Firstsource Solutions Ltd. — Investor Presentation 2025

Apr 28, 2025

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28[th] April 2025

To: National Stock Exchange of India BSE Limited (Scrip Code: 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

Sub: Earnings Presentation

We are enclosing herewith a copy of the Earnings presentation regarding the conference call to be held on Monday, 28[th] April 2025 at 5.30 PM IST with the analysts and investors, on the financial results of the Company for the quarter and financial year 31[st] March 2025.

Please take the same on your record.

Thanking you,

For Firstsource Solutions Limited

POOJA SURESH Digitally signed by POOJA SURESH NAMBIAR NAMBIAR

Pooja Nambiar Company Secretary

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EARNINGS PRESENTATION Q4FY25

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Disclaimer

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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 relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in BPS market including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on client contracts, client concentration, our ability to manage ramp-ups and growth, our ability to manage our international operations, reduced demand in our key focus verticals, disruptions in telecom infrastructure and technology, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, performance of our subsidiaries, withdrawal of government fiscal incentives, political instability, legal restrictions on raising capital and acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. Firstsource may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.

2

About Us

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Specialized BPS partner

Established in 2001 Public listing in 2007

Hyper-focused, domain-centric teams with cutting-edge tech, data, and analytics

34,651* Firstsourcers

200+ global clients[#] including

Across US, UK, India, Philippines, South Africa, Australia, Mexico, Romania, Trinidad & Turkey

Several Fortune 500, FTSE 100 and ASX200 companies

Leaders in chosen verticals

Part of RP-Sanjiv Goenka Group Since 2012

Banking & Financial Services, Healthcare, Communications, Media & Technology, Retail and Utilities

Revenues of INR 79.8 Billion (US$944 Million) in FY25

Deep partnerships with clients Average tenure of top 5 clients is over 20 years

For clients with trailing 12-months revenue over US$0.25mn *As on 31[st] March 2025

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Part of RP-Sanjiv Goenka Group

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Group turnover of
~US$4.4 Bn []
EBITDA of Asset base of
~US$855 Mn [] >US$7.3 Bn []
Over
1.1 Million Shareholders
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One of India’s new-age and fastest growing

Conglomerates

Strong workforce of 50,000+ employees, belonging to different nationalities

Presence in 50+ countries

100+ offices worldwide

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Committed to powering millions of Indian homes and businesses with reliable electricity through its A global player and a national leader with portfolio of Global leader in specialized Business Process Services leveraging hyper-focused, domain-centric teams with to deliver value for over 200 clients

Diversified and innovative media company, with music catalogue that spans the gamut from the and a strong video play, spread across making Films, TV serials, OTT series and short video content catering to the youth

Nature's Basket is India's with international food products Spencer is an experience led with varied assortments

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Too Yumm is a , captivating consumers with its Playing in the category with brands like Naturali and Within Beauty

Inspiring communities, unite fans, set new benchmarks, foster championship culture, contribute to the Step into a world of unparalleled luxury. Quest, the first of its kind in Eastern India, curates India’s producer of rubber & South India’s second largest cultivator of tea

dedicated to helping its readers succeed big in business through best-in-class storytelling

• All figures as on FY24

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Our Verticals

Banking & Financial Services

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Communications, Media & Technology

