Slide 1: Fact Sheet filing cover letter to NSE and BSE
NSE & BSE / 2023-24 / 136 October 18, 2023 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 October 2023
Investor Presentation October 2023
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 $291.7M ₹2.6B $1,113.5M ₹9.8B FY24 Q2 Revenue FY24 Q2 PAT TTM Revenue TTM PAT +14.1% YoY +19.7% YoY +21.9% YoY +21.3% YoY $315.9M $1,224.5M $5.3B* 22,842 FY24 Q2 Annual Contract Value TTM ACV Bookings Market Capital
Slide 5: Our journey over 33+ years
Our journey over 33+ years 2019 – 2023 Fifth Orbit Fourth 2016 – 2019 Orbit Third 2008 – 2016 o Strong positioning Orbit as a global Digital 2001 – 2008 Second o Engineering leader Industry-leading Orbit o Catching the early growth and 1990 – 2001 First wave of Digital Transformation shareholder val
Slide 6: Positioned as a leader in Digital Engineering
Over this period, 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 Accelerate
Slide 7: 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 Top SIMD* Top Pharmaceutical 5 of 10 30+ Companies Companies 4 of 10 4 of 10 Largest Banks Global 6 of 10 in both US & India FinTech Companie
Slide 8: Enabled by our strong presence across key geographies
Enabled by our strong presence across key geographies Canada UK Netherlands Ireland Germany France Poland Romania Rest of USA Switzerland Italy the World North Japan 1.6% America Mexico Revenue India 79.2% Costa Rica 169 Revenue Malaysia Employees Sri Lanka Singapore 2,245 Employees India Europe 9.5
Slide 9: Ecosystem Orchestrator of Choice with our partners
And by becoming “Ecosystem Orchestrator of Choice” with our partners Gold Partner & Direct Premier Partner Premier Partner Global Summit Partner Platinum Business CSP with 4,500+ with 1,000+ with 600+ with 2,400+ Partner with 2,200+ technologists technologists technologists technologists technologis
Slide 10: We are building on our long-term growth journey
We are building on our long-term growth journey 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 Revenue in $M 9 © Persistent Systems 2023
Slide 11: We continue to demonstrate sustained profitable growth
We continue to demonstrate sustained profitable growth Quarterly Revenue ($M), % QoQ and % YoY Growth EBIT and PAT Margin % 300.0 50.0% 280.0 291.7 282.9 260.0 274.6 40.0% 264.4 15.4% 15.4% 14.6% 14.9% 255.6 14.3% 240.0 14.0% 14.0% 13.7% 241.5 220.0 30.0% 217.3 200.0 199.1 12.3% 180.0 20.0% 11.8% 11
Slide 12: Steady performance across 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 141.2 94.3 60.0 56.2 55.0 50.0 64.1 45.0 93.8 41.2 40.0 35.0 30.0 25.0 20.0 24.7% 31.9% 38.0% 38.4% 34.8
Slide 13: Focused client mining
…and through focused client mining Client Concentration Large Client Count Top 10 clients as % of total revenue >$5M Annual Revenue 39 38 45.0% 34 34 42.1% 30 40.7% 39.6% 39.5% 26 25 24 36.7% 37.4% 35.0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY2
Slide 14: Industry-leading, long-term shareholder value
We have delivered industry-leading, long-term shareholder value... Persistent Total Shareholder Return Persistent 1-Year Stock Performance* v/s NIFTY 50 & NIFTY IT Index 95% 1 year 79% return 1.5% 75% 78.8% 55% 3 year return 331.9% 7.5% 35% 18% 15% 14% 5 year return 634.8% 15.7% -5% Sep-22 Dec-22 Ma
Slide 15: Healthy returns on capital
...and healthy returns on capital Return on Capital Employed (RoCE)* Trend 30.4% 30.2% 26.9% 27.5% 26.8% 24.7% 20.7% 19.1% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 *TTM RoCE = TTM EBIT/ Average of Net Assets at the beginning and end of TTM period 14 © Persistent Systems 2023
Slide 16: 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 emissions by 2026; reduce impact society through information governance to workplac
Slide 17: 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 36 renewa
Slide 18: Golden Peacock Award for Excellence in Corporate Governance
