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Persistent Systems Limited — Interim / Quarterly Report 2019
Jul 25, 2019
60826_rns_2019-07-25_1f8b3794-36e7-4fe7-be1c-3ae3ebe12456.pdf
Interim / Quarterly Report
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PE !STENT
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NSE & BSE / 2019-20 / 046
July 25, 2019
The Manager, Corporate Services, National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400051
Ref: Symbol: PERSISTENT
The Manager, Corporate Services, BSE Limited 14'" Floor, P J Towers, Dalal Street, Mumbai 400001 Ref: Scrip Code: 533179
Dear Sir/ Madam,
Sub.: Fact Sheet - Consolidated Financial Data - for the quarter ended June 30, 2019
Please find enclosed fact sheet of the Consolidated Financial Data for the quarter ended June 30, 2019.
The Company has scheduled an investor/ analyst call on Friday, July 26, 2019 at 4.00 PM 1ST. During such call, the Management will comment on the financial results for the quarter ended June 30, 2019 as well as on the business outlook.
Please acknowledge the receipt.
Thanking you,
Yours sincerely,
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For Persistent Systems Limited
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� [AmitA e ]
Company Secretary
ICSI Membership Number: ACS 20507
Encl: As above
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Persistent Systems Limited, Bllageerath, 402, Senapati Bapat Road, Pune 411016 I Tel: +91 (20) 670 30000 Persistent Systems Inc., 2055, Laurelwood Rd, Suite 210, Santa Clara, CA 95054, USA I Te!: +1 (408) 216 7010 CIN · L72300PN1990PLC056696 I Fax· +91 (20) 6703 0009 I e-mail· [email protected]·www.persistent.com
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Persistent Systems Limited Quarter ended June 30, 2019 Analyst Presentation and Fact Sheet July 25, 2019
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Forward-looking and Cautionary Statements
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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 IT services including those factors which may affect our cost advantage, our revenues highly dependent on customers located in the United States, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, concentration of major operations of the Company in one city, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company may, from time to time, make additional written and oral forwardlooking statements, including statements contained in the Company's filings with the Stock Exchanges and 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.
© 2019 Persistent Systems – Confidential
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Key Highlights
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Financial Highlights and business updates
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USD Revenue at US$ 119.62 Million, growth of 1.1% QoQ and de-growth of 3.2% YoY
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INR Revenue at ₹ 8,321.14 Million, flat QoQ and a de-growth of 0.3% YoY
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EBITDA ₹ 1,201.93 Million @ 14.4% of revenue, decline of 5.0% QoQ and 14.2% YoY
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PAT ₹ 824.70 Million @ 9.9% of revenue, decline of 2.4% QoQ and 5.6% YoY
Business Updates:
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Acquires youperience™, bringing it together with PARX to create Europe’s leading boutique Salesforce partner
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Ranked as one of the top 3 Coding Powerhouses at the TechGig’s Code Gladiators event
© 2019 Persistent Systems – Confidential
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Sequential Q1 FY20 vs Q4 FY19
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| Particulars | Q1FY20 | Q4FY19 | Change QoQ |
