Slide 1: Cover letter to stock exchanges: fact sheet Q4 FY23
NSE & BSE / 2023-24 / 011 April 25, 2023 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
Slide 2: Analyst Presentation, Quarter Ended March 31, 2023
Analyst Presentation Quarter Ended March 31, 2023 April 25, 2023
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: Persistent Crosses One Billion Dollars in Annual Revenue
Persistent Crosses One Billion Dollars in Annual Revenue. Thank you clients, partners, investors, and our global team!
Slide 5: The 33+ years of our journey
The 33+ years of our journey Fifth Orbit 2019 - 2023 Fourth Orbit 2016 - 2019 \ Strong Third Orbit positioning as a global Digital 2008 - 2016 \ Catching the early Engineering leader Second Orbit wave of Digital 2001 - 2008 \ Offering expansion Transformation \ Industry-leading First Orbit to full p
Slide 6: We are Persistent.
We are Persistent. A trusted Digital Engineering and Enterprise Modernization partner. $274.6M $1,098.2M $1,036.0M ₹2.5B FY23 Q4 Revenue Annualized revenue run rate TTM Revenue FY23 Q4 PAT based on Q4FY23 +26.3% YoY +35.3% YoY +25.1% YoY $421.6M ₹123.73 $4.3B 22,889 FY23 Q4 Total Contract TTM EPS Ma
Slide 7: Strong global presence with 22,750+ team members across key geographies
Strong global presence with 22,750+ team members across key geographies North & Rest of Central America Europe India the world 77.9% 10.3% 10.0% 1.8% Revenue Revenue Revenue Revenue 2,132 377 20,206 174 Employees Employees Employees Employees
Slide 8: Our core strengths in Digital Engineering fuel the next wave of transformation
Our core strengths in Digital Engineering fuel the next wave of transformation for our clients Software, Hi-Tech Banking, Healthcare & & Emerging Financial Services Life Sciences Industries & Insurance Accelerate Time to Market Enable Product & Platform Engineering Business Agility Unlock CX & Desig
Slide 9: We are helping market leaders transform their industries
We are helping market leaders transform their industries 14 of 30 60 Most Innovative US Companies Global Fortune 500 Companies As rated by Boston Consulting Group 8 of 10 25+ Banking Largest Banks in both Global FinTechs US & India 6 of 10 4 of 10 Top Medical Device Top US Health Systems Companies &
Slide 10: We continue to be recognized for our customer excellence and expertise
We continue to be recognized for our customer excellence and expertise Our 2021 awards build on our previous recognition from ISG Persistent was recognized in 2020 as the leader for Customer and Delivery Excellence in BFSI, HCLS, North America and APAC.
Slide 11: We are building on our long-term growth journey
We are building on our long-term growth journey 1,036 17.5% 27.3% Revenue CAGR Revenue CAGR from IPO to FY23 between FY20 and FY23 766 566 502 471 481 429 352 309 274 238 207 170 127 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 This Photo by Unknown Author is licensed under
Slide 12: Delivering consistent growth in revenue and margins
Delivering consistent growth in revenue and margins Quarterly Revenue ($M), % QoQ and % YoY Growth EBIT and PAT Margin % 300.0 50.0% 44.8% 280.0 42.2% 45.0% 40.2% 274.6 15.4% 15.4% 260.0 36.2% 264.4 40.0% 34.0% 14.3% 14.6% 240.0 255.6 35.0% 13.9% 14.0% 14.0% 13.5% 241.5 220.0 27.3% 30.0% 32.8% 217.3
Slide 13: On account of broad-based growth across all industry segments
On account of broad-based growth across all industry segments Quarterly Revenue ($M), % YoY Growth Software, Hi-Tech and Banking, Financial Healthcare Emerging Industries* Services & Insurance & Life Sciences 90 .0% 11 0.0 90 % 60 .0 57 % 85 % 80.0 80 .0% 80 % 10 0.0 55 .0 50 % 75 % 70 .0% 70 % 43 %
Slide 14: Leading to lower client concentration, consistent broad-based growth
Leading to lower client concentration, consistent broad-bas d g owth… Client Concentration Large Client Count Top 10 clients as % of total revenue >$5M Annual Revenue 46.7% 45.4% 45.0% 34 34 30 42.1% 40.7% 26 25 24 37.4% 22 21 36.7% 35.0% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY2
