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Persistent Systems Limited Interim / Quarterly Report 2020

May 5, 2020

60826_rns_2020-05-05_ee3c6faf-ca97-4b49-8d89-a764e44e3387.pdf

Interim / Quarterly Report

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NSE & BSE / 2020‐21 / 14

May 5, 2020

The Manager, Corporate Services, National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400 051

Ref: Symbol: PERSISTENT

The Manager, Corporate Services, Bombay Stock Exchange Limited 14[th] Floor, P J Towers, Dalal Street, Mumbai 400 001

Ref: Scrip Code: 533179

Dear Sir/Madam,

Sub: Fact Sheet – Consolidated Financial Data – for the quarter and year ended March 31, 2020

Please find enclosed fact sheet of the Consolidated Financial Data for the quarter and year ended March 31, 2020.

The Company has scheduled an investor / analyst call on Wednesday, May 6, 2020 at 5.00 PM IST. During such call, the Management will comment on the financial results for the quarter and year ended March 31, 2020 as well as on the business outlook. The details of the said investor call are available on the website of the Company.

Please acknowledge the receipt.

Thanking you,

Yours Sincerely, For Persistent Systems Limited

AMIT MURARI Digitally signed by AMIT MURARI ATRE ATRE Date: 2020.05.05 23:24:42 +05'30' Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

Persistent Systems Limited, Bhageerath, 402 Senapati Bapat Road, Pune 411 016, Maharashtra, India CIN - L72300PN1990PLCO56696

Tel: +91 (20) 670 30000 | Fax - +91 (20) 6703 0008 | E-mail - [email protected] | Website - www.persistent.com

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Analyst Presentation Quarter ended March 31, 2020 May 5, 2020

Forward-looking and Cautionary Statements

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 forward-looking 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.

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2

Financial Highlights

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Financial Highlights for Q4FY20

USD Revenue $127M

-1.8% +7.4% QoQ YoY

INR EBITDA ₹1,276.8M

@ 13.8% Revenue +3.4% +0.9% QoQ YoY

4

INR Revenue

₹9,263.6M

+0.4% +11.4% QoQ YoY

INR PAT

₹838.2M

@9% Revenue -4.7% -0.8% QoQ YoY

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Financial Highlights for FY20

USD Revenue $501.6M

+4.3% YoY

INR EBITDA ₹4,929.5M

@ 13.8% Revenue -15.1% YoY

5

INR Revenue

₹35,658M

+5.9% YoY

INR PAT

₹3,402.9M

@9.5% Revenue -3.2% YoY

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Highlights for the Quarter

Industry Revenue Mix

Customer Concentration

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----- Start of picture text -----

8.0% 9.1%
8.8%
53.4% 53.4% 53.2% 50.6% 49.5% 10.2% 8.4%
21.0% 20.6%
20.9%
19.8% 22.3%
18.9% 19.2%
19.6% 18.9% 18.4%
23.6% 23.7%
27.0% 27.7% 28.4% 30.5% 31.3% 20.2% 21.5% 19.2%
Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
BFSI Healthcare & Life Science Tech. Cos. & Emerging Verticals Top 1 Top 2-5 Top 6-10
----- End of picture text -----

The share of revenue from BFSI customers has increased from 27.0% in Q4FY19 to 31.3% in Q4FY20

The share of Top Customer has reduced from 20.2% in Q4FY19 to 19.2% in Q4FY20

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6

Supporting our clients responding to COVID-19

Biocomplexity Labs, Chicago Based Academic Large Scientific Children’s Health University of Virginia Medical Center Instrumentation Provider Dallas Interactive Pandemic Integrate COVID-19 Workflow in COVID-19 Test Kits FDA No Cost Salesforce COVID-19 Surveillance Dashboard the App Emergency Clearance Care Response Solutions 7

Other Highlights

Rs. 25 Crores ($3.3M)

https://www.persistent.com/media/pressreleases/persistent-systems-contributingto-covid-19-emergency-fund/

