FY 2004, Quarter III

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FY 2004, Quarter III
18th October 2004
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Disclaimer

• Certain statements on 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 IT services 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-time frame
  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 Hexaware 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

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Highlights
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Financial Results

• Consolidated Revenues from Software Services
  amounts to Rs 1,461.97 Mn, up 58.9 from the
  third quarter of 2003
• Attains sequential Q-o-Q growth of 13.9 over Q2,
  04
• PAT at Rs 165.53 Mn, up 16.6 over Q2, 2004 and
  up 179.4 over Q3 of 2003
• Fully diluted EPS for the quarter was Rs. 26.12
  on an annualised basis

All financial numbers are as per Consolidated
Indian GAAP
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Progress

• New multi-year contracts worth gt 30mn signed
• 10 new clients added during the quarter
• Attrition declines to 14, headcount is 3,196
  317 employees added in Software services business
• Guidance on annual revenue raised to 118mn and
  PAT to 13mn, from 114mn and 12.5mn respectively

mentioned above, refers to USD
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Robust Growth
Revenue
INR, Mn------------------------?
PBT
PAT
EBITDA
Double digit growth over the quarters, enables
exploitation of operating leverage
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Vertical Split
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Technology Split

• A number of multi-year contracts exceeding 30mn
  overall in value were signed
• Less than 20 is on PeopleSoft technology.
• Key contracts include new business from Lufthansa
  and Citibank
• In many of our larger Fortune 500 clients, we
  have become preferred vendors of choice.

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Geographies
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Selling, General Administrative
Revenue
S, GA
INR, Mn------------------------?
EBITDA
Scale and smart-sizing leading to reduced S, GA
ratio, and improved profitability
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Revenue Mix
Focus on moving work offshore is paying off
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Client Size and Distribution

• Customer size increasing
• Over 32 of our clients are in the Global 500
• Marquee client list continues to increase

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Human Resources
SUPPORT
MKTG
ONSITE
OFFSHORE

• Attrition declines to 14
• Headcount is 3,196 persons in software services
• Focus on resource pyramid Base being increased
• Focused training system in place Hexavarsity

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Cash and Equivalents

• Investment in infrastructure for future growth
  continuing
• Investment in BPO operations done this quarter

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Future Outlook

• Guidance annual revenue raised to 118mn and PAT
  to 13mn, from 114mn and 12.5mn respectively
• Aggressive effort in enhancing portfolio of
  enterprise solutions
• Strengthening account management of key clients
  to enable better mining

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• Thank you for your time

For queries, contact Investor.relations_at_hexaware
.com / swapnab_at_hexaware.com