Slide 1: Mphasis Earnings Q2 FY 2022
Mphasis Earnings Q2 FY 2022 Building for sustainable Growth 22nd October 2021 Nitin Rakesh Chief Executive Officer and Managing Director Manish Dugar Chief Financial Officer © Mphasis 2021 Proprietary and confidential information I 10/22/2021 I 1 I
Slide 2: 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 3: Looking at the Future: Three engines powering our growth
Looking at the Future: Three engines powering our growth 1 2 3 IT SERVICES DISCRETIONARY OPS TECH SPEND SPEND AS CAPEX ORIGINATING FROM MARKET GROWTH REDUCES NEW SPEND AREAS © Mphasis 2021 Proprietary and confidential information I 10/22/2021 I 3 I
Slide 4: Our track record tells the story: Decade-high growth
Our track record tells the story : Decade-high growth Q2-FY22 Overall revenue grew 17.2% YoY in CC*; Decade-high growth Accelerated growth with larger Direct business grew 31.5% YoY in CC*; Consecutive Quarter of 30%+YoY growth scale in Direct 385 YoY → 10.3% 12.5% 19.0% 32.1% 363 354 342 CQGR +3.1%
Slide 5: Continuing success of our strategy in numbers
Continuing success of our strategy in numbers Revenue in USD M Y-o-Y 18% Direct Direct 385 385 Y-o-Y 385 Y-o-Y 363 363 Y-o-Y 363 Y-o-Y 327 327 327 235 22% 39% 18% 27% 225 32% 277 301 APPS 193 Direct 323 354 Americas 256 268 BPO 87 97 101 16% 16% 31% 44% DXC EMEA 35 44 46 Others 53 34 25 ITO 47 49 RO
Slide 6: Broad-based Growth Across Verticals Sustained
Broad-based Growth Across Verticals Sustained Revenue in USD M 385 Overall Direct Direct Direct 363 Q-o-Q Q-o-Q Y-o-Y CAGR* 327 210 13.1% 13.8% 23.8% 17.6% 186 Banking & Financial Services 175 33 34 2.1% 1.0% 12.7% 2.4% Insurance 31 52 48 -6.5% 10.8% 168% 46.8% TMT 39 Logistics & Transportation 40 5
Slide 7: All constituents of Direct growth progressing well; key clients lead growth
All constituents of Direct growth progressing well; key clients lead growth Accelerated Growth in Direct Revenue Q2’22: Consecutive Quarter of 30%+ YoY organic growth rate YoY Strong Q2’22 YoY (31.5% CC) +32.1% 354 Overall growth; Broad based growth across 323 all vectors 268 Top 10 accounts grew 28
Slide 8: Direct TCV trends stable
Direct TCV trends stable Direct TCV Wins Direct: Revenue vs TCV – Strong Correlation CAGR 1,200 +50.2% 747 1,100 Direct Revenue (TTM in US$ M) 619 1,000 R² = 0.9303 331 900 New Gen 800 Traditional 700 H1’20 H1’21 H1’22 TCV wins : $M 600 350 550 750 950 1,150 1,350 TCV of Direct (TTM in US$ M) • TCV
Slide 9: Improving client mining and large-deal metrics: Direct
Improving client mining and large-deal metrics: Direct Client Pyramid Focus on winning large-deals (>$20M TCV) # of cumulative deal wins since Q1’18 88 Client Additions LTM avg deal size Category Y-o-Y Q-o-Q 27 29 59 80 (large deals) $100M + 2 - 80 60 $50M + 3 - 41 28 $5M + 10 2 $1M + 8 4 22 Healthy
Slide 10: Strong performance in all financial metrics
Strong performance in all financial metrics Revenue growth Operating Profit growth* YoY 385 YoY +17.6% +15.6% 61 363 3 58 M&A Charges adj 327 Reported 53 58 Q2’21 Q1’22 Q2’22 Q2’21 Q1’22 Q2’22 Gross Revenue in $M at average USD/INR rate for respective periods EBIT in $M at average USD/INR rate for r
Slide 11: Healthy New client wins and pipeline growth to sustain growth momentum
Healthy New client wins and pipeline growth to sustain growth momentum Fortune 500 – New Client additions* New Gen Pipeline Cumulative Fortune 500 Client additions Y-o-Y 30 27.7% Healthy mix of Fortune 500 client 13.1% additions across all segments Q-o-Q 10 11% Blink 10% 15% 11% 18 Data 18% 16 16 16
Slide 12: Multiple vectors to drive sustainable growth
Multiple vectors to drive sustainable growth Deal Wins Pipeline NCA TAM Capability • High % of proactive deal • Pipeline momentum in • Several Marquee logos • Tapping the • Cloud-ready tribes and pursuits; higher win rates NCA channel converted in the past 6 discretionary digital delivery • Integrat
Slide 13: Summary
Summary • Strong Direct performance sustained – FYTD 32% Y/Y Constant Currency Direct growth; second straight quarter of 10% Q/Q and 30%+ Y/Y organic growth; accelerating growth on an enlarging revenue base • KPIs moving in the right direction with our tribe-based propositions paying off o Broad-bas
Slide 14: Summary
Summary • Sustained investments in tune with our “Continuity and Acceleration” theme – geography footprint expansion, greater leadership breadth and depth, build-up of digital competencies (including M&A), NCA o Industry-leading growth in Direct o Target organic operating (EBIT) margin band of 15.5%
Slide 15: Q&A
Q&A Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html © Mphasis 2021 Proprietary and confidential information I 10/22/2021 I 15 I
Slide 16: Analysts/Advisor Recognitions
Analysts/Advisor Recognitions HFS MARKET ANALYSIS GARTNER Ranked 2nd – Banking and MAGIC QUADRANT Financial Services Challenger – Life Insurance Policy Formidable Challengers Administration Systems, report North America STAR STAR PERFORMER PERFORMER LEADER & MAJOR & MAJOR CONTENDER CONTENDER Capital
Slide 17: THANK YOU
THANK YOU About Mphasis Mphasis (BSE: 526299; NSE: MPHASIS) applies next-generation technology to help enterprises transform businesses globally. Customer centricity is foundational to Mphasis and is reflected in the Mphasis’ Front2Back™ Transformation approach. Front2Back™ uses the exponential powe