Investor Presentation Q1 FY 2011-12 2 SAFE HARBOUR STATEMENT - PDF document

Investor Presentation Q1 – FY 2011-12

2 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 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 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 to time, 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.

3 Financial Performance : Q1 FY 2011-12

4 Business Highlights & Financial Performance Financials : QE Jun 2011 Compared to QE Jun 2010 • Total Revenue for QE Jun’11 at Rs. 286.9 Cr., a growth of 22.6% over QE Jun’10 of Rs. 234.1 Cr. • Operating Revenue for QE Jun’11 at Rs. 278.4 Cr., a growth of 22.8% over QE Jun’10 of Rs. 226.7 Cr. • EBITDA for QE Jun’11 at Rs. 29.7 Cr., as compared to Rs. 31.5 Cr. for QE Jun’10 • PAT for QE Jun’11 at Rs. 20.3 Cr., as compared to Rs. 23.1 Cr. for QE Jun’10 • EBIDTA Margin at 10.7% for QE Jun’11 against 13.9% for QE Jun’10 • PAT Margin at 7.3% for QE Jun’11 against 10.2% for QE Jun’10 Financials : QE Jun 2011 Compared to QE Mar 2011 • Total Revenue for QE Jun’11 at Rs. 286.9 Cr., as compared to Rs. 303.3 cr. for QE Mar’11 • Operating Revenue for QE Jun’11 at Rs. 278.4 Cr., as compared to Rs. 293.5 cr. for QE Mar’11 • EBITDA for QE Jun’11 at Rs. 29.7 Cr., as compared to Rs. 44.1 Cr for QE Mar’11 • PAT for QE Jun’11 at Rs. 20.3 Cr., as compared to Rs. 30.9 Cr. for QE Mar’11 • EBIDTA Margin at 10.7% for QE Jun’11 against 15.03% for QE Mar’11 • PAT Margin at 7.3% for QE Jun’11 against 10.5% for QE Mar’11 Operational • 5 New clients added during QE Jun 2011. Global Client base stood at 111 • Global Headcount at 19,854 a growth of 2.1% over the previous quarter • Total seats at 17,874 – Occupancy of 81.4% HGSL Confidential 2010

5 Revenue Growth Revenue Growth (FY 2007 to 2011) 1102 1,200 915 1,000 821 Rs. Crores 800 673 600 22% 12% 20% 432 56% 400 47% 200 - FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Note: IT / ITES (BPO) Operating Revenues of Hinduja TMT Ltd, pertaining to previous period is shown for comparative purposes

6 Revenue Performance – Last 6 Quarters Operating Revenue - Last 6 quarters 293 287 278 300 266 227 223 250 Rs. Crores 200 150 100 50 - Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Quarter Ended

7 EBITDA Performance – Last 6 Quarters EBITDA - Last 6 quarters 60 44.1 43.1 Rs. Crores 45 36.7 33.9 31.5 29.7 30 15 - Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Quarter Ended

8 PAT – Last 6 Quarters PAT - Last 6 quarters 50 40 30.9 Rs. Crores 28.0 26.0 25.3 30 23.1 20.3 20 10 - Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Quarter Ended

9 Revenue by Geography – QE Jun 2011 Rolling 4 Quarter Revenue - by Geography 293 287 300 278 266 250 Rs. Crores 200 150 111 105 93 95 92 98 88 83 100 61 54 51 50 36 37 36 50 35 0 0 0 0 - India Manila Mauritius NA UK Total Sep-10 Dec-10 Mar-11 Jun-11

10 Profit & Loss Account (Current year Q1 – Compared with previous year Q1) Rs. Crores P&L Account - Current Year Q1 Vs. Previous Year Q1 Current Yr. Q1 Prev. Yr. Q1 % Growth Sales / Income from operations 278.4 226.7 22.8% Expenditure a) Employees Cost (189.1) (141.6) 33.5% b) Depreciation, Amortisation and Impairment (11.2) (10.0) 12.0% c) Others (59.6) (53.6) 11.1% d) Total (259.9) (205.2) 26.6% Profit from Operations 18.5 21.4 -13.6% (Before other Income, Interest & Exceptional items) Other Income 8.5 7.4 15.0% Profit before Interest & Exceptional Items 27.0 28.8 -6.3% Interest and Other Finance charges (2.8) (1.8) 52.0% Profit from Ordinary Activities before tax 24.2 27.0 -10.2% - - Exceptional Items Tax Expense Provision for Taxation ( incl. Deferred Tax ) (1.8) (3.2) MAT Credit (2.1) (0.7) Fringe Benefit Tax - - Net Profit from Ordinary Activities after Tax 20.3 23.1 -12.2% PAT % 7.3% 10.2% EBITDA 29.7 31.5 -5.5% EBITDA % 10.7% 13.9% TOTAL INCOME 286.9 234.1 22.6%