Exps / Sales % Q1FY20 Q4FY19 |
Exps / Sales % Q1FY20 Q4FY19 |
|---|---|---|---|---|---|
| Revenue $M | |||||
| Services | 93.86 | 92.74 | 1.2% | ||
| IP Led | 25.76 | 25.56 | 0.8% | ||
| Revenue ($ M) | 119.62 | 118.30 | 1.1% | ||
| Avg. Exchange Rate Rs. /US$ | 69.56 | 70.32 | -1.1% | ||
| Revenue (₹M) | 8,321.14 | 8,318.54 | 0.0% | ||
| Cost of Revenue | ₹M | ₹M | |||
| Employee Related Expenses | 5,061.19 | 4,997.26 | 1.3% | 60.8% | 60.1% |
| Purchase / Royalty | 193.58 | 119.41 | 62.1% | 2.3% | 1.4% |
| Project related Travel Expenses | 179.25 | 137.89 | 30.0% | 2.2% | 1.7% |
| Total Direct costs | 5,434.02 | 5,254.56 | 3.4% | 65.3% | 63.2% |
| Gross Profit | 2,887.12 | 3,063.98 | -5.8% | 34.7% | 36.8% |
| Sales & Marketing Exps | 765.24 | 771.77 | -0.8% | 9.2% | 9.3% |
| Admin. & Other Exps | 893.71 | 998.27 | -10.5% | 10.7% | 12.0% |
| Doubtful Debt Provision | 7.23 | 5.47 | 32.2% | 0.1% | 0.1% |
| CSR Activities | 19.01 | 22.97 | -17.2% | 0.2% | 0.3% |
| Total SGA | 1,685.19 | 1,798.48 | -6.3% | 20.3% | 21.6% |
| EBITDA | 1,201.93 | 1,265.50 | -5.0% | 14.4% | 15.2% |
| Depreciation | 110.20 | 115.98 | -5.0% | 1.3% | 1.4% |
| Amortization | 275.97 | 260.82 | 5.8% | 3.3% | 3.1% |
| EBIT | 815.76 | 888.70 | -8.2% | 9.8% | 10.7% |
| Other Income / (Loss) | 202.02 | 282.94 | -28.6% | 2.4% | 3.4% |
| Exchange Gain/(Loss) | 79.83 | (58.50) | -236.5% | 1.0% | -0.7% |
| PBT | 1,097.61 | 1,113.14 | -1.4% | 13.2% | 13.4% |
| Tax | 272.91 | 268.41 | 1.7% | 3.3% | 3.2% |
| PAT | 824.70 | 844.73 | -2.4% | 9.9% | 10.2% |
© 2019 Persistent Systems – Confidential
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YoY Comparison Q1 FY20 vs Q1 FY19
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| Particulars | Q1FY20 | Q1 FY19 | Change QoQ |
Exps / Sales % Q1FY20 Q1 |
Exps / Sales % Q1FY20 Q1 |
FY19 |
|---|---|---|---|---|---|---|
| Revenue ($ M) | ||||||
| Services | 93.86 | 89.79 | 4.5% | |||
| IP Led | 25.76 | 33.81 | -23.8% | |||
| Revenue ($ M) | 119.62 | 123.60 | -3.2% | |||
| Avg. Exchange Rate Rs. /US$ | 69.56 | 67.50 | 3.1% | |||
| Revenue (₹M) | 8,321.14 | 8,342.81 | -0.3% | |||
| Cost of Revenue | ₹ M | ₹M | ||||
| Employee Related Expenses | 5,061.19 | 4,760.79 | 6.3% | 60.8% | 57.1% | |
| Purchase / Royalty | 193.58 | 412.63 | -53.1% | 2.3% | 4.9% | |
| Project related Travel Expenses | 179.25 | 199.40 | -10.1% | 2.2% | 2.4% | |
| Total Direct costs | 5,434.02 | 5,372.82 | 1.1% | 65.3% | 64.4% | |
| Gross Profit | 2,887.12 | 2,969.99 | -2.8% | 34.7% | 35.6% | |
| Sales & Marketing Exps | 765.24 | 772.86 | -1.0% | 9.2% | 9.3% | |
| Admin. & Other Exps | 893.71 | 741.37 | 20.5% | 10.7% | 8.9% | |
| Doubtful Debt Provision | 7.23 | 37.32 | -80.6% | 0.1% | 0.4% | |
| CSR Activities | 19.01 | 17.98 | 5.7% | 0.2% | 0.2% | |
| Total SGA | 1,685.19 | 1,569.53 | 7.4% | 20.3% | 18.8% | |
| EBITDA | 1,201.93 | 1,400.46 | -14.2% | 14.4% | 16.8% | |
| Depreciation | 110.20 | 122.86 | -10.3% | 1.3% | 1.5% | |
| Amortization | 275.97 | 277.95 | -0.7% | 3.3% | 3.3% | |
| EBIT | 815.76 | 999.65 | -18.4% | 9.8% | 12.0% | |
| Other Income / (Loss) | 202.02 | 165.97 | 21.7% | 2.4% | 2.0% | |
| Exchange Gain/(Loss) | 79.83 | 20.63 | 287.0% | 1.0% | 0.2% | |
| PBT | 1,097.61 | 1,186.25 | -7.5% | 13.2% | 14.2% | |
| Tax | 272.91 | 312.77 | -12.7% | 3.3% | 3.7% | |
| PAT | 824.70 | 873.48 | -5.6% | 9.9% | 10.5% |
© 2019 Persistent Systems – Confidential
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Balance Sheet
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₹ Million
| Particulars | As on June 30, 2019 |
As on March 31, 2019 |
As on June 30, 2018 |
|---|---|---|---|
| Assets | |||
| PPE and Intangible assets | 4,821.18 | 4,323.53 | 5,001.13 |
| Non-Current Assets | 777.62 | 637.36 | 740.49 |
| Cash and Investments | 13,400.68 | 14,975.34 | 12,740.95 |