We received the Golden Peacock Award for Excellence in Corporate Governance The award, created by the Institute of Directors (IOD), is the benchmark of corporate excellence worldwide. Persistent was recognized for: o Adopting special measures for a compliance-friendly environment that enhances trans
Slide 19: 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 Driving decisions using a leading partnerships, expansion across prop
Slide 20: Performance Highlights
Performance Highlights 19 © Persistent Systems 2023
Slide 21: Sandeep Kalra management commentary
“We are pleased to announce yet another quarter of strong revenue growth, fueled by client trust in our Digital Engineering and Enterprise Modernization capabilities. Our proactive approach and ability to adapt has enabled us to thrive in this uncertain macroeconomic environment leading to our highe
Slide 22: Financial Highlights for Q2 FY24
Financial Highlights for Q2 FY24 Revenue ($ million) 3.1% Q-o-Q 14.1% Y-o-Y Revenue (₹ million) 3.9% Q-o-Q 17.7% Y-o-Y 291.7 282.9 24,116.7 23,211.8 255.6 20,486.4 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 EBIT (₹ million) -4.6% Q-o-Q 10.8% Y-o-Y PAT (₹ million) 15.1% Q-o-Q* 19.7% Y-o-Y 3,466.2 2,63
Slide 23: TCV and ACV Bookings for Q2 FY24
TCV and ACV Bookings for Q2 FY24 Trailing Twelve Month TCV* $1,721.4M Trailing Twelve Month TCV (New) $1,039.6M 479.3 313.1 440.2 421.6 250.3 239.0 237.2 380.3 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Trailing Twelve Month ACV* $1,224.5M Trailing Twelve Month ACV (New) $640.4M 326.3 3
Slide 24: TTM Performance
TTM Performance Revenue ($ million) 21.9% Revenue (₹ million) 29.8% 1,113.5 91,566.8 913.5 70,563.2 TTM Q2FY23 TTM Q2FY24 TTM Q2FY23 TTM Q2FY24 EBIT (₹ million) 34.9% PAT (₹ million) 21.3%* 13,571.7 9,815.0* 8,090.1 10,057.7 Margin % 14.3% 14.8% Margin % 11.5% 10.7%* TTM Q2FY23 TTM Q2FY24 TTM Q2FY23
Slide 25: Key wins for Q2 FY24
Key wins for Q2 FY24 Software, Hi-Tech & Banking, Financial Healthcare Emerging Industries Services & Insurance & Life Sciences Delivering product engineering and Building an insure-tech platform and scaling Modernizing the data roadmap across customer support services for a cloud- the technology in
Slide 26: Notable News and Achievements
Notable News and Achievements 25 © Persistent Systems 2023
Slide 27: Three Guinness World Records titles
Persistent Systems created history with three GUINNESS WORLD RECORDSTM titles We celebrated surpassing the $1 billion annual revenue milestone in FY23 in first-of-its-kind way by achieving three GUINNESS WORLD RECORDS titles to reinforce our commitment toward environment and employee health. Most Li
Slide 28: Persistent Push For Growth
Persistent Push For Growth Dr. Anand Deshpande featured in Fortune India-EY Best CEO special edition, recognizing exceptional entrepreneurial managers who have made a mark in their sectors and led to consistent growth of the Company. The coverage emphasized on Anand’s philanthropic efforts and passi
Slide 29: We continue to strengthen our leadership team
We continue to strengthen our leadership team Ayon Banerjee Rajiv Sodhi Chief Strategy and Growth Officer Senior VP – Hyperscaler Business & Strategic Alliances Ayon’s addition to the Executive team will help further With 25+ years of experience, Rajiv will further strengthen and accelerate Persiste
Slide 30: Enhanced multi-cloud capabilities; Gartner Challenger
We have enhanced our multi-cloud capabilities to address client needs Recognized as a Challenger in 2023 Gartner® Public Cloud IT Transformation Services MQ This recognition from Gartner ® underscores our unparalleled expertise in harnessing the power of cloud technologies and commitment to reshapin
Slide 31: Premier Tier Services Partner in AWS Partner Network
