Slide 1: Exchange filing cover letter
NSE & BSE / 2023-24 / 204 January 20, 2024 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: PERSISTEN
Slide 2: Investor Presentation January 2024
Investor Presentation January 2024 © Persistent Systems 2024
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 A trusted Digital Engineering and Enterprise Modernization partner $300.6M ₹2.9B $1,149.7M ₹10.3B FY24 Q3 Revenue FY24 Q3 PAT TTM Revenue TTM PAT +13.7% YoY +20.2% YoY +17.5% YoY +18.3% YoY $392.1M $1,290.3M $6.8B* 23,336 FY24 Q3 Annual Contract Value TTM ACV Bookings Market Capita
Slide 5: Our journey over 33+ years
Our journey over 33+ years Sixth Fifth Orbit Fourth Orbit 2024 onwards Third Orbit 2019 – 2023 o Powering our journey beyond Second Orbit billion dollars in 2016 – 2019 o Strong positioning annual revenue as a global Digital Orbit o Unlocking newer First Engineering leader 2008 – 2016 o Catching the
Slide 6: We have positioned ourselves as a leader in Digital Engineering
We have positioned ourselves as a leader in Digital Engineering Software, Hi-Tech Banking, Healthcare & & Emerging Financial Services Life Sciences Industries & Insurance Product & Platform Engineering Unlock Growth CX & Design-Led Transformation Enable Business Agility Cloud-enabled Enterprise Mode
Slide 7: We are focusing on an integrated approach for our next orbit
We are focusing on an integrated approach for our next orbit Fortifying Our Expanding Our Talent Operations as Footprint Boundaries @scale a Multiplier o Deepening industry- o Domain-centric capability o Elevating employee value o Reinforcing sales and leading partnerships, expansion across proposit
Slide 8: We are helping market leaders transform their industries
We are helping market leaders transform their industries Healthcare & Life Sciences Banking, Financial Services & Insurance Software & Hi-Tech 7 of 10 5 of 10 5 of 10 30+ Top SIMD* Top Pharmaceutical Companies Companies Largest Banks Global 6 of 10 in both US & India FinTech Companies 4 of 10 4 of 1
Slide 9: Enabled by our strong presence across key geographies
Enabled by our strong presence across key geographies Canada Netherlands UK Germany Ireland France Poland Romania Rest of USA Switzerland Italy the World North Japan 1.4% America Mexico Revenue India 79.7% Costa Rica 173 Revenue Malaysia Employees Sri Lanka Singapore 2,454 Employees India Europe 8.9
Slide 10: Becoming the Ecosystem Orchestrator of Choice with our partners
And by becoming the “Ecosystem Orchestrator of Choice” with our partners Gold Partner & Direct Premier Partner Premier Partner Global Summit Partner Platinum Business CSP with 4,600+ with 1,100+ with 750+ with 2,450+ Partner with 2,220+ technologists technologists technologists technologists technol
Slide 11: We are building on our long-term growth journey
We are building on our long-term growth journey 1,150 1,036 17.5% 27.3% Revenue CAGR Revenue CAGR 766 from IPO to FY23 between FY20 and FY23 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 TTM Revenue in $M 10 © Persistent Systems
Slide 12: We continue to demonstrate sustained profitable growth
We continue to demonstrate sustained profitable growth Quarterly Revenue ($M), % QoQ and % YoY Growth EBIT and PAT Margin % 50.0% 290.0 300.6 291.7 282.9 40.0% 15.4% 15.4% 270.0 274.6 14.6% 14.9% 14.3% 14.5% 264.4 14.0% 13.7% 250.0 255.6 30.0% tY1 230.0 241.5 42 0ll 12.3% 210.0 217.3 eX! 20.0% 11.3%
Slide 13: 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 141.3 93.7 65.6 70.0 65.0 60.0 55.0 50.0 45.0 40.0 35.0 30.0 25.0 20.0 31.8% 38.0% 38.4% 34.8% 29.3% 21.
