R Systems

I n t e n s i f y i n g D i g i t a l T r a n s f o r m a t i o n

A n a l y t i c a l R e v i e w Q 4 & Y e a r 2 0 2 0 R e s u l t s

Disclaimer “Investors are cautioned that this presentationcontains forward looking statements thatinvolve risks and uncertainties. The Companyundertakes no obligation publicly to update orrevise any forward‐looking statements,whether because of new information, futureevents, or otherwise. Actual results,performance, or achievements could differfrom those expressed or implied in suchforward‐looking statements.”

Key Highlights Year 2020

Revenue

₹ 880.6 Cr(US$ 119.2 Mn)YoY      8.80%

EBITDA as % of Revenue

EBITDA

₹ 116.8 Cr(US$ 15.8 Mn)YoY      59.9%

13.27

9.03

Year 2020 Year 2019

Net Profit ₹ 82.2 Cr(US$ 11.1 Mn)

EarningsPer Share

₹ 6.9

Share Holder Funds 

₹ 426.6 Cr(US$ 58.4 Mn)

Net Cash Balance 

₹ 302.8 Cr(US$ 41.4 Mn)

Day Sales Outstanding

53 Days

Key Highlights Q4 2020

Revenue

₹ 236.6 Cr(US$ 32.1 Mn)QoQ      5.5%

EBITDA₹ 38.0 Cr

(US$ 5.2 Mn)QoQ  6.8%

16.06

10.22

15.87

Q4 2020 Q4 2019 Q3 2020

Net Profit₹ 29.4 Cr

(US$ 3.9 Mn)QoQ  8.2%

EBITDA as % of Revenue

Key Highlights (Continues …)

Reported Record Revenues amidthe pandemic with strongimprovement in margins

Margins Improvement on theback of efficiencies in operations,savings from WFH along withRupee depreciation

On‐boarded 330+ associatesduring H2‐2020 to support strongsales funnel

Serving 30 million dollar pluscustomers including 5 accountscontributing dollar three millionplus revenues on run rate basis

28 Key wins during FY 2020including 8 customers withUS$ one million plus potential

Witnessed good traction towardsdigital services and solutionsusing RPA, cloud, IOT, mobility,and analytics

Financial Performance – Contribution Analysis – Year 2020

Particulars                           ₹ US$ ₹ US$Revenues 8,805.91  119.16  8,093.75  115.18 Cost of revenues 5,579.22  75.50  5,289.33  75.27 Gross margin 3,226.69  43.66  2,804.42  39.91 

36.64% 34.65%SG & AExpenses 2,058.28  27.86  2,073.74  29.51 

23.37% 25.62%EBITDA 1,168.41  15.80  730.68  10.40 

13.27% 9.03%Depreciation and amortization 256.04  3.46  148.86  2.12 EBIT before exceptional items 912.37  12.34  581.82  8.28 Exceptional items 18.65 0.25 ‐ ‐EBIT 893.72  12.09  581.82  8.28 Finance cost (56.66) (0.77) (15.65) (0.22)Other income (net) 129.05  1.75  153.18  2.18 Income before income tax 966.11  13.07  719.35  10.24 Income tax expense  144.22  1.95  138.11  1.97 Net earnings 821.89  11.12  581.24  8.27 

Year 2020 Year 2019Figures in Mn

Revenue and Gross Margin Analysis – Year 2020

xxx Revenues8.80%Increase in Revenue from:Rupee depreciation

5.44%

Volume gains

3.36%

xxx Gross margins1.99%Increase in Gross Margins from:Lesser travel and BPO transport

Salary raises

1.46%

(1.31)%

Rupee depreciation1.31%Saving in other COGS & Govt. grant0.53%

Financial Performance – Contribution Analysis – Q4 2020

Particulars                           ₹ US$ ₹ US$ ₹ US$Revenues 2,366.41  32.12  2,128.71  30.01  2,243.03 30.25 Cost of revenues 1,477.94  20.06  1,361.51  19.18  1,392.61 18.78 Gross margin 888.47  12.06  767.20  10.83  850.42  11.47 