Leader for 7[th] Year

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https://www.persistent.com/media/pressreleases/persistent-in-leadershippositions-in-zinnov-zones-2019-erdservices-report/

8

Salesforce Leader

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https://www.persistent.com/partnerecosystem/salesforce/persistent-as-aleader-for-salesforce-partner-ecosystemin-isg-provider-lens-2020/

Top 15 Sourcing Standout

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https://persys.co/2SllKsh

8

IBM Gold Partner

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Innovator

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https://www.persistent.com/media/pressreleases/persistent-systems-inconstellation-shortlist-2020-for-innovationservices-and-engineering/

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Financial Details

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Sequential Q4 FY20 vs Q3 FY20

Particulars Q4FY20 Q3FY20 Change QoQ Exps / Sales % Q4FY20 Exps / Sales % Q3FY20
Revenue ($ M)
Services 106.31 102.02 4.2%
IP Led 20.74 27.41 -24.3%
Revenue ($ M) 127.05 129.43 -1.8%
Avg. Exchange Rate Rs. /US$ 72.91 71.29 2.3%
Revenue (Rs. M) 9,263.65 9,227.29 0.4%
Cost of Revenue Rs. M Rs. M
Employee Related Expenses 5,830.32 5,675.33 2.7% 62.9% 61.5%
Purchase / Royalty 163.98 349.89 -53.1% 1.8% 3.8%
Project related Travel Expenses 135.33 132.21 2.4% 1.5% 1.4%
Total Direct costs 6,129.63 6,157.43 -0.5% 66.2% 66.7%
Gross Profit 3,134.02 3,069.86 2.1% 33.8% 33.3%
Sales & Marketing Exps 948.56 957.93 -1.0% 10.2% 10.4%
Admin. & Other Exps 840.13 843.43 -0.4% 9.1% 9.1%
Doubtful Debt Provision 38.78 15.35 152.6% 0.4% 0.2%
CSR Activities 29.70 18.84 57.6% 0.3% 0.2%
Total SGA 1,857.17 1,835.55 1.2% 20.0% 19.9%
EBITDA 1,276.85 1,234.31 3.4% 13.8% 13.4%
Depreciation 111.14 116.24 -4.4% 1.2% 1.3%
Amortization 309.11 312.06 -0.9% 3.3% 3.4%
EBIT 856.60 806.01 6.3% 9.2% 8.7%
Other Income / (Loss) 229.33 231.64 -1.0% 2.5% 2.5%
Exchange Gain / (Loss) 44.50 102.10 -56.4% 0.5% 1.1%
PBT 1,130.43 1,139.75 -0.8% 12.2% 12.4%
Tax 292.22 260.49 12.2% 3.2% 2.8%
PAT 838.21 879.26 -4.7% 9.0% 9.5%

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YoY Comparison Q4 FY20 vs Q4 FY19

Particulars Q4FY20 Q4FY19 Change YoY Exps / Sales % Q4FY20 Exps / Sales % Q4FY19
Revenue ($ M)
Services 106.31 92.74 14.6%
IP Led 20.74 25.56 -18.9%
Revenue ($ M) 127.05 118.30 7.4%
Avg. Exchange Rate ₹ /US$ 72.91 70.32 3.7%
Revenue (M) 9,263.65 8,318.54 11.4%
Cost of Revenue ₹ M ₹. M
Employee Related Expenses 5,830.32 4,997.26 16.7% 62.9% 60.1%
Purchase / Royalty 163.98 119.41 37.3% 1.8% 1.4%
Project related Travel Expenses 135.33 137.89 -1.9% 1.5% 1.7%
Total Direct costs 6,129.63 5,254.56 16.7% 66.2% 63.2%
Gross Profit 3,134.02 3,063.98 2.3% 33.8% 36.8%
Sales & Marketing Exps 948.56 771.77 22.9% 10.2% 9.3%
Admin. & Other Exps 840.13 998.27 -15.8% 9.1% 12.0%
Doubtful Debt Provision 38.78 5.47 609.0% 0.4% 0.1%
CSR Activities 29.70 22.97 29.3% 0.3% 0.3%
Total SGA 1,857.17 1,798.48 3.3% 20.0% 21.6%
EBITDA 1,276.85 1,265.50 0.9% 13.8% 15.2%
Depreciation 111.14 115.98 -4.2% 1.2% 1.4%
Amortization 309.11 260.82 18.5% 3.3% 3.1%
EBIT 856.60 888.70 -3.6% 9.2% 10.7%
Other Income / (Loss) 229.33 282.94 -18.9% 2.5% 3.4%
Exchange Gain / (Loss) 44.50 (58.50) -176.1% 0.5% -0.7%
PBT 1,130.43 1,113.14 1.6% 12.2% 13.4%
Tax 292.22 268.41 8.9% 3.2% 3.2%
PAT 838.21 844.73 -0.8% 9.0% 10.2%