Slide 14: Deepening client relationships
…and by deepening client relationships Client Concentration Large Client Count Top 10 clients as % of total revenue >$5M Annual Revenue 39 38 38 34 34 42.1% 30 40.7% 39.6% 39.3% 26 36.7% 37.4% 39.5% 25 35.0% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q
Slide 15: We operate as a socially responsible corporate citizen
We operate as a socially responsible corporate citizen… Environment Social Responsibility Governance Diversity o Carbon neutral for scope 1 o Commitment to positively o Maintain best-in-class o Build a more inclusive and 2 emissions by 2025; impact society through information governance to workplace
Slide 16: Committed towards our stated ESG goals
…and remain committed towards our stated ESG goals Snapshot of our FY23 ESG achievements Environment Diversity 46% 13,420 30% 92% 30.8% 11.4% Electricity sourced from Trees planted and nurtured Of treated wastewater in Of waste recycled from Women in the workforce Women in leadership roles renewable
Slide 17: We have delivered healthy returns on capital
We have delivered healthy returns on capital… Return on Capital Employed (RoCE)* Trend 30.4% 30.2% 29.3% 26.9% 27.5% 26.8% 24.7% 19.1% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 *TTM RoCE = TTM EBIT/ Average of Net Assets at the beginning and end of TTM period 16 © Persistent Systems 20
Slide 18: Industry-leading, long-term shareholder value
…and industry-leading, long-term shareholder value Persistent Total Shareholder Return Persistent 1-Year Stock Performance* v/s NIFTY 50 & NIFTY IT Index 1 year return 1.3% 91% 91.2% 3 year return 395.8% 6.8% 24% 20% 5 year return 1071.8% 19.7% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Share Price Return D
Slide 19: Performance Highlights
Performance Highlights 18 © Persistent Systems 2024
Slide 20: CEO message: Sandeep Kalra
“We are proud to announce the 15th sequential quarter of growth and a significant milestone of our first-ever quarter of $300M+ in revenue and $500M+ in TCV bookings. We are thankful for the ongoing trust and support of our valued clients and partners, which has led to our sustained growth. We are h
Slide 21: Financial Highlights for Q3 FY24
Financial Highlights for Q3 FY24 Revenue ($ million) 3.0% QoQ 13.7% YoY Revenue (₹ million) 3.6% QoQ 15.2% YoY 300.6 291.7 24,982.2 24,116.7 264.4 21,693.7 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 EBIT (₹ million) 9.8% QoQ 9.0% YoY PAT (₹ million) 8.7% QoQ 20.2% YoY 2,861.3 3,631.0 2,632.7 3,332.0
Slide 22: TCV and ACV Bookings for Q3 FY24
TCV and ACV Bookings for Q3 FY24 Trailing Twelve Month TCV* $1,802.6M Trailing Twelve Month TCV (New) $1,078.0M 521.4 313.1 479.3 277.4 421.6 250.3 237.2 380.3 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Trailing Twelve Month ACV* $1,290.3M Trailing Twelve Month ACV (New) $679.5M 392.1 1
Slide 23: TTM Performance
TTM Performance Revenue ($ million) 17.5% Revenue (₹ million) 22.6% 1,149.7 94,855.3 978.8 77,339.7 TTM Q3FY23 TTM Q3FY24 TTM Q3FY23 TTM Q3FY24 EBIT (₹ million) 22.7% PAT (₹ million) 18.3%* 13,870.7 * 11,306.8 10,296.8 8,705.7 Margin % 14.6% 14.6% Margin % 11.3%* 10.9%* TTM Q3FY23 TTM Q3FY24 TTM Q3F
Slide 24: Key wins for Q3 FY24
Key wins for Q3 FY24 Software, Hi-Tech & Banking, Financial Healthcare Emerging Industries Services & Insurance & Life Sciences Transforming Salesforce-based applications, Building and maintaining applications across Engineering key product suite, including Connector Factory, and IT service domains
Slide 25: Notable News and Achievements
Notable News and Achievements 24 © Persistent Systems 2024
Slide 26: Shareholder Update: Dividend Declaration