Slide 15: Persistent's Total Shareholder Return and 1-Year Stock Performance
…a d s g f ca t lo g-t m sha hold valu c at o … P s st t’s Total Sha hold R tu Persistent 1-Year Stock Performance v/s NIFTY 50 & NIFTY IT Index -3.4% 1 year return 0.8% -1% -3% 3 year return 736.6% -21% 14.9% 5 year return 564.1% 15.1% Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 NIFTY NIFTY IT
Slide 16: Performance Highlights
Performance Highlights
Slide 17: Anand Deshpande
O ’ p v , d d success, and agility in changing economic environments has b d v P ’ . ’ db d ,dv b , and the entire ecosystem that built Persistent from a small, Pune- based product engineering services provider to a multinational Enterprise Modernization and Digital Engineering powerhouse. Anand Des
Slide 18: Sandeep Kalra
Fiscal year 2023 was momentous for Persistent as we achieved several key milestones including attaining $1 billion in annual revenue and inclusion in three key indices of the National Stock Exchange of India including the Nifty IT index, among others. We have been nimble, proactive, and disciplined,
Slide 19: Financial highlights for Q4 FY23
Financial highlights for Q4 FY23 Revenue ($ million) 3.9% Q-o-Q 26.3% Y-o-Y Revenue (₹ million) 3.9% Q-o-Q 37.6% Y-o-Y 274.55 22,544.7 264.35 21,693.7 217.32 16,378.5 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 EBIT (₹ million) 4.0% Q-o-Q 50.7% Y-o-Y PAT (₹ million) 5.7% Q-o-Q 25.1% Y-o-Y 3,465.9 3,33
Slide 20: TCV and ACV bookings in Q4 FY23
TCV and ACV bookings in Q4 FY23 Trailing Twelve Month TCV* $1,623.6M Trailing Twelve Month TCV (New) $947.9M 440.2 421.6 394.0 250.3 230.3 239.0 228.3 367.8 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Trailing Twelve Month ACV* $1,170.9M Trailing Twelve Month ACV (New) $588.9M 326.3 310.
Slide 21: FY23 full year performance
FY23 full year performance Revenue ($ million) 35.3% Revenue (₹ million) 46.2% 1,036.0 83,505.9 765.6 57,107.5 FY22 FY23 FY22 FY23 EBIT (₹ million) 57.4% PAT (₹ million) 33.4% 9,210.9 12,472.3 6,903.9 7,921.6 Margin % 13.9% 14.9% Margin % 12.1% 11.0% FY22 FY23 FY22 FY23
Slide 22: Notable News and Achievements
Notable News and Achievements
Slide 23: Key wins for the quarter
Key wins for the quarter Software, Hi-Tech & Banking, Financial Services Healthcare Emerging Industries & Insurance & Life Sciences Engineering owner for data warehouse Developing a procurement and contract Building and integrating a genomic product suite and mobile application solution as well as m
Slide 24: Dividend update
Dividend update P B d D d d F Dvd d ₹12 p ₹5 * d p Dvd d ₹10 p v $1 b annual revenue, on the face value of ₹10 F Y 2022-23. J 2023, B dd d dvd d ₹28 p k dvd d ₹50 p . Total dividend* Dividend recommended by the Board is subject to approval at the ensuing Annual General Meeting. * p d dvd d ₹11 d dvd
Slide 25: Persistent Among Indian Midcap IT Services Companies in Forbes India's IT Services Special 2023
Persistent Among 4 Indian Midcap IT Services Companies in Forbes India’s IT Services Special 2023 Featured for strong performance & differentiation in the IT Services segment: \ Set up for broad-based & sustainable long-term growth \ Incubating new practices in strategic technology areas & industry
Slide 26: Persistent Establishes Dedicated Microsoft Viva Practice
Solidifying our focus on next-generation, disruptive technologies including Generative AI “We are pleased to work together with Persistent and bring the power of Microsoft Viva to foster a healthy company culture, Persistent Establishes support employee well-being, and establish a culture of learnin
Slide 27: Analyst and Advisor Recognitions for the quarter
Analyst and Advisor Recognitions for the quarter Persistent Listed on the Constellation ShortList™ Persistent Named a Leader in the 2023 Zinnov for Innovation Services and Engineering for Q1 Zones Intelligent Automation (IA) Services Ratings. 2023. Learn More Learn More Persistent Named a Rising Sta
