Slide 1: Exchange filing cover letter: fact sheet for quarter ended June 30, 2023
NSE & BSE / 2023-24 / 078 July 20, 2023 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: PERSISTENT R
Slide 2: Investor Presentation July 2023
Investor Presentation July 2023
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. Engineering Success, Delivering Value $282.9M ₹2.3B $1,077.4M ₹9.4B FY24 Q1 Revenue FY24 Q1 PAT TTM Revenue TTM PAT +17.1% YoY +8.1% YoY +28.2% YoY +25.0% YoY $271.9M $1,179.8M $4.7B* 23,130 FY24 Q1 Annual Contract TTM ACV Bookings Market Capitalization Employees Value (ACV) Booki
Slide 5: Our journey over 33+ years
Our journey over 33+ years Fifth Orbit 2019 – 2023 Fourth Orbit 2016 – 2019 Third Orbit \ Strong 2008 – 2016 positioning as a Second Orbit \ Catching the early global Digital 2001 – 2008 wave of Digital Engineering leader First Orbit \ Offering expansion Transformation \ Industry-leading 1990 – 2001
Slide 6: Positioned as a leader in Digital Engineering
Over this period, we have positioned ourselves as a leader in Digital Engineering Software, Hi-Tech Banking, Healthcare & & Emerging Financial Services Life Sciences Industries & Insurance Accelerate Time to Market Enable Product & Platform Engineering Business Agility Unlock CX & Design-Led Transfo
Slide 7: We are helping market leaders transform their industries
We are helping market leaders transform their industries 14 of 30 6 of 10 Most Innovative Global Software & Hi-Tech Global Technology Companies Companies As rated by Boston Consulting Group 5 of 10 25+ Banking, Financial Services & Insurance Largest Banks in both Global US & India FinTechs 6 of 10 4
Slide 8: Supported by our 23,000+ employees spread across 21 countries
Supported by our 23,000+ employees spread across 21 countries Canada UK Netherlands Ireland Germany Poland France Romania USA Switzerland Italy Japan Israel Mexico India Costa Rica Malaysia Sri Lanka Singapore North Rest of America Europe India Australia the world 79.2% 9.7% South Africa 9.9% 1.2% R
Slide 9: Becoming ecosystem orchestrator of choice with our partners
And by becoming “ecosystem orchestrator of choice” with our partners Gold Partner & Direct Advanced Partner Premier Partner GSI Global Strategic Platinum Business CSP with 4,500+ with 1,000+ with 600+ Partner with 2,400+ Partner with 2,200+ technologists technologists technologists technologists tec
Slide 10: We crossed the $1 billion revenue milestone in FY23
We crossed the $1 billion revenue milestone in FY23 17.5% 27.3% 1,036 Revenue CAGR Revenue CAGR from IPO to FY23 between FY20 & FY23 766 566 502 471 481 429 352 309 274 238 207 170 127 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 All revenue numbers in $M
Slide 11: We continue to demonstrate sustained profitable growth
We continue to demonstrate sustained profitable growth Quarterly Revenue ($M), % QoQ and % YoY Growth EBIT and PAT Margin % 300.0 50.0% 280.0 282.9 260.0 274.6 40.0% 15.4% 15.4% 264.4 14.6% 14.9% 255.6 14.0% 14.0% 14.3% 240.0 13.9% 241.5 220.0 30.0% 217.3 200.0 199.1 12.0% 12.3% 11.8% 180.0 20.0% 11
Slide 12: Steady performance across our key industry segments
Enabled by steady performance across our key industry segments… Quarterly Revenue ($M) Software, Hi-Tech and Banking, Financial Healthcare Emerging Industries Services & Insurance & Life Sciences 1 5 0 136.1 94.3 6 0.0 1 3 0 5 5.0 52.6 5 0.0 1 1 0 4 5.0 55.9 87.7 4 0.0 38.7 9 0 3 5.0 3 0.0 7 0 2 5.0
Slide 13: …and through focused client mining
…and through focused client mining Client Concentration Large Client Count Top 10 clients as % of total revenue >$5M Annual Revenue 38 45.4% 45.0% 34 34 30 42.1% 40.7% 26 39.6% 25 24 22 37.4% 36.7% 35.0% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY2
Slide 14: Industry-leading long-term shareholder value
We have delivered industry-leading long-term shareholder value... Persistent’s Total Shareholder Return Persistent 1-Year Stock Performance v/s NIFTY 50 & NIFTY IT Index 47% 1 year return 1.5% 46.9% 22% 3 year return 688.8% 6% 15.9% 5 year return 517.4% 15.3% Jun-22 Sep-22 Dec-22 Ma r-23 Jun-23 NIFT
Slide 15: …and healthy returns on capital
...and healthy returns on capital Return on capital employed (RoCE) trend 30.0% 28.9% 28.8% 28.1% 26.1% 22.9% 23.0% 22.4% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
