag P.S.K. Bank IndusInd Bank Andhra Bank Handelsbanken Bank of India Bradesco Mizuho Bank UCO Bank State Bank of India
Current Account 0.14 424.70 70.51 3.63 8.31 5.40 46.75 13.30 35.11 26.37 31.91 19.61 24.47 1.40 21.05 13.16 12.73 10.46 7.40 4.55 3.28 2.75 2.15 1.22 1.13 1.12 0.53 0.23 0.03 -
CASH Grand Total
0.06 793.47
Details of Investments in Mutual Funds HDFC ICICI Prudential SBI Birla Sun Life L&T Grand Total
For immediate release
` Mn Deposit Account 700.00 483.50 190.93 252.50 153.45 148.50 110.74 100.00 67.50 14.09 33.82 10.00 15.03 4.86 20.00 --2,304.91
Total 700.00 483.64 424.70 261.43 252.50 157.09 148.50 119.05 105.40 67.50 60.84 47.12 45.11 41.40 31.91 24.47 24.47 21.40 21.05 13.16 12.73 10.46 7.40 4.55 3.28 2.75 2.15 1.22 1.13 1.12 0.53 0.23 0.03 0.06 3,098.38
` Mn 578.15 369.31 333.32 306.65 220.20 1,807.63
8
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Financial Release September 30, 2013
Consolidated Audited Income Statement (as per Indian GAAP) Head Revenues Direct Costs Gross Profit Selling / General And Administration EBITDA Depreciation and Amortization Operating Profit = EBIT Other Income (net) Forex Gains / (Losses)
USD K
Quarterly Data Q3 13
Q2 13
98,777
94,813
4.2%
92,816
6.4%
58,555
57,503
1.8%
56,084
4.4%
40,222
37,310
7.8%
36,731
9.5%
16,709
14,873
12.3%
16,636
0.4%
23,513
22,437
4.8%
20,095
17%
1,566
1,655
-5.3%
1,617
-3.1%
21,947
20,782
5.6%
18,479
19%
1,058
1,816
-41.8%
1,722
-38.6%
(2,949)
(621)
QoQ%
N.A
Q3 12
(694)
YoY%
N.A
Profit Before Tax
20,055
21,978
-8.7%
19,506
2.8%
Provision for Tax
4,334
4,615
-6.1%
4,122
5.1%
Profit After Tax
15,722
17,363
-9.5%
15,384
2.2%
Key Ratios
Q3 13
Q2 13
QoQ%
Q3 12
YoY%
Gross Margin
40.7%
39.4%
1.3%
39.6%
1.1%
SG&A to Revenue
16.9%
15.7%
1.2%
17.9%
-1.0%
EBITDA Margin
23.8%
23.7%
0.1%
21.7%
2.1%
Operating / EBIT Margin
22.2%
21.9%
0.3%
19.9%
2.3%
Profit before Tax Margin
20.3%
23.2%
-2.9%
21.0%
-0.7%
Profit after Tax Margin
15.9%
18.3%
-2.4%
16.6%
-0.7%
For immediate release
9
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