Slide 1: Fact Sheet filing cover letter to stock exchanges
NSE & BSE / 2024-25 / 173 October 22, 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: PERSISTEN
Slide 2: Investor Presentation October 2024
Investor Presentation October 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 AI-led, Platform-driven Digital Engineering & Enterprise Modernization partner $345.5M $1,285.1M 14.0% FY25 Q2 Revenue TTM Revenue EBIT Margin +18.4% YoY +15.4% YoY +22.8% YoY $1,394.5M $10.1B* 23,237 TTM ACV Bookings Market Capitalization Employees 1 USD = INR 83.72 | * Market cap
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 23,200+ employees spread across the globe
…powered by our 23,200+ 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 2,837 291 19,899 210 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 Leading with Persistent’s Modern o Expanding and strengthening existing AI o Strengthening collaboration with alliance Engineering Framew
Slide 9: Unveiled SASVA 2.0, Revolutionizing AI-Driven Software Development
We are advancing our platforms to help clients drive business transformation Unveiled SASVA 2.0, “With the increased need for speed and agility Revolutionizing AI-Driven in the software engineering services market, Software Development and the use of GenAI will be pivotal to improve efficiencies for
Slide 10: 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 11: 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 7,600+ with 2,830+ with 1,070+ with 2,100+ Partner with 2,025+ technologists technologists technologists technologists technologists 4,
Slide 12: We continue to build on our long-term growth journey
We continue to build on our long-term growth journey… Revenue in $M 1,382 17.3% 24.0% Revenue CAGR Revenue CAGR From IPO to FY24 between FY20 and FY24 1,186 1,036 Axis Title 766 566 481 502 471 429 352 309 274 238 207 170 127 FY10 * FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY
Slide 13: Delivering sustained profitable growth
…while delivering sustained profitable growth Quarterly Revenue ($M), % QoQ and % YoY Growth EBIT and PAT Margin % 345.5 328.2 15.4% 15.4% 14.9% 14.5% 14.5% 310.9 13.7% 14.0% 14.0% 300.6 291.7 tY1 282.9 42 274.6 0ll 12.2% eX! 11.5% 264.4 $ 11.0% 11.2% 10.9% 11.2% 11.2% 9.9%* Q3FY23 Q4FY23 Q1FY24 Q2F
Slide 14: 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 110.0 140.5 108.8 100.0 96.2 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 34.8% 29.3% 21.4% 16.3% 11.8% 6.
Slide 15: 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 43 41 40 39 38 38 34 34 41.5% 41.5% 40.0% 39.6% 39.5% 39.3% 37.4% 35.0% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY23 Q
Slide 16: 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 38.1% 37.5% 25.1% 37.0% 24.8% 24.7% 24.7% 35.8% 35.7% 35.4% 24.5% 34.7% 24.3% 24.2% 33.2% 23.8% RoCE = TTM EBIT/Average of Net Assets excluding cash and cash equivalent at the
Slide 17: Creating industry-leading, long-term shareholder value
…creating industry-leading, long-term shareholder value Persistent Total Shareholder Return Persistent 1-Year Stock Performance* 88% 1 year 88.1% return 0.9% 3 year 193.3% return 3.6% 32% 31% 5 year return 1812.6% 28.9% Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Share Price Return Div Yield% Persistent NIFT
Slide 18: Persistent Achieves Carbon Neutrality a Year Ahead of Target
We are solidifying our commitment to be a socially responsible organization “As the world grapples with the challenges of Persistent Achieves Carbon climate change, businesses playing a Neutrality a Year Ahead of Target proactive role in reducing their carbon footprint o Achieved carbon neutrality f
Slide 19: Sustainability and inclusivity in our long-term ESG goals
Sustainability and inclusivity are embedded in our long-term ESG goals Environment Social Responsibility o Maintain carbon neutrality for o Commitment to positively scope 1 and 2 emissions; committed impact society through education, to set SBTi-aligned emission community development, and reduction
Slide 20: Meaningful impact and recognitions
We are making meaningful impact and earning recognitions Environment 44% 25,000 28.3% 99% Among the “Top 50 India’s Electricity sourced from renewable Trees planted, taking the overall Of treated wastewater in owned Waste recycled Most Sustainable energy in India offices count to 121,035 trees campu
Slide 21: Upgraded to Version 3 of CMMI Maturity Level 5
We are dedicated to highest standards of quality and continuous improvement Upgraded to Version 3 of CMMI Maturity Level 5 certification This certification retains Persistent in an elite group of industry leaders, following a thorough evaluation across all verticals, including Agile development in J
Slide 22: Performance Highlights
Performance Highlights 21 © 2024 Persistent Systems
Slide 23: CEO message on Q2 FY25
“We are proud to announce the 18th sequential quarter of revenue growth, delivering $345.5M revenue, an 18.4% increase year-over-year. In the same period, our PAT grew by 23.4% in rupee terms. This quarter, we continued to strengthen our capabilities and advance our AI-led, platform-driven services
Slide 24: Q2 FY25: QoQ and YoY Financial Performance
Q2 FY25: QoQ and YoY Financial Performance Revenue ($ million) 5.3% QoQ 18.4% YoY Revenue (₹ million) 5.8% QoQ 20.1% YoY 345.5 328.2 28,971.5 27,371.7 291.7 24,116.7 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 EBIT (₹ million) 5.8% QoQ 22.8% YoY PAT (₹ million) 6.1% QoQ 23.4% YoY 4,062.3 3,840.2 3,250
Slide 25: Q2 FY25: TCV and ACV Bookings
Q2 FY25: TCV and ACV Bookings Trailing Twelve Month TCV* $1,960.9M Trailing Twelve Month TCV (New) $1,280.0M 529.0 389.8 521.4 462.8 302.0 310.8 447.7 277.4 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Trailing Twelve Month ACV* $1,394.5M Trailing Twelve Month ACV (New) $784.1M 218.6 392.
