Report of the Directors

such as Gartner, ISG, Zinnov and Everest Group. In fact, for the tenth consecutive year, we are a leader in the Zinnov Zones™
Engineering Research and Development Services ratings, and we were listed on the Constellation ShortList™ for Innovation
Services and Engineering for the fifth consecutive year.

Your Company remains focused on its differentiated go-to-market strategy, operational excellence, partner ecosystem
expansion and innovative technology breakthroughs. As we embark on this next evolutionary phase, we will play to our
strengths as a scalable global company that challenges the status quo, delivers personalized care to clients, and continues to
engineer success and deliver value for our all our stakeholders.

A. Financial Section

Financial Results

The highlights of the financial performance on a consolidated basis for the year ended March 31, 2023, are as under:

(Amount in (Amount in ₹ million % Change

USD Million except except EPS, Book Value and (based on
EPS and Book Value) Market value per share) amounts in ₹)

Particulars 2022-23 2021-22 2022-23 2021-22

Revenue from Operations 1,037.88 765.59 83,505.92 57,107.46 46.23%

Earnings before interest, depreciation, 185.12 128.46 14,894.70 9,581.71 55.45%

amortization and taxes

Finance Cost* 5.88 1.59 473.40 118.35 300%

Depreciation and amortization 33.79 22.26 2,718.95 1,660.12 63.78%

Other income 8.78 19.30 706.17 1,439.55 -50.95

Tax expense 39.74 31.36 3,197.59 2,338.93 36.71%

Net profit 114.48 92.56 9,210.93 6,903.86 33.42%

Transfer to general reserve 38.51 36.78 3,164.51 2,743.46 15.35%

Net worth #
481.78 443.65 39,588.11 33,624.40 17.74%

Earnings per share (EPS) (Basic) 1.54 1.21 123.73 90.34 36.96%

Earnings per share (EPS) (Diluted) 1.50 1.21 120.52 90.34 33.41%

Book value per equity share 6.30 5.81 518.00 439.97 17.74%

Market value per equity share as on March 31

BSE Limited - - 4,609.20 4,770.65 -3.38%

National Stock Exchange of India Limited - - 4,609.50 4,765.30 -3.27%

[Conversion Rate USD 1 = ₹ 80.46 for Profit and Loss items; USD 1 = ₹ 82.17 for Balance Sheet items (Financial Year 2022-23)
and USD 1 = ₹ 74.59 for Profit and Loss items; USD 1 = ₹ 75.79 for Balance Sheet items (Financial Year 2021-22)]

* Includes notional interest on lease liability FY23: ₹ 137.86 Million (FY22: ₹ 84.06 Million) recognized in accordance with
IND AS – 116 on Leases and notional interest on amounts due to selling shareholders ₹ 112.76 Million (Previous year: 15.73)
# 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.

All Rights Reserved © 2023. Persistent Systems Limited — 33rd Annual Report 2022-23. 121
Report of the Directors

The highlights of the financial performance on a standalone basis for the year ended March 31, 2023, 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 2022-23 2021-22 2022-23 2021-22

Revenue from Operations 636.05 479.35 51,175.53 35,754.80 43.13%

Earnings before interest, depreciation, 139.70 116.67 11,239.85 8,702.39 29.16%
amortization and taxes
Finance Cost* 1.63 0.92 130.97 68.78 90.42%
Depreciation and amortization 16.72 11.23 1,344.87 837.57 60.57%
Other income 9.18 17.76 738.71 1,324.57 -44.23%
Tax expense 32.21 30.33 2,591.44 2,261.95 14.57%
Net profit 98.33 91.95 7,911.28 6,858.66 15.35%
Transfer to general reserve 38.51 36.78 3,164.51 2,743.46 15.35%
Net worth# 479.69 437.91 39,416.50 33,188.85 18.76%
Earnings per share (EPS) (Basic) 1.29 1.20 103.52 89.74 15.36%
Earnings per share (EPS) (Diluted) 1.29 1.20 103.52 89.74 15.36%
Book value per equity share 6.28 5.73 515.75 434.27 18.76%

[Conversion Rate USD 1 = ₹ 80.46 for Profit and Loss items; USD 1 = ₹ 82.17 for Balance Sheet items (Financial Year 2022-23)
and USD 1 = ₹ 74.59 for Profit and Loss items; USD 1 = ₹ 75.79 for Balance Sheet items (Financial Year 2021-22)]

* Includes notional interest on lease liability FY23: ₹ 119.73 Million (FY 22: ₹ 68.59 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

The Board of Directors of your Company at its meeting held on Wednesday, March 22, 2023, approved the issuance of 500,000
(Five Hundred Thousand only) Equity Shares of ₹10 each to PSPL ESOP Management Trust (‘ESOP Trust’) at the allotment price of
₹ 2,789 per Equity Share, aggregating to the total consideration of ₹ 1,394.50 Million and the Board had authorized the Stakeholders
Relationship and ESG Committee to allot the said Equity Shares to the ESOP Trust. The ESOP Trust made the payment of the
consideration on April 5, 2023, and accordingly, 500,000 (Five Hundred Thousand only) Equity Shares of ₹ 10 each were allotted to
the ESOP Trust on April 6, 2023. Consequent to this, the paid-up share capital of your Company increased from 76.43 Million Equity
Shares to 76.93 Million Equity Shares. The listing of 500,000 shares on the Stock Exchanges has been completed.

Persistent Systems Inc., USA (a wholly owned subsidiary of your Company) formed its wholly-owned subsidiary in Poland on
April 5, 2023. The new entity is a step-down subsidiary of your Company.

CAPIOT Software Pte. Ltd., Singapore (a wholly owned subsidiary of CAPIOT Software Inc.) has been struck off w.e.f. April 6, 2023.
Your Company is yet to receive the final official letter from the concerned authorities.

SCI Fusion 360, LLC (a wholly owned subsidiary of Persistent Systems Inc.) has been dissolved w.e.f. May 31, 2023.

There were no other material changes and commitments affecting the financial position of your Company between the end of the
Financial Year 2022-23 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, 2023. 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

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