Slide 1: Cover letter to NSE and BSE: Fact Sheet Q1 FY25
NSE & BSE / 2024-25 / 106 July 18, 2024 The Manager The Manager Corporate Services, Corporate Services, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, 14th Floor, P J Towers, Dalal Street, Bandra (E), Mumbai 400 051 Mumbai 400 001 Ref: Symbol: PERSISTENT R
Slide 2: Investor Presentation July 2024
Investor Presentation July 2024 © 2024 Persistent Systems
Slide 3: Forward-looking and Cautionary Statements
Forward-looking and Cautionary Statements 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 statement
Slide 4: We are Persistent
We are Persistent A trusted Digital Engineering and Enterprise Modernization partner $328.2M $1,231.3M 14.0% FY25 Q1 Revenue TTM Revenue EBIT Margin +16.0% YoY +14.3% YoY +10.8% YoY $1,362.1M $7.8B* 23,519 TTM ACV Bookings Market Capitalization Employees 1 USD = INR 83.40 | * Market cap as on June 3
Slide 5: Our journey over 34+ years infused with Cloud, Data, and AI
Our journey over 34+ years infused with Cloud, Data, and AI… First Second Third Fourth Fifth Sixth Orbit Orbit Orbit Orbit Orbit Orbit 1990 – 2001 2001 – 2008 2008 – 2016 2016 – 2019 2019 – 2023 2024 onwards o Company inception o Category o Offering expansion o Catching the early o Strong positionin
Slide 6: Powered by our 23,500+ employees spread across the globe
…powered by our 23,500+ employees spread across the globe Netherlands Canada UK Germany Ireland Poland USA Romania India France Malaysia Switzerland Japan Mexico Costa Rica Sri Lanka Singapore GenAI Studio South Africa Australia North America Europe India Rest of the World 2,710 338 20,295 176 Emplo
Slide 7: We are fortifying our Digital Engineering heritage
We are fortifying our Digital Engineering heritage… Powered by AI Software, Banking, Healthcare Hi-Tech Financial & Life Unlock Growth Co-Innovation with & Emerging Services & Sciences Clients Industries Insurance Enable Business Agility Product & Platform Engineering Validation from Accelerate Indu
Slide 8: Pivoting to AI-led, platform-driven services approach
…by pivoting to AI-led, platform-driven services approach AI for Technology AI for Business TM Platform-based Services Strategic Big Bets Scaling with Ecosystem o Lead with Persistent’s Modern o Expanding and strengthening our o Strengthening collaboration with Engineering Framework existing AI capa
Slide 9: We are helping market leaders transform their industries
We are helping market leaders transform their industries Healthcare & Life Sciences Banking, Financial Services & Insurance Software & Hi-Tech 8 of 10 4 of 10 3 of 5 3 of 5 Top SIMD* Top Pharmaceutical Companies Companies Largest Banks Top Global 7 of 10 in both US & India FinTech Companies 4 of 10
Slide 10: Ecosystem Orchestrator of Choice for our clients
We are the “Ecosystem Orchestrator of Choice” for our clients Gold Partner & Direct Premier Partner Premier Partner Global Summit Partner Platinum Business CSP with 6,600+ with 2,923+ with 850+ with 2,150+ Partner with 2,032+ technologists technologists technologists technologists technologists 5,20
Slide 11: We continue to build on our long-term growth journey
We continue to build on our long-term growth journey… Revenue in $M 17.3% 24.0% 1,186 1,231 Revenue CAGR Revenue CAGR Form IPO to FY24 between FY20 and FY24 1,036 766 566 481 502 471 429 352 309 274 238 207 170 127 FY10 * FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 TTM * In
Slide 12: Delivering sustained profitable growth
…while delivering sustained profitable growth Quarterly Revenue ($M), % QoQ and % YoY Growth EBIT and PAT Margin % 328.2 315.0 310.9 295.0 15.4% 15.4% 300.6 14.6% 14.9% 14.5% 14.5% 291.7 13.7% 14.0% 275.0 282.9 274.6 tY1 255.0 264.4 42 255.6 0ll 12.2% 235.0 eX! 11.5% 11.0% 11.2% 10.9% 11.2% $ 10.7%
Slide 13: Steady performance across our industry segments
We are witnessing steady performance across our industry segments… Quarterly Revenue ($M) Software, Hi-Tech and Banking, Financial Healthcare Emerging Industries Services & Insurance & Life Sciences 139.4 101.1 100.0 90.0 87.7 80.0 70.0 60.0 50.0 40.0 30.0 20.0 38.4% 34.8% 29.3% 21.4% 16.3% 11.8% 6.
