Investor Presentation Q4 FY 2010-11 SAFE HARBOUR STATEMENT Certain - - PowerPoint PPT Presentation

Investor Presentation

Q4 –FY 2010-11

SAFE HARBOUR STATEMENT

Certain statements in 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 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 the BPO industry including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-timeframe contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for t echnology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complet e and integrate pot ential acquisitions, liability for damages on our service contracts, the success of t he companies in which Hinduja Global 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. Hinduja Global may, from time t o t ime, make additional written and oral forward- looking statements, including our reports to shareholders. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.

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Financial Performance : Q4 FY 2010-11

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Business Highlights & Financial Performance

HGSL Confidential 2010

Operational

• 2 New clients added during QE Mar 2011. Global Client base stood at 106
• Global Headcount at 19442 a growth of 3.8% over previous quarter
• Total seats at 17,047 – Occupancy of 86.2%

4 Financials : QE Mar 2011 Compared to QE Mar 2010

• Total Revenue for QE Mar’11 at Rs. 303.3 Cr., a growth of 32.4% over QE Mar’10 of Rs. 229.0 cr.
• Operating Revenue for QE Mar’11 at Rs. 293.5 Cr., a growth of 31.5% over QE Mar’10 of Rs. 223.2 cr.
• EBITDA for QE Mar’11 at Rs. 44.1 Cr., higher by 30% over QE Mar’10 of Rs. 33.9 Cr.
• PAT for QE Mar’11 at Rs. 30.9 Cr., higher by 18.8% over QE Mar’10 of Rs. 26.0 Cr.
• EBIDTA Margin at 15.0% for QE Mar’11 against 15.2% for QE Mar’10
• PAT Margin at 10.5% for QE Mar’11 against 11.6% for QE Mar’10

Financials : QE Mar 2011 Compared to QE Dec 2010

• Total Revenue for QE Mar’11 at Rs. 303.3 Cr., a growth of 3.5% over QE Dec’10 of Rs. 293.2 cr.
• Operating Revenue for QE Mar’11 at Rs. 293.5 Cr., a growth of 2.3% over QE Dec’10 of Rs. 287.0 cr.
• EBITDA for QE Mar’11 at Rs. 44.1 Cr., a growth of 2.3% over QE Dec’10 of Rs. 43.1 Cr
• PAT for QE Mar’11 at Rs. 30.9 Cr., a growth of 10.2% over QE Dec’10 of Rs. 28.0 Cr.
• EBIDTA Margin at 15.02% for QE Mar’11 against 15.03% for QE Dec’10
• PAT Margin at 10.5% for QE Mar’11 against 9.8% for QE Dec’10

Revenue Growth

Note: IT / ITES (BPO) Operating Revenues of Hinduja TMT Ltd, pertaining to previous period is shown for comparative purposes

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432 673 821 915 1102 47% 56% 22% 12% 20%

• 200

400 600 800 1,000 1,200 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

• Rs. Crores

Revenue Growth (FY 2007 to 2011)

Revenue Performance – Last 6 Quarters

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223 223 227 266 287 293

• 50

100 150 200 250 300 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11

• Rs. Crores

Quarter Ended

Operating Revenue - Last 6 quarters

EBITDA Performance – Last 6 Quarters

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41.9 33.9 31.5 36.7 43.1 44.1

• 15

30 45 60 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11

• Rs. Crores

Quarter Ended

EBITDA - Last 6 quarters

PAT – Last 6 Quarters

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30.2 26.0 23.1 25.3 28.0 30.9

• 10

20 30 40 50 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11

• Rs. Crores

Quarter Ended

PAT - Last 6 quarters

Revenue by Geography – QE Mar 2011

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79 44 96 8 227

83 50 98 35 266 88 51 111 36 287 92 61 105 36 293

• 50

100 150 200 250 300 India Manila NA UK Total

• Rs. Crores

Rolling 4 Quarter Revenue - by Geography Jun-10 Sep-10 Dec-10 Mar-11

Profit & Loss Account (Current year Q4 – Compared with previous year Q4)

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• Rs. Crores

P&L Account - Current Year Q4 Vs. Previous Year Q4

Current Yr. Q4

• Prev. Yr. Q4

% Growth

Sales / Income from operations 293.5 223.2 31.5% Expenditure a) Employees Cost (185.9) (134.4) 38.3% b) Depreciation, Amortisation and Impairment (13.3) (11.4) 17.0% c) Others (63.5) (54.9) 15.6% d) Total (262.7) (200.7) 30.9% Profit from Operations 30.8 22.5 36.6% (Before other Income, Interest & Exceptional items) Other Income 9.8 5.8 68.5% Profit before Interest & Exceptional Items 40.6 28.4 43.2% Interest and Other Finance charges (2.1) (2.1) 0.4% Profit from Ordinary Activities before tax 38.5 26.3 46.5% Exceptional Items

• Tax Expense

Provision for Taxation ( incl. Deferred Tax ) (7.4) (2.7) MAT Credit (0.3) 2.4 Fringe Benefit Tax

• Net Profit from Ordinary Activities after Tax

30.9 26.0 18.8% PAT % 10.5% 11.6%

• EBITDA

44.1 33.9 30.0% EBITDA % 15.0% 15.2% TOTAL INCOME 303.3 229.0 32.4%

Profit & Loss Account (Current year Q4 Vs. Q3)

