Slide 1: Cover letter to stock exchanges: Earnings Presentation
3rd May 2024 To: National Stock Exchange of BSE Limited (Scrip Code: India Limited (Scrip Code: FSL) 532809) Exchange Plaza, Phiroze Jeejeebhoy Towers, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Dear Madam/ Sir, Sub: Earnings Presentati
Slide 2: Earnings Presentation Q4FY24
Earnings Presentation Q4FY24
Slide 3: 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 4: About Us
About Us Domain driven BPM services company Established in 2001 leveraging a ‘Digital First, Digital Now’ approach to solve key customer problems Revenues of INR 63.4 Billion 150+ global clients including (US$765 Million) in FY2024 18 Fortune 500 companies and 3 FTSE 100 companies 27,940* Firstsourc
Slide 5: 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 6: Our Verticals
Our Verticals 5 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, Broadband and Credit card issuers in the US • Mortgages Telephony 3
Slide 7: Financial Performance Snapshot
Financial Performance Snapshot Revenue (in $ million) Revenue (in ₹ million) -0.1% 5.6% 18.5% 16.0% -5.7% 2.0% 8.2% 7.1% 23.9% 16.6% 1.7% 5.2.% 2.0% 6.6% 17.9% 14.6% -1.1% 1.1% 63,362 60,223 59,212 795 765 750 50,780 685 40,986 578 38,263 548 548 35,352 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 F
Slide 8: Key Performance Indicators
Key Performance Indicators Return on Equity (%) Return on Capital Employed (%) 17.6% 17.6% 17.7% 15.4% 15.3% 14.1% 13.9% 13.9% 13.9% 13.4% 13.0% 12.9% 12.3% 12.3% FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Cash Flow (in ₹ million) Debt Position (in ₹ million) 6,950 5,271 3
Slide 9: Leadership Team
Leadership Team Ritesh Idnani Dinesh Jain Prashanth Nandella Aftab Javed Aniket Maindarkar Hasit Trivedi MD & CEO Chief Financial Officer Chief Operating Officer Chief Human Resources Officer Chief Marketing Officer Chief Digital & AI Officer Vivek Sharma Venkatgiri Vandali Rajiv Malhotra Arjun Mitr
Slide 10: Total Shareholders Return
Total Shareholders Return FSL | 331% Nifty IT | 106% May-19 Nov-19 May-20 Nov-20 May-21 Nov-21 May-22 Nov-22 May-23 Nov-23 May-24 Total Shareholders Return (including dividends) of 363% in past 5 years Based on closing prices as of 2nd May 2024 © FIRSTSOURCE | 9
Slide 11: Performance Highlights | Q4FY24
Performance Highlights | Q4FY24 © FIRSTSOURCE | 10
Slide 12: Summary of Performance for the Quarter ended March 31, 2024
Summary of Performance for the Quarter ended March 31, 2024 REVENUE ₹ EBIT ₹ ₹ 16,705 Million ₹ 1,830 Million (US$ 201 Million) (Margin 11.0%) YoY growth of 7.3% YoY growth of 1.7% Constant Currency YoY growth of 4.5% YoY Margin contraction of 60bps Constant Currency QoQ growth of 4.2% QoQ margin ex
Slide 13: Summary of Performance for the Full Year ended March 31, 2024
Summary of Performance for the Full Year ended March 31, 2024 REVENUE ₹ EBIT ₹ ₹ 63,362 Million ₹ 6,962 Million (US$ 765 Million) (Margin 11.0%) YoY growth of 5.2% YoY growth of 25.4%# Constant Currency YoY growth of 1.1% YoY Margin expansion of 180 bps# ₹ PROFIT AFTER TAX EARNINGS PER SHARE (Dilute
Slide 14: Revenue Split | Q4FY24
Revenue Split | Q4FY24 Revenue split by Revenue split by Revenue split by verticals geography service lines Diverse RoW 6.2% 0.1% PAA 19.3% CMT DECX UK US 23.6% 54.9% 34.9% 65.0% BFS 37.3% IBO Healthcare 25.8% 32.9% Banking & Financial Services (BFS) Healthcare United States (US) United Kingdom (UK)
Slide 15: Deal Wins
Deal Wins • Selected by a large cooperative financial institution in the UK for services in the areas of financial crime and compliance • Additional business from a large retail bank, an existing client, to provide customer support and back-office services • Added one of the oldest and largest educa
Slide 16: Employee base
Employee base • Q4FY24: QoQ net headcount addition of 1,993 • India employee base higher by 1,718; RoW higher by 275 ‘Dream Employer of the Year’ ‘Dream Companies to Work For’ • FY24: net headcount addition of 4,922 • India employee base higher by 5,592; RoW lower by 670 iVolunteer Awards 2023 • TTM
Slide 17: Select Recognition | Q4FY24
Select Recognition | Q4FY24 Leader Horizon 2 in Cost Optimization and Revenue Generation Capability HFS Horizons For offering a dedicated consulting framework, resulting NelsonHall NEAT Innovator Customer Experience Service vendor assessment for in an elevated CX in CX Improvement Capability Provide
Slide 18: Our ESG journey
Our ESG journey Included in the S&P Global YearBook ‘2024 “Sustainability Yearbook Member” © FIRSTSOURCE | 17
Slide 19: FY25 business outlook
FY25 business outlook 10-13% 11-12% constant currency EBIT margin revenue growth © FIRSTSOURCE | 18
Slide 20: Factsheet
firstsource | Factsheet © FIRSTSOURCE | 19
Slide 21: Profit & Loss Statement
Profit & Loss Statement Consolidated IndAS financials In ₹ million Q4FY23 FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 QoQ YoY FY24 YoY Income from services 15,566 59,859 15,267 15,417 15,948 16,693 4.7% 7.2% 63,325 5.8% Other operating Income 2 364 25 (17) 17.6 12 (33.5%) 505.2% 37.17 (89.8%) Revenue from oper
Slide 22: Balance Sheet
Balance Sheet Consolidated IndAS financials In ₹ million As on 31-Mar-23 As on 31-Mar-24 In ₹ million As on 31-Mar-23 As on 31-Mar-24 ASSETS EQUITY AND LIABILITIES Non-Current Assets Shareholder's Funds Fixed assets 2,789 2,461 Equity share capital 6,970 6,970 4,958 6,355 Reserve and surplus 26,699
Slide 23: Cash Flow Statement
Cash Flow Statement Consolidated IndAS financials Full year ended Full year ended In ₹ million March 31, 2023 March 31, 2024 Cash Flow from Operating Activities Net profit before taxation and non controlling interest 6,152 6,297 Depreciation and amortization 2,632 2,602 Finance costs (For borrowing
Slide 24: Operating Metrics
Operating Metrics Particulars Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Banking & Financial Services 49.0% 46.3% 43.4% 41.8% 40.3% 40.8% 40.8% 38.3% 37.3% Revenue by Healthcare 30.3% 32.1% 34.5% 34.2% 33.2% 32.6% 32.7% 33.5% 32.9% Vertical Communications Media & Tech 19.0% 20.2%
Slide 25: Thank You
THANK YOU Investor relations © Firstsource Solutions Limited | www.firstsource.com © FIRSTSOURCE | 24