Firstsource Solutions Limited · NSE:FSL
Firstsource Solutions — Q3 FY24 Earnings Presentation
25 slides from Firstsource Solutions's earnings presentation, Feb 7, 2024
Slide 1: Cover letter to stock exchanges: intimation of analyst call
7th February 2024 To: National Stock Exchange of BSE Limited (Scrip Code: India Limited (Scrip Code: FSL) 532809) Exchange Plaza, Phiroze Jeejeebhoy Towers, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Dear Madam/ Sir, Sub: Intimation of
Slide 2: Earnings Presentation Q3FY24
Earnings Presentation Q3FY24
Slide 3: Disclaimer
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. The risks and uncertainties
Slide 4: About Us
About Us Domain driven BPM services company Established in 2001 leveraging a ‘Digital First, Digital Now’ approach to solve key customer problems Revenues of INR 60.2 Billion 150+ global clients including (US$750 Million) in FY2023 18 Fortune 500 companies and 3 FTSE 100 companies 25,947* Firstsourc
Slide 5: Part of RP-Sanjiv Goenka Group
Part of RP-Sanjiv Goenka Group Power Consumer & Retail Education & Infrastructure Sports Combined FY23 Revenues US$4.5 Billion Carbon Black Media & Entertainment IT-Enabled Services © FIRSTSOURCE | 4
Slide 6: Our Verticals
Our Verticals 6 of Top 15 Mortgage Servicers in the US Banking & Communications 5 of Top 15 Mortgage Lenders in the US Financial Services Media & Technology • Asset Finance • Streaming Services 6 of Top 10 • Credit Cards • Cable TV, Broadband and Credit card issuers in the US • Mortgages Telephony 2
Slide 7: Financial Performance Snapshot
Financial Performance Snapshot Revenue (in $ million) Revenue (in ₹ million) -0.1% 5.6% 18.5% 16.0% -5.7% 0.6% 8.2% 7.1% 23.9% 16.6% 1.7% 4.5.% 2.0% 6.6% 17.9% 14.6% -1.1% -0.1% 60,223 59,212 795 50,780 750 46,658 685 40,986 38,263 578 564 35,352 548 548 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 FY18 FY1
Slide 8: Key Performance Indicators
Key Performance Indicators Return on Equity (%) Return on Capital Employed (%) 17.6% 17.6% 17.7% 15.3% 15.3% 14.1% 13.9% 13.9% 13.4% 13.5% 13.0% 12.9% 12.3% 12.3% FY18 FY19 FY20 FY21 FY22 FY23 9MFY24* FY18 FY19 FY20 FY21 FY22 FY23 9MFY24* Note: FY21 ROE was 16.1% excluding exceptional items Cash Flo
Slide 9: Leadership Team
Leadership Team Dinesh Jain Prashanth Nandella Vivek Sharma Venkatgiri Vandali Rajiv Malhotra Chief Financial Officer Chief Operating Officer Head Head Head Commn., Media & Tech., Healthcare & Lifesciences Europe, Middle East & Banking & Fin. Services Africa and Emerging Geos Ritesh Idnani MD & CEO
Slide 10: Total Shareholders Return
Total Shareholders Return FSL | 352% Nifty IT | 138% Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 Aug-23 Feb-24 Total Shareholders Return (including dividends) of 383% in past 5 years Based on closing prices as of 6th Feb, 2024 © FIRSTSOURCE | 9
Slide 11: Performance Highlights | Q3FY24
Performance Highlights | Q3FY24 © FIRSTSOURCE | 10
Slide 12: Summary of Performance for the Quarter ended December 31, 2023
Summary of Performance for the Quarter ended December 31, 2023 REVENUE ₹ EBIT ₹ ₹ 15,966 Million ₹ 1,709 Million (US$ 192 Million) (Margin 10.7%) YoY growth of 6.1% YoY growth of 21.2% Constant Currency YoY growth of 2.8% YoY Margin expansion of 134 bps ₹ PROFIT AFTER TAX EARNINGS PER SHARE (Diluted
Slide 13: Summary of Performance for the Nine Months ended December 31, 2023
