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AnalystPresentation Q1FY17

Aug9,2016

Index
Points

SlideNo.

BusinessOverview

34

FinancialPerformanceSummaryfor Q117

58

Financial PerformanceforQ117 GeometricConsolidated

918

Revenue&Client Data GeometricConsolidated

1925

Financial PerformanceforQ117 Geometricexcl.3DPLM

2628

Revenue&Client Data Geometricexcl.3DPLM

2938

BusinessHighlightsfor Q117

39

KeyFinancialData

40

Operationsand HRData

4144

KeyFinancialData Geometricexcl.3DPLM

45

BusinessAnalysisQ1FY17

46

GeneralInformation

4755

Confidential

Geometric&HCLDeal:ProgressonRegulatoryApprovals

SEBI

Share
holders

CCI*

Stock
Exchange

HighCourt

Filingthe
application

NA

Query
Resolution /
Clarifications
(ifany)

Approval

Awaited***

In
Progress

RBI**

Yetto
apply

*CCIApprovalletterreceived,Orderawaited
**RBIApprovalisneededtogiveeffecttotheschemeonceHighCourtpassesthe
favorableorder
***Shareholdersmeetingheldtoday,9th Aug16
WithCCIapprovalinplace,integrationdiscussionswillbeinitiated

Confidential

ImpactofINDASonGeometricFinancialStatements
SNo

Area

Description
Geometricwouldneedtoaccount3DPLMusingequitymethodof
accounting(impactonindividuallineitemsinP&L,howeverno
impacttoPAT)

Impacton
Balance Sheet

Impacton
P&L

N/A

3DPLMConsolidation

TreatmentofOutofPocketExpenses(OPE) recogniserevenueand
Revenuerecognition&Costof
costforOPE(impactonindividuallineitemsinP&L,impactsratios
Revenue
&marginshowevernoimpacttoabsolutePAT)

Employeesharebased
payment

ESOPatfairvaluemethod recogniseemployeecostatfairvalue

Employeebenefits

Actuarialgainsandlosses toberecognisedinOCI

Effectsofchangesinforeign
exchangerates

ForeignCurrencyTranslationReserve exchangedifferencesonloan
giventosubsidiariestoberecognisedinprofitorlossinstandalone
accounts,howevernoimpacttoconsolidatedaccounts

Reversalofimpactofstraightliningofleases

Securitydeposit recognizeatpresentvalueandunwindingatEIR
asinterestincome

Leases

Investments

Markettomarketofmutualfunds(noimpacttakeninerstwhile
IGAAP)

Proposeddividend

Proposeddividendandrelatedtaxisrecordedwhenpaymentis
made

N/A

Deferredtaxes

1)Deferredtaxonrespectiveitemsabove
2)Deferredtaxonundistributedprofitsofsubsidiaries,
3)Deferredtaxoncashflowhedgereserve(noP&Limpact)

Confidential

FINANCIALS

Confidential

SummaryfortheQuarter
Under IND AS :
In Q117 Operating Revenue YoY increased by 2.2% in USD terms and by 8.0% in INR terms. On a Q
oQ basis, it increased by 0.9% in USD and by 1.0% in INR terms.
Total Revenue For Q117 stand at INR 2360.31 Mn increased by 6.9% over Q116.
Effective tax rate for the quarter is 32.1%
EPS, after adjusting for extraordinary items, is INR 4.24 as against INR 5.13 in Q416 and INR 2.91 in
Q116
Under INDIAN GAAP :
In Q117 Total Revenue YoY increased by 6.0% in USD terms and by 11.9% in INR terms. On a QoQ
basis, it increased by 6.6% in USD and by 6.5% in INR terms.
YoY, Contribution margins improved from 30.4% to 36% thereby improving EBITDA from 13.9% to
18.6%; in line with peers
Salary Revisions implemented as of April 1, 2016
New contracts amounting to USD 15.5 Mn won during the quarter
Total headcount (incl. 3DPLM) as at Jun16 end is 4,774
Q117 attrition stands at 11.6%

Confidential

SummaryQ1FY17(incl 3DPLM)

AsperIndianGAAP

RevenueUSD

INR3,328.81Mn
49.61

50.00

QoQ6.5%

RevenuesINR
48.00

47.46
46.12

47.68

46.80

46.60

1.14%

46.55

10quarter

46.00

CQGR

44.96
44.29
44.00

42.92

INR286.85Mn

42.00

NetIncome

40.00

INR617.69Mn
EBITDA

38.00
Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY17

RevenueUSD

INR4.40
*figuresinMillion

EPS
Confidential

SummaryQ1FY17(excl3DPLM)

AsperIndianGAAP

OperatingRevenueUSD

INR2,335.24Mn
QoQ1.0%

36.00

35.24
34.77

35.00

34.55

34.44

0.71%

33.99

33.94

34.00

OperatingRevenuesINR
34.73

10quarter
CQGR

32.82

33.00

32.37

INR177.16Mn

32.00

31.45

NetIncome

31.00

30.00

INR290.46Mn
EBITDA

29.00
Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY17

OperatingRevenueUSD

INR2.72
*figuresinMillion

EPS
Confidential

GEOMETRICCONSOLIDATEDPERFORMANCEFORQ1FY17

Confidential

ConsolidatedIncomeStatementQoQ(INDAS)
IncomeStatement
OperatingRevenue(inUSDmillions)
ReimbursableIncome(inUSDmillions)
TotalRevenue(inUSDmillions)
ExchangeRate
OperatingRevenue
ReimbursableIncome
TotalRevenue
DirectCOR
ReimbursableExpenses
TotalCostOfRevenue(COR)
Contribution
Contributionas%ofOperatingRevenue
Sales&Marketing(S&M)Expense
General&Administrative(G&A)Expense
Interestandbankcharges
DepreciationandLeaseRental
OperatingProfit
OperatingProfitas%ofOperatingRevenue
OtherIncome
ProfitBeforeTax
PBTas%ofOperatingRevenue
EBITDA
EBITDAas%ofOperatingRevenue
Tax
ProfitAfterTax(fortheperiod)
PATas%ofOperatingRevenue
Profitsharefrom3DPLM
AdjustedProfitAfterTax
PATas%ofOperatingRevenue
EPS
Nonrecurringitems
Add:Consultant&ProfessionalFees
EPS(adjustedfornonrecurringitems)