Shareholder Update: Dividend Declaration ₹32 The Board of Directors declared an Interim Dividend of ₹32 per share* on the face value of ₹10 each for the Financial Year 2023-24. *Compared to interim dividend of ₹28 in Q3 FY23 and a full year dividend of ₹50 for FY23, including a special dividend of ₹
Slide 27: Shareholder Update: Stock Split
Shareholder Update: Stock Split The Board of Directors has recommended to the shareholders a resolution to split face value of shares from ₹10 per share to ₹5 per share*. *On approval, this will double the total number of outstanding shares of the Company 26 © Persistent Systems 2024
Slide 28: We expanded our leadership team to support our growth
We expanded our leadership team to support our growth Dhanashree Bhat Barath Narayanan Chief Operating Officer Global BFSI and Europe Geo Head With over 28 years of experience, Dhanashree will With over 24 years of experience, Barath will be responsible for further strengthen Persistent’s operations
Slide 29: Included in three prestigious capital market indices
We were included in three prestigious capital market indices… Persistent was recently included in the MSCI India Index, S&P BSE 100 and S&P BSE SENSEX Next 50 indices. These inclusions reflect our: o Strong fundamentals, client confidence, growth potential, and competitive edge in the global technol
Slide 30: Named Most Promising Company of the Year
…and acknowledged for our continued growth trajectory Persistent Named Most Promising Company of the Year at 2023 India Business Leader Awards The award recognized Persistent for: o Consistent growth while capitalizing on opportunities in a transformative technology environment and delivering sustai
Slide 31: Strategic Collaboration Agreement with AWS
Expanding our relationship with our key hyperscaler partners… Persistent Announces Strategic Collaboration Agreement with AWS to Accelerate Generative AI Adoption o Access to additional AWS resources to build proofs of concept to help clients identify tangible business outcomes from generative AI o
Slide 32: Launched GenAI-powered offerings
…and launched unique GenAI-powered offerings to cater to our clients’ needs Persistent Launches First-of-its-Kind Open- Source Maintenance Service o Ensures an organization’s open-source In today’s software landscape, open-source Given the prevalence of security and software is up to date with all p
Slide 33: Our GenAI Studios foster co-innovation
Our GenAI Studios foster co-innovation with clients and partners Our newly launched state-of-the-art GenAI Studios in the US, UK, and India showcase our expertise and unique solutions, offering an immersive experience for our valued clients and partners. 32 © Persistent Systems 2024
Slide 34: Recognized for accelerating GenAI adoption
We have been recognized for accelerating GenAI adoption Persistent has been named Generative AI Market Leader in HFS Horizons: Generative Enterprise™ Services, 2023 Report The report commended Persistent for: o Client acknowledgement for customization of both scope of work and delivery, and depth of
Slide 35: Data-driven talent strategy for next-generation skills
… and our data-driven talent strategy for next-generation technology skills Persistent recognized as a Leader in Everest Group’s Talent Readiness for Next-Generation IT Services PEAK Matrix® 2023 The report applauded Persistent for: o Strong mix of next-gen ready resources built on the back of a str
Slide 36: Enabling business value creation through data and analytics
We are enabling business value creation through data and analytics Persistent has been named a Leader in the Everest Group Data and Analytics (D&A) Services for Mid-Market Enterprises PEAK Matrix® Assessment 2023 The report recognized Persistent for: o Value proposition of faster speed-to-market and
