Slide 1: Investor Presentation Q4FY24
INVESTOR PRESENTATION Q4FY24 1 © FIRSTSOURCE
Slide 2: 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 3: Firstsource: Who we are?
Firstsource: Who we are? Established in 2001 Part of RP-Sanjiv Goenka Group Public listing in 2007 Since 2012 Domain driven BPM services company Leaders in chosen segments leveraging a ‘Digital First, Digital Now’ approach to solve key across Banking & Financial Services, Healthcare, customer proble
Slide 4: Part of RP-Sanjiv Goenka Group
Part of RP-Sanjiv Goenka Group Power Consumer & Retail Education & Infrastructure Sports Carbon Black Media & Entertainment Combined Revenues Asset Base Shareholders IT-Enabled Services US$4.5 Billion* US$6 Billion* 1 Million+* * All figures as on FY23 © FIRSTSOURCE | 4
Slide 5: We work with the leading global enterprises…
We work with the leading global enterprises… 5 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 6 of Top 10 Credit Cards Cable TV Credit card issuers in the US Mortgages Broad
Slide 6: And are market leaders in our focus domains
And are market leaders in our focus domains Market Leader Star Performer Customer Experience (CX) Collections Healthcare Payer Operations Omnichannel engagement White-labeled digital collections Peak Matrix Assessment | 2023 Active user personalization First-party & 3rd party collections Major Conte
Slide 7: We have realigned our strategic priorities…
We have realigned our strategic priorities… Simplify the organization Cross-sell/up-sell into existing clients Expand capabilities Amplify the ‘Firstsource’ brand Tech in everything we do Elevate employee experience TOP-QUARTILE REVENUE GROWTH CONCURRENT Improve margins MARGIN EXPANSION © FIRSTSOURC
Slide 8: And are focused on execution
And are focused on execution Our recent deal wins Total headcount 10-year renewal of contract as the primary outsourcing partner by the Top client, one of Europe’s leading media and entertainment companies Selection by Education Testing Services, one of the largest education assessment 27,940 25,947
Slide 9: We expect Gen AI to open new revenue streams…
We expect Gen AI to open new revenue streams… Most enterprises are still early in their GenAI adoption cycle • After initial exuberance, enterprises are now looking at Gen AI in a more holistic manner • Cost of compute and predicting same for future is gaining attention • Scaling experiments and its
Slide 10: And we are building capabilities to address the opportunity
And we are building capabilities to address the opportunity FirstSense.AI Partner FirstSense.AI Studio ecosystem Our proprietary Sandbox Initiative to Across Robotics, framework to ecosystem for proactively Process and Task accelerate experimentation, engage Mining, and client’s AI evaluation, and F
Slide 11: We are socially conscious
We are socially conscious Firstsource ranked in the top 96th percentile on the Dow Jones Sustainability Index Score of 62 on the CSA metric as well as on the ESG metric in the first year of participation Included in the S&P Global Sustainability Yearbook 2024, one of only three Indian IT & ITES comp
Slide 12: And focused on shareholder value creation
And focused on shareholder value creation 5 Years Stock Performance NSE: FSL | BSE: 532809 | Reuters: FISO.BO| Bloomberg: FSOL:IN Market Capitalisation: US$1.8bn | Average daily trading volume: US$ 7.5mn FSL | 331% Nifty IT | 106% May-19 Nov-19 May-20 Nov-20 May-21 Nov-21 May-22 Nov-22 May-23 Nov-23
Slide 13: Leadership team
Leadership team Ritesh Idnani Dinesh Jain Prashanth Nandella Aftab Javed Aniket Maindarkar Hasit Trivedi MD & CEO Chief Financial Officer Chief Operating Officer Chief Human Resources Officer Chief Marketing Officer Chief Digital & AI Officer Vivek Sharma Venkatgiri Vandali Rajiv Malhotra Arjun Mitr