Slide 14: Expanding offerings and deepening client relationships
…by expanding our offerings and deepening our client relationships Client Concentration Large Client Count Top 10 clients as % of total revenue >$5M Annual Revenue 41 40 39 38 38 34 34 41.5% 30 40.0% 39.6% 39.5% 39.3% 37.4% 36.7% 35.0% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY23 Q
Slide 15: Healthy return on capital and equity
We have delivered healthy return on capital and equity… Return on Capital Employed (RoCE) Trend Return on Equity (RoE) Trend 37.5% 37.0% 37.0% 25.1% 24.8% 35.8% 35.7% 24.7% 35.4% 24.5% 24.4% 34.7% 24.3% 24.2% 33.2% 23.8% RoCE = TTM EBIT/Average of Net Assets excl. cash and cash equivalent at the beg
Slide 16: Creating industry-leading, long-term shareholder value
…creating industry-leading, long-term shareholder value Persistent Total Shareholder Return Persistent 1-Year Stock Performance* 74.0% 1 year return 1.1% 74% 213.9% 3 year return 4.4% 25% 5 year return 1274.0% 24.0% June-23 September-23 December-23 March-24 June-24 Persistent Nifty 50 Nifty IT Share
Slide 17: Sustainability and inclusivity embedded in long-term ESG goals
Sustainability and inclusivity are embedded in our long-term ESG goals… Environment Social Responsibility o Carbon neutral for scope 1 and 2 o Commitment to positively emissions by 2025; reduce scope 3 impact society through education, emissions from our global community development, and operations
Slide 18: Clear targets that reflect our ESG progress
…with clear targets that transparently reflect our ESG progress Snapshot of our FY24 ESG achievements Environment Diversity 44% 25,000 28.3% 99% 29.5% 12% Electricity sourced from Trees planted, taking the Of treated wastewater in Of waste recycled from Women in the workforce Women in leadership rol
Slide 19: Performance Highlights
Performance Highlights 18 © 2024 Persistent Systems
Slide 20: Message from Sandeep Kalra
“I am pleased to announce our 17th consecutive quarter of revenue growth, underscoring our clients’ sustained trust and confidence in us. Our continued success is driven by resilience, innovation, and a strategic focus on future readiness. We have pivoted to an AI-led, platform-driven services appro
Slide 21: Q1 FY25: Financial Highlights
Q1 FY25: Financial Highlights Revenue ($ million) 5.6% QoQ 16.0% YoY Revenue (₹ million) 5.7% QoQ 17.9% YoY 328.2 310.9 27,371.7 25,905.3 282.9 23,211.8 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 EBIT (₹ million) 2.6% QoQ 10.8% YoY PAT (₹ million) -2.8% QoQ 33.9% YoY 3,840.2 3,153.2 3,064.2 3,744.5 3
Slide 22: Q1 FY25: TCV and ACV Bookings
Q1 FY25: TCV and ACV Bookings Trailing Twelve Month TCV* $1,911.2M Trailing Twelve Month TCV (New) $1,203.3M 521.4 313.1 310.8 479.3 302.0 462.8 277.4 447.7 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Trailing Twelve Month ACV* $1,362.1M Trailing Twelve Month ACV (New) $749.7M 198.1 392.
