Slide 1: Cover letter to stock exchanges
8th November 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
Slide 2: Investor Presentation Q2FY24
Investor Presentation Q2FY24
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 60.2 Billion 150+ global clients including (US$750 Million) in FY2023 18 Fortune 500 companies and 3 FTSE 100 companies 23,953* Firstsourc
Slide 5: Part of RP-Sanjiv Goenka Group
Part of RP-Sanjiv Goenka Group Power Consumer & Retail Education & Infrastructure Sports Combined FY23 Revenues US$4.2 Billion Carbon Black Media & Entertainment IT-Enabled Services © FIRSTSOURCE | 4
Slide 6: Our Verticals
Our Verticals 7 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 5 of Top 10 • Credit Cards • Cable TV, Broadband and Credit card issuers in the US • Mortgages Telephony 2
Slide 7: Financial Performance Snapshot
Financial Performance Snapshot Revenue (in $ million) Revenue (in ₹ million) -0.1% 5.6% 18.5% 16.0% -5.7% -1.4% 8.2% 7.1% 23.9% 16.6% 1.7% 3.7% 2.0% 6.6% 17.9% 14.6% -1.1% -1.8% 60,223 59,212 795 50,780 750 685 40,986 38,263 578 35,352 548 548 30,692 372 FY18 FY19 FY20 FY21 FY22 FY23 H1FY24 FY18 FY1
Slide 8: Key Performance Indicators
Key Performance Indicators Return on Equity (%) Return on Capital Employed (%) 17.6% 17.6% 17.7% 15.3% 15.1% 14.1% 13.7% 13.9% 13.9% 13.4% 13.0% 12.9% 12.3% 12.3% FY18 FY19 FY20 FY21 FY22 FY23 H1FY24* FY18 FY19 FY20 FY21 FY22 FY23 H1FY24* Note: FY21 ROE was 16.1% excluding exceptional items Cash Flo
Slide 9: Leadership Team
Leadership Team Dinesh Jain Prashanth Nandella Venkatgiri Vandali Rajiv Malhotra Sameer Ahluwalia Chief Financial Officer Chief Operating Officer Head - Healthcare Head - Europe Head - BFS Ritesh Idnani MD & CEO Arjun Mitra Ashish Chawla Sundara Sukavanam Aftab Javed Head - Collections Head- IDEA, E
Slide 10: ESG at Firstsource
ESG at Firstsource Environment Social Governance 65% 46% 50% Increase in renewable energy of the total workforce comprise of the Board consist of consumption vs FY22 (India) of women Independent Directors Recognized as a Level 3 10% 24% Disability Confident Leader of the Independent Directors of Ren
Slide 11: Total Shareholders Return
Total Shareholders Return FSL | 173% Nifty IT | 111% Nov/2018 May/2019 Nov/2019 May/2020 Nov/2020 May/2021 Nov/2021 May/2022 Nov/2022 May/2023 Nov/2023 Total Shareholders Return (including dividends) of 198% in past 5 years Based on closing prices as of 7th Nov, 2023 © FIRSTSOURCE | 10
Slide 12: Performance Highlights | Q2FY24
Performance Highlights | Q2FY24 © FIRSTSOURCE | 11
Slide 13: Summary of Performance for the Quarter ended September 30, 2023
Summary of Performance for the Quarter ended September 30, 2023 REVENUE ₹ EBIT ₹ ₹ 15,400 Million ₹ 1,634 Million (US$ 186 Million) (Margin 10.6%) YoY growth of 3.5% YoY growth of 30.3% Constant Currency YoY decline of 1.9% YoY Margin expansion of 220 bps (including one-time charges) ₹ PROFIT AFTER
Slide 14: Summary of Performance for the Half year ended September 30, 2023
Summary of Performance for the Half year ended September 30, 2023 REVENUE ₹ EBIT ₹ ₹ 30,692 Million ₹ 3,424 Million (US$ 372 Million) (Margin 11.2%) YoY growth of 3.7% YoY growth of 41.2% Constant Currency YoY decline of 1.8% YoY Margin expansion of 300 bps (including one-time charges) ₹ PROFIT AFTE
Slide 15: Revenue Split | Q2FY24