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Annual comparison FY20 vs FY19

Particulars FY20 FY19 Change YoY Exps / Sales % FY20 Exps / Sales % FY19
Revenue ($ M)
Services 399.45 361.12 10.6%
IP Led 102.16 119.85 -14.8%
Revenue ($ M) 501.61 480.97 4.3%
Avg. Exchange Rate ₹ /US$ 71.09 69.98 1.6%
Revenue (. M) 35,658.08 33,659.41 5.9%
Cost of Revenue ₹ M ₹ M
Employee Related Expenses 21,933.75 19,873.93 10.4% 61.5% 59.0%
Purchase / Royalty 982.10 877.15 12.0% 2.8% 2.6%
Project related Travel Expenses 578.48 627.07 -7.7% 1.6% 1.9%
Total Direct costs 23,494.33 21,378.15 9.9% 65.9% 63.5%
Gross Profit 12,163.75 12,281.26 -1.0% 34.1% 36.5%
Sales & Marketing Exps 3,641.32 3,060.50 19.0% 10.2% 9.1%
Admin. & Other Exps 3,422.68 3,268.47 4.7% 9.6% 9.7%
Doubtful Debt Provision 83.86 66.29 26.5% 0.2% 0.2%
CSR Activities 86.35 80.64 7.1% 0.2% 0.2%
Total SGA 7,234.21 6,475.90 11.7% 20.3% 19.2%
EBITDA 4,929.54 5,805.36 -15.1% 13.8% 17.2%
Depreciation 453.35 474.39 -4.4% 1.3% 1.4%
Amortization 1,206.27 1,098.12 9.8% 3.4% 3.3%
EBIT 3,269.92 4,232.85 -22.7% 9.2% 12.6%
Other Income / (Loss) 889.15 873.63 1.8% 2.5% 2.6%
Exchange Gain / (Loss) 364.35 (243.09) -249.9% 1.0% -0.7%
PBT 4,523.42 4,863.39 -7.0% 12.7% 14.4%
Tax 1,120.53 1,346.60 -16.8% 3.1% 4.0%
PAT 3,402.89 3,516.79 -3.2% 9.5% 10.4%

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12

Balance sheet

₹ M
Particulars As on March 31, 2020 As on March 31, 2019
Assets
PPE and Intangible assets 4,618.66 4,323.53
Non-Current Assets 1,467.52 637.36
Cash and Investments 14,716.85 14,767.22
Other Current Assets 10,118.66 8,827.88
Total 30,921.69 28,555.99
Equity and Liabilities
Equity 23,857.55 23,446.80
Non-Current Liabilities 590.33 188.74
Current Liabilities 6,473.81 4,920.45
Total 30,921.69 28,555.99

