2015 Persistent Systems Ltd.

April 21, 2015

Quarter ending March 31, 2015

Persistent Systems Limited

www.persistent.com

25 years of bringing software to life and life to software

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 forwardlooking 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.

Forward-looking and Cautionary

Statements

Key Highlights

www.persistent.com

25 years of bringing software to life and life to software

Profit after Tax (PAT) grows 2.1% QoQ to INR 760.50 Million

Profit before Tax (PBT) dips by 3.6% QoQ to INR 958.15 Million

EBIDTA grows at 0.9% QoQ to INR 1,004.76 Million

INR Revenue grows at 0.6% QoQ to INR 4,974.53 Million,

USD Revenue grows at 0.6% QoQ to USD 80.03 Million

Quarterly Performance

Profit after Tax (PAT) grows 16.6% INR 2,906.31 Million

Profit before Tax (PBT) grows at 13.8% to INR 3,899.72 Million

EBIDTA dips by 9.3% to INR 3,903.47 Million

INR Revenue grows at 13.3% to INR 18,912.52 Million

USD Revenue grows at 12.6% to USD 308.54 Million

Annual Performance

Key Highlights Annual and Q4 FY 15 Performance

Collaborated with Lithium Technologies to help SANE Australia, a non-governmental organization

(NGO), develop and launch its online communities to enable peer-to-peer support for both those
experiencing mental illness and those who care for them. Also assisted Elance-oDesk, the global leader
in online work to re-launch their new online user community, enabling improved user engagement for
the companys customers freelancers and businesses working together. Persistent is helping
organizations around the world build great communities to achieve the how of their digital
transformation

Persistent Intranet, Pi our own digitalizing of employee experience received 'The Dataquest Business
Technology Award' for Analytics Category

Won Computer Society of India Awards for Excellence in IT for Beyond Search: Enabling Digital
Transformation

25 years of bringing software to life and life to software

Established 'Research and Innovation Board' to identify new scientific projects, explore cutting-edge
futuristic technologies and applications in its continuous pursuit to emerge as a global leader in
technology. This six-member board is chaired by Indias most renowned scientist, thought-leader and
Padma Vibhushan recipient Dr. Raghunath Mashelkar, Ex- Director General, Council of Scientific &
Industrial Research (CSIR)

Key Highlights

Financial Performance

www.persistent.com

Revenue (USD M)
Services
IP Led
Revenue (USD M)
Avg. Exchange Rate INR /USD
Revenue (INR M)
Cost of Revenue
Employee Related Expenses
Purchase / Royalty
Project related Travel Expenses
Total Direct costs
Gross Profit
Sales & Marketing Exps
Admin. & Other Exps
Doubtful Debt Provision
CSR Activities
Total SGA
EBIDTA
Depreciation
Amortization
EBIT
Other Income / (Loss)
Exchange Gain/(Loss)
PBT
Tax
PAT

Particulars
64.42
15.10
79.52
62.20
4,946.38
INR M
2,739.08
90.50
129.79
2,959.37
1,987.01
465.33
481.60
28.80
15.94
991.67
995.34
126.55
119.93
748.86
114.87
129.92
993.65
249.03
744.62

Q3FY15

0.7%
-14.4%
7.2%
0.5%
0.6%
6.0%
-1.6%
-50.5%
-15.1%
0.3%
0.9%
-0.6%
-15.4%
3.8%
13.2%
-61.1%
-3.6%
-20.6%
2.1%

1.7%
-4.0%
0.6%
-0.1%
0.6%

Change
QoQ

25 years of bringing software to life and life to software

65.54
14.49
80.03
62.16
4,974.53
INR M
2,758.20
77.51
139.08
2,974.79
1,999.74
493.11
474.07
14.27
13.53
994.98
1,004.76
125.81
101.45
777.50
130.06
50.59
958.15
197.65
760.50

Q4FY15

Sequential Q4 FY15 Vs. Q3 FY15

55.4%
1.6%
2.8%
59.8%
40.2%
9.9%
9.5%
0.3%
0.3%
20.0%
20.2%
2.5%
2.0%
15.6%
2.6%
1.0%
19.3%
4.0%
15.3%

55.4%
1.8%
2.6%
59.8%
40.2%
9.4%
9.7%
0.6%
0.3%
20.0%
20.1%
2.6%
2.4%
15.1%
2.3%
2.6%
20.1%
5.0%
15.1%