Slide 16: We operate as socially responsible corporate citizens
We operate as socially responsible corporate citizens… Environmental Diversity \ Carbon neutral for scope 1 emissions by \ Build a more inclusive workplace by 2028 2026 where people of all genders, ethnicities, sexual orientations, religions and abilities \ Reduce scope 3 emissions from our are repr
Slide 17: Steady progress towards our stated ESG goals
…and are making steady progress towards our stated ESG goals Environment Diversity 46% 13,420 30% 92% 30.8% 11.4% Electricity sourced from Trees planted and Of treated wastewater in Of waste recycled from Women in the workforce Women in leadership roles renewable energy nurtured in FY23, total of ow
Slide 18: Integrated approach for our next orbit
We remain focused on an integrated approach for our next orbit Fortifying our Expanding our Talent Operations as footprint boundaries @scale a multiplier \ Deepening industry-leading \ Domain-centric capability \ Elevating employee value \ Driving decisions using a partnerships, bolstering expansion
Slide 19: Performance Highlights
Performance Highlights
Slide 20: CEO message: Sandeep Kalra
We commenced the year by celebrating a significant milestone of surpassing $1 billion in annual revenue with our clients, partners, and team members. As we enter our new fiscal year, I’m pleased to share that we have sustained our growth momentum despite the challenging macroeconomic conditions. Our
Slide 21: Financial highlights for Q1 FY24
Financial highlights for Q1 FY24 Revenue ($ million) 3.0% Q-o-Q 17.1% Y-o-Y Revenue (₹ million) 3.0% Q-o-Q 23.6% Y-o-Y 282.90 22,544.7 23,211.8 274.55 241.52 18,781.1 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 EBIT (₹ million) 0.0% Q-o-Q 29.0% Y-o-Y PAT (₹ million) -9.0% Q-o-Q* 8.1% Y-o-Y* 3,465.9 3,
Slide 22: TCV and ACV bookings
TCV and ACV bookings in Q4 FY23 Trailing Twelve Month TCV* $1,609.9M Trailing Twelve Month TCV (New) $954.8M 440.2 421.6 250.3 239.0 237.2 380.3 228.3 367.8 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Trailing Twelve Month ACV* $1,179.8M Trailing Twelve Month ACV (New) $593.2M 326.3 310.
Slide 23: TTM performance
TTM performance Revenue ($ million) 28.2% Revenue (₹ million) 38.3% 1,077.4 87,936.6 840.3 63,589.3 TTM Q1FY23 TTM Q1FY24 TTM Q1FY23 TTM Q1FY24 EBIT (₹ million) 48.1% PAT (₹ million) 25.0% 13,250.7 9,382.5 7,507.5 8,944.3 Margin % 14.1% 15.0% Margin % 11.8% 10.7% TTM Q1FY23 TTM Q1FY24 TTM Q1FY23 TTM
Slide 24: Key wins for the quarter
Key wins for the quarter Software, Hi-Tech & Banking, Financial Healthcare Emerging Industries Services & Insurance & Life Sciences Establishing a software lab to engineer Driving digital transformation for customer Engineering Data and Machine Learning new products and enhance existing acquisition
Slide 25: Notable News and Achievements
Notable News and Achievements
Slide 26: Persistent welcomes Dr. Ajit Ranade as Independent Director
Persistent welcomes Dr. Ajit Ranade as an Independent Director to the Board Dr. Ranade, a noted economist, brings to Persistent his impressive experience of over 32 years to help guide our strategy and accelerate our growth journey \ He is a Vice-Chancellor at the Gokhale Institute of Politics and E
Slide 27: Expanding our global relationship with Microsoft
We are continuously expanding our global relationship with Microsoft… Satya Nadella, Chairman & CEO of Microsoft at the Sangita Singh, General Manager, IT & ITES, Microsoft India, “Microsoft Future Ready Leadership Summit”, January’23 speaking at Persistent’s “Women in Tech Series”, June’23 We are p
Slide 28: Strengthening our relationship with AWS around Generative AI
Strengthening our relationship with AWS as a strategic collaborator around Generative AI Included in keynote by Swami Sivasubramanian, Dr. Pandurang Kamat, CTO, Persistent, VP, Database, Analytics & ML, AWS speaking at the AWS London Summit Working closely with Persistent over the last decade, it’s
Slide 29: Sandeep Kalra recognized as Best CEO in IT & ITES
We continue to win leadership accolades… Sandeep Kalra Recognized as the Best CEO in IT & ITES Category by Business Today Recognized for unique strategy to make Persistent into a global giant. \ Consistent growth in total income, profit before interest and tax (PBIT) and total shareholder returns (T
