Firstsource Solutions Limited · NSE:FSL

Firstsource Solutions — Q1 FY2021 Earnings Presentation

21 slides from Firstsource Solutions's earnings presentation, Aug 21, 2020

  1. Slide 1: Q1 FY2021 Earnings Update

    Q1FY2021 EARNINGS UPDATE Q1 FY2021 EARNINGS UPDATE Partnering with World’s Leading Brands 1 © FIRSTSOURCE 2020 | CONFIDENTIAL I 21 August 2020

  2. Slide 2: Disclaimer

    Disclaimer Q1FY2021 EARNINGS UPDATE 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

  3. Slide 3: Strong start to the year; COVID-19 disruptions largely mitigated

    Q1FY2021 EARNINGS UPDATE STRONG START DISRUPTIONS FROM OPERATIONS ORG. TO THE YEAR COVID-19 LARGELY STRENGTHENED TO DRIVE MITIGATED A UNIFIED BEST-IN-CLASS DELIVERY • Revenue growth of 1.6% in • New Operating model  • Global Chief Operating Officer constant currency YoY At-Home + At-Office, working

  4. Slide 4: Business momentum is strong; FY2021 will be a growth year

    Q1FY2021 EARNINGS UPDATE BUSINESS FY2021 WILL BE A GROWTH YEAR MOMENTUM IS STRONG DESPITE THE HEADWINDS • Banking & Financial Services benefiting • Revenue expected to grow between from the macro-environment tailwinds; 6-10% in constant currency Low interest rates and Govt. stimulus • Operating Marg

  5. Slide 5: Summary of Performance During the Quarter

    Summary of Performance During the Quarter Q1FY2021 EARNINGS UPDATE REVENUES OPERATING MARGIN ₹ 10,622 Million ₹ 1,170 Million (US$ 140.7 Million) (Margin 11.0%) YoY growth of 8.4% YoY Margin contraction of 141 bps Constant Currency growth of 1.6% PROFIT AFTER TAX EARNINGS PER SHARE (DILUTED) ₹ 887 M

  6. Slide 6: Revenue Splits

    Revenue Splits Q1FY2021 EARNINGS UPDATE VERTICALS Q1 FY21 Q1FY21 51.2% 16.2% 29.9% 2.7% • Strong growth momentum in BFS across US and UK; macro tailwinds coupled with sales wins driving growth Q4 FY20 42.8% 22.9% 31.3% 3.0% • Communications, Media & Tech decline attributed to volume Q3 FY20 42.9% 21

  7. Slide 7: Top 5 Clients

    Client Concentration Q1FY2021 EARNINGS UPDATE 5 of Top 10 3 of Top 6 4 of Top 10 Mortgage servicers Retail banks in the UK Lenders in the US Top Client Q1FY21 13.7% in the US 18.5 years Total Tenure Q1FY20 24.9% 650+ 5 of Top 10 1 of Top 3 Hospitals in the US Health insurance/ managed Utility compan

  8. Slide 8: Annexure

    Q1FY2021 EARNINGS UPDATE Annexure 8 © FIRSTSOURCE 2020 | CONFIDENTIAL I 21 August 2020

  9. Slide 9: Financial Performance (Quarterly)

    Financial Performance (Quarterly) Q1FY2021 EARNINGS UPDATE In ₹ million Q1 FY 2019 Q2 FY 2019 Q3 FY 2019 Q4 FY 2019 Q1 FY 2020 Q2 FY 2020 Q3 FY 2020 Q4 FY2020 Q1 FY 2021 Income from services 9,060 9,442 9,723 9,642 9,669 9,715 10,446 10,673 10,537 Other operating Income 131 105 129 30 129 134 89 132

  10. Slide 10: Financial Performance (Yearly)

    Financial Performance (Yearly) Q1FY2021 EARNINGS UPDATE In ₹ million FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Income from services 31,617 34,569 34,315 37,867 40,502 Other operating Income 556 987 1,038 396 484 Revenue from operations 32,173 35,556 35,352 38,263 40,986 Revenue from operations (USD Mn

  11. Slide 11: Balance Sheet and Cash Flow Statement

    Balance Sheet and Cash Flow Statement Q1FY2021 EARNINGS UPDATE ₹ million As at 30-Jun-20 As at 31-Mar-20 ₹ million Quarter ended 30-Jun-20 Cash Flow from Operating Activities Equity And Liabilities Operating Margin 1,170 Share Capital 6,940 6,938 Adj: Non Cash and Other Income / (Expense) 691 Operat