Exps / Sales %
Q4FY15
Q3FY15

Revenue (USD M)
Services
IP Led
Revenue (USD M)
Avg. Exchange Rate INR /USD
Revenue (INR M)
Cost of Revenue
Employee Related Expenses
Purchase
Project related Travel Expenses
Total Direct costs
Gross Profit
Sales & Marketing Exps
Admin. & Other Exps
Doubtful Debt Provision
CSR Activities
Total SGA
EBIDTA
Depreciation
Amortization
EBIT
Other Income / (Loss)
Exchange Gain/(Loss)
PBT
Tax
PAT

Particulars
58.38
14.26
72.64
61.50
4,467.37
Rs. M
2,325.82
100.10
127.84
2,553.76
1,913.61
341.53
355.90
5.22
4.43
707.08
1,206.53
109.11
155.15
942.27
67.57
(86.57)
923.27
251.28
671.99

Q4 FY14

18.6%
-22.6%
8.8%
16.5%
4.5%
44.4%
33.2%
173.4%
205.4%
40.7%
-16.7%
15.3%
-34.6%
-17.5%
92.5%
158.4%
3.8%
-21.3%
13.2%

12.3%
1.6%
10.2%
1.1%
11.4%

Change
YoY

25 years of bringing software to life and life to software

65.54
14.49
80.03
62.16
4,974.53
Rs. M
2,758.20
77.51
139.08
2,974.79
1,999.74
493.11
474.07
14.27
13.53
994.98
1,004.76
125.81
101.45
777.50
130.06
50.59
958.15
197.65
760.50

Q4FY15

Y-o-Y comparison Q4 FY15 Vs. Q4 FY14

55.4%
1.6%
2.8%
59.8%
40.2%
9.9%
9.5%
0.3%
0.3%
20.0%
20.2%
2.5%
2.0%
15.6%
2.6%
1.0%
19.3%
4.0%
15.3%

52.1%
2.2%
2.9%
57.2%
42.8%
7.6%
8.0%
0.1%
0.1%
15.8%
27.0%
2.4%
3.5%
21.1%
1.5%
-1.9%
20.7%
5.6%
15.1%

Exps / Sales %
Q4FY15
Q4 FY14

Revenue (USD M)
Services
IP Led
Revenue (USD M)
Avg. Exchange Rate INR /USD
Revenue (INR M)
Cost of Revenue
Employee Related Expenses
Purchase / Royalty
Project related Travel Expenses
Total Direct costs
Gross Profit
Sales & Marketing Exps
Admin. & Other Exps
Doubtful Debt Provision
CSR Activities
Total SGA
EBIDTA
Depreciation
Amortization
EBIT
Other Income / (Loss)
Exchange Gain/(Loss)
PBT
Tax
PAT

Particulars
224.73
49.33
274.06
60.90
16,691.53
Rs. M
8,636.22
493.31
387.51
9,517.04
7,174.49
1,394.15
1,375.64
72.42
29.50
2,871.71
4,302.78
435.45
590.50
3,276.83
299.07
(149.31)
3,426.59
933.82
2,492.77

FY 2014

20.7%
-33.9%
46.6%
18.9%
5.9%
26.6%
32.7%
-39.9%
96.9%
28.6%
-9.3%
10.8%
-22.8%
-9.5%
55.7%
414.2%
13.8%
6.4%
16.6%

11.0%
19.8%
12.6%
0.6%
13.3%

Change

25 years of bringing software to life and life to software

249.48
59.06
308.54
61.30
18,912.52
Rs. M
10,422.47
325.89
568.18
11,316.54
7,595.98
1,764.78
1,826.15
43.49
58.09
3,692.51
3,903.47
482.51
456.02
2,964.94
465.61
469.17
3,899.72
993.41
2,906.31

FY 2015

Comparison FY 2015 Vs FY 2014

55.1%
1.7%
3.0%
59.8%
40.2%
9.3%
9.7%
0.2%
0.3%
19.5%
20.6%
2.6%
2.4%
15.7%
2.5%
2.5%
20.6%
5.3%
15.4%

51.7%
3.0%
2.3%
57.0%
43.0%
8.4%
8.2%
0.4%
0.2%
17.2%
25.8%
2.6%
3.5%
19.6%
1.8%
-0.9%
20.5%
5.6%
14.9%

Exps / Sales %
FY 2015
FY 2014

10

25 years of bringing software to life and life to software

17,746.13

8,164.92

Cash & Investments

Total application of Funds

5,037.95

Current Assets

113.84

Long term loans & advances

15,433.84

6,310.57

4,340.49

137.97

260.12

4,384.69

4,116.49
312.93

15,433.84

2,784.71

425.69

11,823.44

400.00

As at
March 31, 2014

INR M

17,746.13

3,548.67

Deferred Tax asset (Net)

