Professional Documents
Culture Documents
Recipient of Frost & Sullivan 2011 Global Enabling Technology Award for Computer-aided Design
Head Consulting & Innovation Consulting Technology Solutions Emerging Business New Offerings
Global Head Business Development Global Sales Business Response Marketing Sales Operations
Global Head HR Employee Engagement Compensation & Benefits HR Operations, Policies & Processes
Group CFO
Global Head
Business Development
Mirror Organizations to leverage the Power of Two Cohesive working and shared goals
Automotive Head
Automotive Sales Head Sales Operations Industrial Sales Head Marketing & Business Response Emerging Sales Head
Sales and Delivery to have common incentive scheme, viz: based on both revenues and contribution margins Resulting in:
Faster response time to customers Improvement in revenues from existing customers and faster onboarding of new customers Reduction in resource augmentation deals, and increasing conversion of these deals to project/ solution based projects Impetus to offshore delivery
COE
FINANCIALS
37.84
38.59
5.17%
10 quarter CQGR
30 25 20 15 10 5 0
INR 278.83
Q3 FY10
Q4 FY10
Q1 FY11
Q2 FY11
Q3 FY11
Q4 FY11
Q1 FY12
Q2 FY12
Q3 FY12
Q4 FY12
EBITDA
Revenue USD
Summary (FY12)
Revenue USD
180 160
INR 8,078.86
Y-o-Y 30.2%
167.51 136.47
Revenues INR
140
122
120
100
129.47 108.12 85
80 60
40 20 0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
19
EBITDA
Revenue USD
Summary
In USD terms, consolidated operating revenues for the quarter increased by 5.4% sequentially and 18.7% yoy, whereas it increased by 2.7% and 32.3% respectively in INR terms In USD terms, consolidated operating revenues for FY 12 increased by 22.7% compared to FY 11 revenues In USD terms, consolidated (excluding 3D PLM) operating revenues for the quarter increased by 8.1% sequentially and 12.6% yoy, whereas it increased by 5.6% and 25.9% respectively in INR terms EBITDA margin for the quarter is 12.4% against 18.6% in Q3 12 mainly due to Consultant fee (INR 27.36 mn) and provision for doubtful debts on account of reconciliation of debtors (INR 82 Mn) Effective tax rate for the quarter is 10.2% as against 2098% in Q3 12 due to deferred tax credit of INR 31 mn in Q3 12 PAT before tax on sale of asset and prior period items is INR 127.76 mn in Q4 12 compared to INR 212.74 mn in Q3 12 and INR 178.96 mn in Q4 11 EPS for the quarter is 2.04 as against 3.40 in Q3 12 and 2.87 in Q4 11 Adjusted EPS for the quarter is 2.80 as against 2.95 in Q3 12 and 2.80 in Q4 11 EPS adjusted for foreign exchange gain/(loss) on subsidiary revaluation and consultant fee
EPS for FY 12 is 9.45 as against 9.24 in FY 11, Adjusted EPS for FY 12 is INR 9.59 as against 8.72 in FY 11
New contracts amounting to USD 11.71 Mn awarded during the quarter Total headcount is up from 4447 in Q3 12 to 4567 in Q4 12 The Board of Directors recommended a dividend of 80% on face value of Rs. 2 per share
-39.9%
-28.4%
-61.9%
-45.0%
(20.00)
27.36 0.00 1.73
36.00
21.60 13.70 2.10
3.00
0.00 0.00 1.72 Geometric Limited | www.geometricglobal.com
10
2.8%
11
FY 11
104.81 45.42 4760.73 3273.06 1487.67 31.2% 1155.30 8.62 130.79 192.96 4.1% 115.39 308.35 6.5% 403.25 8.5% 18.77 0.00 289.58 6.1% 0.00 1.77 291.34 6.1% 4.68 0.00 31.22 0.00 0.00 4.17
Var
17.2% 6.0% 24.3% 25.6% 21.4% 20.1% 52.9% 3.8% 39.3% 88.0% 57.5% 56.2% 161.4% 50.8%
-316.2% 109.6%
196.7%
43.8%
12
Profit Trends
EBITDA as % of Revenue
25% 20% 15% 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY10 FY10 FY11 FY11 FY11 FY11 FY12 FY12 FY12 FY12 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY10 FY10 FY11 FY11 FY11 FY11 FY12 FY12 FY12 FY12