Slide 23: Q1 FY25: TTM Performance
Q1 FY25: TTM Performance Revenue ($ million) 14.3% Revenue (₹ million) 16.4% 102,375.8 1,231.3 87,936.6 1,077.4 TTM Q1FY24 TTM Q1FY25 TTM Q1FY24 TTM Q1FY25 EBIT (₹ million) 9.6% PAT (₹ million) 24.8% 11,711.4 14,523.3 13,250.7 9,382.5 Margin % 15.1% 14.2% Margin % 10.7% 11.4% TTM Q1FY24 TTM Q1FY25 T
Slide 24: Q1 FY25: Key Wins
Q1 FY25: Key Wins Software, Hi-Tech & Banking, Financial Healthcare Emerging Industries Services & Insurance & Life Sciences Delivering engineering and support services Modernizing customer data applications, Enhancing the software platform that tracks to accelerate the virtual private cloud enhanci
Slide 25: Notable News and Achievements
Notable News and Achievements 24 © 2024 Persistent Systems
Slide 26: Thanking Ms. Roshini Bakshi
We thank Ms. Roshini Bakshi for her leadership and guidance… We would like to thank Ms. Roshini Bakshi for her contributions to our growth journey during her tenure as a Board Member. Independent Director July 26, 2014 – July 16, 2024 25 ©©2024 2024Persistent PersistentSystems Systems
Slide 27: Welcome Ms. Anjali Joshi as Independent Director
…and welcome Ms. Anjali Joshi as an Independent Director to the Board Technology and product leader with over 30 years of experience in engineering and product management o Ms. Anjali Joshi spent 13 years in senior product leadership at Google building and scaling products including Search and Maps
Slide 28: Dr. Anand Deshpande Received the 2023 ACM Presidential Award
Our Founder and Chairman honored for advancing computing and engineering Dr. Anand Deshpande Received the 2023 ACM Presidential Award Association for Computing Machinery (ACM) recognized Dr. Deshpande for: o Contributions to the global computing community and ACM through his visionary leadership, st
Slide 29: Agreement to Acquire Starfish Associates
We expanded our Enterprise Communications capabilities Persistent Signed an Agreement to “With the acquisition of Starfish Associates, Persistent Acquire Starfish Associates, is positioned to disrupt the Unified Communications and Contact Center markets. The firm’s industry- Strengthening its Positi
Slide 30: Strengthened Google partnership
We strengthened Google partnership to unlock further value for our clients… Persistent Enters into Strategic “Global organizations today are digitally transforming Partnership Agreement to Drive with Google Cloud’s trusted infrastructure, services, and generative AI. This new Strategic Partnership I
Slide 31: Premier Services Partner status with Snowflake
…and scaled our relationship with Snowflake, advancing client data journeys Persistent Achieves Premier “Through our continued work with Persistent, we’re Services Partner Status with helping joint customers leverage their data assets more effectively to push the boundaries of what’s possible Snowfl
Slide 32: iAURA AI-powered data solutions
We are driving clients’ transition to AI-driven enterprises with iAURA Persistent Transforms Enterprise “Persistent’s iAURA, unlocks the true potential of data. Data Management with iAURA, a It drives growth by empowering organizations to make informed data driven decisions. Its seamless Portfolio o
Slide 33: Recognized for Digital Engineering and Salesforce expertise
We were recognized for our Digital Engineering and Salesforce expertise… Ranked as a Leader in the ISG Provider Named a Leader and Rising Star in the Lens Digital Engineering Services ISG Provider Lens Salesforce Quadrant Report U.S. and Europe 2024 Ecosystem Partners 2024 Report Read the full repor
