Firstsource Solutions Limited · NSE:FSL
Firstsource Solutions — Q3 FY2021 Earnings Presentation
21 slides from Firstsource Solutions's earnings presentation, Feb 9, 2021
Slide 1: Q3 FY2021 Earnings Update
Q3FY2021 EARNINGS UPDATE Q3 FY2021 EARNINGS UPDATE Partnering with World’s Leading Brands 1 © FIRSTSOURCE 2020 | CONFIDENTIAL I 9 February 2021
Slide 2: Disclaimer
Disclaimer Q3FY2021 EARNINGS UPDATE 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 statements. T
Slide 3: Strong All-Round Business Performance and FY2021 Estimates Revised
Q3FY2021 EARNINGS UPDATE STRONG ALL-ROUND BUSINESS FY2021 GROWTH PERFORMANCE MOMENTUM IS STRONG ESTIMATES REVISED • Revenue growth of • Strong demand environment • Revenue expected to 23.8% in constant • Ramp of recent wins coupled with grow between 16-17% in currency YoY in Q3 volume recovery drivi
Slide 4: Summary of Performance During the Quarter
Summary of Performance During the Quarter Q3FY2021 EARNINGS UPDATE REVENUES OPERATING MARGIN ₹ 13,652 Million ₹ 1,590 Million (US$ 184.8 Million) (Margin 11.6%) YoY growth of 29.6% YoY Margin expansion of 43 bps Constant Currency growth of 23.8% PROFIT AFTER TAX EARNINGS PER SHARE (DILUTED) ₹ 1,210
Slide 5: Summary of Performance For the Nine Months
Summary of Performance For the Nine Months Q3FY2021 EARNINGS UPDATE REVENUES OPERATING MARGIN ₹ 36,151 Million ₹ 4,118 Million (US$ 485.4 Million) (Margin 11.4%) YoY growth of 19.8% YoY Margin expansion of 56 bps Constant Currency growth of 13.1% PROFIT AFTER TAX EARNINGS PER SHARE (DILUTED) ₹ 3,150
Slide 6: Revenue Splits
Revenue Splits Q3FY2021 EARNINGS UPDATE VERTICALS Q3FY21 Q3 FY21 52.0% 20.5% 25.3% 2.2% • Growth momentum continues in BFS Q2 FY21 51.9% 18.8% 27.1% • Volume recovery coupled with new ramps driving growth in CMT 2.2% • Volume compressions owing to COVID19 partially offset by new deal Q1 FY21 51.2% 1
Slide 7: Client Concentration
Client Concentration Q3FY2021 EARNINGS UPDATE 5 of Top 10 3 of Top 6 4 of Top 10 Mortgage servicers Retail banks in the UK Lenders in the US in the US Top Client Q3FY21 17.5% 19.0 years Total Tenure Q3FY20 19.5% 950+ 5 of Top 10 1 of Top 3 Hospitals in the US Health insurance/ managed Utility compan
Slide 8: Annexure
Q3FY2021 EARNINGS UPDATE Annexure 8 © FIRSTSOURCE 2020 | CONFIDENTIAL I 9 February 2021
Slide 9: Financial Performance (Quarterly)
Financial Performance (Quarterly) Q3FY2021 EARNINGS UPDATE In ₹ million Q3 FY 2019 Q4 FY 2019 Q1 FY 2020 Q2 FY 2020 Q3 FY 2020 Q4 FY2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Income from services 9,723 9,642 9,669 9,715 10,446 10,673 10,537 11,783 13,510 Other operating Income 129 30 129 134 89 132 85 94
Slide 10: Financial Performance (Yearly)
Financial Performance (Yearly) Q3FY2021 EARNINGS UPDATE In ₹ million FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 9M FY2021 Income from services 31,617 34,569 34,315 37,867 40,502 35,831 Other operating Income 556 987 1,038 396 484 321 Revenue from operations 32,173 35,556 35,352 38,263 40,986 36,151 Rev
Slide 11: Balance Sheet and Cash Flow Statement
Balance Sheet and Cash Flow Statement Q3FY2021 EARNINGS UPDATE ₹ million As at 31-Dec-20 As at 31-Mar-20 ₹ million Quarter ended 31-Dec-20 Nine Months ended 31-Dec-20 Cash Flow from Operating Activities Equity And Liabilities Operating Margin 1,590 4,118 Adj: Non Cash and Other Income / (Expense) 49
Slide 12: Key Performance Indicators
