Slide 1: Cover letter: Intimation of Analyst/Institutional Investor Call
4th May 2023 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: Intimation of Analy
Slide 2: Q4 FY2023 Earnings Update
Q4 FY2023 Earnings Update 1 © FIRSTSOURCE 2020 | CONFIDENTIAL I 4 May 2023
Slide 3: Disclaimer
Disclaimer Q4FY2023 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 4: Summary of Performance for the Quarter ended March 31, 2023
Summary of Performance for the Quarter ended March 31, 2023 Q4FY2023 EARNINGS UPDATE ₹ REVENUES ₹ OPERATING MARGIN ₹ 15,568 Million ₹ 1,799 Million (US$ 190 Million) (Margin 11.6%) YoY growth of 0.8% YoY growth of 2.7% Constant Currency YoY degrowth of 2.8% YoY Margin expansion of 21 bps ₹ PROFIT AF
Slide 5: Summary of Performance for the Full Year ended March 31, 2023
Summary of Performance for the Full Year ended March 31, 2023 Q4FY2023 EARNINGS UPDATE ₹ REVENUES ₹ OPERATING MARGIN ₹ 60,223 Million ₹ 5,633 Million (US$ 750 Million) (Margin 9.4%) YoY growth of 1.7% YoY degrowth of 20.7% Constant Currency YoY degrowth of 1.1% YoY Margin contraction of 264 Bps ₹ EA
Slide 6: Revenue Split by Verticals and Service Lines
Q4FY2023 EARNINGS UPDATE REVENUE SPLIT BY VERTICALS REVENUE SPLIT BY SERVICE LINES Q4 FY23 Q4FY232 40.3% 33.2% 22.3% 4.2% Q4FY23 Q4 FY23 52.6% 27.0% 20.4% Q3FY23 41.8% 34.2% 21.6% 2.4% Q3FY23 50.4% 29.2% 20.4% Q2FY23 43.4% 34.5% 20.2% 1.9% Q2FY23 47.7% 30.9% 21.4% Q1 FY23 46.3% 32.1% 20.2% 1.4% Q1 F
Slide 7: Top 5 Clients
Client Concentration Q4FY2023 EARNINGS UPDATE 6 of Top 15 2 of Top 5 5 of Top 15 Top Client Q4 Q4FY23 FY23 15.4% Mortgage servicers in Retail banks in the UK Mortgage Lenders in 21.3 years the US the US Total Tenure Q3 FY23 15.8% 1,000+ 7 of Top 10 1 of Top 3 Hospitals in the US Health insurance/ ma
Slide 8: Annexure
Q4FY2023 EARNINGS UPDATE Annexure © FIRSTSOURCE 2021 | 4 May 2023 7
Slide 9: Financial Performance (Quarterly)
Financial Performance (Quarterly) Q4FY2023 EARNINGS UPDATE In ₹ million Q4 FY 2021 Q1 FY 2022 Q2 FY 2022 Q3 FY 2022 Q4 FY 2022 Q1 FY 2023 Q2 FY 2023 Q3 FY 2023 Q4 FY 2023 Income from services 14,496 14,780 14,182 14,456 15,239 14,524 14,735 15,033 15,566 Other operating Income 132 68 104 182 201 199
Slide 10: Financial Performance (Yearly)
Financial Performance (Yearly) Q4FY2023 EARNINGS UPDATE In ₹ million FY 2017 FY 2018 FY 2019 FY 2020 FY2021 FY2022 FY2023 Income from services 34,569 34,315 37,867 40,502 50,327 58,657 59,859 Other operating Income 987 1,038 396 484 453 554 364 Revenue from operations 35,556 35,352 38,263 40,986 50,
Slide 11: Balance Sheet and Cash Flow Statement
Balance Sheet and Cash Flow Statement Q4FY2023 EARNINGS UPDATE Quarter ended Full year ended In ₹ million As at 31-Mar-23 As at 31-Mar-22 In ₹ million 31-Mar-23 31-Mar-23 Equity And Liabilities Cash Flow from Operating Activities Operating Margin 1,799 5,633 Share Capital 6,970 6,970 Adjustment: Non
Slide 12: Key Performance Indicators
Key Performance Indicators Q4FY2023 EARNINGS UPDATE Return on Equity Return on Capital Employed 17.6% 17.6% 17.7% 13.9% 13.9% 15.3% 14.1% 13.4% 12.9% 13.0% 12.3% 12.3% FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Note: FY21 ROE will be 16.1% excluding for exceptional item Cash Flow (i
Slide 13: Operating Metrics
Operating Metrics Q4FY2023 EARNINGS UPDATE Particulars Q4 FY 2021 Q1 FY 2022 Q2 FY 2022 Q3 FY 2022 Q4 FY 2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Banking & Financial Services 52.2% 51.7% 48.9% 48.3% 49.0% 46.3% 43.4% 41.8% 40.3% Revenue by Healthcare 24.8% 26.7% 29.6% 30.3% 30.3% 32.1% 34.5% 34.