(figuresinINRMillion)

Q117
34.73
0.38
35.11
67.23
2,335.24
25.07
2,360.31
1,567.39
30.45
1,597.84
762.47
32.3%
174.77
339.10
8.02
34.08
206.50
8.7%
43.03
249.53
10.6%
282.62
12.0%
80.07
169.46
7.2%
106.74
276.20
11.7%

Q416
34.44
0.00
34.44
67.13
2,311.83
0.00
2,311.83
1,513.47
0.00
1,513.47
798.35
34.5%
161.86
298.08
11.15
35.08
292.19
12.6%
43.01
335.20
14.5%
371.62
16.1%
98.83
236.37
10.2%
96.65
333.02
14.4%

Q116
33.99
0.73
34.71
63.62
2,162.31
46.32
2,208.63
1,567.78
46.32
1,614.10
594.53
26.9%
171.23
331.97
8.31
31.66
51.36
2.3%
60.32
111.69
5.1%
140.75
6.4%
8.54
103.15
4.7%
84.40
187.54
8.5%

Var(QoQ)
0.9%

1.9%

Var(YoY)
2.2%
48.4%
1.1%

1.0%

2.1%
3.6%

5.6%
4.5%

8.0%
45.9%
6.9%
0.0%
34.3%
1.0%
28.2%

8.0%
13.8%
28.1%
2.8%
29.3%

2.1%
2.1%
3.5%
7.7%
302.0%

25.6%

123.4%

23.9%

100.8%

19.0%
28.3%

837.5%
64.3%

17.1%

47.3%

4.24

5.13

2.91

17.3%

45.8%

45.00
4.93

24.00
5.50

31.00
3.39

Confidential

10

ConsolidatedIncomeStatementQoQ(IndianGAAP) (figuresinINRMillion)
IncomeStatement
OperatingRevenue(inUSDMillion)
ExchangeRate
OperatingRevenue
CostOfRevenue(COR)
Contribution
Contributionas%ofOperatingRevenue
Sales&Marketing(S&M)Expense
General&Administrative(G&A)Expense
Interestandbankcharges
DepreciationandLeaseRental
OperatingProfit
OperatingProfitas%ofOperatingRevenue
OtherIncome
ProfitBeforeTax
PBTas%ofOperatingRevenue
EBITDA
EBITDAas%ofOperatingRevenue
Tax
MinorityInterest
AdjustedProfitAfterTax
PATas%ofOperatingRevenue
EPS
Nonrecurringitems
Add:Consultant&ProfessionalFees
EPS(adjustedfornonrecurringitems)

Q117

Q416

Q116

49.61
67.10
3,328.81
2,130.77
1,198.03
36.0%
176.97
454.70
8.30
93.38
464.69
14.0%
62.42
527.11
15.8%
617.69
18.6%
162.61
77.64
286.85
8.62%

46.55
67.17
3,127.04
2,011.65
1,115.38
35.7%
163.57
416.09
11.34
92.28
432.10
13.8%
148.14
580.24
18.6%
672.59
21.5%
168.45
69.26
342.54
11.0%

46.80
63.58
2,975.55
2,071.79
903.76
30.4%
171.52
448.66
8.71
84.93
189.95
6.4%
142.85
332.79
11.2%
416.05
14.0%
83.60
57.92
191.27
6.43%

4.40

5.27

2.97

45.00
5.09

24.00
5.64

31.00
3.45

Confidential

Var(QoQ)

Var(YoY)

6.6%

6.0%

6.5%
5.9%
7.4%

11.9%
2.8%
32.6%

8.2%
9.3%
26.9%
1.2%
7.5%

3.2%
1.3%
4.8%
9.9%
144.6%

9.2%

58.4%

8.2%

48.5%

3.5%
12.1%
16.3%

94.5%
34.0%
50.0%

16.5%

48.5%

11

CostAnalysis(INDAS)
CostOfRevenue
Manpower

(figuresinINRMillion)

Q117

%ofOPR

Q416

%ofOPR

Q116

%ofOPR

1,410.42

59.8%

1,354.41

58.6%

1,419.22

64.3%

Travel

62.95

2.7%

40.84

1.8%

58.28

2.6%

Softwareamortization

13.21

0.6%

13.19

0.6%

8.11

0.4%

OtherSoftware

70.17

3.0%

86.92

3.8%

70.38

3.2%

StaffWelfare

5.13

0.2%

13.04

0.6%

5.90

0.3%

DataCommunication

5.51

0.2%

5.07

0.2%

5.88

0.3%

30.45

1.3%

0.00

0.0%

46.32

2.1%

1,597.84

67.7%

1,513.47

65.5%

1,614.10

73.1%

ReimbursableExpenses
Total

S&MExpense
Manpower

Q117

%ofOPR

Q416

%ofOPR

Q116

%ofOPR

143.05

6.1%

135.97

5.9%

138.92

6.3%

Travel

17.54

0.7%

12.58

0.5%

17.08

0.8%

OtherBusinessExpenses

14.18

0.6%

13.31

0.6%

15.23

0.7%

174.77

7.4%

161.86

7.0%

171.23

7.8%

Total

Confidential

12

CostAnalysis(INDAS)Contd
G&AExpense
Manpower

Q117

(figuresinINRMillion)