Slide 26: Q2 FY25: Trailing Twelve Months Performance
Q2 FY25: Trailing Twelve Months Performance (TTM) Revenue ($ million) 15.4% Revenue (₹ million) 17.1% 1,285.1 1,113.5 107,230.6 91,566.9 TTM Q2FY24 TTM Q2FY25 TTM Q2FY24 TTM Q2FY25 EBIT (₹ million) 12.6% PAT (₹ million) 25.6% 15,278.0 13,571.7 12,328.7 9,815.0 Margin % 14.8% 14.2% Margin % 10.7% 11.
Slide 27: Q2 FY25: Key Wins
Q2 FY25: Key Wins Software, Hi-Tech & Banking, Financial Healthcare Emerging Industries Services & Insurance & Life Sciences Enhancing the roadmap of product Modernizing cloud-based accounting Establishing an AI-enabled software engineering and data engineering of the core software platform and repo
Slide 28: Notable News and Achievements
Notable News and Achievements 27 © 2024 Persistent Systems
Slide 29: Sandeep Kalra Named Best CEO in IT Services
Our CEO and Executive Director was honored for his visionary leadership Sandeep Kalra Named the Best CEO in the IT Services (Emerging Companies) Category by Fortune India Sandeep was recognized for: o Focusing on technology and reorganization of the Company into clearly defined verticals o Driving n
Slide 30: Unleashing the next wave of growth from Top 100 clients
Launched the T100 Program: Investing in sustainable growth Unleashing the next wave of growth from Top 100 clients Talent Amplification Value Maximization Cultivating a high-caliber workforce to drive premium services and Leveraging our core strengths to enhance client ROI and foster expand mind sha
Slide 31: Persistent Advances Data Privacy and AI-Driven Business Transformation
We strengthened our digital governance and data privacy offerings Persistent Advances Data “With the strength and resources of Persistent, we now have the opportunity to go from what has been a specialist, boutique Privacy and AI-Driven business working with select long-term clients in India, to Bus
Slide 32: A Challenger in the Gartner 2024 Magic Quadrant
We advanced our multi-cloud services to cater to evolving client needs A Challenger for the Second Year in a Row in the Gartner® 2024 Magic Quadrant for Public Cloud IT Transformation Services We believe this recognition highlights Persistent’s: o Differentiated cloud expertise, including consulting
Slide 33: Named a Leader in ISG Provider Lens for Google Cloud
We were recognized for our expertise in Google Cloud ecosystem Named a Leader for the Second Consecutive Year in ISG Provider Lens for Google Cloud Ecosystem Partner 2024 Report Persistent was acknowledged for: o Robust services portfolio offering a full range of implementation and integration servi
Slide 34: Included in 4 Constellation ShortList 2024
We were commended for our services by leading research and advisory firm Persistent has been included in 4 Constellation ShortList 2024 for: o Public Cloud Transformation Services - demonstrating our expertise in helping clients bring together complex cloud migrations for three years in a row o AI S
Slide 35: Named a Leader in Everest Group BFSI PEAK Matrix
Our comprehensive BFSI value chain capabilities are driving client growth Named a Leader in Everest Group’s BFSI- specific Software Product Engineering Services PEAK Matrix® Assessment 2024 Persistent was commended for: o Robust IP solutions and COEs focused on cloud, AI/ML, blockchain, data and ana
Slide 36: Fastest-growing Indian IT services brand with 327% growth
