Slide 1: Investor Presentation Q3FY24
INVESTOR PRESENTATION Q3FY24 1 © FIRSTSOURCE
Slide 2: Disclaimer
Disclaimer 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. The risks and uncertainties
Slide 3: Firstsource: Who we are?
Firstsource: Who we are? Established in 2001 Part of RP-Sanjiv Goenka Group Public listing in 2007 Since 2012 Domain driven BPM services company Leaders in chosen segments leveraging a ‘Digital First, Digital Now’ approach to solve key across Banking & Financial Services, Healthcare, customer proble
Slide 4: Part of RP-Sanjiv Goenka Group
Part of RP-Sanjiv Goenka Group Power Consumer & Retail Education & Infrastructure Sports Carbon Black Media & Entertainment Combined Revenues Asset Base Shareholders IT-Enabled Services US$4.5 Billion* US$6 Billion* 1 Million+* * All figures as on FY23 © FIRSTSOURCE | 4
Slide 5: We work with the leading global enterprises…
We work with the leading global enterprises… 6 of Top 15 Mortgage Servicers in the US Banking & Communications 5 of Top 15 Mortgage Lenders in the US Financial Services Media & Technology Asset Finance Streaming Services 6 of Top 10 Credit Cards Cable TV Credit card issuers in the US Mortgages Broad
Slide 6: And are market leaders in our focus domains
And are market leaders in our focus domains Market Leader Star Performer Customer Experience (CX) Collections Healthcare Payer Operations Omnichannel engagement White-labeled digital collections Peak Matrix Assessment | 2023 Active user personalization First-party & 3rd party collections Intelligent
Slide 7: We have realigned our strategic priorities…
We have realigned our strategic priorities… Simplify the organization Cross-sell/up-sell into existing clients Expand capabilities Amplify the ‘Firstsource’ brand Tech in everything we do Elevate employee experience TOP-QUARTILE REVENUE GROWTH CONCURRENT Improve margins MARGIN EXPANSION © FIRSTSOURC
Slide 8: And are focused on execution
And are focused on execution Our recent deal wins Total headcount 10-year renewal of contract as the primary outsourcing partner by the Top client, one of Europe’s leading media and entertainment companies Selection by Education Testing Services, one of the largest education assessment 25,947 organi
Slide 9: We expect Gen AI to open new revenue streams…
We expect Gen AI to open new revenue streams… Enterprise GenAI adoption cycle* Most enterprises are still early in their adoption cycle Deployed • Cost to compute/cost to infer is still high GenAI for 5+ • Board mandates driving demand for advice and processes 17% Deployed guidance GenAI Planning in
Slide 10: And we are building capabilities to address the opportunity
And we are building capabilities to address the opportunity FirstSense.AI Partner FirstSense.AI Studio ecosystem Our proprietary Sandbox Initiative to Across Robotics, framework to ecosystem for proactively Process and Task accelerate experimentation, engage Mining, and client’s AI evaluation, and F
Slide 11: We are socially conscious
We are socially conscious Firstsource ranked in the top 96th percentile on the Dow Jones Sustainability Index Score of 62 on the CSA metric as well as on the ESG metric in the first year of participation Included in the S&P Global Sustainability Yearbook 2024, one of only three Indian IT & ITES comp
Slide 12: And focused on shareholder value creation
And focused on shareholder value creation 5 Years Stock Performance NSE: FSL | BSE: 532809 | Reuters: FISO.BO| Bloomberg: FSOL:IN Market Capitalisation: US$1.8bn | Average daily trading volume: US$ 7mn Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 Aug-23 Feb-24 FSL NIFTY IT Sharehol
Slide 13: Leadership team
Leadership team Dinesh Jain Prashanth Nandella Vivek Sharma Venkatgiri Vandali Rajiv Malhotra Chief Financial Officer Chief Operating Officer Head – Comm, Media & Head – Healthcare & Head – Europe, Middle Tech, Banking & Fin. Lifesciences East & Africa Services Emerging Geos Ritesh Idnani MD & CEO A