15 of Top 20

Mortgage lenders in the US

6 of Top 10

Credit card issuers in the US

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3 of Top 6

• Asset Finance

• Credit Cards

• Mortgages

• Retail & SME Banking

• FinTech

• Streaming Services, Cable TV

• Broadband & Telephony

• Consumer Technologies

• EdTech

• E-Commerce

Retail banks in the UK

1,000+

Hospitals in the US

12 of Top 15

Health plans/managed care providers in the US

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Healthcare

• Health Plans

• Healthcare Services

• Hospital Providers

• Physician Groups

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Diversified Industries

• Utilities

• Government Entities

• Retail and E-Commerce

1 of Top 2

Broadcasting and media companies in the UK

2 of Top 5

Telecom and broadcasting companies in the US

4 of Top 5

Consumer technology companies in the US

2 of Top 5

Utility companies in the UK

• Medical Devices

2 of Top 8

Retailers in the UK

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Our Leadership Team

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Ritesh Idnani
MD & CEO
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Dinesh Jain Sohit Brahmawar Aftab Javed Aniket Maindarkar Hasit Trivedi
Chief Financial Officer Chief Operating Officer Chief Human Resources Chief Marketing Officer Chief Digital & AI Officer
Officer
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Vivek Sharma Venkatgiri Vandali Rajiv Malhotra Arjun Mitra Ashish Chawla Sundara Sukavanam
Head – CMT, BFS Head – Healthcare & Head – Europe, Middle Head – Collections Head – CX and Consulting Head – Enterprise
and Emerging Geos Lifesciences East & Africa Transformation Office
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Performance Highlights | Q4FY25

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Performance Summary | Q4FY25

REVENUE

₹ 21,615 Million (US$ 250 Million)

YoY growth of 29.4% YoY constant currency growth of 25.0% QoQ constant currency growth of 2.1%

PROFIT AFTER TAX

EBIT

₹ 2,422 Million (Margin 11.2%)

YoY growth of 32.4% YoY margin expansion of 20bps QoQ margin expansion of 10bps

EARNINGS PER SHARE

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(Diluted)

₹ 1,607 Million

(Margin 7.4%)

YoY growth of 22.6% QoQ growth of 6.1% (*normalized for non-recurring items)

₹ 2.28 per share

Q3FY25 at ₹ 2.27 per share Q4FY24 at ₹ 1.90 per share

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Performance Summary | FY25

REVENUE

₹ 79,803 Million (US$ 944 Million)

YoY growth of 25.9% YoY constant currency growth of 22.6%

PROFIT AFTER TAX

₹ 5,945 Million (Margin 7.4%)

YoY growth of 21.7% (normalized for non-recurring items)

EBIT

₹ 8,806 Million (Margin 11.0%)

YoY growth of 26.5% YoY margin flat

EARNINGS PER SHARE

(Diluted) ₹ 8.42 per share FY24 at ₹ 7.34 per share

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Key Deal Wins | Q4FY25

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• Secured a multi-year BPaaS deal from a leading managed care provider in North America , a new logo for us

• Selected by a global leader in financial technology solutions in the US for CX services

• Won business from a trusted provider of employee benefits and pensions administration service in the UK for transforming their contact center operations

• One of the Top10 healthcare payers in North America , an existing client, selected us for ensuring accuracy and compliance of claims processing

• Expanded our relationship with one of leading media and entertainment companies in the UK by growing nearshore footprint for customer support

• Chosen by a US based national payer federation to elevate member and provider experiences and improve care outcomes

• An established physician network in the US selected us for tech-enabled eligibility services

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Employee Base | Q4FY25

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• Total headcount of 34,651 employees

• QoQ net headcount addition of 507

• YoY net headcount addition of 6,711

• TTM employee attrition at 29.8%

Recognized among the Top50 India’s Best Workplaces 'Building a Culture of Innovation by All - 2025’ (Large Category) by Great Place To Work[®]

• 46.4% of employees are women

Total headcount

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Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25
34,144 34,651
32,898
29,231
27,940
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Attrition*

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Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25
35.4%
31.8% 30.6% 31.4% 29.8%
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• *For employees in employment for more than 180 days

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Awards & Recognitions | Q4FY25

Firstsource recognized as an ‘Industry Mover’ and in Top 5% of S&P Global CSA score; Included in S&P Sustainability Yearbook, for second consecutive year

Firstsource rated a ‘B’ in the CDP Climate Change disclosure 2025

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Firstsource recognized as

‘Front Runners’ in Generative AI in Healthcare Payer by Everest Group

Ranked in the top 35% of all firms evaluated on their Gen AI scale, use cases, partnerships, and value delivered

Received Silver rating, and recognized as a Leader in Carbon Management

The report highlights Firstsource's AI platform & strong domain expertise as key to identifying use cases across segments

Read report

12

Business Outlook | FY26

12-15% constant currency revenue growth

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11.25-12.0% EBIT margin

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Factsheet

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Cons. IndAS financials | Profit & Loss Statement