Total sources of Funds

Assets
Fixed Assets

Current Liabilities

142.17

13,255.29

Reserves & Surplus

Non-Current Liabilities

800.00

As at
March 31, 2015

Equity Share Capital

Equity and Liabilities

Consolidated Balance Sheet

11

15.6%
19.3%
15.3%

EBIT Margin

Profit before Tax

Profit after Tax

9.31

9.43

15.1%

20.1%

15.1%

20.1%

20.0%

10.6%

9.4%

40.2%

Q3 FY15

0.2%

-0.8%

0.5%

0.1%

0.0%

-0.5%

0.5%

0.0%

Change
QoQ

25 years of bringing software to life and life to software

9.51

20.2%

EBIDTA Margin

EPS - Diluted, Before Prior Period, INR

20.0%

Total S G&A to Revenue

9.59

10.1%

G&A to Revenue

EPS - Basic, Before Prior Period, INR

9.9%

40.2%

Q4 FY15

S&M to Revenue

Gross Margin

Ratios, %

Key Financials Ratios: Q4 FY15

8.40

8.59

15.1%

20.7%

21.1%

27.0%

15.8%

8.2%

7.6%

42.8%

Q4 FY14

0.2%

-1.4%

-5.5%

-6.8%

4.2%

1.9%

2.3%

-2.6%

Change
YoY

Fact Sheet

www.persistent.com

13

100.0%

Total

14.3%
14.9%

Life Sciences

Financial Services1

1 Financial

100.0%

15.1%

13.6%

55.3%

16.0%

Q3FY 15

100.0%

19.0%

81.0%

Q3FY 15

100.0%

13.9%

13.4%

56.0%

16.7%

Q2FY 15

100.0%

19.6%

80.4%

Q2FY 15

6.7%

4,641.74

5.0%

76.32

Q2FY 15

100.0%

13.8%

13.1%

54.6%

18.5%

Q1FY 15

100.0%

20.0%

80.0%

Q1FY 15

-2.6%

4,349.87

0.0%

72.66

Q1FY 15

25 years of bringing software to life and life to software

Services segment disclosure started from Q1FY 15.

100.0%

54.5%

Infrastructure and Systems

Total

16.3%

Telecom

Q4FY 15

18.1%

IP Led

81.9%

Services

Q4FY 15

6.6%

0.6%

%, q-o-q / y-o-y

4,946.38

4.2%

4,974.53

0.6%

%, q-o-q/ y-o-y growth

79.52

Q3FY 15

Revenue (INR M)

80.03

Q4FY 15

Revenue (USD M)

Nos./%

Fact Sheet

Revenue

Business
Offerings:
Revenue Mix

Segments :
Revenue Mix

100.0%

13.1%

71.6%

15.3%

Q4 FY 14

100.0%

19.6%

80.4%

Q4 FY 14

3.2%

4,467.37

3.9%

72.64

Q4 FY 14

16,691.53
28.9%

18,912.52
13.3%

100.0%

14.5%

13.6%

55.1%

16.8%

FY 15

100.0%

19.1%

80.9%

100.0%

12.5%

69.7%

17.8%

FY 14

100.0%

18.0%

82.0%

FY 14

15.2%

12.6%

FY 15

274.06

FY 14

308.54

FY 15

14

100.0%

Total

24.1%
18.1%
100.0%

Enterprise

IP Led

Total

55.7%
18.1%
100.0%

Offshore

IP Led

Total

100.0%

19.0%

55.9%

25.1%

Q3FY 15

100.0%

19.0%

23.1%

57.9%

Q3FY 15

100.0%

8.2%

7.1%

84.7%

Q3FY 15

100.0%

19.6%

55.9%

24.5%

Q2FY 15

100.0%

19.6%

22.1%

58.3%

Q2FY 15

100.0%

7.6%

6.3%

86.1%

Q2FY 15

100.0%

20.0%

56.9%

23.1%

Q1FY 15

100.0%

20.0%

19.7%

60.3%

Q1FY 15

100.0%

7.6%

6.5%

85.9%

Q1FY 15

25 years of bringing software to life and life to software

26.2%

Q4FY 15

Onsite

Industry Classification disclosure started from Q4 FY 15.

57.8%

ISV

Q4FY 15

7.8%

ROW

Nos.