We have scaled AWS partnership to unlock further value for our clients Swami Sivasubramanian Achieved Premier Tier VP, Database, Analytics and ML at AWS Services Partner Status in the AWS Partner Network (APN) “Our mission together was how do we put an expert This highest level of status in APN demo
Slide 32: Innovative programs with Google Cloud
We are building industry-leading innovative programs with Google Cloud Google Cloud CEO Thomas Kurian’s keynote at Google Cloud Next ‘23 Recognized as the 2023 Social Impact Partner of the Year for APAC highlights Persistent as a key GenAI System Integrator for developing a solution that fast-tracks
Slide 33: Hyper automation market leaders acknowledge our capabilities
Hyper automation market leaders are acknowledging our capabilities Recognized as the Top Partner Honored with the 2023 of the Year 2022 Americas Partner Award in Won Partner of the Year for Most the Innovation category Closed Deals (Net New Logos) Learn more Learn more 32 © Persistent Systems 2023
Slide 34: Financial Details
Financial Details 33 © Persistent Systems 2023
Slide 35: Sequential Q2 FY24 vs Q1 FY24
Sequential Q2 FY24 vs Q1 FY24 % of Sales % of Sales Particulars Q2FY24 Q1FY24 Change QoQ Q2FY24 Q1FY24 Revenue ($ M) 291.71 282.90 3.1% Avg. Exchange Rate Rs. / US$ 82.67 82.05 0.8% Revenue (Rs. M) 24,116.70 23,211.75 3.9% Cost of Revenue Rs. M Rs. M Total Direct costs 16,127.20 15,278.46 5.6% 66.9%
Slide 36: YoY Comparison Q2 FY24 vs Q2 FY23
YoY Comparison Q2 FY24 vs Q2 FY23 % of Sales % of Sales Particulars Q2FY24 Q2FY23 Change YoY Q2FY24 Q2FY23 Revenue ($ M) 291.71 255.56 14.1% Avg. Exchange Rate Rs. / US$ 82.67 80.16 3.1% Revenue (Rs. M) 24,116.70 20,486.41 17.7% Cost of Revenue Rs. M Total Direct costs 16,127.20 13,628.38 18.3% 66.9
Slide 37: YTD Comparison H1 FY24 vs H1 FY23
YTD Comparison H1 FY24 vs H1 FY23 % of Sales % of Sales Particulars H1FY24 H1FY23 Change YoY H1FY24 H1FY23 Revenue ($ M) 574.61 497.08 15.6% Avg. Exchange Rate Rs. / US$ 82.37 79.00 4.3% Revenue (Rs. M) 47,328.45 39,267.52 20.5% Cost of Revenue Total Direct costs 31,405.66 26,061.52 20.5% 66.4% 66.4
Slide 38: Balance Sheet (₹M)
Balance Sheet (₹M) As on As on As on Particulars September 30, 2023 March 31, 2023 September 30, 2022 Assets PPE and Intangible Assets 23,077.49 23,574.67 22,813.69 Non-Current Assets 3,489.26 3,154.83 2,854.65 Cash and Investments 15,682.94 15,991.26 15,718.98 Other Current Assets 26,189.40 24,005.
Slide 39: Fact Sheet
Fact Sheet 38 © Persistent Systems 2023
Slide 40: Fact Sheet: Revenue
Fact Sheet Q2FY24 Q1FY24 Q4FY23 Q3FY23 Q2FY23 FY23 FY22 Revenue from Operations, $M 291.7 282.9 274.6 264.4 255.6 1,036.0 765.6 % Q-o-Q growth 3.1% 3.0% 3.9% 3.4% 5.8% % Q-o-Q growth (constant 3.2% 2.9% 3.5% 3.5% 6.6% currency) Revenue % Y-o-Y growth 14.1% 17.1% 26.3% 32.8% 40.2% 35.3% 35.2% Revenue
Slide 41: Fact Sheet: Segment and Geography Revenue Mix
Fact Sheet Q2FY24 Q1FY24 Q4FY23 Q3FY23 Q2FY23 FY23 FY22 BFSI 32.3% 33.3% 32.3% 32.6% 32.8% 32.9% 31.6% Segment Healthcare & Life Sciences 19.3% 18.6% 19.7% 19.6% 19.7% 19.7% 20.8% Revenue Mix Software, Hi-Tech & Emerging 48.4% 48.1% 48.0% 47.8% 47.5% 47.4% 47.6% Industries Total 100.0% 100.0% 100.0%
Slide 42: Fact Sheet: Clients and Revenue Concentration
Fact Sheet Active Q2FY24 Q1FY24 Q4FY23 Q3FY23 Q2FY23 FY23 FY22 Clients Clients Billed* 375 367 359 344 345 358 307 Q2FY24 Q1FY24 Q4FY23 Q3FY23 Q2FY23 FY23 FY22 Top 1 10.2% 10.2% 9.3% 7.4% 8.7% 9.2% 16.2% Revenue Top 5 28.3% 27.9% 26.5% 24.7% 26.9% 27.0% 35.1% Concentration Top 10 39.5% 39.6% 37.4% 3
Slide 43: Fact Sheet: People, Effort Mix, Utilization, Attrition
Fact Sheet Q2FY24 Q1FY24 Q4FY23 Q3FY23 Q2FY23 FY23 FY22 Technical 21,263 21,511 21,295 21,033 20,941 21,295 17,283 People Sales and Business 443 428 414 405 387 414 317 Numbers Development Others 1,136 1,191 1,180 1,160 1,148 1,180 999 Total 22,842 23,130 22,889 22,598 22,476 22,889 18,599 Q2FY24 Q1
Slide 44: © Persistent Systems 2023
Bevomnes Rise Persistent /NSOVE.