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In ₹ million	Q4FY24	FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25	QoQ	YoY	FY25	YoY
Income from services	16,693	63,325	17,839	19,326	20,879	21,678	3.8%	29.9%	79,721	25.9%
Other operating income	12	37	72	(72)	145	(63)	-	-	82	121.1%
Revenue from operations	16,705	63,362	17,911	19,254	21,024	21,615	2.8%	29.4%	79,803	25.9%
Revenue from operations (USD Mn)	$ 201	$ 765	$ 215	$230	$249	$250	0.4%	24.3%	$944	23.3%
QoQ Growth % - constant currency	4.2%	-	6.5%	6.9%	7.6%	2.1%	-	-	-	-
YoY Growth % - constant currency	4.5%	1.1%	14.8%	22.7%	27.7%	25.0%	-	-	22.6%	22.6%
Manpower expenses	10,558	39,093	11,268	12,104	13,070	13,515	3.4%	28.0%	49,958	27.8%
Operating expenses	3,643	14,705	3,944	4,277*	4,777	4,771	-0.1%	31.0%	17,769	20.8%
EBITDA	2,503	9,564	2,699	2,873	3,177	3,328	4.8%	33.0%	12,076	26.3%
EBITDA margin	15.0%	15.1%	15.1%	14.9%	15.1%	15.4%	30bp	40bp	15.1%	-
Depreciation & amortization	673	2,602	729	792	844	906	7.3%	34.6%	3,270	25.7%
EBIT	1,830	6,962	1,970	2,081*	2,333	2,422	3.8%	32.4%	8,806	26.5%
EBIT margin	11.0%	11.0%	11.0%	10.8%	11.1%	11.2%	10bp	20bp	11.0%	-
Other income / (expense)	3	296	(11)	(40)	(39)	(14)	-	-	(104)	-134.9%
Interest expense, net	(240)	(962)	(287)	(330)	(375)	(391)	4.3%	62.9%	(1,383)	43.8%
Exceptional items, net income	-	-	-	-	88	-	-	-	88	-
Profit before taxes	1,593	6,296	1,673	1,710	2,007	2,017	0.5%	26.6%	7,407	17.6%
Taxes and minority interest	258	1,150	320	328	404	410	1.7%	59.0%	1,462	27.2%
Profit after tax	1,335	5,147	1,353	1,382	1,603	1,607	0.2%	20.4%	5,945	15.5%
Net margin	8.0%	8.1%	7.6%	7.2%	7.6%	7.4%	-20bp	-60bp	7.4%	-70bp
Diluted EPS (₹/share)	1.90	7.34	1.92	1.96	2.27	2.28	0.4%	20.0%	8.42	14.7%

*include one-time charges

15

Cons. IndAS financials | Balance Sheet

In ₹ million	As on 31-Mar-24	As on 31-Mar-25
Assets
Non-current assets
Fixed assets	2,461	4,502
Right-of-use assets	6,355	9,126
Goodwill on consolidation	29,885	36,799
Investment in associates	0	0
Financial assets
Investments	115	115
Other financial assets	777	1,026
Deferred tax assets	2,921	2,735
Income tax assets (net)	809	714
Other non-current assets	2,086	1,965
Total non-current assets	45,409	56,982
Current assets
Financial assets
Current investments	300	616
Trade receivables	11,608	16,860
Cash and cash equivalents	1,748	1,542
Other balances with bank	137	128
Other financial assets	68	206
Other current assets	1,486	2,888
Total current assets	15,347	22,240
Total assets	60,756	79,222

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In ₹ million	As on 31-Mar-24	As on 31-Mar-25
Equity and liabilities
Shareholder's Funds
Equity share capital	6,970	6,970
Reserve and surplus	30,034	34,006
Non-controlling interest	4	4
Total Equity	37,008	40,980
Non-current liabilities
Financial liabilities
Long-term borrowings	-	3,419
Lease liabilities	5,714	8,070
Other financial liabilities	-	580
Provisions	188	241
Deferred tax liabilities	1,470	1,645
Total non-current liabilities	7,372	13,955
Current liabilities
Financial Liabilities
Short-term and other borrowings	8,049	11,908
Trade payables	3,056	3,976
Lease liabilities	1,496	2,296
Other financial liabilities	2,047	4,209
Other current liabilities	1,057	1,106
Provisions	467	643
Provision for tax (net)	205	149
Total current liabilities	16,376	24,287
Total liabilities	60,756	79,222