6.8%

85.4%

Q4FY 15

Europe

North Americas

Fact Sheet (Contd)

Geography:
Revenue Mix

Industry
Classification2

Onsite: Offshore: IP
Led Revenue Mix

100.0%

19.6%

59.0%

21.4%

Q4 FY 14

Q4 FY 14

100.0%

8.5%

6.1%

85.4%

Q4 FY 14

100.0%

19.1%

56.1%

24.8%

FY 15

100.0%

19.1%

22.3%

58.6%

FY 15

100.0%

7.8%

6.7%

85.5%

FY 15

100.0%

18.0%

61.1%

20.9%

FY 14

FY 14

100.0%

9.5%

5.4%

85.1%

FY 14

15

326

IP Led

43.2%

Top 10

48

Medium > USD 1Mn, < USD 3Mn

Q3FY 15

41

14

44.2%

35.0%

17.5%

Q3FY 15

Q2FY 15

41

14

45.0%

36.1%

19.0%

Q2FY 15

376

281

Q2FY 15

83.6%

Q2FY 15

38

14

Q1FY 15

49.0%

38.7%

20.8%

Q1FY 15

347

260

Q1FY 15

86.7%

Q1FY 15

25 years of bringing software to life and life to software

14

Large > USD 3Mn

Q4FY 15

34.1%

Top 5

Nos.

16.5%

Q4FY 15

Top 1

349

273

Q3FY 15

84.1%

Q3FY 15

includes one time clients with overlap across business offerings

268

Q4FY 15

85.6%

Q4FY 15

Services

Nos.

Fact Sheet (Contd)

Repeat
Business

Clients
billed3

Revenue
Concentration

Client
Engagement
Size

36

15

Q4 FY 14

48.5%

39.4%

21.1%

Q4 FY 14

358

261

Q4 FY 14

85.2%

Q4 FY 14

FY 15

48

14

45.2%

35.8%

18.4%

FY 15

498

383

FY 15

85.0%

FY 15

36

15

FY 14

47.0%

37.1%

21.2%

FY 14

550

365

FY 14

83.3%

FY 14

16

4,272

Q4FY 15
4,264

Q3FY 15
4,123

Q2FY 15

4,199

Offshore - Linear

4,201

14,862

Q3FY 15

4,271

14,864

Q2FY 15

4,219

14,905

Q1FY 15

4,241

14,355

Q4 FY 14

3,927

Q4 FY 14

Days

Q3FY 15
65

8,296

424

208

7,664

Q3FY 15

14.7%

Q3FY 15

65

Q2FY 15

8,067

408

212

7,447

Q2FY 15

14.1%

Q2FY 15

69

Q1FY 15

7,876

403

202

7,271

Q1FY 15

14.0%

Q1FY 15

25 years of bringing software to life and life to software

64

Q4FY 15

8,506

Total

Nos.

421

Others

7,861

Q4FY 15

224

Nos.

15.5%

Q4FY 15

Sales & Business Development

Technical

(TTM basis)

63

Q4 FY 14

7,857

358

150

7,349

Q4 FY 14

13.4%

Q4 FY 14

Billing rates exclude IP Led Revenue and are calculated on Services revenue including contractual reimbursable portion.

15,159

Q4FY 15

Onsite - Linear

USD / PPM

3,915

Q1FY 15

Yield is computed as a ratio of revenue to billable person months excluding employees under training.

USD / PPM

Fact Sheet (Contd)

Yield4

Billing
Rates5

Attrition
Rate

People Numbers

DSO

FY 15
64

8,506

421

224

7,861

FY 15

15.5%

FY 15

4,222

14,952

FY 15

4,144

FY 15

63

FY 14

7,857

358

150

7,349

FY 14

13.4%

FY 14

4,178

14,416

FY 14

3,847

FY 14

17

89.2%
73.2%

Onsite Utlization %

Offshore Utilization%

IP Led Person Months

2,620

Q3FY 15

72.9%

88.5%

74.3%

10,573

1,343

11,916

14,513

1,518

16,031

Q3FY 15

2,496

Q2FY 15

68.4%

89.7%

70.3%

9,995

1,259

11,254

14,612

1,403

16,015

Q2FY 15

25 years of bringing software to life and life to software

2,672

Q4FY 15

74.7%

Linear Utlization (Blended)

Nos.

10,616

- Offshore

11,999

Billed Person Months

1,383

14,512

- Offshore

- Onsite

1,551

16,063

Q4FY 15

- Onsite

Billable Person Months

Nos.

Fact Sheet (Contd)

Efforts Mix - Linear

IP Led

2,419

Q1FY 15

65.9%

88.0%

67.7%

9,797

1,128

10,925

14,856

1,283

16,139

Q1FY 15

2,343

Q4 FY 14

67.7%

86.9%

69.2%

10,100

1,083

11,183

14,909

1,246

16,155

Q4 FY 14

10,207

FY 15

70.1%

88.9%

71.7%

40,981

5,113

46,094

58,493

5,754

64,248

FY 15

9,148

FY 14

69.7%

86.8%

70.9%

40,053

3,980

44,033

57,506

4,585

62,091

FY 14

Thank you

www.persistent.com