Key Performance Indicators Q3FY2021 EARNINGS UPDATE Return on Equity Return on Capital Employed 15.9% 14.7% 13.8% 13.9% 13.9% 14.2% 14.1% 12.7% 13.0% 12.3% 12.3% 12.5% FY16 FY17 FY18 FY19 FY20 9MFY21 FY16 FY17 FY18 FY19 FY20 9MFY21 Annualised Annualised Cash Flow Debt Position 9,670 8,555 8,433 2,52
Slide 13: Operating Metrics
Operating Metrices Q3FY2021 EARNINGS UPDATE Particulars Q3 FY 2019 Q4 FY 2019 Q1 FY 2020 Q2 FY 2020 Q3 FY 2020 Q4 FY2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Banking & Financial Services 34.6% 36.1% 35.6% 40.4% 42.9% 42.8% 51.2% 51.9% 52.0% Communications Media & Tech 28.5% 27.5% 27.2% 22.0% 21.9% 22.9%
Slide 14: Forex Hedges
Forex Hedges Q3FY2021 EARNINGS UPDATE Outstanding FX hedges at $90.5 million for USD and £63.0 million for GBP GBP-INR USD INR Period Hedged Average Rate Hedged Average Rate 0-12 Months £ 34.71 Rs 103.31 /£ $ 76.72 Rs 76.33 /$ 13-24 Months £ 24.60 Rs 114.15 /£ $ 13.80 Rs 77.93 /$ More than 24 Months
Slide 15: Prior Period Reports
Prior Period Reports Q3FY2021 EARNINGS UPDATE (Hyperlinks) ANNUAL REPORT PUBLISHED RESULTS INVESTOR PRESENTATIONS PRESS RELEASE FY2021 Q1 Q2 Q3 FY2021 Q1 Q2 Q3 FY2021 Q1 Q2 Q3 FY2020 FY2020 Q1 Q2 Q3 Q4 FY2020 Q1 Q2 Q3 Q4 FY2020 Q1 Q2 Q3 Q4 FY2019 FY2019 Q1 Q2 Q3 Q4 FY2019 Q1 Q2 Q3 Q4 FY2019 Q1 Q2 Q3
Slide 16: About Us
Q3FY2021 EARNINGS UPDATE Established in 2001 INR 41.0 Billion About Us Revenues of (approximately $578 Million) in FY2020 26,618 firstsourcers UK across US, UK, India and Philippines US 5,042 6 5,657 22 Leaders in chosen segments across Banking & Financial Services, Healthcare, Communications, Media
Slide 17: Part of RP-Sanjiv Goenka Group
Q3FY2021 EARNINGS UPDATE Part of RP-Sanjiv Goenka Group Since 2012 Power & Natural Resources Carbon Black Retail & FMCG Media & Entertainment Combined Revenues of Infrastructure IT & ITeS $3.8 Billion in FY2020 Education & Sports 17 © FIRSTSOURCE 2020 | CONFIDENTIAL I 9 February 2021
Slide 18: Leading positions and service capabilities across segments
Most comprehensive set of licenses in the Top 3 in the chosen Revenue Cycle Leading CX service providers in the Top 15 Global Collections Q3FY2021 EARNINGS UPDATE US Mortgage outsourcing industry Management segments in US Healthcare UK across Media and BFS segments Provider • Streaming Services • Ho
Slide 19: Select Awards
Select Awards Q3FY2021 EARNINGS UPDATE Top Patient Engagement International Customer Contact Centre Network Welsh Contact Centre NelsonHall Solutions Provider Experience Awards Northern Ireland Awards Awards 2019: Healthcare Provider 2020: Firstsource, jointly 2020: Best Homeworking 2020: Contact Ce
Slide 20: Corporate Management – Senior Leadership
Q3FY2021 EARNINGS UPDATE Corporate Management – Senior Leadership Dinesh Jain Prashant Nandella Randall Shafer Venkatgiri Vandali Finance Operations Healthcare Health Plans & Provider Healthcare Services Deb Biswas Siddharth Parashar Arjun Mitra Steven Schachter Communications, Europe Business Colle
Slide 21: Q3FY2021 E ARNINGS U PDATE
Q3FY2021 EARNINGS UPDATE Helping customers stay ahead of the curve through transformational technologies and capabilities Firstsource Solutions Limited, an RP-Sanjiv Goenka Group company, is a leading provider of transformational solutions and services spanning the customer lifecycle across Healthca
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