  12. Slide 12: Key Performance Indicators

    Key Performance Indicators Q1FY2021 EARNINGS UPDATE Return on Equity Return on Capital Employed 14.7% 13.8% 13.9% 13.9% 14.1% 12.7% 13.0% 12.3% 13.0% 12.3% 12.5% 12.5% FY16 FY17 FY18 FY19 FY20 Q1FY21 x4 FY16 FY17 FY18 FY19 FY20 Q1FY21 x4 Cash Flow Debt Position 4,000 4,104 2,522 3,151 3,156 1,525 2,

  13. Slide 13: Operating Metrics

    Operating Metrices Q1FY2021 EARNINGS UPDATE Particulars Q1 FY 2019 Q2 FY 2019 Q3 FY 2019 Q4 FY 2019 Q1 FY 2020 Q2 FY 2020 Q3 FY 2020 Q4 FY2020 Q1 FY 2021 Banking & Financial Services 34.7% 35.7% 34.6% 36.1% 35.6% 40.4% 42.9% 42.8% 51.2% Communications Media & Tech 28.5% 27.6% 28.5% 27.5% 27.2% 22.0%

  14. Slide 14: Forex Hedges

    Forex Hedges Q1FY2021 EARNINGS UPDATE Outstanding FX hedges at $50.9 million for USD and £65.4 million for GBP GBP-INR USD INR GBP-PHP Period Hedged Average Rate Hedged Average Rate Hedged Average Rate 0-12 Months £27.06 102.18 $50.91 76.69 £1.00 68.17 13-24 Months £22.61 109.14 More than 24 Months

  15. Slide 15: Prior Period Reports

    Prior Period Reports Q1FY2021 EARNINGS UPDATE (Hyperlinks) ANNUAL REPORT PUBLISHED RESULTS INVESTOR PRESENTATIONS PRESS RELEASE FY2021 Q1 FY2021 Q1 FY2021 Q1 FY2020 FY2020 Q1 Q2 Q3 Q4 FY2020 Q1 Q2 Q3 Q4 FY2020 Q1 Q2 Q3 Q4 FY2019 FY2019 Q1 Q2 Q3 Q4 FY2019 Q1 Q2 Q3 Q4 FY2019 Q1 Q2 Q3 Q4 FY2018 FY2018

  16. Slide 16: About Us

    Q1FY2021 EARNINGS UPDATE Established in 2001 INR 41.0 Billion About Us Revenues of (approximately $578 Million) in FY2020 21,831 firstsourcers UK across US, UK, India and Philippines US 4,935 6 4,508 17 Leaders in chosen segments across Banking & Financial Services, Healthcare, Communications, Media

  17. Slide 17: Part of RP-Sanjiv Goenka Group

    Q1FY2021 EARNINGS UPDATE Part of RP-Sanjiv Goenka Group Since 2012 Power & Natural Resources Carbon Black Retail & FMCG Media & Entertainment Combined Revenues of Infrastructure IT & ITeS $3.7 Billion in FY2019 Education & Sports 17 © FIRSTSOURCE 2020 | CONFIDENTIAL I 21 August 2020

  18. Slide 18: Leading positions and service capabilities across segments

    Most comprehensive set of licenses in the Top 3 in the chosen Revenue Cycle Leading CX service providers in the Top 15 Global Collections Q1FY2021 EARNINGS UPDATE US Mortgage outsourcing industry Management segments in US Healthcare UK across Media and BFS segments Provider • Streaming Services • Ho

  19. Slide 19: Select Awards

    Q1FY2021 EARNINGS UPDATE Select Awards Global Innovation KLAS: Software & Global Sourcing The UK Complaint Challenge Services Report Association UK Awards Handling Awards NelsonHall 2019: Top 3 for 2018: Ranked MedAssist 2019: Technology-enabled 2019: Best Complaint Positioned as a ‘Leader’ Automate

  20. Slide 20: Leadership Team

    Leadership Team Q1FY2021 EARNINGS UPDATE Dinesh Jain Venkat Raman Venkatgiri Vandali Anshul Verma Siddharth Parashar Arjun Mitra Finance Healthcare Provider Health Plans Communications, Europe Business Collections Media & Technology Vipul Khanna Auvese Pasha Prashanth Nandella Soma Pandey Sundara Su

  21. Slide 21: Q1FY2021 E ARNINGS U PDATE

    Q1FY2021 EARNINGS UPDATE Helping customers stay ahead of the curve through transformational technologies and capabilities Firstsource Solutions is a leading provider of customized Business Process Management (BPM) services. Firstsource specialises in helping customers stay ahead of the curve through

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