EPS
10%
5% 0%
PAT as % of Revenue
30%
Tax as % of Profit
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
25%
20% 15% 10% 5% 0% -5% -10% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY10 FY10 FY11 FY11 FY11 FY11 FY12 FY12 FY12 FY12
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY10 FY10 FY11 FY11 FY11 FY11 FY12 FY12 FY12 FY12
Q3 FY12
5.19%
46.13%
10.11%
50.13%
6.55%
Offshore Other Income Investment Income Sale of Assets FX Gain/(Loss) Others Total Q4 12 11.81 0.39 (30.19) 15.02 (2.97) Offsite % of OPR 0.5% 0.0% -1.3% 0.7% -0.1% Onsite Q3 12 11.20 0.08 2.02 0.17 13.46 Products % of OPR 0.5% 0.0% 0.1% 0.0% 0.6% Q4 11 5.64 0.00 60.35 1.58 67.57 % of OPR 0.3% 0.0% 3.4% 0.1% 3.8%
14
Offshore Leverage
By Revenue
70 60 50 40 30 20 10 0
64.2
64.9
60.8
60.8
58.9
56.4
57.3
58.3
60
59
35.7
35.1
39.2
39.4
41.1
41.1
42.7
41.7
40
41
Q3 FY10
Q4 FY10
Q1 FY11
Q2 FY11
Q3 FY11
Q4 FY11
Q1 FY12
Q2 FY12
Q3 FY12
Q4 FY12
By Effort
100
80 60 40
86
86
85
85
84
85
84
85
85
84
20
0
14
14
15
15
16
15
16
15
15
16
Q3 FY10
Q4 FY10
Q1 FY11
Q2 FY11
Q3 FY11
Q4 FY11
Q1 FY12
Q2 FY12
Q3 FY12
Q4 FY12
Offshore
Onsite
Q3 FY12
7.20% 31.47% 52.28% 9.06%
13.66%
Offshore Other Income Investment Income Sale of Assets FX Gain/(Loss) Others Total Q4 12 7.42 0.03 (27.39) 14.26 (5.67)
Products % of OPR 0.4% -0.1% 4.1% 0.0% 4.4% Q4 11 4.02 0.00 34.74 1.26 40.02 % of OPR 0.3% 0.0% 2.5% 0.1% 2.9%
16
48 52 54 46
52
48
54
57
58
59
56
56
46
43
42
41
44
44
Q4 FY10
Q1 FY11
Q2 FY11
Q3 FY11
Q4 FY11
Q1 FY12
Q2 FY12
Q3 FY12
Q4 FY12
By Effort
90 80 70 60 50 40 30 20 10 0
76
75
75
77
75
75
75
74
24
25
25
23
25
25
25
26
Q1 FY11
Q2 FY11
Q3 FY11
Q4 FY11
Q1 FY12
Q2 FY12
Q3 FY12
Q4 FY12
Offshore
Onsite
Cost Of Revenue Manpower Travel Software amortization Other Software Staff Welfare Data Communication Total S&M Expense Manpower Travel Other Business Expenses Total
Q4 12 1,294.71 53.66 17.22 52.65 12.17 3.98 1,434.38 Q4 12 81.91 8.25 7.36 97.53
Q3 12 1,232.73 71.97 17.53 51.07 9.76 2.47 1,385.52 Q3 12 75.50 9.59 7.90 92.98
Q4 11 1,017.95 48.98 9.99 27.07 12.40 4.90 1,121.28 Q4 11 70.42 10.81 11.04 92.27
18
G&A Expense Manpower Travel Facility Recruitment Training Communication & Information System Insurance Legal & Professional Bad Debts Others Total
Q4 12 116.00 10.94 103.56 6.25 4.39 5.89 3.17 54.09 91.56 39.74 435.59
% of OPR 5.2% 0.5% 4.6% 0.3% 0.2% 0.3% 0.1% 2.4% 4.1% 1.8% 19%
Q3 12 97.36 9.03 95.03 11.49 3.90 6.71 4.24 44.91 16.78 28.87 318.33
% of OPR 4.4% 0.4% 4.3% 0.5% 0.2% 0.3% 0.2% 2.1% 0.8% 1.3% 15%
Q4 11 84.86 9.57 80.40 20.02 5.67 8.20 3.91 27.85 (9.43) 30.00 261.05
Q4 12
% of OPR
Q3 12
% of OPR
Q4 11
% of OPR
Facility Depreciation
Non-facility Depreciation Lease Rentals Total
25.00
26.37 23.54 74.91
1%
1% 1% 3%
15.23
36.13 22.38 73.74
1%
2% 1% 3%
17.82
32.01 20.47 70.30
1%
2% 1% 4%
19
Cost Of Revenue Manpower Travel Software amortization Other Software Staff Welfare Data Communication Total G&A Expense Manpower Travel Facility Recruitment Training Communication & Information System Insurance Legal & Professional Bad Debts Others Total Depreciation & Lease Rentals Facility Depreciation Non-facility Depreciation Lease Rentals Total
Q4 12 989.58 51.64 17.04 50.87 4.43 3.94 1,117.50 Q4 12 105.11 8.93 77.55 5.36 1.06 4.69 2.59 51.06 91.56 13.17 361.07 Q4 12 10.44 2.04 22.41 34.88
Q3 12 941.55 71.28 17.45 48.56 3.94 2.47 1,085.25 Q3 12 84.58 7.65 72.57 10.13 1.80 5.59 3.73 41.63 16.78 3.64 248.10 Q3 12 4.50 7.93 21.53 33.96
Q4 11 808.48 45.76 9.25 25.29 4.67 4.86 898.31 Q4 11 65.77 8.76 66.94 19.13 2.35 7.00 3.33 24.82 (9.43) 20.16 208.81 Q4 11 9.74 7.47 19.46 36.67
