Earnings Review
Persistent Systems' Jul-Sept earnings beat Street's view
This story was originally published at 20:18 IST on 22 October 2024
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--Persistent Systems Jul-Sept consol net profit INR 3.25 bln
--Analysts saw Persistent Systems Jul-Sept consol net profit INR 3.14 bln
--Persistent Systems Jul-Sept consol PAT INR 3.25 bln vs INR 3.1 bln qtr ago
--Persistent Systems Jul-Sept consol revenue INR 28.97 bln
--CONTEXT: Persistent Systems consol revenue was INR 27.37 bln qtr ago
--Persistent Systems Apr-Sept consol PAT INR 6.31 bln vs INR 4.92 bln yr ago
--Persistent Systems Apr-Sept consol sales INR 56.34 bln vs 47.33 bln yr ago
--Persistent Systems Jul-Sept consol EBITDA INR 4.81 bln, up 5.6% on quarter
--Persistent Systems Jul-Sept consol EBITDA margin 16.6%, unch on quarter
--Persistent Systems Jul-Sept order book total contract value $529 mln
--Persistent Systems Jul-Sept EBIT margin 14%, unchanged on quarter
--Persistent Systems Jul-Sept EBIT INR 4.06 bln vs INR 3.84 bln quarter ago
--Persistent Systems Jul-Sept trailing 12-mo attrition 12% vs 11.9% qtr ago
--Persistent Systems Jul-Sept utilisation 84.8% vs 82.1% qtr ago
--Persistent Systems Jul-Sept sales up 5.1% in constant currency terms
--Persistent Systems Jul-Sept total headcount 23,237 vs 23,519 qtr ago
--Persistent Systems Jul-Sept active clients billed 379 vs 374 qtr ago
--Persistent Systems Jul-Sept software ops sales $140.5 mln, dn 0.5% on yr
--Persistent Systems Jul-Sept healthcare ops sales $96.2 mln, up 71.2% on yr
--Persistent Systems Jul-Sept BFSI ops sales $108.8 mln, up 15.3% on yr
By Arya S. Biju
MUMBAI – Persistent Systems Ltd. on Tuesday reported better-than-expected consolidated net profit and revenue from operations for the September quarter. The technology services company reported consolidated net profit of INR 3.25 billion for the September quarter, up 6.1% on quarter, surpassing analysts' estimate of INR 3.14 billion. The company's consolidated revenue from operations for Jul-Sept was INR 28.97 billion, up 5.8% on quarter and above the Street's estimate of INR 28.64 billion.
The company's earnings before interest, tax, depreciation, and amortisation, or EBITDA, rose 5.6% sequentially to INR 4.81 billion. The company reported earnings before interest and tax margin of 14% in the September quarter, unchanged from the June quarter and above analysts' estimate of 13.6%.
Persistent Systems' order book was $529 million in total contract value terms on Sept. 30, while analysts had estimated it would stay flat at $462.8 million from the June quarter. The order book was at $384.3 million in annual contract value terms. The other income of the company saw a 52% sequential rise to INR 465 million in the latest quarter.
In the six months to September, the company's consolidated net profit was INR 6.31 billion, up 28.3% on year and revenue from operations was INR 56.34 billion, up 19% on year.
The company's total expenditure for the September quarter was INR 25.09 billion, up 6% sequentially. This was led by employee benefits expenses of INR 17.25 billion. The company's finance cost for the quarter was INR 182.3 million, up 48.4% on year and 29.2% sequentially. Employee expense for Jul-Sept was INR 4.26 billion, up marginally by 0.9% on quarter and up 76.2% on year.
Revenue from the software segment, the largest contributor to the company's revenue, fell to $140.5 million, down 0.5% on year. However, revenue from the healthcare segment grew 71.2% on year to $96.2 million and revenue from the financial vertical grew 15.3% on year to $108.8 million. In terms of business from different regions, operations in North America contributed 81.3% of the revenue for the software firm, a slightly higher contribution from 80.7% in Apr-Jun. India operations contributed 9.2%, while Europe contributed 7.9% of the company's revenue.
The Jul-Sept quarter marked the 18th consecutive quarter of sequential growth in revenue for the technology firm. The top 10 clients' contributed to 41.5% of the revenue this quarter, unchanged from the June quarter. The company's attrition rate remained almost flat at 12% in the September quarter from 11.9% in Apr-Jun. Its utilisation for the quarter was 84.8%, up from 82.1% in the June quarter. The total headcount of the company was 23,237 at the end of the quarter, down 1.2% from Apr-Jun.
On Tuesday, shares of the company closed at INR 5,158.20 on the National Stock Exchange, down 1.7%. End
US$1 = INR 84.08
Edited by Tanima Banerjee
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