Slide 1: Intimation of Analyst/Institutional Investor Call cover letter
2nd February 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: Q3 FY2023 Earnings Update
Q3 FY2023 Earnings Update 1 © FIRSTSOURCE 2020 | CONFIDENTIAL I 2 February 2023
Slide 3: Disclaimer
Disclaimer Q3FY2023 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 December 31, 22
Summary of Performance for the Quarter ended December 31, 2022 Q3FY2023 EARNINGS UPDATE ₹ REVENUES ₹ OPERATING MARGIN ₹ 15,049 Million ₹ 1,409 Million (US$ 183 Million) (Margin 9.4%) YoY growth of 2.8% YoY degrowth of 20.0% Constant Currency YoY degrowth of 0.3% QoQ Margin expansion of 94 bps ₹ PROF
Slide 5: Summary of Performance for the Nine months ended December, 2022
Summary of Performance for the Nine months ended December 31, 2022 Q3FY2023 EARNINGS UPDATE ₹ REVENUES ₹ OPERATING MARGIN ₹ 44,655 Million ₹ 3,835 Million (US$ 561 Million) (Margin 8.6%) YoY growth of 2.0% YoY degrowth of 28.4% Constant Currency YoY degrowth of 1.1% ₹ PROFIT AFTER TAX EARNINGS PER S
Slide 6: Revenue Split by Verticals and Service Lines
Q3FY2023 EARNINGS UPDATE REVENUE SPLIT BY VERTICALS REVENUE SPLIT BY SERVICE LINES Q3 FY23 Q3FY23 41.8% 34.2% 21.6% 2.4% Q3FY23 Q3 FY23 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 FY23 46.6% 32.7% 20.7% Q4 FY22 49.0% 30.3% 19.0% 1.7% Q4
Slide 7: Top 5 Clients
Client Concentration Q3FY2023 EARNINGS UPDATE 6 of Top 15 2 of Top 5 5 of Top 15 Top Client Q3 Q3FY23 FY23 15.8% Mortgage servicers in Retail banks in the UK Mortgage Lenders in 21.0 years the US the US Total Tenure Q2 FY23 14.9% 1,000+ 7 of Top 10 1 of Top 3 Hospitals in the US Health insurance/ ma
Slide 8: Annexure
Q3FY2023 EARNINGS UPDATE Annexure 7 © FIRSTSOURCE 2021 | 2 February 2023
Slide 9: Financial Performance (Quarterly)
Financial Performance (Quarterly) Q3FY2023 EARNINGS UPDATE In ₹ million Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Q2 FY 2022 Q3 FY 2022 Q4 FY 2022 Q1 FY 2023 Q2 FY 2023 Q3 FY 2023 Income from services 13,510 14,496 14,780 14,182 14,456 15,239 14,524 14,735 15,033 Other operating Income 142 132 68 104 182 201
Slide 10: Financial Performance (Yearly)
Financial Performance (Yearly) Q3FY2023 EARNINGS UPDATE In ₹ million FY 2017 FY 2018 FY 2019 FY 2020 FY2021 FY2022 9M FY2023 Income from services 34,569 34,315 37,867 40,502 50,327 58,657 44,293 Other operating Income 987 1,038 396 484 453 554 362 Revenue from operations 35,556 35,352 38,263 40,986
Slide 11: Balance Sheet and Cash Flow Statement
Balance Sheet and Cash Flow Statement Q3FY2023 EARNINGS UPDATE Quarter ended Nine Months ended In ₹ million As at 31-Dec-22 As at 31-Mar-22 In ₹ million 31-Dec-22 31-Dec-22 Equity And Liabilities Cash Flow from Operating Activities Operating Margin 1,409 3,835 Share Capital 6,970 6,970 Adjustment: N
Slide 12: Key Performance Indicators
Key Performance Indicators Q3FY2023 EARNINGS UPDATE Return on Equity Return on Capital Employed 17.6% 17.6% 17.7% 13.9% 13.9% 14.6% 14.1% 13.1% 12.9% 13.0% 12.3% 12.3% FY18 FY19 FY20 FY21 FY22 Q3FY23 (TTM) FY18 FY19 FY20 FY21 FY22 Q3FY23 (TTM) Note: FY21 ROE will be 16.1% excluding for exceptional i
Slide 13: Operating Metrics
Operating Metrics Q3FY2023 EARNINGS UPDATE Particulars Q3 FY2021 Q4 FY 2021 Q1 FY 2022 Q2 FY 2022 Q3 FY 2022 Q4 FY 2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Banking & Financial Services 52.0% 52.2% 51.7% 48.9% 48.3% 49.0% 46.3% 43.4% 41.8% Revenue by Healthcare 25.3% 24.8% 26.7% 29.6% 30.3% 30.3% 32.1% 34.
Slide 14: Forex Hedges
Forex Hedges Q3FY2023 EARNINGS UPDATE Outstanding FX hedges at $77.5 million for USD and £54.6 million for GBP GBP-INR USD INR Period Hedged Average Rate Hedged Average Rate 0-12 Months £38.9 ₹ 101.5 /£ $ 68.5 ₹ 82.6 /$ 12-24 Months £15.8 ₹ 102.9 /£ $ 9.0 ₹ 83.9 /$ 13 © FIRSTSOURCE 2021 | 2 February
Slide 15: Prior Period Reports
Prior Period Reports Q3FY2023 EARNINGS UPDATE (Hyperlinks) Annual Report ESG Report Published Results Investor Presentations Press Release FY2022 FY2022 FY2023 Q1 Q2 Q3 FY2023 Q1 Q2 Q3 FY2023 Q1 Q2 Q3 FY2022 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Q3 Q4 FY2021 FY2021 Q1 Q2 Q3 Q4 FY2021 Q1 Q2 Q3
Slide 16: About Us
Q3FY2023 EARNINGS UPDATE US UK PHILIPPINES About Us 4,213 15 5,888 10 909 2 12,489 11 128 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 ₹ 59.0 Billion (approximately $795 Million) in
Slide 17: Q3FY2023 E ARNINGS U PDATE
Q3FY2023 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 Q3FY2023 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 | 2 February 2023
Slide 19: Select Recognition
Q3FY2023 EARNINGS UPDATE Select Recognition Everest Group ISG • SILVER in the Most • Customers at the Heart of Everything™ Gold Winner • Business Services • Ranked in the HFS • Leader in ISG Provider Effective Distributed • Ranked as top Business • Customer Driven Business Project of the Year Top 10
Slide 20: ESG at Firstsource
Q3FY2023 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 Q3FY2023 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
Q3FY2023 EARNINGS UPDATE Corporate Management Senior Leadership Dinesh Jain Prashanth Nandella Randall Shafer Venkatgiri Vandali Rajiv Malhotra Finance Operations Healthcare Healthcare & Europe Business Provider Lifesciences Vipul Khanna MD & Chief Executive Officer Arjun Mitra Sameer Ahluwalia Shuc
Slide 23: Q3FY2023 E ARNINGS U PDATE
Q3FY2023 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