Annual General Meeting
27th SEPTEMBER 2008
Partha De Sarkar
Chief Executive Officer
1
Welcome Members
HTMT Profile
• Leading Player: One of the largest listed BPOs in India
• Strong Promoter: Part of transnational Hinduja Group
• International Reach: Global provider of BPO services
• Global Presence: 75 clients, 21 centers, 6 countries
• Solid financial position: Networth of Rs. 736.8 crore and BVPS of Rs. 358.7 as
on 31st March 2008.
• Accelerated financial growth:
–
Revenues grow 139% to Rs. 673 crore
–
PAT expands 198% to Rs. 87 Crore.
Holding Structure
HTMT – Global Leadership
Partha De Sarkar
CEO
Anand Vora
Chief Financial
Officer
Viswanath Rao
Executive VP
Operations
Subramanya C
Global CTO
Jaideep Kapur
Head – Europe
& F & A world wide
Murthy B N
President
North America
Patrick David
Executive VP
HR
Pushkar Misra
President
Philippines
Global Delivery – Local Path
Location wise Seats
The HTMT Edge
THE CONSULTATIVE
APPROACH
Partnership approach to Clients
for developing optimum solutions
and add greater value
FLEXIBILITY OF TOOLS
Investments in Tools and platforms that
integrate seamlessly with clients
platforms
STABLE & SCALABLE
BUSINESS MODEL
• On-shore, Near shore &
offshore delivery
• Speed of execution – track record
of over 450 processes
• BOT, assisted build out, JV
ABILITY TO PROVIDE
A ‘SEEDED’ UNIT
Experience in various domains enables
HTMT to get projects started
with minimum lead time
OPTIMAL BALANCE OF
AUTOMATION & PEOPLE
Combination of people and technology
helps to deliver operational excellence
Quality Certification
ISO 9001:2000 – UKAS
ISO 9001:2000– ANAB
BS 7799-2:2002
SAS 70 – Type II
HIPAA –
Health Insurance
Six Sigma
Process Improvement
ISO 27001
COPC - underway
Industry Recognition
Top 20 ITES-BPO Companies
ICT Innovation Award - 2008
Ranked 2nd best performing
Call Center Worldwide
in India 2007/08
Top 10 Employers for Best HR
Practices
Top 15 Employers for Employee
Satisfaction
Top 15 BPO Employer
Winner “Intelligent Enterprise
Award 2006 IT/ ITES”
1 of the 200 “Best under a
Billion” by Forbes Asia
BPO – Market Dynamics
Market Dynamics - Global Sourcing Trends
Global sourcing has become a fundamental part of almost every sourcing decision, and
India is at the forefront of offshore delivery.
Global sourcing market size (US bn)
100% = US $63 bn
India’s share in the global sourcing market
100% =
40
23
37%
(23)
Offshore
Business
Process
Services
63%
(40)
Offshore IT
Services
Source: Everest Research Institute (2007); NASSCOM
Other
locations
58%
65%
42%
35%
India
Offshore
IT services
Market Dynamics - Indian Market Overview
USD billion
IT & BPO
REVENUE
52
BPO
EXPORTS
40
PROJECTED
30
11
INDIA
DOMESTIC
BPO
8
6.0
1.5
FY 2007
FY 2008
FY 2007 FY 2008 FY 2012
FY 2007 FY 2008
The shifting BPO landscape
The growth in the BPO Market has been accompanied by evolving buyer expectations
Conventional Outsourcing
BTO
Operations and technology focus
Business focus – business driven
Benefits - labor arbitrage
Process improvement – creates value
Delivers control – manages operations
Competitive advantage
Executes legacy business processes
Business re-alignment – manages risks
Transfoms - sustained savings & value
Reduces non core functions
Value Spectrum
TACTICAL
STRATEGIC
Industry Challenges
BPO suppliers will need to build scalable and global delivery models
with a focus on:
• Integration of onsite and offshore delivery to ensure a seamless customer
experience
• Increase offerings to customer as global rationalization of vendors occurs
• Provide consulting-based solutions as customer demand for value creation
extends beyond simple cost arbitrage
• Demonstrate domain knowledge and leverage it to create innovative
customer specific solutions
• Attract and retain high caliber talent and foster a culture of learning
Financial Performance
Revenue Growth
Revenue Growth (FY 2004 to 2008)
Rs. Crores
800
637
600
432
400
200
141
FY 2004
201
294
43%
46%
FY 2005
FY 2006
47%
48%
FY 2007
FY 2008
CAGR of 47% is higher than the industry average of 37%
(Nasscom)
Revenue by Geography - FY 2007/08
Revenue - by Geography
40%
43%
0%
India
17%
Manila
17%
Mauritius
NA
Revenues well distributed across geographies – Natural Currency hedge
Revenue by Vertical - FY 2007/8
Vertical-wise Revenue
32%
30%
30%
21%
23%
22%
19%
21%
15%
10%
8%
12%
8%
5%
13%
5%
0%
Telecom &
Technology
Consum er Elec. /
Products &
Services
Health Insurance
FY07-08
BFSI
Pharm aceuticals
Q1 FY08-09
Presence in some of fastest growth verticals – Telecom, Consumer
electronics, Health Insurance
Others
125
3 yrs
100
FY 2006
8 yrs
87
FY 2007
87
76
Rs. Crores
75
50
20 yrs
48
48
5 yrs
43
4 yrs
47
38
32
25
16
A - Telecom
B- Health Ins.
C - Telecom
D - Telecom
E- Health Ins.
Key per share data – Consolidated financials
400
359
350
300
Rs.
250
240
200
192
150
100
50
0
Book Value
Cash Per Share
Market Price
As on 26th sep
Track record of Dividends
Dividend payout Rs. Cr.
25
20.5
20
15
10
10.3
5
0
FY2007
FY2008
Dividend Amount
Note: FY2007 Dividend percentage on an annualized basis.
Shareholding Pattern
Way Forward
Way Forward - Growth Initiatives
BUSINESS
GROWTH
Integration of
sales team to
set the stage
for faster
organic growth
INORGANIC
GROWTH
Scouting for
synergistic
opportunities
– to utilise
large cash
reserves
REVENUE
GROWTH
Global delivery
& multi lingual
capabilities
provide unique
service offerings
– will enable
HTMT to
command a
premium
SHARE OF
WALLET
Process
improvement
and delivery
structure
ensure quality
control –
client satisfaction
to lead to
more integrated
order wins
MARGIN
GROWTH
Building FAO,
KPO,
consulting
capabilities to
result in
non-linear
growth –
leading to
margin
expansion.
THE CONSULTATIVE
APPROACH
Partnership approach to Clients
for developing optimum solutions
and add greater value
FLEXIBILITY OF TOOLS
Investments in Tools and platforms that
integrate seamlessly with clients
platforms
STABLE & SCALABLE
BUSINESS MODEL
• On-shore, Near shore &
offshore delivery
• Speed of execution – track record
of over 450 processes
• BOT, assisted build out, JV
ABILITY TO PROVIDE
A ‘SEEDED’ UNIT
Experience in various domains enables
HTMT to get projects started
with minimum lead time
OPTIMAL BALANCE OF
AUTOMATION & PEOPLE
Combination of people and technology
helps to deliver operational excellence
• Thank you
Thank You