Slide 14: Forex Hedges
Forex Hedges Q4FY2023 EARNINGS UPDATE Outstanding FX hedges at $60.5 million for USD and £69.9 million for GBP GBP-INR USD INR Period Hedged (Mn) Average Rate Hedged (Mn) Average Rate 0-12 Months £44.0 ₹ 101.9 /£ $ 60.5 ₹ 83.9 /$ 12-24 Months £12.5 ₹ 105.0 /£ More than 24 Months £13.4 ₹ 113.1 /£ 13
Slide 15: Prior Period Reports
Prior Period Reports Q4FY2023 EARNINGS UPDATE (Hyperlinks) Annual Report ESG Report Published Results Investor Presentations Press Release FY2022 FY2022 FY2023 Q1 Q2 Q3 Q4 FY2023 Q1 Q2 Q3 Q4 FY2023 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Q3 Q4 FY2021 FY2021 Q1 Q2 Q3 Q4 FY2021
Slide 16: About Us
Q4FY2023 EARNINGS UPDATE US UK PHILIPPINES About Us 3,913 24 5,511 10 971 2 12,395 11 228 1 INDIA MEXICO Established in 2001 Domain driven BPM services company Leveraging a ‘Digital First, Digital Now’ approach to solve key customer problems Revenues of ₹ 60.2 Billion (approximately $750 Million) in
Slide 17: Q4FY2023 E ARNINGS U PDATE
Q4FY2023 EARNINGS UPDATE Leader in US non-bank Top 3 in the chosen Revenue Cycle Leading CX service providers in the Top 5 Consumer debt lender market Management segments in US UK across Media and BFS segments collections agency in the US Healthcare Customer Service Mortgage Operations Voice | Chat
Slide 18: Part of RP-Sanjiv Goenka Group
Part of RP-Sanjiv Goenka Group Q4FY2023 EARNINGS UPDATE Power Carbon Black Consumer & Retail Media & Entertainment Education & Infrastructure IT-Enabled Services Combined Revenues of Sports $4.14 Billion in FY2022 17 © FIRSTSOURCE 2021 | 4 May 2023
Slide 19: Select Recognition
Q4FY2023 EARNINGS UPDATE Select Recognition • Ranked as top Business • Leader in ISG Provider • SILVER in the Most • Customers at the Heart of • Business Services Project • Named as ‘Disruptor’ in • Included in Bloomberg Process Services (BPS) Lens™ quadrant report for Effective Distributed Everythi
Slide 20: ESG at Firstsource
Q4FY2023 EARNINGS UPDATE ESG at Firstsource We’re an ISO 27001, ISO 45001, ISO 14001, ISO 9001, ISO 50001 and BS OHSAS 18001 certified company with ESG practices as a foundational element for long-term value creation. Environment Social Governance FY 2022 Key Highlights 210% 44% 50% Conducted a ESG
Slide 21: ESG at Firstsource - A year of progress; Growing with purpose
ESG at Firstsource - A year of progress; Growing with purpose Q4FY2023 EARNINGS UPDATE ESG Governance Framework at FSL We recognize that to truly integrate ESG within organizational goals and objectives, a defined framework of roles and responsibilities reporting to the Board of Directors is crucial
Slide 22: Corporate Management
Q4FY2023 EARNINGS UPDATE Corporate Management Senior Leadership Dinesh Jain Prashanth Nandella Venkatgiri Vandali Rajiv Malhotra Finance Operations Healthcare & Europe Business Lifesciences Vipul Khanna MD & Chief Executive Officer Arjun Mitra Sameer Ahluwalia Shuchika Sahay Sundara Sukavanam Collec
Slide 23: Q4FY2023 E ARNINGS U PDATE
Q4FY2023 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