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13

Fact Sheet – Q4FY20

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Fact Sheet

Description / Nos. / % Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 FY20 FY19
Revenue Revenue from Operations, USD M
% QoQ / YoY growth
Revenue from Operations, INR M
127.05
-1.8%
9,263.65
129.43
3.1%
9227.29
125.51
4.9%
8,846.00
119.62
1.1%
8,321.14
118.30
-2.1%
8,318.54
501.61
4.3%
35,658.08
480.97
2.2%
33,659.41
% QoQ / YoY growth 0.4% 4.3% 6.3% 0.0% -3.7% 5.9% 11.0%
Business Offerings Revenue Mix Description / %
Services
IP Led
Total
Q4FY20
83.7%
16.3%
100.0%
Q3FY20
78.8%
21.2%
100.0%
Q2FY20
77.5%
22.5%
100.0%
Q1FY20
78.5%
21.5%
100.0%
Q4FY19
78.4%
21.6%
100.0%
FY20
79.6%
20.4%
100.0%
FY19
75.1%
24.9%
100.0%
Segment Revenue Mix Description / %
Technology Services (Services)
Technology Services (Digital)
Alliance
Accelerite
Q4FY20
48.4%
25.3%
22.2%
4.1%
Q3FY20
46.5%
23.2%
26.7%
3.6%
Q2FY20
45.2%
22.4%
28.1%
4.3%
Q1FY20
45.8%
22.7%
27.8%
3.7%
Q4FY19
44.6%
24.4%
24.8%
6.2%
FY20
46.5%
23.4%
26.2%
3.9%
FY19
42.7%
22.7%
29.0%
5.6%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

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15

Fact Sheet

Industry Revenue Mix Description / %
BFSI
Healthcare & Life Science
Tech. Cos. & Emerging Verticals
Q4FY20
31.3%
19.2%
49.5%
Q3FY20
30.5%
18.9%
50.6%
Q2FY20
28.4%
18.4%
53.2%
Q1FY20
27.7%
18.9%
53.4%
Q4FY19
27.0%
19.6%
53.4%
FY20
29.5%
18.9%
51.6%
FY19
25.3%
18.4%
56.3%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Geography Revenue Mix Description / %
North America
Europe
India
ROW
Q4FY20
80.2%
8.8%
9.0%
2.0%
Q3FY20
80.1%
10.6%
7.4%
1.9%
Q2FY20
81.4%
9.9%
6.7%
2.0%
Q1FY20
82.5%
8.5%
6.7%
2.3%
Q4FY19
80.9%
7.9%
7.7%
3.5%
FY20
81.0%
9.5%
7.4%
2.1%
FY19
81.7%
8.8%
7.0%
2.5%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Description / % Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 FY20 FY19
Industry Classification ISV
Enterprise
IP Led
41.7%
42.0%
16.3%
39.0%
39.8%
21.2%
38.6%
38.9%
22.5%
40.6%
37.9%
21.5%
41.2%
37.2%
21.6%
40.0%
39.6%
20.4%
39.8%
35.3%
24.9%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

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16

Fact Sheet

Revenue by Delivery Centers Description / %
Global Development Centers
India
IP Led
Q4FY20
33.0%
50.7%
16.3%
Q3FY20
31.5%
47.3%
21.2%
Q2FY20
31.0%
46.5%
22.5%
Q1FY20
30.5%
48.0%
21.5%
Q4FY19
31.4%
47.0%
21.6%
FY20
31.5%
48.1%
20.4%
FY19
30.5%
44.6%
24.9%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Clients Billed Nos.
Services
Q4FY20
501
Q3FY20
483
Q2FY20
470
Q1FY20
429
Q4FY19
420
FY20
653
FY19
586
IP Led 151 154 156 167 185 257 287
Includes one-time clients with overlap across business offerings
Revenue Concentration Description / %
Top 1
Top 5
Top 10
Q4FY20
19.2%
41.5%
49.9%
Q3FY20
21.5%
42.3%
51.1%
Q2FY20
23.7%
44.3%
53.4%
Q1FY20
23.6%
44.6%
52.6%
Q4FY19
20.2%
40.0%
50.2%
FY20
22.0%
43.2%
51.7%
FY19
24.0%
42.4%
51.8%
DSO Nos.
Days
Q4FY20
65
Q3FY20
68
Q2FY20
64
Q1FY20
65
Q4FY19
63
FY20
69
FY19
63