Summary of Performance for the Nine Months ended December 31, 2023 REVENUE ₹ EBIT ₹ ₹ 46,658 Million ₹ 5,132 Million (US$ 564 Million) (Margin 11.0%) YoY growth of 4.5% YoY growth of 36.5%# Constant Currency YoY decline of 0.1% YoY Margin expansion of 263 bps# (excluding one-time charges) ₹ PROFIT A
Slide 14: Revenue Split | Q3FY24
Revenue Split | Q3FY24 Revenue split by Revenue split by Revenue split by verticals geography service lines Diverse RoW 5.7% 0.1% PAA 20.7% CMT US DECX 22.5% UK 65.4% 53.5% 34.5% BFS 38.3% IBO Healthcare 25.8% 33.5% Banking & Financial Services (BFS) Healthcare United States (US) United Kingdom (UK)
Slide 15: Deal Wins
Deal Wins • Selected by one of the Top five banks in the UK, one of our long-standing clients, for a large transformational program • Additional business from one of the largest utilities companies in the UK, an existing client, to provide core customer support • Additional business from one of the
Slide 16: Gen AI – progress update
Gen AI – progress update • Onboarded new technology partners for FirstSense.AI, our proprietary framework to accelerate client’s AI deployment • Expanded Firstsense.AI Studio sandbox ecosystem to new LLMs including GPT-4, Anthropic and AWS Cohere • Launched First ColLab project Nova - FSL AI Cogniti
Slide 17: Employee base
Employee base • QoQ net headcount addition of 1,994 • India employee base higher by 1,832; RoW higher by 162 • YoY net headcount addition of 2,320 • India employee base higher by 3,780; RoW lower by 1,460 • TTM employee attrition# at 43.3% for onshore and 33.8% for offshore • 45.4% of employees are
Slide 18: Select Recognition
Select Recognition Firstsource ranked in the top 96th percentile on the Dow Jones Sustainability Index Score of 62 on the CSA metric as well as on the ESG metric This is our first year of participation Industry leading score on Human Capital Development Firstsource also scored high on Privacy Protec
Slide 19: FY24 business outlook
FY24 business outlook 0.5-1.5% 11-11.5% constant currency EBIT margin (normalized for one-time charges) revenue growth © FIRSTSOURCE | 18
Slide 20: Factsheet
firstsource | Factsheet © FIRSTSOURCE | 19
Slide 21: Profit & Loss Statement
Profit & Loss Statement Consolidated IndAS financials In ₹ million Q2FY23 Q3FY23 Q4FY23 FY23 Q1FY24 Q2FY24 Q3FY24 QoQ YoY Income from services 14,735 15,033 15,566 59,859 15,267 15,417 15,948 3.4% 6.1% Other operating Income 147 16 2 364 25 (17) 17.6 (201.3%) 10.7% Revenue from operations 14,882 15,
Slide 22: Balance Sheet
Balance Sheet Consolidated IndAS financials In ₹ million As on 31-Dec-23 As on 31-Mar-23 In ₹ million As on 31-Dec-23 As on 31-Mar-23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Shareholder's Funds Fixed assets 2,461 2,789 Equity share capital 6,970 6,970 5,726 4,958 Reserve and surplus 30,761
Slide 23: Cash Flow Statement
Cash Flow Statement Consolidated IndAS financials Nine Months ended Nine Months ended In ₹ million Dec 31, 2023 Dec 31, 2022 Cash Flow from Operating Activities Net profit before taxation and non controlling interest 4,704 4,433 Depreciation and amortization 1,929 1,989 Finance costs (For borrowing
Slide 24: Operating Metrics
Operating Metrics Particulars Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Banking & Financial Services 48.3% 49.0% 46.3% 43.4% 41.8% 40.3% 40.8% 40.8% 38.3% Revenue by Healthcare 30.3% 30.3% 32.1% 34.5% 34.2% 33.2% 32.6% 32.7% 33.5% Vertical Communications Media & Tech 19.6% 19.0%
Slide 25: Thank You
THANK YOU Investor relations © Firstsource Solutions Limited | www.firstsource.com © FIRSTSOURCE | 24
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