20
21
Service Lines
Revenues Across Service Lines
30
25
23.61
24.26
20.88
18.25 16.78
20
17.71
17.21
17.73
18.74 14.72
15.6 15.57
15
12.06
9.99
10
13.36
7.58
8.36
1.84
0
2.27
1.87
2.46
2.36
2.11
2.07
2.21
2.4
Q3 FY10
Q4 FY10
Q1 FY11
Q2 FY11
Q3 FY11
Q4 FY11
Q1 FY12
Q2 FY12
Q3 FY12
Q4 FY12
Software Services
Engineering Services
Products
22
Service Lines
Percentage of Revenue Contribution
70%
60%
54.90%
54.00%
50%
40%
36.90%
38.90%
40.40%
37.60%
39.40%
40.60%
30%
20%
10%
6.80%
8.10%
6.30%
7%
6.80%
6.20%
5.50%
5%
5.20%
5.40%
0% Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12
Software Services
Engineering Services
Products
23
Regions
80%
70%
66.40%
67.50%
67.40%
68.90%
71.60%
72.00%
72.20%
60%
50%
40%
30%
26%
20%
10%
6.80%
7.30%
6.10% 4.60%
Q1 FY11
6.10% 5.50%
Q2 FY11
5.50% 5.70%
Q3 FY11
6.10% 5.30%
Q4 FY11
6.10% 4.20%
Q1 FY12
5.90% 3.70%
Q2 FY12
6.40% 4.40%
Q3 FY12
5.90% 4.70%
Q4 FY12
0%
3.90%
Q3 FY10
3.50%
Q4 FY10
USA
Europe
APAC
India
24
Customer Segments
70%
59.50%
60%
60.50%
61.90%
62.30%
62.50% 59.30%
59.50%
61.60%
53.70%
50%
55.00%
40%
37.90%
33.50%
31.60%
30%
20%
10%
8.40%
7.20%
5.90%
8.40%
7.70%
8%
6.40%
6.70%
7%
6.80%
0% Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12
Direct Industrial
Strategic Partners
Software ISVs
25
Verticals
Q4 12
4.10% 15.50% 33.90% 2.90% 43.70% 4.20% 15.10%
Q3 12
2.90% 39.80%
38.10%
Industrial
Automotive
USA
Europe
APAC
Vertical (%)
Industrial Automotive USA Europe APAC
Q4 12
43.7% 33.9% 15.5% 4.1% 2.9%
Q3 12
39.8% 38.1% 15.1% 4.2% 2.9%
Q4 11
36.8% 38.8% 15.6% 4.3% 4.5%
26
Customer Analysis
Revenue (%) Top 1 Top 5 Top 10 Number of customers with more than 5% revenue contribution Clients > $ 10 million $5 - $10 million Q4 12 28% 58% 70% 3 Q3 12 30% 55% 70% 3 Q4 11 24% 54% 70% 6
Q4 12 2 4
Q3 12 2 5
Q4 11 2 5
$1 - $5 million
< $1 million Clients Total number of active clients Number of new clients added New Clients Q4 12 Industrial Automotive Other emerging verticals Total US 1
19
84 Q4 12 109 4 Europe
16
85 Q3 12 108 9 APAC 1 2 3
17
76 Q4 11 100 5 Total 2 2 0 4
27
Deal Analysis
Order Book (USD million) New deals won Q4 12 11.71 Q3 12 3.55 Q4 11 7.25
US 2.63
Europe 0.87
APAC 0.23
India 0.47
Total 4.19
Software Services
Products Total
6.21
0.24 9.08
0.77
0.28
0.01
7.27
0.24
1.64
0.52
0.47
11.71
28
Business Highlights
Business Highlights
Launch of our new customizable, multi-platform 3D visualization tool, Glovius, which runs on Windows and is available as an app for iPad/iPhone and Android systems Establishment of our twelfth delivery center in Toulouse, France Strategic partnership with PROSTEP AG, a leading solution provider for PLM integration, product data exchange and migration, to provide first line of technical support to PROSTEPs customers using the companys OpenDXM suite of products in the APAC region
Customer wins
A multi-million dollar deal to develop a next generation design and analysis application for a ship classification services company in North America Added a leading Asian automotive OEM to our customer list through plant digitization and ENOVIA upgrade solutions Plant simulation project for a global energy company in APAC Won a project for handling engineering data from the enterprise Teamcenter PLM system with a leading European auto maker Should costing engagement for a leading off-highway company in India An application support engagement with worlds leading earthmoving equipment company for managing their process planning applications An off-shore finite element analysis (FEA) engagement for a global mining equipment manufacturer Application management and support for a European auto OEM for their PLM landscape KBE and automation project with a Aerospace Tier 1 supplier in North America CAD enhancement project for a European fashion house Reinforced our Windchill footprint through a Windchill implementation and PLM migration program for a leading aerospace Tier 1 supplier