11 Profit & Loss Account (Current year Q1 Vs. Previous year Q4) Rs. Crores P&L Account - Current Year Q1 Vs. Previous Year Q4 Current Yr. Q1 Current Yr. Q4 % Growth Sales / Income from operations 278.4 293.5 -5.1% Expenditure a) Employees Cost (189.1) (185.9) 1.7% b) Depreciation, Amortisation and Impairment (11.2) (13.3) -15.9% c) Others (59.6) (63.5) -6.1% d) Total (259.9) (262.7) -1.1% Profit from Operations 18.5 30.8 -39.8% (Before other Income, Interest & Exceptional items) 8.5 9.8 -13.4% Other Income Profit before Interest & Exceptional Items 27.0 40.6 -33.4% Interest and Other Finance charges (2.8) (2.1) 34.9% Profit from Ordinary Activities before tax 24.2 38.5 -37.1% - - Exceptional Items Tax Expense Provision for Taxation ( incl. Deferred Tax ) (1.8) (7.4) -75.3% MAT Credit (2.1) (0.3) 678.0% Fringe Benefit Tax - - Net Profit from Ordinary Activities after Tax 20.3 30.9 -34.2% PAT % 7.3% 10.5% - EBITDA 29.7 44.1 -32.6% EBITDA % 10.68% 15.02% Total Income 286.9 303.3 -5.4%

12 Balance Sheet Rs. Cr. Balance Sheet as at… 31-Mar-07 31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-11 30-Jun-11 SOURCES OF FUNDS Shareholders' Funds Share Capital 20.79 20.54 20.54 20.59 20.59 20.59 Reserves and Surplus 666.59 716.28 934.53 928.47 978.24 1,001.72 687.38 736.82 955.07 949.06 998.83 1,022.31 Secured Loans 0.43 19.96 87.47 51.62 35.94 172.13 Unsecured Loans - 55.00 - 63.19 115.11 50.25 Deferred Tax Liability (Net) 0.90 11.43 16.15 17.11 17.74 16.35 TOTAL 688.72 823.20 1,058.69 1,080.98 1,167.63 1,261.04 APPLICATION OF FUNDS Fixed Assets Gross Block 308.61 368.06 446.60 488.21 617.07 584.63 Less: Depreciation/ Amortisation/ Impairment 109.04 136.67 166.05 192.47 243.11 211.69 Net Block 199.56 231.38 280.55 295.75 373.96 372.94 Capital Work-in-Progress 2.66 13.14 16.51 3.64 3.39 2.40 202.22 244.52 297.06 299.39 377.35 375.34 Investments 42.13 2.25 1.29 1.32 1.33 1.33 Current Assets, Loans and Advances Sundry Debtors 99.72 113.03 130.78 142.14 223.03 219.29 Cash and Bank Balances 509.64 493.78 665.11 642.31 618.92 714.92 Other Current Assets 12.68 24.99 37.14 31.09 0.59 0.60 Loans and Advances 154.98 39.94 54.85 88.58 135.00 133.08 777.01 671.74 887.88 904.11 977.54 1,067.88 Less: Current Liabilities and Provisions Current Liabilities 269.17 61.54 68.92 62.20 111.48 162.82 Provisions 63.47 33.77 58.63 61.65 77.11 20.69 332.65 95.30 127.54 123.85 188.59 183.52 Net Current Assets 444.37 576.43 760.34 780.26 788.95 884.36 Miscellaneous Expenditure - - - - - TOTAL 688.72 823.20 1,058.69 1,080.98 1,167.63 1,261.04

13 Revenue Distribution : Q1 FY 11-12 Revenue Exposure by Currency: QE Jun'11 Phil. Offshore 19% US Dom 34% India Offshore Revenue by Billing Currency : QE Jun'11 20% India UK Dom Dom 13% INR 14% 14% US Dom UK Dom India Dom GBP Revenue distribution by Geo: QE Jun'11 13% India Offshore Phil. Offshore UK USD 13% 73% India 33% USD GBP INR NA 34% Manila 20% Mauritius 0% India Manila Mauritius NA UK

14 Customer Concentration – Movement Last 4 Quarters Revenue Concentration - Top Customers 100% 78% 75% 76% 76% 80% 63% 61% 60% 60% 60% 47% 45% 45% 44% 40% 13% 20% 13% 11% 12% 0% Top Customer Top 5 Customers Top 10 Customers Top 20 Customers Sep-10 Dec-10 Mar-11 Jun-11

15 Revenue Split by Vertical – Last 4 Quarters Vertical-wise Revenue Sep-10 Dec-10 Mar-11 Jun-11 40% 30% 26% 26% 27% 26% 26% 26% 26% 24% 25% 23% 22% 21% 20% 17% 15% 15% 15% 10% 6% 6% 5% 5% 5% 5% 5% 4% 0% Telecom & Technology Consumer Elec, Health Insurance, BFS Chemicals & Biotech Others Products, Svcs & Pharma & Healthcare Retail

16 Our Top 5 Clients – Last 4 quarters Revenue Movement - Top 5 Clients 20.0% 15.0% 13% 13% 13% 12% 12% 12% 12% 12% 11% 11% 10% 10% 10.0% 7% 6% 6% 6% 5% 4% 5% 4% 5.0% 0.0% A - Health Ins. B - Health Ins. C - Telecom D - Telecom E - Cons. Elec. Sep-10 Dec-10 Mar-11 Jun-11