Firstsource Solutions Limited · NSE:FSL
Firstsource Solutions — Q1 FY2022 Earnings Presentation
20 slides from Firstsource Solutions's earnings presentation, Jul 29, 2021
Slide 1: Q1 FY2022 Earnings Update
Q1FY2022 EARNINGS UPDATE Q1 FY2022 Earnings Update 1 © FIRSTSOURCE 2021 | 29 July 2021
Slide 2: Disclaimer
Q1FY2022 EARNINGS UPDATE 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. T
Slide 3: Growth Momentum, Strong Execution, FY2022 Growth Estimates
Q1FY2022 EARNINGS UPDATE GROWTH MOMENTUM STRONG EXECUTION FY2022 GROWTH CONTINUED ACROSS BUSINESSES ESTIMATES • Constant currency revenue • Solid growth in Healthcare; • Revenue expected to grow growth of 38.5% in constant expected to be the growth between 15-18% in constant currency YoY driver this
Slide 4: Summary of Performance During the Quarter
Summary of Performance During the Quarter Q1FY2022 EARNINGS UPDATE REVENUES OPERATING MARGIN ₹ 14,848 Million ₹ 1,800 Million (US$ 201.3 Million) (Margin 12.1%) YoY growth of 39.8% YoY Margin expansion of 111 bps Constant Currency growth of 38.5% PROFIT AFTER TAX EARNINGS PER SHARE (Diluted) ₹ 1,345
Slide 5: Revenue Split by Verticals and Service Lines
Q1FY2022 EARNINGS UPDATE REVENUE SPLIT BY VERTICALS REVENUE SPLIT BY SERVICE LINES Q1FY22 Q1 FY22 51.7% 26.7% 19.6% 2.0% Q1 FY22 Q1FY22 46.3% 47.6% 6.1% Q4 FY21 52.2% 24.8% 20.8% 2.2% Q4 FY21 47.2% 47.9% 4.9% Q3 FY21 52.0% 25.3% 20.5% 2.2% Q3 FY21 48.9% 44.8% 6.3% Q2 FY21 51.9% 27.1% 18.8% 2.2% Q2 F
Slide 6: Top 5 Clients
Q1FY2022 EARNINGS UPDATE Client Concentration 5 of Top 15 2 of Top 6 5 of Top 15 Mortgage servicers in Retail banks in the UK Mortgage Lenders in Top Client Q1FY22 16.3% the US the US 19.5 years Total Tenure Q4FY21 17.5% 1,000+ 6 of Top 10 1 of Top 3 Health insurance/ managed Utility companies in th
Slide 7: Annexure
Q1FY2022 EARNINGS UPDATE Annexure 7 © FIRSTSOURCE 2021 | 29 July 2021
Slide 8: Financial Performance (Quarterly)
Financial Performance (Quarterly) Q1FY2022 EARNINGS UPDATE In ₹ million Q1 FY 2020 Q2 FY 2020 Q3 FY 2020 Q4 FY2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Income from services 9,669 9,715 10,446 10,673 10,537 11,783 13,510 14,496 14,780 Other operating Income 129 134 89 132 85 94 142
Slide 9: Financial Performance (Yearly)
Financial Performance (Yearly) Q1FY2022 EARNINGS UPDATE In ₹ million FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY2021 Income from services 31,617 34,569 34,315 37,867 40,502 50,327 Other operating Income 556 987 1,038 396 484 453 Revenue from operations 32,173 35,556 35,352 38,263 40,986 50,780 Revenu
Slide 10: Balance Sheet and Cash Flow Statement
Q1FY2022 EARNINGS UPDATE Balance Sheet and Cash Flow Statement In ₹ million As at 30-June-21 As at 31-Mar-21 In ₹ million Quarter ended 30-June-21 Cash Flow from Operating Activities Equity And Liabilities Operating Margin 1,800 Share Capital 6,967 6,961 Adj: Non Cash and Other Income / (Expense) 58
Slide 11: Key Performance Indicators