| People Building Partnerships Geometric Limited | www.geometricglobal.com
29
30
Operational Parameters
GL Consolidated
Project Type (%) Revenue (%) Time & Material Fixed Price Q4 12 80.2% 19.8% Utilization (%) Q4 12 Including Trainees Excluding Trainees 89.3% 90.3% Q3 12 88.0% 90.9% Q4 11 86.0% 86.9% Q3 12 81.3% 18.7% Q4 11 79.6% 20.4%
Q3 12 74.6% 25.4%
Q4 11 76.3% 23.7%
Q3 12 83.2% 87.6%
Q4 11 80.7% 82.9%
31
Employee Base
4200 3600
2869 2956 3,144 4,271 3905 3,969 1267 1474 4,447 4,567 1556
3,494
1128
1526
3000
2400 1800 1200
1871 1942 2,105
998
1014
1039
2,366
2,505
2,710
2,702
2,797
2,921
3,011
600 0 Q3 10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Other subsidiaries
Headcount
Billed Unbilled + Trainee Operations Support Sales Corporate Functions Total
Q4 12 3832
388 49 29 269 4567
Q3 12 3657
438 41 30 281 4447
Q4 11 3052
479 49 26 299 3905
15.1%
Experience Profile
8.5% 41.6%
< 3 years 3 - 6 years
34.8%
32
208
173
109
227 -118
180
290 425
121
490 447 279 380
593 334
200
100 0 -100 -200 -300
343
-110
-178
-218
-174
-151
-158
-193
-172
-170
Q2 10 Q3 10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Recruitment Attrition
Recruitment Profile
Attrition (%) Software Services Engineering Services Products Overall Q4 12 15.1% 12.4% 0.0% 15.7% Q3 12 12.8% 18.3% 4.8% 16.5% Q4 11 14.4% 15.1% 4.7% 14.2% FY12 15.8% 17.0% 4.3% 16.7%
6.9% 2.9%
0-3 years 3-6 years
32.4%
57.8%
33
INDIAN GAAP
34
Sources of Funds Shareholders Funds Share Capital Share Application Money Reserves & Surplus Non-Current Liabilities Current Liabilities Minority Interest
Total
Applications of Funds Non-Current Assets Fixed Assets Other Non-Current Assets Current Assets Current Investments Trade Receivables Cash and Cash Equivalents Other Current Assets Total
4877.24
Q4 12 891.46 207.49 695.62 1445.05 561.65 1075.97 4877.24
4900.40
Q3 12 870.38 182.60 534.85 1646.68 818.52 847.37 4900.40
3481.25
Q4 11 847.15 163.26 138.52 1183.49 108.71 1040.12 3481.25
35
Loans & Hedging position as on period end | People Building Partnerships Geometric Limited | www.geometricglobal.com
36
37
Dial-in details
Location Mumbai Local access number for other cities in India India Toll Free USA Singapore International Direct Toll Access Number Access Number +91 22 2824 3311 1860 200 3399
1800 425 4249
38
About Geometric
Geometric (www.geometricglobal.com) is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global Engineering services and Digital Technology solutions for Product Lifecycle Management (PLM) enables companies to formulate, implement, and execute global engineering and manufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle. Headquartered in Mumbai, India, Geometric was incorporated in 1994 and is listed on the Bombay and National Stock Exchanges. The company recorded consolidated revenues of Rupees 8.08 billion (US Dollars 167.51 million) for the year ended March 2012. It employs 4500 people across 12 global delivery locations in the US, France, Romania, India, and China. Geometric was assessed as CMMI 1.1 Level 5 for its software services and is ISO 9001:2008 certified for engineering operations. The companys operations are also ISO 27001:2005 certified.