Slide 37: Recognized for customer excellence by ISG
We are recognized for customer excellence by leading advisory firm, ISG These awards recognize our commitment to providing unique business solutions powered by the latest innovative technologies to deliver exceptional end-user experience, creating significant impact for clients. “Enterprises rated P
Slide 38: Other notable awards and recognitions
Other notable awards and recognitions Leader in IDC MarketScape: Worldwide Software Leader in the Zinnov Zones ER&D Services and Digital Engineering Services 2023 Vendor Assessment Engineering Services 2023 report for the 11th year Learn more Learn more Best Enterprise Services Vendor of 2023 by Bre
Slide 39: Financial Details
Financial Details 38 © Persistent Systems 2024
Slide 40: Sequential Q3 FY24 vs Q2 FY24
Sequential Q3 FY24 vs Q2 FY24 % of Sales % of Sales Particulars Q3FY24 Q2FY24 Change QoQ Q3FY24 Q2FY24 Revenue ($ M) 300.55 291.71 3.0% Avg. Exchange Rate Rs. / US$ 83.12 82.67 0.5% Revenue (₹ M) 24,982.16 24,116.70 3.6% ₹M ₹M Total Direct costs 16,539.12 16,127.20 2.6% 66.2% 66.9% Gross Profit 8,44
Slide 41: YoY Comparison Q3 FY24 vs Q3 FY23
YoY Comparison Q3 FY24 vs Q3 FY23 % of Sales % of Sales Particulars Q3FY24 Q3FY23 Change YoY Q3FY24 Q3FY23 Revenue ($ M) 300.55 264.35 13.7% Avg. Exchange Rate Rs. / US$ 83.12 82.06 1.3% Revenue (₹ M) 24,982.16 21,693.68 15.2% ₹M ₹M Total Direct costs 16,539.12 14,360.05 15.2% 66.2% 66.2% Gross Prof
Slide 42: YTD Comparison Dec 2023 vs. Dec 2022
YTD Comparison Dec 2023 vs. Dec 2022 % of Sales % of Sales Particulars YTD Dec 23 YTD Dec 22 Change YoY YTD Dec 23 YTD Dec 22 Revenue ($ M) 875.16 761.43 14.9% Avg. Exchange Rate Rs. / US$ 82.63 80.06 3.2% Revenue (₹ M) 72,310.61 60,961.20 18.6% ₹M ₹M Total Direct costs 47,944.78 40,421.57 18.6% 66.
Slide 43: Balance Sheet
Balance Sheet (₹ M) As on As on As on Particulars December 31, 2023 March 31, 2023 December 31, 2022 Assets PPE and Intangible Assets 22,961.74 23,574.67 22,946.33 Non-Current Assets 3,455.36 3,154.83 3,340.61 Cash and Investments 18,471.57 15,991.26 16,746.11 Other Current Assets 27,249.74 24,005.3
Slide 44: Fact Sheet
Fact Sheet 43 © Persistent Systems 2024
Slide 45: Fact Sheet
Fact Sheet Q3FY24 Q2FY24 Q1FY24 Q4FY23 Q3FY23 FY23 FY22 Revenue from Operations, $M 300.6 291.7 282.9 274.6 264.4 1,036.0 765.6 % Q-o-Q growth 3.0% 3.1% 3.0% 3.9% 3.4% % Q-o-Q growth (constant 3.1% 3.2% 2.9% 3.5% 3.5% currency) Revenue % Y-o-Y growth 13.7% 14.1% 17.1% 26.3% 32.8% 35.3% 35.2% Revenue
Slide 46: Fact Sheet
Fact Sheet Q3FY24 Q2FY24 Q1FY24 Q4FY23 Q3FY23 FY23 FY22 BFSI 31.2% 32.3% 33.3% 32.3% 32.6% 32.9% 31.6% Segment Healthcare & Life Sciences 21.8% 19.3% 18.6% 19.7% 19.6% 19.7% 20.8% Revenue Mix Software, Hi-Tech & Emerging 47.0% 48.4% 48.1% 48.0% 47.8% 47.4% 47.6% Industries Total 100.0% 100.0% 100.0%
Slide 47: Fact Sheet
Fact Sheet Active Q3FY24 Q2FY24 Q1FY24 Q4FY23 Q3FY23 FY23 FY22 Clients Clients Billed* 375 375 367 359 344 358 307 Q3FY24 Q2FY24 Q1FY24 Q4FY23 Q3FY23 FY23 FY22 Top 1 9.3% 10.2% 10.2% 9.3% 7.4% 9.2% 16.2% Revenue Top 5 28.0% 28.3% 27.9% 26.5% 24.7% 27.0% 35.1% Concentration Top 10 39.3% 39.5% 39.6% 3
Slide 48: Fact Sheet
Fact Sheet Q3FY24 Q2FY24 Q1FY24 Q4FY23 Q3FY23 FY23 FY22 Technical 21,738 21,263 21,511 21,295 21,033 21,295 17,283 People Sales and Business Development 465 443 428 414 405 414 317 Numbers Others 1,133 1,136 1,191 1,180 1,160 1,180 999 Total 23,336 22,842 23,130 22,889 22,598 22,889 18,599 Q3FY24 Q2
Slide 49: © Persistent Systems 2024
Bevomnes Rise Persistent /N5OVE.