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• Rs. Crores

P&L Account - Current Year Q4 Vs. Current Year Q3

Current Yr. Q4 Current Yr. Q3 % Growth

Sales / Income from operations 293.5 287.0 2.3% Expenditure a) Employees Cost (185.9) (185.0) 0.5% b) Depreciation, Amortisation and Impairment (13.3) (11.2) 19.2% c) Others (63.5) (58.9) 7.8% d) Total (262.7) (255.1) 3.0% Profit from Operations 30.8 31.9

• 3.7%

(Before other Income, Interest & Exceptional items) Other Income 9.8 6.2 59.5% Profit before Interest & Exceptional Items 40.6 38.1 6.6% Interest and Other Finance charges (2.1) (1.9) 7.4% Profit from Ordinary Activities before tax 38.5 36.2 6.5% Exceptional Items

• Tax Expense

Provision for Taxation ( incl. Deferred Tax ) (7.4) (7.8)

• 5.0%

MAT Credit (0.3) (0.4)

• 29.0%

Fringe Benefit Tax

• Net Profit from Ordinary Activities after Tax

30.9 28.0 10.2% PAT % 10.5% 9.8%

• EBITDA

44.1 43.1 2% EBITDA % 15.0% 15.0% Total Income 303.3 293.2 3.5%

Balance Sheet

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• Rs. Cr.

Balance Sheet as at… 31-Mar-07 31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-11 SOURCES OF FUNDS Shareholders' Funds Share Capital 20.79 20.54 20.54 20.59 20.59 Reserves and Surplus 666.59 716.28 934.53 928.47 1,026.04 687.38 736.82 955.07 949.06 1,046.63 Secured Loans 0.43 19.96 87.47 51.62 35.94 Unsecured Loans

• 55.00
• 63.19

115.11 Deferred Tax Liability (Net) 0.90 11.43 16.15 17.11 17.74 TOTAL 688.72 823.20 1,058.69 1,080.98 1,215.42 APPLICATION OF FUNDS Fixed Assets Gross Block 308.61 368.06 446.60 488.21 617.07 Less: Depreciation/ Amortisation/ Impairment 109.04 136.67 166.05 192.47 243.11 Net Block 199.56 231.38 280.55 295.75 373.96 Capital Work-in-Progress 2.66 13.14 16.51 3.64 3.39 202.22 244.52 297.06 299.39 377.35 Investments 42.13 2.25 1.29 1.32 1.26 Current Assets, Loans and Advances Sundry Debtors 99.72 113.03 130.78 142.14 223.03 Cash and Bank Balances 509.64 493.78 665.11 642.31 618.92 Other Current Assets 12.68 24.99 37.14 31.09 0.59 Loans and Advances 154.98 39.94 54.85 88.58 135.00 777.01 671.74 887.88 904.11 977.54 Less: Current Liabilities and Provisions Current Liabilities 269.17 61.54 68.92 62.20 111.48 Provisions 63.47 33.77 58.63 61.65 29.25 332.65 95.30 127.54 123.85 140.73 Net Current Assets 444.37 576.43 760.34 780.26 836.81 Miscellaneous Expenditure

• TOTAL

688.72 823.20 1,058.69 1,080.98 1,215.42 Name of the Bank Amt ($m) Amt (Rs.Cr) Bank of Baroda, London* 94 420 Bank of Baroda, Dubai 26 115 Fiduciary Time Deposits 3 12 Current Account 4 19 Total 127 566

*Through a fiduciary arrangement

Revenue Distribution : Q4 FY 10-11

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US Dom 36% UK Dom 12% India Dom 13% India Offshore 18% Phil. Offshore 21% Revenue Exposure by Currency: QE Mar'11 US Dom UK Dom India Dom India Offshore

• Phil. Offshore

USD 75% GBP 12% INR 13% Revenue by Billing Currency : QE Mar'11 USD GBP INR India 31% Manila 21% NA 36% UK 12% Revenue distribution by Geo: QE Mar'11 India Manila NA UK

Customer Concentration – Movement Last 4 Quarters

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10% 49% 63% 76% 11% 48% 62% 75% 11% 44% 62% 76%

13% 45% 62% 77% 0% 20% 40% 60% 80% 100% Top Customer Top 5 Customers Top 10 Customers Top 20 Customers

Revenue Concentration - Top Customers

Mar-10 Jun-10 Sep-10 Mar-11

Revenue Split by Vertical – Last 4 Quarters

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24% 23% 29% 5% 5% 14% 26% 22% 26% 6% 5% 15% 26% 24% 25% 5% 5% 15%

26% 23% 26% 5% 4% 17% 0% 10% 20% 30% 40%

Telecom & Technology Consumer Elec, Products, Svcs & Retail Health Insurance, Pharma & Healthcare BFS Chemicals & Biotech Others

Vertical-wise Revenue Jun-10 Sep-10 Dec-10 Mar-11

Our Top 5 Clients – Last 4 quarters

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11% 16% 10% 7% 4% 11% 13% 10% 6% 3% 12% 12% 10% 7% 4%

13% 12% 11% 6% 4% 0.0% 5.0% 10.0% 15.0% 20.0%

A - Health Ins. B - Health Ins. C - Telecom D - Telecom E - Cons. Elec. Revenue Movement - Top 5 Clients

Jun-10 Sep-10 Dec-10 Mar-11

Global Headcount

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10857 2506 1801 772 15936 11063 2778 2047 852 16740 12457 3055 2287 931 18730

13,663 2,964 1,989 826 19,442

• 4,000

8,000 12,000 16,000 20,000

India Manila US UK Total Head Count - By Geography Jun-10 Sep-10 Dec-10 Mar-11

Thank You

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