Revenue Split | Q2FY24 Revenue split by Revenue split by Revenue split by verticals geography service lines Diverse RoW 5.3% 0.1% PAA 21.9% US DECX CMT UK 52.9% 34.8% 65.1% 32.7% BFS 40.8% IBO Healthcare 25.2% 21.2% Banking & Financial Services (BFS) Healthcare United States (US) United Kingdom (UK)
Slide 16: Deal Wins
Deal Wins • We were selected by Education Testing Services, one of the largest education testing and assessment organizations in the world, to provide student support and technology services. As part of the deal, we recently launched a state-of-the-art Global Capability Center to deliver a cross-sec
Slide 17: Gen AI – progress update
Gen AI – progress update • Launched FirstSense.AI our proprietary framework to accelerate client’s AI deployment • Developed Firstsense.AI Studio sandbox ecosystem for experimentation, evaluation, and integration • Investing in a robust partner ecosystem across AI, Robotics, Process and Task Mining,
Slide 18: Employee base
Employee base • QoQ net headcount addition of 1,569 • India employee base higher by 1,980; RoW lower by 411 • YoY net headcount addition of 21 • India employee base higher by 1,006; RoW lower by 985 • TTM employee attrition# at 44.8% for onshore and 36.1% for offshore • 45.7% of employees are women
Slide 19: Select Recognition
Select Recognition PEAK Matrix® Assessment 2023 PEAK Matrix® Assessment 2023 PEAK Matrix® Assessment 2023 Healthcare Payer Operations Revenue Cycle Management (RCM) Operations Banking Operations – Services Firstsource among nine payer operations ranked as a Firstsource ranked as a ‘Major Contender
Slide 20: Select Recognition
Select Recognition Customer Experience Services | Europe | SEPTEMBER 2023 ISG Provider Lens™ quadrant report covers the following four quadrants for services/solutions: Digital Operations, Hybrid Working Solutions, Intelligent CX (AI & Analytics); and Social Media CX Services Firstsource rated as a
Slide 21: FY24 business outlook
FY24 business outlook 0-2% 11-11.5% constant currency EBIT margin revenue growth © FIRSTSOURCE | 20
Slide 22: Factsheet
firstsource | Factsheet © FIRSTSOURCE | 21.
Slide 23: Profit & Loss Statement
Profit & Loss Statement In ₹ million Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 Q1FY24 Q2FY24 QoQ YoY Income from services 14,524 14,735 15,033 15,566 59,859 15,267 15,417 1.0% 4.6% Other operating Income 199 147 16 2 364 25 (17) (169.1%) (111.9%) Revenue from operations 14,724 14,882 15,049 15,568 60,223 15,
Slide 24: Balance Sheet
Balance Sheet In ₹ million As on 30-Sep-23 As on 31-Mar-23 In ₹ million As on 30-Sep-23 As on 31-Mar-23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Shareholder's Funds Fixed assets 2,454 2,789 Equity share capital 6,970 6,970 5,550 4,958 Reserve and surplus 29,727 26,699 Right-of-use assets Non
Slide 25: Cash Flow Statement
Cash Flow Statement Half-Year ended Half-Year ended In ₹ million Sept 30, 2023 Sept 30, 2022 Cash Flow from Operating Activities Net profit before taxation and non controlling interest 3,096 2,597 Depreciation and amortization 1,266 1,302 Finance costs (For borrowing & lease liabilities) 514 386 Adj
Slide 26: Operating Metrics
Operating Metrics Particulars Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Banking & Financial Services 48.9% 48.3% 49.0% 46.3% 43.4% 41.8% 40.3% 40.8% 40.8% Revenue by Healthcare 29.6% 30.3% 30.3% 32.1% 34.5% 34.2% 33.2% 32.6% 32.7% Vertical Communications Media & Tech 19.5% 19.6%
Slide 27: Thank You
THANK YOU Investor relations © Firstsource Solutions Limited | www.firstsource.com © FIRSTSOURCE | 26