For more information, please contact: Media Contact Kavita Karnani +91.20.40284496 kavita.karnani@geometricglobal.com Investor Relations Santosh Gambhire +91.22.67056935 santosh.gambhire@geometricglobal.com
| People Building Partnerships Geometric Limited | www.geometricglobal.com
39
END OF PRESENTATION
40
41
Guide 1
Slide #
9,10,11,1 2
Item
Income Statement
Explanation
Income statement provided is in the MIS format. MIS format is different from the income statement published as part of financial results in terms of grouping of cost elements. Key differences to be noted are as follows: 1. MIS format breaks-up operating costs as COR, S&M and G&A 2. Depreciation line item in MIS format also includes the lease rentals for computing hardware (CAPEX equivalent) and excludes software depreciation which is clubbed under software expenses in COR 3. FX gain/(loss) is grouped under Other Income in MIS format as against operating cost in financials. 4. MIS Format provides only interest expenses whereas financial results clubs interest and bank charges in one line item. For EBITDA calculation, amortization software has been added and lease rentals have been reduced in depreciation
14,16
Onsite: Delivery from high cost country Offshore: Delivery from low cost country, but in company premises Offsite: Delivery from low cost country, but in customer premises Investment income includes dividend from mutual funds, interest earned on bank deposits and profit on sale of mutual fund investments. Manpower costs in MIS exclude staff welfare, but include mediclaim and group insurance costs vis--vis personnel costs in financials
14,16 18,19,20
42
Guide 2
Slide #
18,19,20
Item
Travel
Explanation
Reimbursement of travel expenses are grouped under travel expenses while the same has been grouped under other expenses in financial result advertisement
Facility costs include rent and service charges, electricity charges, repairs and maintenance excluding that of EPABX and UPS Includes depreciation on leasehold land, building, electrical installations, office equipments and furniture and fixtures Primarily consists of depreciation on computing hardware
19,20
Facility
19,20
Facility Depreciation
19,20
19,20 22-26 23
Includes lease rent paid for computing hardware Analysis reported is for USD operating revenue Software Services - PLM Solutions + OPD business
43
Guide 3
Slide #
25
Item
Customer Segments
Explanation
Software ISV segment consists of S/W product companies giving us OPD business. Strategic Partner segment consists of S/W product and consulting companies engaging in PLM Solutions and Engineering Services business. Direct Industrial segment consists of industrial companies sourcing all types of services from Geometric. Analysis reported is for USD operating revenue excluding Products and H/W reimbursement revenue. Analysis reported is for USD operating revenue. Distribution is on the basis of annualized figures (i.e. quarterly revenue x 4). Customers for product service line are counted only if revenues are more than $5000/quarter. New deals won refers to new business wins with existing or new customers. This excludes rampup in or extension of existing contracts.
31 27 27 28
Project Type Revenue Analysis Customer Revenue Analysis Client data Order Book
44
Guide 4
Slide #
32
Item
Employee Base
Explanation
Employee headcount reported includes all permanent employees and non-permanent employees working on billed positions. Distribution reported is for all employees including sales and corporate support functions Only undesired attrition data is reported. Difference in the net addition reported on slide 24 and difference in headcount reported in slide 23 is on account of desired attrition. % Attrition reported is on an annualized basis. Change in Q1 12 Attrition % compared to last quarter for like to like comparison DSO reported is on a quarterly basis Includes impact of FBT and deferred tax Includes normal CAPEX and purchase value of leased computing hardware All FX loans are revalued at the end of the quarter based on the closing exchange rate Forward contracts that classify for hedge accounting under AS30. MTM impact of these contracts is taken to the balance sheet under Cash Flow Hedging Reserve. MTM impact of other contracts hits the P&L as part of FX Gain/(Loss)
32 33
36 36 36 36 36
45