Slide 14: In summary…
In summary… We see potential to grow at an accelerated pace over the medium term… Discontinuities caused by macro and technology shifts are creating market opportunities Our ‘market positioning’ gives us an advantage …Helped by our unique differentiators… Roster of long-standing relationships with q
Slide 15: Factsheet
firstsource’ Factsheet © FIRSTSOURCE | 15
Slide 16: Financial performance snapshot
Financial performance snapshot Revenue (in $ million) Revenue (in ₹ million) -0.1% 5.6% 18.5% 16.0% -5.7% 0.6% 8.2% 7.1% 23.9% 16.6% 1.7% 4.5.% 2.0% 6.6% 17.9% 14.6% -1.1% -0.1% 60,223 59,212 795 50,780 750 46,658 685 40,986 38,263 578 564 35,352 548 548 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 FY18 FY1
Slide 17: Key performance indicators
Key performance indicators Return on Equity (%) Return on Capital Employed (%) 17.6% 17.6% 17.7% 15.3% 15.3% 14.1% 13.9% 13.9% 13.4% 13.5% 13.0% 12.9% 12.3% 12.3% FY18 FY19 FY20 FY21 FY22 FY23 9MFY24* FY18 FY19 FY20 FY21 FY22 FY23 9MFY24* Note: FY21 ROE was 16.1% excluding exceptional items Cash Flo
Slide 18: Summary of Performance for the Quarter ended December 31, 23
Summary of Performance for the Quarter ended December 31, 2023 REVENUE ₹ EBIT ₹ ₹ 15,966 Million ₹ 1,709 Million (US$ 192 Million) (Margin 10.7%) YoY growth of 6.1% YoY growth of 21.2% Constant Currency YoY growth of 2.8% YoY Margin expansion of 134 bps ₹ PROFIT AFTER TAX EARNINGS PER SHARE (Diluted
Slide 19: Summary of Performance for the Nine Months ended December 2023
Summary of Performance for the Nine Months ended December 31, 2023 REVENUE ₹ EBIT ₹ ₹ 46,658 Million ₹ 5,132 Million (US$ 564 Million) (Margin 11.0%) YoY growth of 4.5% YoY growth of 36.5%# Constant Currency YoY decline of 0.1% YoY Margin expansion of 263 bps# (excluding one-time charges) ₹ PROFIT A
Slide 20: Revenue split | Q3FY24
Revenue split | Q3FY24 Revenue split by Revenue split by Revenue split by verticals geography service lines Diverse RoW 5.7% 0.1% PAA 20.7% CMT US DECX 22.5% UK 65.4% 53.5% 34.5% BFS 38.3% IBO Healthcare 25.8% 33.5% Banking & Financial Services (BFS) Healthcare United States (US) United Kingdom (UK)
Slide 21: FY24 business outlook
FY24 business outlook 0.5-1.5% 11-11.5% constant currency EBIT margin (normalized for one-time charges) revenue growth © FIRSTSOURCE | 21
Slide 22: Profit & loss statement
Profit & loss statement Consolidated IndAS financials In ₹ million Q2FY23 Q3FY23 Q4FY23 FY23 Q1FY24 Q2FY24 Q3FY24 QoQ YoY Income from services 14,735 15,033 15,566 59,859 15,267 15,417 15,948 3.4% 6.1% Other operating Income 147 16 2 364 25 (17) 18 - 10.7% Revenue from operations 14,882 15,049 15,56
Slide 23: Balance sheet
Balance sheet Consolidated IndAS financials In ₹ million As on 31-Dec-23 As on 31-Mar-23 In ₹ million As on 31-Dec-23 As on 31-Mar-23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Shareholder's Funds Fixed assets 2,461 2,789 Equity share capital 6,970 6,970 5,726 4,958 Reserve and surplus 30,761
Slide 24: Cash flow statement
Cash flow statement Consolidated IndAS financials Nine Months ended Nine Months ended In ₹ million Dec 31, 2023 Dec 31, 2022 Cash Flow from Operating Activities Net profit before taxation and non controlling interest 4,704 4,433 Depreciation and amortization 1,929 1,989 Finance costs (For borrowing
Slide 25: Operating metrics
Operating metrics Particulars Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Banking & Financial Services 48.3% 49.0% 46.3% 43.4% 41.8% 40.3% 40.8% 40.8% 38.3% Revenue by Healthcare 30.3% 30.3% 32.1% 34.5% 34.2% 33.2% 32.6% 32.7% 33.5% Vertical Communications Media & Tech 19.6% 19.0%
Slide 26: Thank You
THANK YOU Investor relations © Firstsource Solutions Limited | www.firstsource.com © FIRSTSOURCE | 26