%ofOPR

Q416

%ofOPR

Q116

%ofOPR

104.42

4.4%

111.29

4.8%

118.24

5.4%

Travel

8.78

0.4%

1.33

0.1%

7.89

0.4%

Facility

68.64

2.9%

60.72

2.6%

63.26

2.9%

Recruitment

7.94

0.3%

10.44

0.5%

8.54

0.4%

Training

6.62

0.3%

2.45

0.1%

8.61

0.4%

Communication&InformationSystem

9.63

0.4%

8.18

0.4%

11.32

0.5%

Insurance

3.06

0.1%

2.59

0.1%

3.20

0.1%

87.50

3.7%

48.90

2.1%

78.99

3.6%

9.05

0.4%

0.62

0.0%

6.97

0.3%

Others

33.46

1.4%

52.79

2.3%

24.95

1.1%

Total

339.10

14.4%

298.08

12.9%

331.97

15.0%

Legal&Professional
BadDebts

Depreciation&LeaseRentals

Q117

%ofOPR

Q416

%ofOPR

Q116

%ofOPR

FacilityDepreciation

7.92

0.3%

7.87

0.3%

7.64

0.3%

NonfacilityDepreciation

3.95

0.2%

4.21

0.2%

5.00

0.2%

LeaseRentals

22.22

0.9%

23.00

1.0%

19.01

0.9%

Total

34.08

1.4%

35.08

1.5%

31.66

1.4%

Confidential

13

BalanceSheetSummary(INDAS)
SourcesofFunds

(figuresinINRMillion)

Q117

Q416

Q116

ShareholdersFunds
ShareCapital

130.49

130.06

129.07

3.85

5,149.82

4,771.28

4,397.26

42.75

49.69

132.54

1,885.53

1,992.85

1,793.66

7,208.59

6,943.88

6,456.38

ShareApplicationMoney
Reserves&Surplus
NonCurrentLiabilities
CurrentLiabilities
Total
ApplicationsofFunds

Q117

Q416

Q116

NonCurrentAssets
FixedAssets

482.33

495.80

541.06

GoodwillonConsolidation

545.57

544.85

519.30

OtherNonCurrentAssets

1,087.03

1,061.35

1,441.10

CurrentInvestments

1,342.97

1,140.08

501.12

TradeReceivables

1,652.20

1,618.49

1,565.22

607.00

616.51

641.80

1,491.49

1,466.81

1,246.78

7,208.59

6,943.88

6,456.38

CurrentAssets

CashandCashEquivalents
OtherCurrentAssets
Total
Balancesheetpositionasonperiodend

Confidential

14

276
Net
Profit/(Loss)
aftertaxes

107
Profitshareof
3DPLM

80
TaxExpense

Profit/(Loss)
fromOrdinary
Activities
beforetax

Financecosts

OtherIncome

Other
Expenses

Revenuefrom
operations

(figuresinINRMillion,INDAS)

1,526

Employee
benefits
expense
Depreciation&
amortization
expense

2,360

AsperClause41(Printedinthenewspapers)
25
600
48
8
249

Difference

ReconciliationofConsolidatedIncomestatementwithClause41

AsperInvestorPresentation
AsperInvestorspresentation

2,360 OperatingRevenue

2,360

1,598 CostOfRevenue(COR)

1,410

13

174

175 Sales&Marketing(S&M)Expense

143

32

339 General& Administrative(G&A)Expense

104

235

8 Interest&bankcharges
34
43
250
80

Depreciation&LeaseRental
OtherIncome
ProfitBeforeTax
Tax

12

22

43
250
80

107 Profitshareof3DPLM
276 ProfitAfterTax(fortheperiod)
Difference
ExpensesclubbedinManpowerCost
underCORinInvestorPresentation,
howevergroupedinotherexpensesin
Clause41(Subcontractingcharges)
Staffwelfareexpenses&training
expensesareinEmployeebenefitsin
Clause41,howevergroupedinother
expensesinMIS
GainonForeignExchangeTransaction/
LossonFluctuations
NetDifference

107

(132)

137

144

(144)

(12)

12

(5)

Confidential

276

15

OtherIncome(INDAS)
OtherIncome
InvestmentIncome

(figuresinINRMillion)

Q117

Q416

Q116

18.35

18.87

8.44

Sundrybalancesw/back

0.39

0.01

0.74

ProfitonSaleofAssets

0.93

(0.00)

0.05

Others

3.23

2.24

0.50

TotalIncomeonInvestment (A)

22.90

21.12

9.73

ForeignExchangeGains/(loss)

21.35

22.46

51.57

MTMGain/(Loss)

(1.22)

(0.57)

(0.98)

TotalGain/(Loss)onForex (B)

20.13

21.89

50.59

TotalOtherIncome(A+B)

43.03

43.01

60.32

Confidential

16

TaxWalk(INDAS)
Allnumbersarein%terms

Confidential

17

ProfitTrends
EBITDAas%ofRevenue

EPS(INR)

25%

6.00

20%

5.00

15%

4.00
3.00

10%

2.00
5%

1.00

0%
Q4FY Q1FY Q2FY Q3FY Q4FY Q1FY Q2FY Q3FY Q4FY Q1FY
14
15
15
15
15
16
16
16
16
17

PATas%ofRevenue

0.00
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY14 FY15 FY15 FY15 FY15 FY16 FY16 FY16 FY16 FY17

ReturnonNetWorth

Taxas%ofProfit

60%

40%

50%

35%
30%

40%

25%

30%

20%
15%

20%

10%
10%

5%

0%

0%
Q4
FY14

Q1
FY15

Q2
FY15

Q3
FY15

Q4
FY15

Q1
FY16

Q2
FY16

Q3
FY16

Q4
FY16

Q1
FY17

Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY14 FY15 FY15 FY15 FY15 FY16 FY16 FY16 FY16 FY17

Confidential

18

REVENUE&CLIENTDATA ASPERINDIANGAAP
GEOMETRICCONSOLIDATED
(FORCONSISTENCYINANALYSISOVERPREVIOUSQUARTERS)

Confidential

19

ConsolidatedRevenueAnalysis

(figuresinINRMillion)

OperatingRevenues
Q1FY17

Q4FY16
6.4%

5.5%
34.7%

36.2%
57.4%

59.8%

OtherIncome
InvestmentIncome

Q117

LCC

HCC

IP

%ofOPR

Q416

%ofOPR

Q116

%ofOPR

22.31

0.7%

22.80

0.7%

14.40

0.5%

SaleofAssets

3.50

0.1%

1.98

0.1%

0.37

0.0%

FXGain/(Loss)

