Slide 1: Cautious Optimism, Poised for Growth
Cautious Optimism, Poised for Growth Nitin Rakesh Manish Dugar CEO & Managing Director CFO July 2024 www.mphasis.com © Mphasis 2024 Proprietary and confidential information I 7/26/2024 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: Tech Continues to be a Top Priority for Customers
Tech Continues to be a Top Priority for Customers Voice of the Customer Take-aways Tech spend is still a top priority Resilience and focus on growth Investments are slowly inching up Gradual pickup in client engagement especially in transformative technologies Gen AI is an imperative AI will transfo
Slide 4: We have made Consistent and Early investments in AI
We have made Consistent and Early investments in AI AI impact on Enterprise IT and Accelerating our AI Building on AI led gains business is huge investments Mphasis.ai • AI is an end-to-end opportunity, needs a Modernization platform for legacy holistic approach Conversational AI Platform applicatio
Slide 5: Broad-based Acceleration in Pipeline
Broad-based Acceleration in Pipeline Archetypes Driven Pipeline Data 13% +17% +7% +31% Modernization 13% Value Stream Acceleration 13% Top-10 (DevOps) BFS Security 7% +11% Next Ops 15% +25% Platforms & Protocols 10% (XaaP) Experience 10% Non Top-10 Overall Non-BFS Agile IT Ops 19% Q1FY25 Q4FY24 Q1FY
Slide 6: Healthy TCV Closures in a Challenging Environment
Healthy TCV Closures in a Challenging Environment TCV Won ($M) Focused on Large Deal Wins (>$20M TCV) 10% 17% 65 11% 11% 54 6% # of 13% cumulative 38 12% deal wins since Q1’18 27 17% 18% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY22 Q1FY23 Q1FY24 Q1FY25 15% • TCV at $319M for Q1FY25. Three large deals i
Slide 7: Q1 FY25 Performance by Segment: Quarterly View
Q1 FY25 Performance by Segment: Quarterly View 398 411 410 398 411 410 Direct Direct Direct Direct YoY QoQ YoY QoQ 3.5% 0.2% APPS 4.8% 0.6% Americas 10.4% 0.7% 3.1% -2.1% EMEA BPO ROW 0.2% 2.0% 0.5% 2.4% ITO Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Direct performance in Q1 FY25 • Direct QoQ growth
Slide 8: Q1 FY25 Performance by Vertical
Q1 FY25 Performance by Vertical 398 411 410 Direct ex-DR YoY QoQ YoY -0.3% 1.1% 0.5% Banking & Financial Services Insurance 10.7% 2.4% 11.3% TMT 10.0% 0.6% 14.6% Logistics & Transportation 0.0% 0.2% 0.1% Others 5.6% -8.1% 7.0% Q1FY24 Q4FY24 Q1FY25 • Key verticals grew sequentially in Direct business
Slide 9: Client Pyramid Performance: Direct
Client Pyramid Performance: Direct Client Additions 135 135 Category YoY QoQ 112 $200M + - - Top Client Metrics LTM* $100M + - - $75M + (1) - • Top 1-10 declined 10.1% YoY $50M + (1) - • Top 11-30 grew 10.2% YoY $20M + (3) (1) $10M + 4 1 $5M + 2 1 Top Client Metrics QoQ* 47 48 46 • Top 1-10 grew 1.2
Slide 10: Financial Metrics Quarterly Performance
Financial Metrics Quarterly Performance Revenue trend Operating Margin Trend +3.1% 411 410 M&A Impact 398 15.7% 15.8% 0.8% 0.8% Reported Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Gross Revenue in $M at average USD/INR rate for respective periods # Revenue growth in constant currency EPS Trend Cash F
Slide 11: Q1 FY25 in Summary: Cautious Optimism, Poised for Growth
Q1 FY25 in Summary: Cautious Optimism, Poised for Growth • Continuing strength in pipeline • Well-diversified pipeline with strong contribution from Non-BFS and Top 10 • One-third of the pipeline is AI-led • Healthy TCV closures • Broad-based wins across verticals and client pyramid • Significant wi
Slide 12: Outlook: Signs of Return to Consistent Growth
Outlook: Signs of Return to Consistent Growth • Despite multiple challenges, tech spend seen as a strategic priority • Steady recovery visible on Savings Led TransformationTM themes • Signs of gradual recovery in mortgage • Expect to be above industry growth, gaining from tech-led, account-focused s
Slide 13: Link to financial data for the past three years
Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html www.mphasis.com © Mphasis 2024 Proprietary and confidential information I 7/26/2024 I 13 I
Slide 14: Awards and Recognitions: Q1 FY25
Awards and Recognitions: Q1 FY25 Everest Group • Recognized as ‘Major Contender and Star Performer’ in Everest Group’s Capital Markets IT Mphasis ranked among India's leading ESG companies by Dun Bradstreet’s 'ESG Champions of India 2024' report Mphasis ranked among Services PEAK Matrix® Assessment