| Other Current Assets | 8,667.80 | 8,619.76 | 9,390.62 |
| Total | 27,667.28 | 28,555.99 | 27,873.19 |
| Equity and Liabilities | |||
| Equity | 22,464.94 | 23,446.80 | 22,147.13 |
| Non-Current Liabilities | 765.37 | 266.60 | 170.74 |
| Current Liabilities | 4,436.97 | 4,842.59 | 5,555.32 |
| Total | 27,667.28 | 28,555.99 | 27,873.19 |
© 2019 Persistent Systems – Confidential
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Fact Sheet – Q1FY20
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Fact Sheet
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| Fact | Sheet | |||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | Description / Nos. / % | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| Revenue from Operations, USD M | 119.62 | 118.30 | 120.84 | 118.23 | 123.60 | 480.97 | 470.55 | |
| % QoQ / YoY growth | 1.1% | -2.1% | 2.2% | -4.3% | 5.7% | 2.2% | 9.7% | |
| Revenue from Operations, INR M | 8,321.14 | 8,318.54 | 8,642.49 | 8,355.57 | 8,342.81 | 33,659.41 | 30,337.03 | |
| % QoQ / YoY growth | 0.0% | -3.7% | 3.4% | 0.2% | 10.9% | 11.0% | 5.4% | |
| Business Offerings Revenue Mix |
Description / % | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| Services | 78.5% | 78.4% | 75.0% | 74.4% | 72.6% | 75.1% | 74.4% | |
| IP Led | 21.5% | 21.6% | 25.0% | 25.6% | 27.4% | 24.9% | 25.6% | |
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
| Segment Revenue Mix |
Description / % | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| Services | 45.8% | 44.6% | 41.9% | 43.0% | 41.5% | 42.7% | 43.8% | |
| Digital | 22.7% | 24.4% | 22.9% | 22.0% | 21.4% | 22.7% | 21.3% | |
| Alliance | 27.8% | 24.8% | 29.4% | 29.5% | 32.1% | 29.0% | 27.6% | |
| Accelerite | 3.7% | 6.2% | 5.8% | 5.5% | 5.0% | 5.6% | 7.3% | |
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
© 2019 Persistent Systems – Confidential
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Fact Sheet
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| Fact | Sheet | Sheet | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Industry Revenue Mix |
Description / % | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 | |
| BFSI | 27.7% | 27.0% | 25.7% | 24.7% | 23.7% | 25.3% | 25.7% | ||
| Healthcare & Life Science | 18.9% | 19.6% | 18.2% | 18.2% | 17.6% | 18.4% | 16.8% | ||
| Technology Cos. & Emerging Verticals | 53.4% | 53.4% | 56.1% | 57.1% | 58.7% | 56.3% | 57.5% | ||
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||
| Geography Revenue Mix |
Description / % | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 | |
| North America | 82.5% | 80.9% | 83.7% | 82.6% | 79.7% | 81.7% | 83.5% | ||
| Europe | 8.5% | 7.9% | 7.6% | 7.5% | 12.0% | 8.8% | 7.5% | ||
| India | 6.7% | 7.7% | 6.8% | 7.3% | 6.1% | 7.0% | 6.3% | ||
| ROW | 2.3% | 3.5% | 1.9% | 2.6% | 2.2% | 2.5% | 2.7% | ||
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
© 2019 Persistent Systems – Confidential
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Fact Sheet
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| Fact | Sheet | |||||||
|---|---|---|---|---|---|---|---|---|
| Industry Classification |
Description / % | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| ISV | 40.6% | 41.2% | 39.8% | 39.5% | 38.8% | 39.8% | 39.9% | |
| Enterprise | 37.9% | 37.2% | 35.2% | 34.9% | 33.8% | 35.3% | 34.5% | |
| IP Led | 21.5% | 21.6% | 25.0% | 25.6% | 27.4% | 24.9% | 25.6% | |
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
| Revenue by Delivery Centers |
Description / % | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| Global Development Centers | 30.5% | 31.4% | 29.9% | 29.7% | 31.1% | 30.5% | 32.0% | |
| India | 48.0% | 47.0% | 45.1% | 44.7% | 41.5% | 44.6% | 42.4% | |
| IP Led | 21.5% | 21.6% | 25.0% | 25.6% | 27.4% | 24.9% | 25.6% | |
