Slide 1: Q2 FY24: Stability - Poised for Growth
Q2 FY24 : Stability- Poised for Growth Nitin Rakesh Manish Dugar CEO & Managing Director CFO © Mphasis 2023 Proprietary and confidential information I 10/20/2023 I 1 I
Slide 2: Safe Harbor
Safe Harbor Certain statements mentioned in this presentation concerning our future growth prospects are forward looking statements (the “Forward Statements”) and are based on reasonable expectations of the management, which involves a number of risks, and uncertainties that could cause actual resul
Slide 3: Major Themes Playing Out in the Market
Major Themes Playing Out in the Market Varied Growth Trend Discretionary Client Spend Adoption of AI • Nuanced industry dependent • ‘Transformational Partner’ vs • Generative AI is automating, dynamics with varied demand Vendor augmenting, and accelerating trends across industries • Uptick in vendor
Slide 4: Mphasis is Well Positioned, Enabled by Investment in Capability Building
Mphasis is Well Positioned, Enabled by Investment in Capability Building Build Partner Buy • Leadership accretive • Vertical • Domain • Geo • Tribes and squads • Upskilling : Talent Next • New Accounts • New Geographies • New Verticals Early Adoption of F2B powered by Cloud and Cognitive First to se
Slide 5: Introducing Silverline, a Salesforce Summit Partner
Introducing Silverline, a Salesforce Summit Partner 1,800+ Salesforce Projects 4.8/5 Customer Satisfaction 400+ Resources Around The Globe 1,100+ Partner Certifications Services 900+ Projects 2009 Founded 2009, Silverline is the most mature #1 The #1 scheduling 125+ Accelerators built for pure-play
Slide 6: Complementary Capabilities to Build Compelling Digital Experiences
Complementary Capabilities to Build Compelling Digital Experiences Service transformation approach Digital transformation approach Global enterprise Salesforce solutions clients AI-enabled design Domain expertise Scalable solutions Managed services Digital experience © Mphasis 2023 Proprietary and c
Slide 7: Mphasis.AI: Supercharging our Archetypes
Mphasis.AI : Supercharging our Archetypes AI Deal Wins • We are the 1st mover in the space : Launched dedicated business 961 unit – Mphasis.ai with quick wins in the previous Quarter • Set up a Gen AI center of excellence to drive dedicated opportunities in the space thereby institutionalizing the a
Slide 8: Growth in Pipeline and Diversification into Newer Growth Engines
Growth in Pipeline and Diversification into Newer Growth Engines Pipeline continues to grow Diversification in newer Diversification outside of with more large deals verticals Top 10 +33% YoY Top 10 BFS +33% +42% Others Non BFS Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 17% 18% • Pipeline has grown 3
Slide 9: Building Positive Momentum with Strong TCV Wins, Large Deal Sizes Increasing
Building Positive Momentum with Strong TCV Wins, Large Deal Sizes Increasing TCV Won ($ M) Robust large deal wins (>$20M TCV) LTM avg 65 deal size 10% +59% 41 ($M) 57 17% 54 45 47 11% 40 11% 961 6% 747 709 13% 682 # of 604 cumulative 12% deal wins since Q1’18 17% 18% H1FY22 H2FY22 H1FY23 H2FY23 H1FY
Slide 10: Q2 FY24 Performance by Segment
Q2 FY24 Performance by Segment 440 440 398 398 Direct Direct 398 398 Direct Direct YoY* QoQ* YoY* QoQ* -11.9% -2.2% APPS 297 -4.3% -0.3% Americas 362 283 281 323 316 4.8% 16.0% BPO 90 -26.4% 4.0% EMEA 48 65 67 43 41 ROW 10.4% 6.9% -1.3% -1.2% 35 34 35 ITO 53 51 51 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24
Slide 11: Q2 FY24 Performance by Vertical
Q2 FY24 Performance by Vertical 440 QoQ YoY Direct ex DR YoY 398 398 -4.2% -20.5% -11.4% Banking & Financial Services 235 196 188 Insurance 44 42 43 2.2% -3.5% -2.6% TMT 62 60 69 14.9% 11.4% 20.0% Logistics & Transportation 57 56 53 -5.4% -7.3% -5.8% Others 42 44 46 4.0% 6.5% 10.7% Q2 FY23 Q1 FY24 Q
Slide 12: Performance by Client Pyramid: Direct
Performance by Client Pyramid: Direct Client Additions 115 Category YoY Q2 FY24 YoY decline of 8.9% in Direct 112 Overall $200M + - revenues, Direct QoQ grew 0.3% $100M + (1) $75M + (2) $20M + - 103 Top 10 accounts declined 9.3% driven $10M + 3 Top 10 primarily by mortgage $5M + 2 $1M + 12 Top 10 (e
Slide 13: Performance in Financial Metrics
Performance in Financial Metrics Revenue trend Operating Profit Trend 440 0.1% +0.8% 67 398 398 61 61 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Gross Revenue in $M at average USD/INR rate for respective periods # Revenue growth in constant currency EBIT in $M at average USD/INR rate for respec
Slide 14: Q2 FY24 in Summary: Revenue Stability with Margin Expansion
Q2 FY24 in Summary: Revenue Stability with Margin Expansion ▪ Stability in sequential revenues ▪ Macro driven overhang continues in select verticals like BFS; remain focused on the micro ▪ Visibility from highest-ever TCV closures in H1’24 ($961M) ▪ Stability of DXC and visibility to growth in mortg
Slide 15: Outlook H2 FY24: Visible Revenue Growth with Margin Stability
Outlook H2 FY24 : Visible Revenue Growth with Margin Stability ▪ Continue to take forward leaning stance on Tech- led positioning ▪ Strong pipeline entering H2FY24 led by AI, Cloud & Transformation deals ▪ Expect sequential revenue growth through remainder of FY24 ▪ Mortgage segment bottomed out wit
Slide 16: Link to financial data for the past three years
Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html © Mphasis 2023 Proprietary and confidential information I 10/20/2023 I 16 I
Slide 17: Analyst Recognitions: Q2 2024
Analyst Recognitions: Q2 2024 MAJOR MAJOR MAJOR CONTENDER CONTENDER CONTENDER Cloud Services PEAK Matrix® Assessment Global In-house Center-focused Cloud Services PEAK Matrix® Assessment 2023 – Europe Capabilities – Provider PEAK Matrix® 2023 – North America Assessment 2023 MAJOR MAJOR CONTENDER CON