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Cons. IndAS financials | Cash Flow Statement

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In ₹ million	Year ended Mar 31, 2024	Year ended Mar 31, 2025
Cash flow from operating activities
Netprofit before taxation and non controllinginterest	6,297	7,407
Depreciation and amortization	2,602	3,270
Finance costs(for borrowing& lease liabilities)	1,034	1,479
Exceptional items,net	-	(88)
Adjustment: Non-cash expense/(other income)	(363)	1,106
Add: Workingcapital changes	(2,411)	(4,944)
Less: Income taxespaid	(718)	(1,219)
Net cashgenerated from/(used in) operating activities(A)	6,441	7,011
Cash flow from investing activities
Capital expenditure,net	(850)	(2,236)
Interest income received	10	27
(Increase)/decrease in current investments	357	(160)
Redemption of short-term fixed deposits	(33)	1
Acquisition of business	-	(5,099)
Earmarked balances with banks	(64)	9
Net cashgenerated from/(used in) investing activities(B)	(580)	(7,459)
Cash Flow from financing activities
Net change in borrowings	(283)	6,787
Net interestpaid	(1,011)	(1,579)
Payment of lease liabilities	(1,410)	(1,636)
Purchase of treasuryshares,net	59	(362)
Purchase of non controllinginterest in subsidiary	(583)	(225)
Dividendpaid	(2,406)	(2,759)
Net cashgenerated from/(used in) financing activities(C)	(5,635)	226
Net increase/(decrease) in cash and cash equivalents(A+B+C)	226	(222)
Cash and cash equivalents at the beginningof theperiod	1,515	1,748
Foreign exchange(loss)/gain on translatingcash and cash equivalents	6	16
Closing cash and cash equivalents	1,748	1,542
Current investments	300	616
Cash and cash equivalents including investments	2,048	2,158

17

Operating Metrices | Q4FY25

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		Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25
Revenue by Vertical	Banking & Financial Services	40.3%	40.8%	40.8%	38.3%	37.3%	36.4%	34.4%	32.4%	33.4%
	Healthcare	33.2%	32.6%	32.7%	33.5%	32.9%	35.7%	36.3%	34.0%	33.8%
	Communications, Media & Tech	22.3%	21.8%	21.2%	22.5%	23.6%	22.3%	21.3%	20.3%	21.0%
	Diverse Industries	4.2%	4.8%	5.3%	5.7%	6.2%	5.6%	8.0%	13.3%	11.8%
Revenue by Geography	North America	63.3%	63.5%	65.1%	65.4%	65.0%	68.2%	68.5%	66.3%	67.7%
	Europe, Middle East, and Africa	36.3%	36.4%	34.8%	34.5%	34.9%	31.8%	31.4%	33.4%	31.5%
	Rest of World	0.4%	0.1%	0.1%	0.1%	0.1%	0.0%	0.1%	0.3%	0.8%
Revenue by Delivery	Offshore & Nearshore	24.6%	25.6%	26.7%	30.3%	31.4%	35.0%	35.8%	40.1%	37.8%
	Onshore	75.4%	74.4%	73.3%	69.7%	68.6%	65.0%	64.2%	59.9%	62.2%
New Logos#	New logos added (during the quarter)	9	10	12	10	9	10	13	13	7
Client Concentration	Top 5 clients_(share of total revenues)_	37.4%	37.2%	35.0%	35.8%	36.7%	34.6%	32.5%	29.0%	29.3%
	Top 10 clients_(share of total revenues)_	53.6%	52.7%	51.3%	52.0%	52.6%	51.5%	48.6%	43.4%	43.7%
Client Distribution#	US$ 1m+ clients_(nos.)_	99	98	101	104	103	100	105	107	116
	US$ 5m+ clients_(nos.)_	28	24	24	25	25	25	26	28	30
	US$ 10m+ clients_(nos.)_	11	14	13	13	13	13	13	14	15
	US$ 20m+ clients_(nos.)_	7	9	8	8	8	9	11	10	10
	US$ 50m+ clients_(nos.)_	2	2	2	2	2	2	2	2	2
Revenue by Currency	USD	62.2%	63.2%	65.0%	64.9%	64.8%	67.9%	68.2%	64.9%	65.7%
	GBP	37.0%	36.3%	34.3%	34.4%	34.4%	31.4%	30.9%	34.2%	32.7%
	Others	0.9%	0.5%	0.7%	0.7%	0.8%	0.7%	0.9%	0.9%	1.6%
Employee Metrices	Total employees_(period-end)_	23,018	22,384	23,953	25,947	27,940	29,231	32,898	34,144	34,651
	Net addition	(609)	(634)	1,569	1,994	1,993	1,291	3,667	1,246	507
	Attrition*(TTM)	43.5%	41.7%	39.8%	37.7%	35.4%	31.8%	30.6%	31.4%	29.8%