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
| Client Billed |
Nos. | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| Services | 429 | 420 | 437 | 433 | 438 | 586 | 569 | |
| IP Led | 167 | 185 | 192 | 178 | 181 | 287 | 387 |
Includes one time clients with overlap across business offerings
© 2019 Persistent Systems – Confidential
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Fact Sheet
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| Fact | Sheet | |||||||
|---|---|---|---|---|---|---|---|---|
| Revenue Concentration |
Description / % | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| Top 1 | 23.6% | 20.2% | 26.3% | 25.7% | 23.8% | 24.0% | 25.9% | |
| Top 5 | 44.6% | 40.0% | 45.0% | 43.3% | 43.8% | 42.4% | 43.9% | |
| Top 10 | 52.6% | 50.2% | 54.6% | 52.4% | 53.7% | 51.8% | 53.5% | |
| Client Engagement Size |
Nos. | Q1FY20 | Q3FY19 | Q2FY19 | Q1FY19 | Q4FY18 | FY19 | FY18 |
| Large > USD 3M | 22 | 20 | 20 | 18 | 18 | 20 | 18 | |
| Medium > USD 1M, < USD 3M | 56 | 57 | 56 | 56 | 58 | 57 | 53 | |
| Yield | USD / Per Person Month | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| 4,953 | 5,082 | 5,386 | 5,329 | 5,497 | 5,321 | 5,160 | ||
| Yield is computed as a ratio of total revenue to billable person months excluding employees under training. | ||||||||
| Linear Revenue Per Billed PM* |
USD / Per Person Month | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| Global Delivery Centres | 16,742 | 16,846 | 16,204 | 15,787 | 16,360 | 16,299 | 16,267 | |
| India | 4,427 | 4,385 | 4,392 | 4,372 | 4,333 | 4,371 | 4,232 |
*Person Month
© 2019 Persistent Systems – Confidential
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Fact Sheet
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| Fact | Sheet | |||||||
|---|---|---|---|---|---|---|---|---|
| Attrition Rate |
% | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| TTM Basis | 17.1% | 16.7% | 16.4% | 15.4% | 14.8% | 16.7% | 14.7% | |
| People Numbers | Nos. | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| Technical | 9,363 | 9,185 | 8,761 | 8,566 | 8,196 | 9,185 | 8,329 | |
| Sales and Business Development | 272 | 273 | 266 | 247 | 237 | 273 | 211 | |
| Others | 532 | 504 | 503 | 489 | 469 | 504 | 436 | |
| Total | 10,167 | 9,962 | 9,530 | 9,302 | 8,902 | 9,962 | 8,976 | |
| DSO | Nos. | Q1FY20 | Q3FY19 | Q2FY19 | Q1FY19 | Q4FY18 | FY19 | FY18 |
| Days | 65 | 63 | 61 | 63 | 68 | 63 | 66 |
© 2019 Persistent Systems – Confidential
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Fact Sheet
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| Fact | Sheet | |||||||
|---|---|---|---|---|---|---|---|---|
| Efforts and Utilization Mix - Linear | Description / Nos. / % | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| Billable Person Months | 19,441 | 18,663 | 17,822 | 17,483 | 17,593 | 71,563 | 71,207 | |
| - Global Delivery Centers | 2,658 | 2,630 | 2,659 | 2,656 | 2,757 | 10,703 | 10,609 | |
| - India | 16,783 | 16,034 | 15,163 | 14,827 | 14,836 | 60,860 | 60,597 | |
| Billed Person Months | 15,141 | 14,879 | 14,635 | 14,318 | 14,205 | 58,037 | 56,405 | |
| - Global Delivery Centers | 2,179 | 2,206 | 2,232 | 2,221 | 2,348 | 9,007 | 9,255 | |
| - India | 12,962 | 12,674 | 12,403 | 12,097 | 11,857 | 49,030 | 47,151 | |
| Utilization | ||||||||
| - Blended | 77.9% | 79.7% | 82.1% | 81.9% | 80.7% | 81.1% | 79.2% | |
| - Global Delivery Centers | 82.0% | 83.9% | 83.9% | 83.6% | 85.2% | 84.2% | 87.2% | |
| - India | 77.2% | 79.0% | 81.8% | 81.6% | 79.9% | 80.6% | 77.8% | |
| IP Led | Nos. | Q1FY20 | Q4FY19 | Q3FY19 | Q2FY19 | Q1FY19 | FY19 | FY18 |
| IP Led Person Months | 4,711 | 4,618 | 4,613 | 4,704 | 4,891 | 18,826 | 19,982 |
© 2019 Persistent Systems – Confidential
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Thank You
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