37.55% 36.04% 37.91%SG & AExpenses 508.47  6.90  549.65  7.75  494.54  6.66 

21.49% 25.82% 22.05%EBITDA 380.00  5.16  217.55  3.08  355.88  4.81 

16.06% 10.22% 15.87%Depreciation and amortization 59.73  0.81  16.11  0.23  64.41  0.87 EBIT before exceptional items 320.27  4.35  201.44  2.85  291.47  3.94 Exceptional items 18.65 0.25 ‐ ‐ ‐ ‐EBIT 301.62 4.10 201.44  2.85  291.47  3.94 Finance cost (14.42) (0.20) (3.37) (0.05) (14.92) (0.20)Other income (net) 45.34  0.61  30.89  0.44  56.44  0.76 Income before income tax 332.54  4.51 228.96  3.24  332.99  4.50 Income tax expense / (credit)  38.74 0.53 (3.35) (0.05) 61.51  0.83 Net earnings 293.80  3.98 232.31  3.29  271.48  3.67 

Q4 2020 Q4 2019 Q3 2020Figures in Mn

Revenue and Gross Margin Analysis ‐ Q4 2020

xxx

Revenues5.50%Increase in Revenue from:

Volume gains 

5.50%

xxx Gross Margins(0.36)%Decrease in Gross Margins  from:Salary raises

Decrease in other COGS

(1.09)%

0.28%

Increase in utilization0.45%

INR Depreciation against Euro has offset the impact of  INR Appreciation against US$ 

Big Picture – Revenue & EBITDA %age

196.3 202.8 197.4212.9 209.3 210.4

224.3236.6

8.98 9.037.79

10.229.63

10.98

15.87 16.06

0

5

10

15

20

0.0

50.0

100.0

150.0

200.0

250.0

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20* Q2 20* Q3 20* Q4 20*

Revenue EBITDA %

₹ in Crores

%

* Post Ind‐AS 116 Adoption

Billable Associates

1,82

0

1,85

9

1,87

5

1,94

3

1,98

2

1,89

9

2,06

8

2,18

4

643

610

472

437

471

436 43

8 4882,463 2,469

2,347 2,380 2,4532,335

2,5062,672

0

900

1800

2700

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

IT BPO

Added net  330 + Technical Associates during  H2‐ 2020.

Utilization

80.3%79.7%

78.4%80.8%

77.7% 78.8%

78.6%

79.5%

72.3%

74.6%

71.6%

82.7%

77.1%

69.1%

81.0% 79.8%

78.2% 78.4%77.0%

81.1%

77.6% 76.9%79.0%

79.5%

65%

75%

85%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

IT BPO Blended

Revenue Breakdown

* South East Asian Countries

By Geography Client Concentration

0%

25%

50%

75%

100%

Year 2018 Year 2019 Year 2020

60.4% 65.2% 68.0%

17.9%15.0% 13.2%

18.9% 17.0% 16.3%

1.6% 1.5% 1.6%1.2% 1.3% 0.9%

North America Europe SEAC* India Others

0.0%

20.0%

40.0%

Year 2018 Year 2019 Year 2020

6.2% 5.9%7.7%

16.1%14.7% 14.1%

23.5%

20.4%19.0%

35.3%

31.8%

28.5%

The Largest Client Top 3 Clients Top 5 Clients Top 10 Clients

Summing Up and Looking Ahead

Regained momentum to report revenue growth inFY 2020 with strong margin improvement

Optimistic to deliver profitable growth on the back ofstrong sales funnel specially for Technology, Cloudand Digital services

Continuous Financial stimulus by various Governments isalso supporting the demand environment

• Partnering withcustomers in navigatingsuccessful digitaltransformations

• Ensure safe andreliable operationsfor all stakeholders

• Maintain marginsby efficient operationsand other cost savingmeasures

• Utilize Strong BalanceSheet for future growth

Focus for 2021

Businesses have shown renewed interest in digital andtechnology services to align in this new normal

Contact InformationNand Sardana

Chief Financial OfficerTel #    0120 – 4303506Email: nand.sardana@rsystems.com

Kumar Gaurav

AVP Finance & AccountsTel #    0120 ‐ 4082650Email: kumar.gaurav@rsystems.com

Bhasker Dubey

Company Secretary & Compliance OfficerTel #    0120 ‐ 4303566Email: bhasker.dubey@rsystems.com

Thank You for your Support