32.40

1.0%

119.29

3.6%

124.34

4.0%

4.21

0.1%

4.08

0.1%

3.74

0.1%

62.42

1.8%

148.14

4.5%

142.85

4.6%

Others
Total

*HCCincludesrevenuesinhighcostcountries.
Confidential

20

OffshoreLeverage

(in%terms)

ByRevenue
70
60
50

58

61

62

60

60

62

63

63

61

63

42

39

38

40

40

38

37

37

39

37

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY17

40
30
20
10
0
Q4FY14

ByEffort
100
80

85

86

86

86

85

85

86

87

87

87

15

14

14

14

15

15

14

13

13

13

Q4FY14

Q1FY15

Q2FY15

Q3FY16

Q4FY16

Q1FY17

60
40
20

Q3FY15

Q4FY15

LCC

Q1FY16

Q2FY16

HCC

RevenueBreakupaboveexcludesIP.
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21

ServiceLines RevenueDistribution

(figuresinUSDMillion)

35.00

32.37

30.00

25.80

26.53

27.21

28.28
26.38

29.01

29.31

14.63

14.09

29.75

25.58

25.00

20.00

15.00

13.19

13.59

3.02

2.77

14.09

15.12
13.59

14.90

12.84

13.28

2.97

2.73

10.00

5.00

3.45

3.71

2.59
1.16

2.29
Q4FY14

2.07

1.38

1.38

Q1FY15

Q2FY15

Q3FY15

SoftwareServices

2.36
1.25

3.17

2.55
1.25

Q4FY15

Q1FY16

EngineeringServices

Q2FY16

1.22
1.12
Q3FY16

Embedded

1.00
Q4FY16

Q1FY17

IP

Revenuesshownasproductsinthepreviousquarters,arenowbeingreferredtoasIP
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22

ServiceLines RevenueDistributionas%oftotal
70%

60%

58.3%

59.0%

59.0%

29.8%

30.2%

30.5%

59.6%

60.4%

61.1%

61.5%

31.7%

31.8%

30.8%

29.5%

63.9%

65.3%

56.6%

50%

40%

32.5%

30%

27.6%

26.8%

20%

10%

6.8%

6.2%

7.5%

8.0%

6.0%
2.7%

0%

5.2%
Q4FY14

4.6%
Q1FY15

3.0%

Q2FY15

3.0%

Q3FY15

SoftwareServices

Q4FY15

5.1%

5.4%

6.6%

6.4%

2.6%

2.3%

2.1%

Q2FY16

Q3FY16

5.5%

2.7%
Q1FY16

EngineeringServices

Embedded

Q4FY16

2.5%
Q1FY17

IP

*Revenuesshownasproductsinthepreviousquarters,arenowbeingreferredtoasIP
Confidential

23

RegionDistribution

(in%terms)

70%

61.6%
60%

58.3%

57.1%

57.2%

61.5%

58.4%

59.8%

58.9%
55.0%
52.0%

50%

40%

31.9%

33.1%

34.5%
31.3%
28.7%

30%

28.6%
25.9%

25.5%

6.5%

6.6%

7.0%

6.3%

5.8%

Q3FY15

29.9%

30.5%

20%

10%

0%

6.6%

5.8%

5.0%

4.0%

4.8%

5.0%

Q4FY14

Q1FY15

Q2FY15

USA

8.1%

8.0%

6.0%

6.4%

5.6%

Q3FY16

Q4FY16

Q1FY17

5.5%

5.1%

6.0%

6.1%

Q4FY15

Q1FY16

Q2FY16

Europe

APAC

India

*previousperiodfiguresreinstatedwhereverclassicationchangestomakeitcomparable
Confidential

24

CustomerSegments

(in%terms)

70%

62.8%

63.3%

63.6%

64.7%

64.0%

62.9%

62.7%

63.8%

63.6%
60.2%

60%

50%

40%

37.3%

34.2%

34.7%

34.9%

33.9%

33.9%

2.1%

2.5%

2.5%

2.4%

2.3%

2.6%

2.5%

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY17

34.8%

34.6%

34.2%

33.2%

2.4%

2.1%

2.2%

Q4FY14

Q1FY15

Q2FY15

30%

20%

10%

0%

DirectIndustrial

ThroughPartners

Confidential

SoftwareISVs

25

GEOMETRICexcl 3DPLMPERFORMANCEFORQ1FY17

Confidential

26

IncomeStatementQoQ(INDAS)
IncomeStatement
OperatingRevenue(inUSDmillions)
ReimbursableIncome(inUSDmillions)
TotalRevenue(inUSDmillions)
ExchangeRate
OperatingRevenue
ReimbursableIncome
TotalRevenue
DirectCOR
ReimbursableExpenses
TotalCostOfRevenue(COR)
Contribution
Contributionas%ofOperatingRevenue
Sales&Marketing(S&M)Expense
General&Administrative(G&A)Expense
Interestandbankcharges
DepreciationandLeaseRental
OperatingProfit
OperatingProfitas%ofOperatingRevenue
OtherIncome
ProfitBeforeTax
PBTas%ofOperatingRevenue
EBITDA
EBITDAas%ofOperatingRevenue
Tax
ProfitAfterTax(fortheperiod)
PATas%ofOperatingRevenue
AdjustedProfitAfterTax
PATas%ofOperatingRevenue
EPS
Nonrecurringitems
Add:Consultant&ProffesionalFees
EPS(adjustedfornonrecurringitems)

(figuresinINRMillion)

Q117

Q416

Q116

34.73
0.38
35.11
67.23
2,335.24
25.07
2,360.31
1,567.39
30.45
1,597.84
762.47
32.3%
174.77
339.10
8.02
34.08
206.50
8.7%
43.03
249.53
10.6%
282.62
12.0%
80.07
169.46
7.2%
169.46
7.2%