Slide 28: News highlights for the quarter
News highlights for the quarter Zinnov Podcast: The Upside of the Generative AI and What the Future Downturn – Accelerated Innovation Holds Sandeep Kalra Dattaraj Rao CEO and Executive Director Learn More Chief Data Scientist Learn More How the Democratization of AI is Modern Data Protection – Where
Slide 29: Talent @ scale: an integrated approach for our $2 billion and beyond journey
An integrated approach for our $2 billion and beyond revenue journey Fortifying our Expanding our Talent @ scale Operations as a footprint boundaries multiplier \ Deepening industry \ Domain-centric \ Elevating employee \ Driving decisions using leading partnerships, capability expansion value propo
Slide 30: Financial Details
Financial Details
Slide 31: Sequential Q4 FY23 vs Q3 FY23
Sequential Q4 FY23 vs Q3 FY23 Expenses / Sales % Expenses / Sales % Particulars Q4FY23 Q3FY23 Change QoQ Q4FY23 Q3FY23 Revenue ($ M) Services 256.00 242.65 5.5% IP Led 18.55 21.70 -14.6% Revenue ($ M) 274.55 264.35 3.9% v . Ex R ₹/U $ 82.12 82.06 0.1% R v u (₹ M) 22,544.72 21,693.68 3.9% Cost of Rev
Slide 32: YoY Comparison Q4 FY23 vs Q4 FY22
YoY Comparison Q4 FY23 vs Q4 FY22 Expenses / Sales % Expenses / Sales % Particulars Q4FY23 Q4FY23 Change QoQ Q4FY23 Q4FY22 Revenue ($ M) Services 256.00 197.91 29.4% IP Led 18.55 19.41 -4.4% Revenue ($ M) 274.55 217.32 26.3% v . Ex R ₹/U $ 82.12 75.37 9.0% R v u (₹ M) 22,544.72 16,378.54 37.6% Cost
Slide 33: YoY Comparison FY23 vs. FY22
YoY Comparison FY23 vs. FY22 Expenses / Sales % Expenses / Sales % Particulars FY23 FY22 Change QoQ FY23 FY22 Revenue ($ M) Services 958.82 675.04 42.0% IP Led 77.16 90.55 -14.8% Revenue ($ M) 1,035.98 765.59 35.3% v . Ex R ₹/U $ 80.61 74.59 8.1% R v u (₹ M) 83,505.92 57,107.46 46.2% Cost of Revenue
Slide 34: Balance Sheet (₹ M)
Balance Sheet (₹ M) As on As on Particulars March 31, 2023 March 31, 2022 Assets PPE and Intangible Assets 23,574.67 16,406.93 Non-Current Assets 2,358.97 5,413.30 Cash and Investments 15,991.26 17,472.98 Other Current Assets 24,266.55 14,897.78 Total 66,191.45 54,191.01 Equity and Liabilities Equit
Slide 35: Fact Sheet
Fact Sheet
Slide 36: Fact Sheet
Fact Sheet Nos. / % Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 FY23 FY22 Revenue from Operations, USD M 274.6 264.4 255.6 241.5 217.3 1,036.0 765.6 % Q-o-Q growth 3.9% 3.4% 5.8% 11.1% 9.1% % Q-o-Q growth (constant currency) 3.5% 3.5% 6.6% 12.0% 9.3% Revenue % Y-o-Y growth 26.3% 32.8% 40.2% 44.8% 42.2% 35.3%
Slide 37: Fact Sheet
Fact Sheet Description / % Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 FY23 FY22 North America 77.9% 77.1% 78.6% 78.4% 78.6% 78.0% 78.8% Europe 10.3% 9.0% 8.3% 8.5% 8.4% 9.0% 8.7% Geography Revenue Mix India 10.0% 12.3% 11.5% 11.3% 11.0% 11.3% 10.6% ROW 1.8% 1.6% 1.6% 1.8% 2.0% 1.7% 1.9% Total 100.0% 100.0%
Slide 38: Fact Sheet
Fact Sheet Nos. Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 FY23 FY22 Clients Billed Services 743 770 767 735 678 935 845 IP Led 133 134 134 129 125 245 237 Nos. Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 FY23 FY22 $30M+ 5 5 3 3 2 5 2 Client $20M – $30M 4 2 3 1 2 4 2 Engagement Size $10M – $20M 8 9 6 7 6 8 6 $5M – $
Slide 39: Fact Sheet
Fact Sheet USD / Per Person Month Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 FY23 FY22 Linear Revenue Per Global Delivery Centers 15,972 15,962 16,181 16,423 16,383 16,130 16,459 Billed PM* India 4,434 4,424 4,498 4,387 4,317 4,436 4,291 % Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 FY23 FY22 Attrition Rate TTM Basi
Slide 40: Fact Sheet
Fact Sheet Description / Nos. / % Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 FY23 FY22 Billable Person Months 55,732 51,465 47,704 45,900 41,025 200,801 140,982 Global Delivery Centers 6,417 6,578 6,438 6,336 5,260 25,769 17,099 India 49,315 44,887 41,266 39,564 35,766 175,032 123,883 Billed Person Months 4
Slide 41: Slide 41