• For employees in employment for more than 180 days |[#] Excludes Ascensos

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Annexure

19

Financial performance snapshot | FY25

Revenue

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(in $ million)
5.6% 18.5% 16.0% -5.7% 2.0% 23.3%
6.6% 17.9% 14.6% -1.1% 1.1% 22.6%
FY19 FY20 FY21 FY22 FY23 FY24 FY25
YoY constant currency revenue growth YoY US$ revenue growth
944
795 750 765
685
548 578
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EBIT and Margin (%)

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(in ₹ million)
10,000 12.0% 11.8% 12.0%
9,000 10.8% 11.0% 11.0% 12.0%
8,000 9.4%
10.0%
7,000
6,000 8.0%
5,000
6.0%
4,000
3,000 4.0%
2,000
2.0%
1,000
- 0.0%
FY19 FY20 FY21 FY22 FY23 FY24 FY25
EBIT EBIT Margin (%)
8,806
7,105 6,962
5,979 5,633
4,610 4,437
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Note: FY25 EBIT margin was 11.1%, adjusted for one-time charges related to acquisitions in Q2FY25

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Revenue

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(in ₹ million)
7.1% 23.9% 16.6% 1.7% 5.2% 25.9%
FY19 FY20 FY21 FY22 FY23 FY24 FY25
YoY INR revenue growth
79,803
59,212 60,223 63,362
50,780
38,263 40,986
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PAT and Margin (%)

(in ₹ million)

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8,000 9.9%
9.1% 10.0%
7,000 8.3% 8.5% 8.1%
6,000 7.1% 7.4% 8.0%
5,000
6.0%
4,000
3,000 4.0%
2,000
2.0%
1,000
- 0.0%
FY19 FY20 FY21 FY22 FY23 FY24 FY25
PAT PAT Margin (%)
5,945
5,374 5,137 5,147
3,778 3,397 3,617
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Note: FY25 PAT includes one-time gain of ₹ 88mn in Q3FY25

20

Key performance indicators | FY25

Return on Equity (%)

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FY19 FY20 FY21 FY22 FY23 FY24 FY25
17.7%
13.9% 12.3% 12.9% 15.3% 13.9% 14.5%
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Cash Flow

(in ₹ million)

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FY19 FY20 FY21 FY22 FY23 FY24 FY25
Operating Cash Flow Free Cash Flow
8,921
7,225 7,870 7,141 7,634 7,119 7,011
6,441
5,590
4,775
4,000 4,104
2,913 3,156
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Return on Capital Employed (%)

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FY19 FY20 FY21 FY22 FY23 FY24 FY25
Debt Position (in ₹ million)
FY19 FY19 FY19 FY20 FY20 FY20 FY21FY21 FY21 FY22 FY22 FY22 FY23 FY23 FY23 FY24 FY24 FY24 FY259MFY25 FY25
Long term Debt Short term Debt Net Debt
including current maturities
17.6% 17.6%
15.4% 15.6%
14.1% 13.4%
12.3%
11,908
6,950 13,169
5,271
6,673
8,341
4,367
5,390 8,013
6,526 6,159 6,001
3,885 92 1,678 3,846 3,147 2,999 1,376 3,419
187
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Total Shareholder Return | Trailing 5 years

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FSL, 936%
NSE IT, 177%
Apr-20 Oct-20 Apr-21 Oct-21 Apr-22 Oct-22 Apr-23 Oct-23 Apr-24 Oct-24 Apr-25
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Total Shareholders Return (including dividends) of ~10x in past 5 years

Based on closing prices as of 25[th] April 2025

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THANK YOU

Investor relations

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