Q1FY2022 EARNINGS UPDATE Key Performance Indicators Return on Equity Return on Capital Employed 17.6% 19.4% 17.4% 13.8% 13.9% 13.9% 14.1% 12.9% 12.7% 13.0% 12.3% 12.3% FY17 FY18 FY19 FY20 FY21 Q1FY22 x 4 FY17 FY18 FY19 FY20 FY21 Q1FY22 x 4 Note: FY21 ROE will be 16.1% excluding for exceptional item
Slide 12: Operating Metrics
Q1FY2022 EARNINGS UPDATE Operating Metrices Particulars Q1 FY 2020 Q2 FY 2020 Q3 FY 2020 Q4 FY2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Banking & Financial Services 35.6% 40.4% 42.9% 42.8% 51.2% 51.9% 52.0% 52.2% 51.7% Communications Media & Tech 27.2% 22.0% 21.9% 22.9% 16.2% 18.8%
Slide 13: Forex Hedges
Q1FY2022 EARNINGS UPDATE Forex Hedges Outstanding FX hedges at $103.0 million for USD and £55.3 million for GBP GBP-INR USD INR Period Hedged Average Rate Hedged Average Rate 0-12 Months £ 34.2 Rs 107.7 /£ $ 98.0 Rs 76.6 /$ 13-24 Months £ 21.1 Rs 116.1 /£ $ 5.0 Rs 80.4 /$ 13 © FIRSTSOURCE 2021 | 29
Slide 14: Prior Period Reports
Q1FY2022 EARNINGS UPDATE Prior Period Reports (Hyperlinks) ANNUAL REPORT PUBLISHED RESULTS INVESTOR PRESENTATIONS PRESS RELEASE FY2022 Q1 FY2022 Q1 FY2022 Q1 FY2021 FY2021 Q1 Q2 Q3 Q4 FY2021 Q1 Q2 Q3 Q4 FY2021 Q1 Q2 Q3 Q4 FY2020 FY2020 Q1 Q2 Q3 Q4 FY2020 Q1 Q2 Q3 Q4 FY2020 Q1 Q2 Q3 Q4 FY2019 FY2019
Slide 15: Q1FY2022 E ARNINGS U PDATE
Leader in US non-bank lender Top 3 in the chosen Revenue Leading CX service Top 5 Consumer debt Q1FY2022 EARNINGS UPDATE market Cycle Management segments providers in the UK across collections agency in the in US Healthcare Media and BFS segments US Customer Service Mortgage Operations Voice | Chat
Slide 16: About Us
Q1FY2022 EARNINGS UPDATE US UK PHILIPPINES About Us 5,464 21 5,326 6 449 2 16,677 13 INDIA Established in 2001 Domain driven BPM services company Leveraging a ‘Digital First, Digital Now’ approach to solve key customer problems Revenues of INR 51.0 Billion (approximately $685 Million) in FY2021 150+
Slide 17: Part of RP-Sanjiv Goenka Group
Q1FY2022 EARNINGS UPDATE Part of RP-Sanjiv Goenka Group Power Carbon Black Consumer & Retail Media & Entertainment Combined Education & Infrastructure IT-Enabled Services Revenues of $3.6 Billion in Sports FY2021 17
Slide 18: Select Awards
Q1FY2022 EARNINGS UPDATE Select Awards International Customer Contact Centre Network Welsh Contact NelsonHall “A-100” by Experience Awards Northern Ireland Awards Centre Awards SecurityScorecard™ 2020: Firstsource, jointly 2020: Best Homeworking 2020: Contact Centre • Positioned as a 2021: Rated ‘A-
Slide 19: Corporate Management
Q1FY2022 EARNINGS UPDATE Corporate Management Senior Leadership Dinesh Jain Prashanth Nandella Randall Shafer Lauralea Tanner Venkatgiri Vandali Deb Biswas Finance Operations Healthcare Healthcare Health Plans & Communications, Provider Provider Markets Healthcare Services Media & Technology Vipul K
Slide 20: Q1FY2022 E ARNINGS U PDATE
Q1FY2022 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
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