34.44
0.00
34.44
67.13
2,311.83
0.00
2,311.83
1,513.47
0.00
1,513.47
798.35
34.5%
161.86
298.08
11.15
35.08
292.19
12.6%
43.01
335.20
14.5%
371.62
16.1%
98.83
236.37
10.2%
236.37
10.2%

33.99
0.73
34.71
63.62
2,162.31
46.32
2,208.63
1,567.78
46.32
1,614.10
594.53
26.9%
171.23
331.97
8.31
31.66
51.36
2.3%
60.32
111.69
5.1%
140.75
6.4%
8.54
103.15
4.7%
103.15
4.7%

2.60

3.64

1.60

45.00
3.29

24.00
4.01

31.00
2.08

Confidential

Var(QoQ)

Var(YoY)

0.9%

1.9%

2.2%
48.4%
1.1%

1.0%

2.1%
3.6%

5.6%
4.5%

8.0%
45.9%
6.9%
0.0%
34.3%
1.0%
28.2%

8.0%
13.8%
28.1%
2.8%
29.3%

2.1%
2.1%
3.5%
7.7%
302.0%

25.6%

123.4%

23.9%

100.8%

19.0%
28.3%

837.5%
64.3%

28.3%

64.3%

28.5%

62.6%

27

IncomeStatementQoQ(IndianGAAP)
IncomeStatement
OperatingRevenue(inUSDMillion)
ExchangeRate
OperatingRevenue
CostOfRevenue(COR)
Contribution
Contributionas%ofOperatingRevenue
Sales&Marketing(S&M)Expense
General&Administrative(G&A)Expense
Interestandbankcharges
DepreciationandLeaseRental
OperatingProfit
OperatingProfitas%ofOperatingRevenue
OtherIncome
ProfitBeforeTax
PBTas%ofOperatingRevenue
EBITDA
EBITDAas%ofOperatingRevenue
Tax
AdjustedProfitAfterTax
PATas%ofOperatingRevenue
EPS
Nonrecurringitems
Add:Consultant &Proffesional Fees
EPS(adjustedfornonrecurringitems)

Q117

(figuresinINRMillion)

Q416

Q116

34.73
67.24
2,335.24
1,562.85
772.39
33.1%
174.77
337.56
8.02
34.08
217.95
9.3%
39.41
257.36
11.0%
290.46
12.4%
80.21
177.16
7.6%

34.44
67.13
2,311.83
1,510.52
801.31
34.7%
161.86
294.66
11.15
35.08
298.56
12.9%
39.16
337.72
14.6%
374.14
16.2%
93.13
244.59
10.6%

33.99
63.62
2,162.31
1,561.91
600.39
27.8%
171.23
329.24
8.31
31.66
59.96
2.8%
58.21
118.17
5.5%
147.24
6.8%
9.10
109.08
5.0%

2.72

3.77

1.69

45.00
3.41

24.00
4.14

31.00
2.17

Confidential

Var(QoQ)

Var(YoY)

0.9%

2.2%

1.0%
3.5%
3.6%

8.0%
0.1%
28.6%

8.0%
14.6%
28.1%
2.8%
27.0%

2.1%
2.5%
3.5%
7.7%
263.5%

23.8%

117.8%

22.4%

97.3%

13.9%
27.6%

781.7%
62.4%

27.8%

60.8%

28

REVENUE&CLIENTDATA ASPERINDIANGAAP
GEOMETRICexcl 3DPLM
(FORCONSISTENCYINANALYSISOVERPREVIOUSQUARTERS)

Confidential

29

OperatingRevenueAnalysis

(figuresinINRMillion)

OperatingRevenues
7.9%

Q1FY17

Q4FY16
8.6%

42.6%

42.5%
48.9%

49.6%

LCC
OtherIncome

Q117

InvestmentIncome

HCC
%ofRevenue

IP
Q416

%ofRevenue

Q116

%ofRevenue

14.72

0.6%

15.01

0.6%

6.32

0.3%

SaleofAssets

0.93

0.0%

0.00

0.0%

0.05

0.0%

FXGain/(Loss)

20.13

0.8%

21.89

0.9%

50.59

2.3%

3.62

0.2%

2.25

0.1%

1.25

0.1%

39.41

1.7%

39.16

1.7%

58.21

2.6%

Others
Total
*HCCincludesrevenuesinhighcostcountries

Confidential

30

OffshoreLeverage

(in%terms)

ByRevenue
70

59

60

54

54

55

55

53

52

52

54

54

46

45

45

47

48

48

46

46

50
40
30

41

46

20
10

Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY17

ByEffort
80
70
60

74

75

75

76

74

74

74

75

74

76

26

25

25

24

26

26

26

25

26

24

Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY17

50
40
30
20
10
0
LCC

HCC

RevenueBreakupaboveexcludes IP.
Confidential

31

ServiceLines RevenueDistribution

(figuresinUSDMillion)

20.00

17.63
18.00

15.46

16.00
14.00
12.00

13.88

14.39

15.02

14.55

13.19

14.90
13.59

13.59

17.49

14.11

15.12
14.09

16.11

16.87

14.63

14.09
12.84

13.28

2.97

2.73

10.00
8.00
6.00
4.00

3.02

2.77

3.45

3.71
2.59

2.36

2.87

3.17

1.22

2.00

2.29

Q4FY14

2.07
Q1FY15

1.38

Q2FY15

1.38

1.16

Q3FY15

Q4FY15

SoftwareServices

1.25

1.25

1.12

Q1FY16

Q2FY16

Q3FY16

EngineeringServices

Embedded

1.00
Q4FY16

Q1FY17

IP

*Revenuesshownasproductsinthepreviousquarters,arenowbeingreferredtoasIP
Confidential