We were cited as the fastest-growing Indian IT services brand with 327% growth “The company consistently scores high in employee “But Persistent’s growth hasn’t been limited to growth in equity, reflecting its people-centric culture, and excels in opportunities, customers, or revenue: Persistent’s r
Slide 37: Financial Details
Financial Details 36 © 2024 Persistent Systems
Slide 38: Sequential Q2 FY25 vs Q1 FY25
Sequential Q2 FY25 vs Q1 FY25 % of Sales % of Sales Particulars (₹ M, unless otherwise stated) Q2FY25 Q1FY25 Change QoQ Q2FY25 Q1FY25 Revenue ($ M) 345.5 328.2 5.3% Avg. Exchange Rate ₹ / US$ 83.9 83.4 0.5% Revenue 28,971.5 27,371.7 5.8% Total Direct costs 19,294.0 18,328.7 5.3% 66.6% 67.0% Gross Pr
Slide 39: YoY Comparison Q2 FY25 vs Q2 FY24
YoY Comparison Q2 FY25 vs Q2 FY24 % of Sales % of Sales Particulars (₹ M, unless otherwise stated) Q2FY25 Q2FY24 Change YoY Q2FY25 Q2FY24 Revenue ($ M) 345.5 291.7 18.4% Avg. Exchange Rate ₹ / US$ 83.9 82.7 1.4% Revenue (₹ M) 28,971.5 24,116.7 20.1% Total Direct costs 19,294.0 16,127.2 19.6% 66.6% 6
Slide 40: YoY Comparison H1 FY25 vs H1 FY24
YoY Comparison H1 FY25 vs H1 FY24 % of Sales % of Sales Particulars (₹ M, unless otherwise stated) H1FY25 H1FY24 Change YoY H1FY25 H1FY24 Revenue ($ M) 673.7 574.6 17.2% Avg. Exchange Rate ₹ / US$ 83.6 82.4 1.5% Revenue (₹ M) 56,343.2 47,328.5 19.0% Total Direct costs 37,622.6 31,405.7 19.8% 66.8% 6
Slide 41: Balance Sheet
Balance Sheet As on As on As on Particulars (₹ M) September 30, 2024 March 31, 2024 September 30, 2023 Assets PPE and Intangible Assets 24,879.8 22,550.0 23,077.5 Non-Current Assets 4,243.9 4,300.8 3,489.3 Cash and Investments 17,916.2 18,609.0 15,682.9 Other Current Assets 35,750.4 28,613.5 26,189.
Slide 42: Fact Sheet
Fact Sheet 41 © 2024 Persistent Systems
Slide 43: Fact Sheet: Revenue and DSO
Fact Sheet Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 FY24 FY23 Revenue from Operations, $M 345.5 328.2 310.9 300.6 291.7 1,186.0 1,036.0 % QoQ growth 5.3% 5.6% 3.4% 3.0% 3.1% % QoQ growth (constant currency) 5.1% 5.6% 3.4% 3.1% 3.2% Revenue % YoY growth 18.4% 16.0% 13.2% 13.7% 14.1% 14.5% 35.3% Revenue fro
Slide 44: Fact Sheet: Segment and Geography Revenue Mix
Fact Sheet Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 FY24 FY23 BFSI 31.5% 30.8% 30.7% 31.2% 32.3% 31.9% 32.9% Segment Healthcare & Life Sciences 27.8% 26.7% 24.2% 21.8% 19.3% 21.0% 19.7% Revenue Mix Software, Hi-Tech & Emerging 40.7% 42.5% 45.1% 47.0% 48.4% 47.1% 47.4% Industries Total 100.0% 100.0% 100.0%
Slide 45: Fact Sheet: Clients and Concentration
Fact Sheet Active Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 FY24 FY23 Clients Clients Billed* 379 374 382 375 375 390 358 Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 FY24 FY23 Top 5 31.4% 30.7% 29.2% 28.0% 28.3% 27.7% 27.0% Revenue Top 10 41.5% 41.5% 40.0% 39.3% 39.5% 39.0% 36.7% Concentration Top 20 52.1% 51.9% 51
Slide 46: Fact Sheet: People, Utilization and Attrition
Fact Sheet Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 FY24 FY23 Technical 21,675 21,866 22,224 21,738 21,263 22,224 21,295 People Sales and Business Development 492 510 484 465 443 484 414 Numbers Others 1,070 1,143 1,142 1,133 1,136 1,142 1,180 Total 23,237 23,519 23,850 23,336 22,842 23,850 22,889 Q2FY25
Slide 47: Resilient and Future-Ready
Resilient and Future-Ready The Persistent Way