Slide 34: Acknowledged for enabling Hi-Tech business transformation
… and acknowledged for enabling business transformation for Hi-Tech clients Ranked as a Leader in HFS High-Tech Services, 2024 Persistent was recognized for: o Platform engineering expertise to reduce silos and improve operations for High-Tech clients o Enhancing clients' insights into technology pl
Slide 35: Applauded for governance and executive leadership
We were applauded for excellence in governance and executive leadership Recognized by the highly regarded portfolio Won the Masters of Risk award in the managers and analysts in the prestigious Risk Governance category at the “2024 Asia (ex-Japan) Executive Team” CNBC-TV18 India Risk Management surv
Slide 36: Financial Details
Financial Details 35 © 2024 Persistent Systems
Slide 37: Sequential Q1 FY25 vs Q4 FY24
Sequential Q1 FY25 vs Q4 FY24 % of Sales % of Sales Particulars Q1FY25 Q4FY24 Change QoQ Q1FY25 Q4FY24 Revenue ($ M) 328.2 310.9 5.6% Avg. Exchange Rate ₹ / US$ 83.4 83.3 0.1% Revenue (₹ M) 27,371.7 25,905.3 5.7% ₹ M ₹M Total Direct costs 18,328.7 17,286.3 6.0% 67.0% 66.7% Gross Profit 9,043.0 8,619
Slide 38: YoY Comparison Q1 FY25 vs Q1 FY24
YoY Comparison Q1 FY25 vs Q1 FY24 % of Sales % of Sales Particulars Q1FY25 Q1FY24 Change YoY Q1FY25 Q1FY24 Revenue ($ M) 328.2 282.9 16.0% Avg. Exchange Rate ₹ / US$ 83.4 82.0 1.7% Revenue (₹ M) 27,371.7 23,211.8 17.9% ₹M ₹M Total Direct costs 18,328.7 15,278.5 20.0% 67.0% 65.8% Gross Profit 9,043.0
Slide 39: Balance Sheet (₹ M)
Balance Sheet (₹ M) As on As on As on Particulars June 30, 2024 March 31, 2024 June 30, 2023 Assets PPE and Intangible Assets 22,940.4 22,550.0 23,003.7 Non-Current Assets 4,841.2 3,570.6 2,715.6 Cash and Investments 19,104.6 18,609.0 14,092.5 Other Current Assets 34,536.0 29,006.6 28,164.8 Total 81
Slide 40: Fact Sheet
Fact Sheet 39 © 2024 Persistent Systems
Slide 41: Fact Sheet: Revenue and DSO
Fact Sheet Q1FY25 Q4FY24 Q3FY24 Q2FY24 Q1FY24 FY24 FY23 Revenue from Operations, $M 328.2 310.9 300.6 291.7 282.9 1,186.0 1,036.0 % QoQ growth 5.6% 3.4% 3.0% 3.1% 3.0% % QoQ growth (constant 5.6% 3.4% 3.1% 3.2% 2.9% currency) Revenue % YoY growth 16.0% 13.2% 13.7% 14.1% 17.1% 14.5% 35.3% Revenue fro
Slide 42: Fact Sheet: Segment and Geography Revenue Mix
Fact Sheet Q1FY25 Q4FY24 Q3FY24 Q2FY24 Q1FY24 FY24 FY23 BFSI 30.8% 30.7% 31.2% 32.3% 33.3% 31.9% 32.9% Segment Healthcare & Life Sciences 26.7% 24.2% 21.8% 19.3% 18.6% 21.0% 19.7% Revenue Mix Software, Hi-Tech & Emerging 42.5% 45.1% 47.0% 48.4% 48.1% 47.1% 47.4% Industries Total 100.0% 100.0% 100.0%
Slide 43: Fact Sheet: Clients and Concentration
Fact Sheet Active Q1FY25 Q4FY24 Q3FY24 Q2FY24 Q1FY24 FY24 FY23 Clients Clients Billed* 374 382 375 375 367 390 358 Q1FY25 Q4FY24 Q3FY24 Q2FY24 Q1FY24 FY24 FY23 Top 5 30.7% 29.2% 28.0% 28.3% 27.9% 27.7% 27.0% Revenue Top 10 41.5% 40.0% 39.3% 39.5% 39.6% 39.0% 36.7% Concentration Top 20 51.9% 51.1% 51
Slide 44: Fact Sheet: People, Effort Mix, Utilization, Attrition
Fact Sheet Q1FY25 Q4FY24 Q3FY24 Q2FY24 Q1FY24 FY24 FY23 Technical 21,866 22,224 21,738 21,263 21,511 22,224 21,295 People Sales and Business Development 510 484 465 443 428 484 414 Numbers Others 1,143 1,142 1,133 1,136 1,191 1,142 1,180 Total 23,519 23,850 23,336 22,842 23,130 23,850 22,889 Q1FY25
Slide 45: Resilient and Future-Ready
Resilient and Future-Ready The Persistent Way