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17

Fact Sheet

Client
Engageme
Client
Engageme
nt Size nt Size Nos.
Large > USD 3M
Medium > USD 1M, < USD 3M
Q4FY20
20
52
Q3FY20
22
53
Q2FY20
20
56
Q1FY20
22
56
Q4FY19
20
57
FY20
20
52
FY19
20
57
Yield* USD / Per Person Month Q4FY20
4,906
Q3FY20
5,231
Q2FY20
5,134
Q1FY20
4,953
Q4FY19
5,082
FY20
5,055
FY19
5,321
*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*
Global Delivery Centres
India
Q4FY20
17,276
4,427
Q3FY20
16,761
4,420
Q2FY20
17,155
4,437
Q1FY20
16,742
4,427
Q4FY19
16,846
4,385
FY20
16,987
4,428
FY19
16,299
4,371
*Revenue per billed PM excludes IP Led revenue and calculated on total revenue including contractual reimbursable portion.
Attrition
Rate
%
TTM Basis
Q4FY20
14.3%
Q3FY20
14.9%
Q2FY20
15.7%
Q1FY20
17.1%
Q4FY19
16.7%
FY20
14.3%
FY19
16.7%
IP Led Nos.
IP Led Person Months
Q4FY20
4,317
Q3FY20
4,325
Q2FY20
4,602
Q1FY20
4,711
Q4FY19
4,618
FY20
17,954
FY19
18,826

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18

Fact Sheet

Nos. Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 FY20 FY19
People Numbers Technical
Sales and Business Development
Others
9,835
263
534
9,729
266
537
9,726
285
532
9,363
272
532
9,185
273
504
9,835
263
534
9,185
273
504
Total 10,632 10,532 10,543 10,167 9,962 10,632 9,962
Description / Nos. / % Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 FY20 FY19
Billable Person Months 21,580 20,419 19,846 19,441 18,663 81,287 71,563
- Global Delivery Centers 2,872 2,893 2,779 2,658 2,630 11,202 10,703
Efforts and Utilization Mix - Linear - India
Billed Person Months
- Global Delivery Centers
- India
Linear Utilization
18,708
16,975
2,425
14,550
17,526
16,295
2,430
13,865
17,067
15,409
2,271
13,138
16,783
15,141
2,179
12,962
16,033
14,879
2,206
12,674
70,085
63,820
9,305
54,516
60,860
58,037
9,007
49,030
- Blended 78.7% 79.8% 77.6% 77.9% 79.7% 78.5% 81.1%
- Global Delivery Centers 84.4% 84.0% 81.7% 82.0% 83.9% 83.1% 84.2%
- India 77.8% 79.1% 77.0% 77.2% 79.0% 77.8% 80.6%

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19

About Persistent

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We are a global solutions company delivering digital business acceleration and enterprise modernization for businesses across industries and geographies.

Industry Expertise & Solutions

Service Lines Digital Business Strategy

CX Innovation & Optimization Digital Product Engineering

Core IT Modernization

Data-Driven Business & Intelligence Identity, Access & Privacy Management

Outcomes Accelerate Time to Market Enable Business Agility Business Partner Unlock Banking Industrial Healthcare Software Ecosystem Growth Financial Life Sciences Hi-tech Services Maximize Value Creation Insurance Drive Enterprise Simplification

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21

Why Persistent?

Boutique mindset focused on enterprise clients moving their digital presence to the cloud

1,000+ Active Clients Annually

Diverse, open and innovative business partner ecosystem for maximum flexibility

10,600 Industry & Tech Experts

30-year legacy of leadership in Software Engineering & Digital Transformation

Trusted security and dedication to data privacy across our enterprise

20 $500M Countries Revenue

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22

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Thank you! [email protected]

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