Slide 30: …and coveted recognitions
…and coveted recognitions Featured in Everest Group’s 2023 Recognized as a Major Contender Awarded by the Times Power PEAK Matrix Service Provider of the in Everest Group’s Healthcare Data Brands 2023 under the “Excellence Year™ awards under the Top 10 ITS & Analytics Services PEAK Matrix® in Talent
Slide 31: Named a Leader in Everest Group Payments IT Services PEAK Matrix 2023
Persistent named a Leader in Everest Group’s Payments IT Services PEAK Matrix® 2023 Everest Group Payments IT Services PEAK Matrix® Assessment 2023 Persistent has been recognized as a Leader as a result of the following strengths: \ Industry-relevant IP and offerings led revenue growth \ Partnership
Slide 32: Fastest-growing Indian IT Services brand
Persistent recognized as the fastest-growing Indian IT Services brand Persistent has been named the fastest-growing Indian IT Services brand since 2020, with 268% growth and ranked 9th among Indian IT Services companies. Across all industries, Persistent came in 64th, with 52% growth in brand value
Slide 33: Featured by leading global publications
…and featured by leading global publications Persistent Systems: Persistent Systems Tech services firm Balancing Culture and Positive on Generative Persistent is rolling out Values With Rapid AI-led growth an AI coding companion Growth to 16,000 engineers. Its CTO recognises the risk Sandeep Kalra S
Slide 34: We continue to expand our geographic footprint
We continue to expand our geographic footprint Dallas, TX, US Kraków, Poland Jaipur, India Our latest Private Equity (PE) Our center in Kraków will Our newest office in Jaipur will Value Creation Hub in Dallas expand our nearshore operate as Salesforce Center of will expand our onshore footprint cap
Slide 35: Financial Details
Financial Details
Slide 36: Sequential Q1 FY24 vs Q4 FY23
Sequential Q1 FY24 vs Q4 FY23 Expenses / Sales % Expenses / Sales % Particulars Q1FY24 Q4FY23 Change QoQ Q1FY24 Q4FY23 Revenue ($ M) 282.90 274.55 3.0% Avg. Exchange Rate Rs. /US$ 82.05 82.12 -0.1% Revenue (Rs. M) 23,211.75 22,544.72 3.0% Cost of Revenue Rs. M Rs. M Total Direct costs 15,278.46 14,8
Slide 37: YoY Comparison Q1 FY24 vs Q1 FY23
YoY Comparison Q1 FY24 vs Q1 FY23 Expenses / Sales % Expenses / Sales % Particulars Q1FY24 Q1FY23 Change YoY Q1FY24 Q1FY23 Revenue ($ M) 282.90 241.52 17.1% Avg. Exchange Rate Rs. / US$ 82.05 77.76 5.5% Revenue (Rs. M) 23,211.75 18,781.11 23.6% Cost of Revenue Rs. M Rs. M Total Direct costs 15,278.4
Slide 38: Balance Sheet (₹ M)
Balance Sheet (₹ M) As on As on As on Particulars June 30, 2023 March 31, 2023 June 30, 2022 Assets PPE and Intangible Assets 23,003.33 23,574.67 22,137.23 Non-Current Assets 3,165.58 2,916.32 2,711.56 Cash and Investments 14,092.54 15,991.26 14,791.90 Other Current Assets 27,710.36 23,841.69 18,952
Slide 39: Fact Sheet
Fact Sheet
Slide 40: Fact Sheet: revenue and DSO
Fact Sheet Q1FY24 Q4FY23 Q3FY23 Q2FY23 Q1FY23 FY23 FY22 Revenue from Operations, $M 282.9 274.6 264.4 255.6 241.5 1,036.0 765.6 % Q-o-Q growth 3.0% 3.9% 3.4% 5.8% 11.1% % Q-o-Q growth (constant currency) 2.9% 3.5% 3.5% 6.6% 12.0% Revenue % Y-o-Y growth 17.1% 26.3% 32.8% 40.2% 44.8% 35.3% 35.2% Reven
Slide 41: Fact Sheet: segment and geography revenue mix
Fact Sheet Q1FY24 Q4FY23 Q3FY23 Q2FY23 Q1FY23 FY23 FY22 BFSI 33.3% 32.3% 32.6% 32.8% 33.7% 32.9% 31.6% Segment Healthcare & Life Sciences 18.6% 19.7% 19.6% 19.7% 19.9% 19.7% 20.8% Revenue Mix Software, Hi-Tech & Emerging 48.1% 48.0% 47.8% 47.5% 46.4% 47.4% 47.6% Industries Total 100.0% 100.0% 100.0%
Slide 42: Fact Sheet: clients, concentration and engagement size
Fact Sheet Active Q1FY24 Q4FY23 Q3FY23 Q2FY23 Q1FY23 FY23 FY22 Clients Clients Billed* 367 359 344 345 340 358 307 Q1FY24 Q4FY23 Q3FY23 Q2FY23 Q1FY23 FY23 FY22 Top 1 10.2% 9.3% 7.4% 8.7% 11.7% 9.2% 16.2% Revenue Top 5 27.9% 26.5% 24.7% 26.9% 30.8% 27.0% 35.1% Concentration Top 10 39.6% 37.4% 35.0% 3
Slide 43: Fact Sheet: people, effort mix, utilization, attrition
Fact Sheet Q1FY24 Q4FY23 Q3FY23 Q2FY23 Q1FY23 FY23 FY22 Technical 21,511 21,295 21,033 20,941 20,144 21,295 17,283 People Sales and Business Development 428 414 405 387 367 414 317 Numbers Others 1,191 1,180 1,160 1,148 1,127 1,180 999 Total 23,130 22,889 22,598 22,476 21,638 22,889 18,599 Q1FY24 Q4
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