Slide 1: Intimation letter to stock exchanges
21 July 2023 The Manager, Listing The Manager, Listing BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. c/1, Dalal Street, G-Block, Bandra-Kurla Complex, Mumbai - 400 001 Mumbai – 400 051 Dear Sirs, Sub: Presentation for Investor(s)/Analyst(s) call
Slide 2: Strategy in Execution, Powered by AI: Q1 FY24
Strategy in Execution, Powered by AI: Q1 FY24 Nitin Rakesh Manish Dugar CEO & Managing Director CFO © Mphasis 2023 Proprietary and confidential information I 7/20/2023 I 1 I
Slide 3: Safe Harbor
Safe Harbor Certain statements mentioned in this presentation concerning our future growth prospects are forward looking statements (the “Forward Statements”) and are based on reasonable expectations of the management, which involves a number of risks, and uncertainties that could cause actual resul
Slide 4: Highlights of Q1 FY24: Broad Basing the Growth
Highlights of Q1 FY24: Broad Basing the Growth Leaning in on AI 5 • Launch of Mphasi.ai BU • Significant deal wins • Strategic partnerships 4 Large TCV Wins Signs of A record setting win closures of bottoming in place $707M provides momentum • Base formation in Q1 FY24 • Return to sequential growth,
Slide 5: Highest Ever TCV Wins of $707M: Building Positive Momentum
Highest Ever TCV Wins of $707M: Building Positive Momentum TCV Won YoY +133% • TCV wins this Quarter > 2X of average wins in past 4 Quarters 10% • 7 large deal wins • 4 deals > $100M each 17% 11% • 1/3rd TCV won in pure AI deals 11% 707 • Majority of growth in TCV from verticals 6% outside BFS • Sig
Slide 6: Pipeline in Q1 FY24: Remains Healthy Despite Strong Deal Wins
Pipeline in Q1 FY24: Remains Healthy Despite Strong Deal Wins YoY 23% +6% • Broad based pipeline growth across all +6% chosen verticals with 10% healthcare pipeline 16% QoQ Data 14% leading with 63% 17% 17% Modernization 16% • BFS pipeline up 28% YoY 11% 11% Value Stream Acceleration 14% 18% Securit
Slide 7: Dedicated AI Business Unit: Leading to TCV Wins and Strong Pipeline
Dedicated AI Business Unit: Leading to TCV Wins and Strong Pipeline Mphasis Customer End Consumer Super-Power Mphasis Deal Archetypes Engineering & Operations Exoskeleton Various AI Products AI Engineering Squads Mphasis.ai Platform Engg & Ops Team Next Labs Account Delivery Teams Tribes Sparkle AI
Slide 8: Mphasis Performance: A Snapshot
Mphasis Performance: A Snapshot Overall Growth Growth with larger scale in Direct 9.8% 22.8% 33.3% 3.5% YoY → 14.3% 16.1% 12.9% 41..9% 11.2% YoY → 13.2% 9.7% 8.0% 22.6% 2.2% YoY ex DR→ 12.4% 1,547 1,582 1,666 1,680 1,167 1,366 1,248 901 1,147 780 1,027 716 Q1 FY19 Q1 FY20 Q1 FY21 Q1 FY22 Q1 FY23 Q1
Slide 9: Q1 FY24 Performance by Segment: Macro Overhang
Q1 FY24 Performance by Segment: Macro Overhang Direct Direct Direct 436 436 YoY 436 YoY 412 YoY 412 YoY 412 YoY 398 398 398 -10.0% -8.9% -1.5% +0.2% APPS 288 Americas 359 291 283 Direct 408 333 323 390 378 -7.2% -2.4% -33.4% -33.4% -3.6% BPO 97 68 DXC EMEA 65 42 44 41 0.4% 6.7% Others 21 15 ROW 3.0%
Slide 10: Performance by Vertical: A Quarterly View
Performance by Vertical: A Quarterly View 436 412 398 QoQ YoY Direct YoY Direct ex DR YoY -8.9% -14.4% -14.6% -1.0% Banking & Financial Services 230 215 196 Insurance 45 40 42 3.3% -7.0% -6.2% -6.2% TMT 62 58 60 3.9% -3.6% 1.9% 1.9% Logistics & Transportation 58 57 56 -1.1% -2.5% -0.8% -0.8% Others
Slide 11: Performance by Client Pyramid: Direct
Performance by Client Pyramid: Direct Q1 FY24 YoY decline of 7.2% in Direct Overall Client Additions revenues, QoQ decline of 3.2% 113 Category YoY QoQ 112 $200M + 1 - Top 5 accounts declined 2% YoY, mainly $100M + (1) (1) 105 Top 10 affected by the mortgage softness. $75M + (1) - $20M + 2 - $10M +
Slide 12: Performance in Financial Metrics
Performance in Financial Metrics Revenue trend Operating Profit Trend CAGR CAGR 2.4 % 436 398 67 363 58 61 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY22 Q1 FY23 Q1 FY24 Gross Revenue in $M at average USD/INR rate for respective periods # Revenue growth in constant currency EBIT in $M at average USD/INR rate for r
Slide 13: Q1 FY24: In Summary
Q1 FY24: In Summary ▪ Bottoming out of revenue ▪ Visibility from highest-ever TCV closures ($707M) ▪ Stability of DR and DXC ▪ Diversification of TCV/Pipeline beyond BFS and non-Top 10 clients while BFS pipeline also grew 28% YoY ▪ AI-centric deal propositions paying off (inc. large deals) accountin
Slide 14: Outlook
Outlook ▪ Focused on Micro in an uncertain Macro ▪ Strong pipeline entering FY24 led by AI, Cloud & Transformation deals ▪ Outlook in BFS still uncertain though early green shoots visible ▪ Growth in Direct will be back-ended with sequential growth accelerating through remainder of FY24 ▪ Mortgage s
Slide 15: Q&A
Q&A Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html © Mphasis 2023 Proprietary and confidential information I 7/20/2023 I 14 I
Slide 16: Analyst Recognitions: Q1 FY24
Analyst Recognitions : Q1 FY24 MAJOR CONTENDER MAJOR AND STAR PERFORMER CONTENDER Application Automation Services Enterprise Blockchain Services PEAK PEAK Matrix® Assessment 2023 Matrix® Assessment 2023 MAJOR MAJOR MAJOR CONTENDER CONTENDER CONTENDER Asset and Wealth Management IT Healthcare Payer O