32

ServiceLines RevenueDistributionas%oftotal
60%

50%

42.9%
40%

40.7%

43.8%

41.4%

44.3%

41.5%

44.9%
41.8%
43.5%

51.2%

50.4%

37.3%

38.2%

8.6%

7.9%

47.9%

46.6%
43.9%
45.5%

43.2%

42.4%

40.0%

30%

20%

9.3%

8.5%

7.1%

6.3%

10%

0%
Q4FY14

Q1FY15

10.2%

10.7%

8.2%

7.0%

9.0%

7.4%

3.5%
4.1%

4.0%

3.7%

3.7%

3.6%

3.2%

2.9%

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

SoftwareServices

EngineeringServices

Embedded

Q1FY17

IP

**Revenuesshownasproductsinthepreviousquarters,arenowbeingreferredtoasIP
Confidential

33

RegionDistribution

(in%terms)

70%

60.9%

61.0%

61.2%

62.5%

63.8%

64.4%

64.4%

63.3%
58.1%

60%

56.1%

50%

40%

30%

25.7%

25.6%
23.1%
20.2%

20%

10%

8.9%

7.9%

6.8%

5.5%

6.6%

6.8%

Q1FY15

Q2FY15

19.2%

20.3%

22.1%

22.7%

25.0%

17.7%

8.8%

9.0%

9.7%

8.5%

7.9%

Q3FY15

10.9%

11.3%

7.5%

7.0%

8.2%

7.8%

7.6%

8.3%

7.6%

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY17

Europe

APAC

0%
Q4FY14

USA

India

*previousperiodfiguresreinstatedwhereverclassicationchangestomakeitcomparable
Confidential

34

CustomerSegments

(in%terms)

100%
90%

88.4%

88.8%

89.1%

89.3%

89.4%

88.4%

87.8%

88.2%

87.8%

88.0%

8.2%

8.2%

7.9%

7.8%

8.1%

8.2%

8.8%

8.6%

8.7%

8.3%

3.4%

3.0%

3.1%

2.9%

Q4FY14

Q1FY15

Q2FY15

Q3FY15

80%
70%
60%
50%
40%
30%
20%
10%
0%

DirectIndustrial

3.5%

3.5%

Q4FY15

Q1FY16

ThroughPartners

Confidential

3.4%
Q2FY16

3.2%
Q3FY16

3.5%
Q4FY16

3.7%
Q1FY17

SoftwareISVs

35

RevenueBreakupbyVerticals
Q117

Q416
7.8%

7.3%

19.7%

19.3%

45.5%

46.8%
10.8%

11.3%
15.7%

15.7%

Automotive

Vertical(%)
Automotive
Strategic Accounts
Aerospace
I&S
IP

StrategicAccount

Aerospace

Q1 17

I&S

IP

Q4 16
46.8%
15.7%
10.8%
19.3%
7.3%

45.5%
15.7%
11.3%
19.7%
7.8%

Verticalbreakupexcludes3DRevenue
Confidential

36

CustomerAnalysis
Revenue(%)
Top1
Top5
Top10

Q117

Q416

13.0%
42.2%
59.8%

Numberofcustomerswithmorethan5%
revenuecontribution
Clients

13.4%
41.9%
59.1%

Q117

>$10million
$5 $10million
$1 $5million
<$1million

Q416

Q117

15.3%
45.0%
62.8%

2
6
18
28

Clients

Q1 16

Q116
2
5
19
31

Q416

3
4
17
35

Q1 16

Totalnumberofactiveclients

54

57

59

Numberofnewclientsadded

TotalnumberofactiveClientsreferstonumberofclientsagainstwhomrevenuerecognitionhappenedduringtheQuarter
Confidential

37

DealAnalysis

OrderBook

(figuresinUSDMillion)

Q117

Newdealswon

NewDealAnalysis Q117

Q416

15.48

US

Q116

14.52

Europe

13.65

APAC

India

Total

EngineeringServices

3.83

0.30

0.02

0.37

4.52

SoftwareServices

4.89

4.13

1.52

0.02

10.56

Embedded

0.00

0.25

0.05

0.00

0.30

Products

0.01

0.08

0.00

0.00

0.09

8.73

4.77

1.58

0.40

15.48

Total

Confidential

38

BusinessHighlights
BusinessHighlights
EnhancedCAMWorks2016withToleranceBasedMachiningcapabilitiesandsupport
forSolidWorksMBD
KeyWins
SelectedbyaLeadingTelecomOEMinNorthAmericafortheirDigitalManufacturing
initiativewhichwillleverageGeometrics'Technologysolutions
WonaPLMProjectwithaleadingAircraftEngineermanufacturerinNorthAmerica
AwardedaManufacturingEngineeringProjectonPackagingprogrammanagementfrom
aAutomotiveOEMinNorthAmerica
WonaPLMProjectwithaleadingAutomotivemanufacturerinNorthAmerica
AwardedanEngineeringServicesprojectbyaleadingoffhighwayOEMinNorthAmerica
WonaPLMProjectwithaleadingAutomotiveOEMinEurope

Confidential

39

KeyFinancialData

Parameter
CAPEX(INRmillion)

Q117

OutstandingLoans

Q116

10.03

2.86

48.95

65

64

66

32.1%

29.5%

7.6%

DSO
%Tax

Q416

Q117

Q416

Q116

WorkingCapitalLoan(USDmillion)

6.91

5.91

6.55

PCFCLoan(USDmillion)

3.00

3.00

3.00

DSOisasperINDAS excludes3DPLM.Thesamehasbeenrestatedforpreviousperiodsaswell

Confidential

40

OPERATIONS&HRDATAQ1FY17

Confidential

41

OperationalParameters
GeometricConsolidated
ProjectType(%)
Revenue(%)

Q117

Q4 16

Q116

Time&Material

85.9%

85.4%

86.7%

FixedPrice

14.1%

14.6%

13.3%

GeometricConsolidatedexcluding3DPLM
ProjectType(%)
Revenue(%)

