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Informist, Thursday, Apr. 24, 2025

 

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--Persistent Systems Jan-Mar BFSI sales $121 mln, up 26.6% on year
--Persistent Systems Jan-Mar software sales $153.5 mln, up 9.7% on year 
--Persistent Systems Jan-Mar health, life sales $100.7 mln, up 33.6% on yr 
--Persistent Systems Jan-Mar large clients 55 vs 47 qtr ago 
--Persistent Systems Jan-Mar health revenue 26.8% of sales vs 27.8% qtr ago 
--Persistent Systems Jan-Mar BFSI revenue 32.3% of sales vs 31.7% qtr ago 
--Persistent Systems Jan-Mar utilisation 88.1% vs 87.4% qtr ago 
--Persistent Systems total headcount 24,594 on Mar 31 vs 23,941 on Dec 31 
--Persistent Systems Jan-Mar active clients billed 371 vs 383 qtr ago 
--Persistent Systems Jan-Mar trailing 12-mo attrition 12.9% vs 12.6% qtr ago 
--Persistent Systems: Optimistic on reaching $2 bln of annual sales by FY27 
--Persistent Systems FY25 consol revenue $1.41 bln, up 18.8% on year 
--Persistent Systems Jan-Mar annual contract value $350.2 mln 
--Persistent Systems Jan-Mar deals total contract value $517.5 mln 
--Persistent Systems Jan-Mar consol EBIT margin 15.6% vs 14.9% qtr ago 
--Persistent Systems Jan-Mar consol EBIT INR 5.05 bln, up 10.9% on qtr 
--Persistent Systems Jan-Mar consol revenue $375.20 mln, up 4.2% on qtr 
--Persistent Systems FY25 consol sales INR 119.4 bln vs INR 98.2 bln yr ago 
--Persistent Systems FY25 consol PAT INR 14.00 bln vs INR 10.93 bln yr ago 
--Persistent Systems to pay INR 15 per share final dividend 
--Persistent Systems Jan-Mar consol sales INR 32.42 bln vs INR 30.62 bln QoQ 
--Persistent Systems Jan-Mar consol PAT INR 3.96 bln vs INR 3.73 bln qtr ago 
--Analysts saw Persistent Systems Jan-Mar consol net profit INR 3.95 bln 
--Persistent Systems Jan-Mar consol net profit INR 3.96 bln 
 

 

By Narayana Krishna

 

HYDERABAD - Strong execution and a healthy deal pipeline helped Pune-based information technology company Persistent Systems Ltd. report decent earnings growth for the March quarter. Persistent Systems on Thursday reported a consolidated net profit of INR 3.96 billion, up 6.1% on quarter, while its consolidated sales for the quarter were up 5.9% at INR 32.42 billion, according to the company's press release. While the net profit is in line with expectations, the sales were above estimates.

 

Analysts had estimated Persistent Systems' net profit for the March quarter at INR 3.95 billion, while the revenue was estimated at INR 32.27 billion. In dollar terms, the company's revenue for the quarter was $375.2 million, up 4.2% on quarter and close to estimates.

 

The company's revenue in both dollar and constant currency terms was largely supported by broad-based growth across verticals, acquisitions and ramp-up of large deals won in the previous quarter.

 

"We are proud to have delivered our 20th sequential quarter of revenue growth, with an EBIT margin of 15.6%," the company said, quoting Chief Executive Officer and Executive Director Sandeep Kalra. The company's EBIT margin for Oct-Dec was 14.9%. Persistent Systems reported 10.9% on-quarter growthi in its Jan-Mar EBIT at INR 5.05 billion. 

 

The company said it is optimistic about reaching $2 billion of annual sales by 2026-27 (Apr-Mar).  More

 

The company's total expenses for the quarter rose 5% on quarter to INR 27.6 billion. The company reported a 2.7% on-quarter rise in employee benefit expenses at INR 18.1 billion. It is also reported INR 4.7 billion rupees as cost of professionals, up 8% on quarter. Other expenses for the quarter rose 15.5% on quarter to INR 3.8 billion.

 

Persistent Systems improved its large client base during the March quarter, taking the total to 55 from 47 a quarter ago. The company's Jan-Mar deals total contract value was $517.5 million, while the annual contract value was $350.2 million. However, the number of active clients billed for the quarter declined to 371 from 383 a quarter ago.

 

Persistent Systems' software segment sales in the March quarter in dollar terms rose 9.7% on year to $153.5 million, while its banking, financial services and insurance segment sales were up 26.6% on year at $121 million. Sales in the health and life segment rose 33.6% on year to $100.7 million.

 

While the share of BFSI in total sales improved during the quarter, health and life's share fell slightly. The share of the BFSI segment in total sales was 32.3%, against the 31.7% a quarter ago. Health and life segment accounted for 26.8% of total sales, against 27.8% a quarter ago.

 

Persistent Systems witnessed a rise in attrition in the March quarter. For the trailing 12 months, the attrition rate was 12.9% against 12.6% a quarter ago. The total headcount as on Mar. 31 was at 24,594, against 23,941 as on Dec. 31. Despite the rise in attrition, Persistent Systems' utilisation for the quarter improved to 88.1% from 87.4% a quarter ago.

 

Persistent Systems reported an 18.8% year-on-year growth in its FY25 revenue in dollar terms at $1.41 billion. In constant currency terms, the company reported INR 14 billion of net profit for FY25 up 28% on year, while the revenue rose 21.6% to INR 119.4 billion.

 

The board of Persistent Systems has recommended final dividend of INR 15, taking the total dividend payout for FY25 to INR 35. On Wednesday, shares of Persistent Systems ended at 5163.50 on the National Stock Exchange, up 4.1%.  End

 

US$1 = INR 85.42

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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