Report of the Directors

A. Financial Section

Financial Results

The highlights of the financial performance on a consolidated basis for the year ended March 31, 2022 are as under:

(Amount in (Amount in % Change

USD Million except ₹ Million except (based on
EPS and Book Value) EPS and Book Value) amounts in ₹)

Particulars 2021-22 2020-21 2021-22 2020-21

Revenue from Operations 765.59 566.08 57,107.46 41,878.88 36.36%

Earnings before interest, depreciation, 128.46 92.32 9,581.71 6,830.15 40.29%

amortization and taxes

Finance Cost* 1.59 0.78 118.35 57.94 104.26%

Depreciation and amortization 22.26 23.73 1,660.12 1,755.50 -5.43%

Other income 19.30 14.57 1,439.55 1077.72 33.57%

Tax expense 31.36 21.46 2,338.93 1,587.66 47.32%

Net profit 92.56 60.92 6,903.86 4,506.77 53.19%

Transfer to general reserve 36.78 27.31 2,743.46 2,020.34 35.79%

Net worth# 443.65 381.61 33,624.40 27,899.35 20.52%

Earnings per share (EPS) (Basic) 1.21 0.80 90.34 58.97 53.20%

Earnings per share (EPS) (Diluted) 1.21 0.80 90.34 58.97 53.20%

Book value per equity share 5.81 4.99 439.97 365.06 20.52%

Market value per equity share as on March 31

BSE Limited - - 4,770.65 1,918.75 148.63%

National Stock Exchange of India Limited - - 4,765.30 1,922.05 147.93%

[Conversion Rate USD 1 = ₹ 74.59 for Profit and Loss items; USD 1 = ₹ 75.79 for Balance Sheet items (Financial Year 2021-22)
and USD 1 = ₹ 73.98 for Profit and Loss items; USD 1 = ₹ 73.11 for Balance Sheet items (Financial Year 2020-21)]

* Includes notional interest on lease liability FY22: ₹ 84.06 Million (FY21: ₹ 57.53 Million) recognized in accordance with
IND AS – 116 on Leases and notional interest on amounts due to selling shareholders ₹ 15.73 Million (Previous year: Nil).
#
Equity Share Capital, Reserves and Surplus (excluding Gain on bargain purchase) and other comprehensive income are
considered for the purpose of computing Net Worth and Book Value per share.

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 Report of the Directors

The highlights of the financial performance on an unconsolidated basis for the year ended March 31, 2022 are as under:

(Amount in (Amount in % Change

USD Million except ₹ Million except (based on
EPS and Book Value) EPS and Book Value) amounts in ₹)

Particulars 2021-22 2020-21 2021-22 2020-21

Revenue from Operations 479.35 335.17 35,754.80 24,796.08 44.20%

Earnings before interest, depreciation, 116.67 82.58 8,702.39 6,109.04 42.45%

amortization and taxes

Finance Cost* 0.92 0.52 68.78 38.21 80.01%

Depreciation and amortization 11.23 7.66 837.57 566.79 47.77%

Other income 17.76 15.90 1,324.57 1,176.16 12.62%

Tax expense 30.33 22.02 2,261.95 1,629.34 38.83%

Net profit 91.95 68.27 6,858.66 5,050.86 35.79%

Transfer to general reserve 36.78 27.31 2,743.46 2,020.34 35.79%

Net worth# 437.91 378.27 33,188.85 27,655.24 20.01%

Earnings per share (EPS) (Basic) 1.20 0.89 89.74 66.09 35.78%

Earnings per share (EPS) (Diluted) 1.20 0.89 89.74 66.09 35.78%

Book value per equity share 5.73 4.95 434.27 361.86 20.01%

[Conversion Rate USD 1 = ₹ 74.59 for Profit and Loss items; USD 1 = ₹ 75.79 for Balance Sheet items (Financial Year 2021-22)
and USD 1 = ₹ 73.98 for Profit and Loss items; USD 1 = ₹ 73.11 for Balance Sheet items (Financial Year 2020-21)]

* Includes notional interest on lease liability FY22: ₹ 68.59 Million (FY 21: ₹ 38.09 Million) recognized in accordance with
IND AS – 116 on Leases and notional interest.
#
Equity Share Capital, Reserves and Surplus (excluding Gain on bargain purchase) and other comprehensive income are
considered for the purpose of computing Net Worth and Book Value per share.

Material Events Occurring after Balance Sheet Date

Your Company acquired MediaAgility India Private Limited on April 29, 2022. Further, Persistent Systems Inc, USA, wholly-owned
subsidiary of your Company acquired MediaAgility Inc., USA, along with its affiliates in the UK, Mexico, and Singapore on May 4, 2022.

MediaAgility is a global cloud transformation services provider with deep expertise in building scalable, cloud-based solutions
as a Google Cloud Premier Partner. It provides cloud-native application development and modernization, analytics and AI,
cloud engineering, migrations, and managed services to its 35+ enterprise service clients across the globe.

There were no other material changes and commitments affecting the financial position of your Company between the end of
the Financial Year 2021-22 and the date of this report.

Particulars Required as per Section 134 of the Companies Act, 2013

As per Section 134 of the Companies Act, 2013 (the ‘Act’), your Company has provided the Consolidated Financial Statements
as on March 31, 2022. Your Directors believe that the consolidated financial statements present a more comprehensive picture
as compared to standalone financial statements. These financial statements are available for inspection during business
hours at the Registered Office of your Company and the respective subsidiary companies. A statement showing the financial
highlights of the subsidiary companies is enclosed to the Consolidated Financial Statements.

The Annual Report of your Company does not contain full financial statements of the subsidiary companies, however, your
Company will make available the audited annual accounts and related information of the subsidiary companies electronically in
line with the Ministry of Corporate Affair (MCA) Circular dated May 5, 2020, and its extensions from time to time upon request
by any Member of your Company.

Persistent Systems Limited — 32nd Annual Report 2021-22. All Rights Reserved © 2022. 74