Q117

Q416

Q1 16

Time&Material

79.7%

80.6%

81.6%

FixedPrice

20.3%

19.4%

18.4%

Utilization(%)
Q117
Hourly Utilization

Q416

76.3%

Q1 16
75.8%

71.2%

FormulaforutilizationhaschangedasbelowtobeinlinewithIndustryPracticeseffectiveOct2015andhadbeenchangedretrospectively
forreportingpurpose
Totalbillablehourstocustomer/(PlannedHours+Overclockedhours)
PlannedHours=Totalavailablehours UnpaidleavesandCompanyholidays

Confidential

42

EmployeeBase
4,800

4,578

4,000

4,807

4,741

4,866

4,773

4,755

4,772

4,774

1,828

1,899

2,015

2,082

2,149

2,196

2,162

2,781

2,913

2,908

2,851

2,691

2,606

2,576

2,612

Q2'15

Q3'15

Q4'15

Q1'16

Q2'16

Q3'16

Q4'16

Q1'17

1,797

3,200
2,400
1,600
800

3DPLM+3DGS

Headcount

Geometric+Completelyownedsubsidiaries

Q117

Q416

4,388

4,375

4,463

OperationsSupport

50

65

59

Sales

33

30

32

303

302

312

Delivery

CorporateFunctions
Total

4,774

4,772

Q116

10.1%
19.3%

39.0%

31.6%

4,866

ExperienceProfile

<3years
36years
68years
>8years

Allnumbersasofendofperiod

Confidential

43

RecruitmentandAttritionAnalysis(incl 3DPLM)
500

267
212

400

177

117

97

200

119

81

73

270

231

210

173

150

137

139

Q2'16

Q3'16

Q4'16

Q1'17

300
441
354

285

306

100

258

0
100

174

142

168

129

Q2'15

Q3'15

Q4'15

Q1'16

200

Recruitment
Period

Attrition

Attrition(%)

Q117

11.6%

Q416

11.5%

RecruitmentProfile
8.1%

2.7%

20.9%
68.2%

Q116

10.9%

03years
36years
68years
8+years

Confidential

44

KeyFinancialData
ForwardContracts
ForwardCover>90Days(USDMn)
Forwardcover<90Days(USDMn)
Total(USDMn)
ForwardCover>90Days(EURMn)
ForwardCover<90Days(EURMn)
Total(EURMn)
USD
AverageRate
>90Days(USDMn)
AverageRate
<90Days(USDMn)
EUR
AverageRate
>90Days(EURMn)
AverageRate
<90Days(EURMn)

Q117

25.67
7.08
32.75
6.20
1.76
7.95

Q416
25.02
6.66
31.67
6.03
1.68
7.71

Q116
21.49
6.99
28.48
2.91
1.39
4.30

71.79
25.67
69.31
7.08

71.25
25.02
68.46
6.66

68.75
21.49
66.13
6.99

81.00
6.20
76.87
1.76

79.40
6.03
75.98
1.68

76.51
2.91
79.07
1.39

MTMonForwardCover>90Days(INRMn)
MTMonForwardcovers<90Days(INRMn)
Total(INRMnUSDINR)*
MTMonForwardCover>90Days(INRMn)
MTMonForwardcovers<90Days(INRMn)
Total(INRMnEURINR)*

6.62
8.04
14.66
1.76
1.42
3.18

23.32
10.92
34.24
(8.95)
(0.46)
(9.41)

21.53
12.49
34.02
5.45
9.60
15.05

*ClosingspotrateforcalculatingMTMUSDINR
*ClosingspotrateforcalculatingMTMEURINR

67.52
74.95
Confidential

66.15
74.85

63.73
71.34
45

BusinessAnalysisQ1FY17
Verticals

Automotive

StrategicAccounts

Aerospace

I&S

IP

Revenue($ Mn)

15.79

5.33

3.60

6.44

2.60

CM%

27.0%

21.4%

39.6%

40.8%

50.4%

OP%

4.4%

3.9%

10.4%

20.1%

12.5%

PBT%

6.0%

2.3%

12.0%

21.8%

14.4%

Business Unit

Software Services

EngineeringServices

Embedded

Revenue($ Mn)

19.25

13.19

1.17

CM%

40.7%

20.5%

19.5%

OP%

15.9%

4.0%

4.6%

PBT%

17.6%

2.3%

2.9%

Analysishasbeendoneassumingaconstantcurrency&manpowercosthasbeentakenatstandardcost
SoftwareServicesincludesIP
Confidential

46

GENERALINFORMATION
Q1FY17

Confidential

47

ConferenceCallDetails
Q1FY17ResultsConferenceCallisscheduledonTuesday,August9th,2016at16:15hrs
IST
Geometricwillberepresentedby
Mr.ManuParpia,MD&CEO
Mr.ShashankPatkar,CFO

Dialindetails
Location

AccessNumber

PrimaryAccessNumber

+91.22.39600622

SecondaryAccessNumber

+91.22.67465822

NonIndiaTollFreeNumbers
USA

+1.866.7462133

UK

0.808.1011573

Singapore

800.1012045

HongKong

800.964448

Confidential

48

AboutGeometric
AboutGeometric
Geometric is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global
Engineering services, Product Lifecycle Management (PLM) solutions, Embedded System solutions, and Digital
Technology solutions enables companies to formulate, implement, and execute global engineering and
manufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle.
Listed on the Bombay and National stock exchanges in India, the company recorded consolidated revenues (as per
Indian GAAP) of Rupees 12.33 billion (US Dollars 188.49 million) for the year ended March 2016. It employs over 4700
people across 14 global delivery locations in the US, France, Germany, Romania, India, and China. Geometric has been
assessed at Maturity Level 3 for CMMI 1.3 Development and CMMI 1.3Services for its Software and Engineering
Services business units and is ISO 9001:2008 certified for engineering operations. The companys operations are also
ISO 27001:2005 certified.
Thecopyright/trademarksofallproductsreferencedhereinareheldbytheirrespectivecompanies.
For more information, please contact: investorrelations@geometricglobal.com