Slide 14: In summary…
In summary… We see potential to grow at an accelerated pace over the medium term… Discontinuities caused by macro and technology shifts are creating market opportunities Our ‘market positioning’ gives us an advantage …Helped by our unique differentiators… Roster of long-standing relationships with q
Slide 15: Factsheet
firstsource’ Factsheet © FIRSTSOURCE | 15
Slide 16: Financial performance snapshot
Financial performance snapshot Revenue (in $ million) Revenue (in ₹ million) -0.1% 5.6% 18.5% 16.0% -5.7% 2.0% 8.2% 7.1% 23.9% 16.6% 1.7% 5.2.% 2.0% 6.6% 17.9% 14.6% -1.1% 1.1% 63,362 60,223 59,212 795 765 750 50,780 685 40,986 578 38,263 548 548 35,352 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 F
Slide 17: Key performance indicators
Key performance indicators Return on Equity (%) Return on Capital Employed (%) 17.6% 17.6% 17.7% 15.4% 15.3% 14.1% 13.9% 13.9% 13.9% 13.4% 13.0% 12.9% 12.3% 12.3% FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Cash Flow (in ₹ million) Debt Position (in ₹ million) 6,950 5,271 3
Slide 18: Summary of Performance for the Quarter ended March 31, 2024
Summary of Performance for the Quarter ended March 31, 2024 REVENUE ₹ EBIT ₹ ₹ 16,705 Million ₹ 1,830 Million (US$ 201 Million) (Margin 11.0%) YoY growth of 7.3% YoY growth of 1.7% Constant Currency YoY growth of 4.5% YoY Margin contraction of 60bps Constant Currency QoQ growth of 4.2% QoQ margin ex
Slide 19: Summary of Performance for the Full Year ended March 31, 2024
Summary of Performance for the Full Year ended March 31, 2024 REVENUE ₹ EBIT ₹ ₹ 63,362 Million ₹ 6,962 Million (US$ 765 Million) (Margin 11.0%) YoY growth of 5.2% YoY growth of 25.4%# Constant Currency YoY growth of 1.1% YoY Margin expansion of 180 bps# ₹ PROFIT AFTER TAX EARNINGS PER SHARE (Dilute
Slide 20: Revenue split | Q4FY24
Revenue split | Q4FY24 Revenue split by Revenue split by Revenue split by verticals geography service lines Diverse RoW 6.2% 0.1% PAA 19.3% CMT DECX UK US 23.6% 54.9% 34.9% 65.0% BFS 37.3% IBO Healthcare 25.8% 32.9% Banking & Financial Services (BFS) Healthcare United States (US) United Kingdom (UK)
Slide 21: FY25 business outlook
FY25 business outlook 10-13% 11-12% constant currency EBIT margin revenue growth © FIRSTSOURCE | 21
Slide 22: Profit & loss statement
Profit & loss statement Consolidated IndAS financials In ₹ million Q4FY23 FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 QoQ YoY FY24 YoY Income from services 15,566 59,859 15,267 15,417 15,948 16,693 4.7% 7.2% 63,325 5.8% Other operating Income 2 364 25 (17) 17.6 12 (33.5%) 505.2% 37.17 (89.8%) Revenue from oper
Slide 23: Balance sheet
Balance sheet Consolidated IndAS financials In ₹ million As on 31-Mar-23 As on 31-Mar-24 In ₹ million As on 31-Mar-23 As on 31-Mar-24 ASSETS EQUITY AND LIABILITIES Non-Current Assets Shareholder's Funds Fixed assets 2,789 2,461 Equity share capital 6,970 6,970 4,958 6,355 Reserve and surplus 26,699
Slide 24: Cash flow statement
Cash flow statement Consolidated IndAS financials Full year ended Full year ended In ₹ million March 31, 2023 March 31, 2024 Cash Flow from Operating Activities Net profit before taxation and non controlling interest 6,152 6,297 Depreciation and amortization 2,632 2,602 Finance costs (For borrowing
Slide 25: Operating metrics
Operating metrics Particulars Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Banking & Financial Services 49.0% 46.3% 43.4% 41.8% 40.3% 40.8% 40.8% 38.3% 37.3% Revenue by Healthcare 30.3% 32.1% 34.5% 34.2% 33.2% 32.6% 32.7% 33.5% 32.9% Vertical Communications Media & Tech 19.0% 20.2%
Slide 26: Thank you
THANK YOU Investor relations © Firstsource Solutions Limited | www.firstsource.com © FIRSTSOURCE | 26