Confidential

49

ENDOFPRESENTATION

Confidential

50

INTERPRETATIONGUIDEFORREPORTEDDATA

Confidential

51

Guide1
Slide#
10,11,27,
28

Item
IncomeStatement

Explanation
Incomestatementprovidedisinthe MIS format.
MISformatisdifferentfromtheincomestatementpublishedaspartoffinancial resultsin
termsofgroupingofcostelements.
Keydifferencestobenotedareasfollows:
1. MISformatbreaksupoperatingcostsasCOR,S&MandG&A
2. Depreciationlineitem inMISformatalsoincludestheleaserentalsforcomputing
hardware(CAPEXequivalent)andexcludessoftwaredepreciationwhichisclubbed
undersoftwareexpensesinCOR
3. FXgain/(loss)isgroupedunderOtherIncomeinMISformatasagainstoperatingcost
infinancials.
ForEBITDAcalculation,amortizationsoftwarehasbeenaddedandleaserentals
havebeenreducedindepreciation

20,30

HCC&LCC

HCC:Deliveryfromhighcostcountry(Otherthan India,RomaniaandChina)
LCC:Deliveryfromlowcostcountry(India, RomaniaandChina)

16,20,30

InvestmentIncome

Investmentincomeincludesdividendfrommutualfunds,interestearnedonbankdeposits
andprofitonsaleofmutualfundinvestments.

12,13

Manpower

Manpowercosts inMISexcludestaffwelfare,butincludemediclaimandgroupinsurance
costandSubcontractingvisvispersonnelcostsinfinancials

Confidential

52

Guide2
Slide#

Item

Explanation

12,13

Travel

Reimbursementoftravelexpensesbyemployeesaregroupedundertravelexpenseswhile
thesamehasbeengroupedunderotherexpensesinfinancialresultadvertisement
ThisdoesnotincludeTravelExpensesreimbursable fromcustomer.

13

Facility

Facilitycostsincluderentandservicecharges,electricitycharges,repairsandmaintenance
excludingthatofEPABXandUPS

13

FacilityDepreciation

Includesdepreciationonleaseholdland,building,electricalinstallations,officeequipments
and furnitureandfixtures

13

Nonfacility
Depreciation

Primarilyconsistsofdepreciationoncomputing hardware

13

LeaseRentals

Includesleaserentpaidforcomputinghardware

22to25,
32to37

RevenueAnalysis

AnalysisreportedisforUSDoperatingrevenue

Confidential

53

Guide3
Slide#

Item

Explanation

25,35

Customer Segments

Software ISVsegmentconsistsofS/WproductcompaniesgivingusOPDbusiness.Strategic
PartnersegmentconsistsofS/WproductandconsultingcompaniesengaginginPLM
SolutionsandEngineeringServicesbusiness.DirectIndustrialsegmentconsistsofindustrial
companiessourcingalltypesofservicesfromGeometric.

37

CustomerRevenue
Analysis

AnalysisreportedisforUSDoperatingrevenue.Distributionisonthebasisofannualized
figures(i.e.quarterlyrevenuex4).

38

DealAnalysis

Newdealswonrefers tonewbusinesswinswithexistingornewcustomers.Thisexcludes
rampupinorextensionofexistingcontracts.

42

ProjectTypeRevenue
Analysis

AnalysisreportedisforUSDoperatingrevenue excludingProductsandH/Wreimbursement
revenue.

Confidential

54

Guide4
Slide#

Item

Explanation

43

EmployeeBase

Employeeheadcountreportedincludesallpermanentemployees.

43

Experience Profile

Distribution reportedisforallemployeesincludingsalesandcorporatesupportfunctions

44

Attrition

Onlyundesiredattritiondataisreported.Differenceinthenetadditionreportedonslide34
anddifferenceinheadcountreportedinslide33isonaccountofdesiredattrition.
%Attritionreportedisonanannualizedbasis.

40

DSO

DSOreported isonaquarterlybasis

40

%Tax

IncludesimpactofFBTanddeferredtax

40

CAPEX

IncludesnormalCAPEXandpurchasevalueofleasedcomputinghardware

40

OutstandingLoans

AllFXloansarerevaluedattheend ofthequarterbasedontheclosingexchangerate

Confidential

55

Note from the MDs Desk


We had a reasonable quarter. Our revenues increased, although not in line with expectations, we have
been able to maintain a double digit EBITDA after implementing salary revisions effective April 1 st. This
reflects our ability to sustain improvements we made in our operations.
When compared to the same period last year, under Indian GAAP, our Consolidated EBITDA margin
was 13.9% vs 18.6% in current quarter. On a comparable basis, our contribution margin is higher by
5.6% over the last fiscal year. Revenues, on a Q-on-Q basis grew 6.6% in USD terms and 6.0% in USD
over the comparable period last year. This is the first quarter wherein we have adopted IND AS and its
impact by various heads is clearly laid out in our analysts note. As I mentioned in my previous note,
(under IND AS) we will no longer consolidate revenues and expenses of our subsidiary 3DPLM
Software.
We have also made progress in the merger transaction. SEBI / Stock exchange approvals have been
obtained and the Competition Commission of India has sent its letter indicating approval although the
formal order is awaited. The applications to the Bombay High Court by our Company and Delhi High
Court by HCL have been made, and the Court Convened Meetings and EGM of Geometric have been
held and that of HCL are scheduled. The petitions for approval of the scheme will be filed by Geometric
with the Bombay High Court and by HCL with the Delhi High Court in due course. While there has been
substantial progress several other approvals are needed. In my view the closure is several months
away.
Our customers have understood the rationale for the transaction and have generally been positive.
They look forward to receiving a broader range of services and a better access to resources once the
two entities combine. Overall attrition has been controlled, as our employees have also by and large
welcomed the transaction as they see being part of a larger entity will mean more opportunities. So I
can honestly say, the transaction is being viewed positively by all the Companys stakeholders viz.
Employees, Customers and Shareholders.
We continue to drive growth and look forward to further growth in the coming quarter. This despite
the fact that one of our large customers is suffering from a slowdown and therefore cutting back on
their operating costs.
Sincerely,

Manu Parpia
Managing Director & CEO