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Informist, Wednesday, Jul. 23, 2025

 

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--Persistent Systems Apr-Jun consol net profit INR 4.25 bln 
--Analysts saw Persistent Systems Apr-Jun consol net profit at INR 4.20 bln 
--Persistent Systems Apr-Jun consol PAT INR 4.25 bln vs INR 3.96 bln qtr ago 
--Persistent Systems Q1 consol sales INR 33.34 bln vs INR 32.42 bln qtr ago 
--Persistent Systems Apr-Jun consol revenue $389.70 mln, up 3.9% on qtr 
--Persistent Systems Apr-Jun consol EBIT INR 5.18 bln, up 2.5% on qtr 
--Persistent Systems Apr-Jun consol EBIT margin 15.5% 
--Persistent Systems Apr-Jun deals' total contract value $520.80 mln 
--Persistent Systems Apr-Jun annual contract value $385.30 mln 
--Persistent Systems Apr-Jun consol EBIT margin 15.5% vs 15.6% qtr ago 
--Persistent Systems Apr-Jun BFSI sales $132.20 mln, up 30.7% on year 
--Persistent Systems Apr-Jun health, life sales $98.50 mln, up 12.4% on year 
--Persistent Systems Apr-Jun software sales $159.0 mln, up 14.1% on year 
--Persistent Systems: Revenue from top 10 clients 42% of sales in Apr-Jun 
--Persistent Systems Apr-Jun large clients 56 vs 55 qtr ago 
--Persistent Systems Apr-Jun trailing 12-mo attrition 13.9% vs 12.9% qtr ago 
--Persistent Systems Apr-Jun utilisation 88.7% vs 88.1% qtr ago 
--Persistent Systems total headcount 25,340 as on Jun 30 vs 24,594 qtr ago 
--Persistent Systems Apr-Jun North America ops revenue 79.8% vs 80.5% qtr ago 
--Persistent Systems Apr-Jun revenue up 3.3% on quarter in constant currency

 

MUMBAI – Persistent Systems Ltd. reported mixed financial results for the June quarter with its bottom line beating analysts' consensus estimate while the top line failed to meet the Street's view. The company reported a sequential rise in the low single digit in its top line, supported by strong growth in its banking, financial services, and insurance segment and in the software, hi-tech, and emerging industries vertical.

 

The technology services company's consolidated net profit for the reporting quarter rose over 7% on quarter and nearly 39% on year to INR 4.25 billion. This was higher than analysts' expectation of INR 4.20 billion. Its consolidated revenue for the quarter rose nearly 3% on quarter and nearly 22% on year to INR 33.34 billion. This was the slowest growth in the company's revenue since the September quarter of the financial year 2020-21 (Apr-Mar).

 

In dollar terms, the company's revenue rose nearly 4% on quarter and nearly 19% on year to $389.7 million. This was below analysts' estimate of $391.62 million. In constant currency terms, the company's revenue rose 3.3% on quarter.

 

The company's other income for the quarter nearly tripled on quarter to INR 546.6 million. Its total expenditure for the quarter rose nearly 3% on quarter, in line with the sequential growth in revenue, to INR 28.33 billion. The company's largest cost, employee benefits expenses, rose around 1% sequentially to INR 18.26 billion. Depreciation and amortisation expenses for the quarter rose nearly 19% on quarter to INR 938 million. Other expenses rose over 10% on quarter to INR 4.16 billion. The company's finance costs, on the other hand, fell nearly 8% on quarter to INR 170.6 million.

 

The company reported earnings before interest and tax of INR 5.18 billion for the reporting quarter, up 2.5% on quarter and nearly 35% on year. Its operating margin, calculated as EBIT margin, contracted 10 basis points sequentially to 15.5%. The company has sustained its operating margin amid the challenging macroeconomic environment, Chief Executive Officer Sandeep Kalra said in a post-earnings press release. "This performance reflects the strength of our AI-led (artificial intelligence-led), platform-driven strategy, focus on customer value creation, and our ability to unlock measurable outcomes," he added.

 

Revenue from the company's largest segment--software, hi-tech, and emerging industries--rose over 14% on year to $159 million. Revenue contribution from this segment declined slightly to 40.8% of total sales for the latest quarter from 40.9% in the previous quarter. Revenue from the banking, financial services, and insurance segment rose nearly 31% on year to $132.2 million. Revenue from this segment contributed to nearly 34% of total sales compared with 32.3% in the previous quarter.

 

Revenue from the company's healthcare and life sciences segment rose over 12% on year to $98.5 million. For the June quarter, revenue from this segment contributed to over 25% of total sales, down from nearly 27% in the previous quarter.

 

Persistent Systems reported a healthy order book for the June quarter, with a total contract value of $520.8 million, up from $517.5 million in the previous quarter. The company also reported an annual contract value of $385.3 million in the quarter, up from $350.2 million a quarter ago.

 

Its large client count, which means clients with annualised revenue of more than $5 million, rose to 56 in the June quarter from 55 a quarter ago. Revenue from its top 10 clients fell to 42% of net sales during the June quarter from 42.2% in the previous quarter.

 

As of Jun. 30, the company had a total employee headcount of 25,340, up from 24,594 as of Mar. 31. Employee utilisation improved to 88.7% from 88.1% in the previous quarter. Its trailing 12-month attrition for the June quarter was 13.9%, up 1 percentage point from 12.9% in the previous quarter and 2 percentage points from 11.9% a year ago.

 

Revenue from the company's operations in North America fell to 79.8% of its total sales from 80.5% the previous quarter. Revenue contribution from operations in India and Europe improved sequentially by 50 bps and 60 bps, respectively.
 

The company said its board has designated Rajiv Naithani as chief people officer effective Aug. 1. Naithani will take the place of Yogesh Patgaonkar, who retires Jul. 31.

 

The company announced its June quarter results after market hours. Its shares closed Wednesday nearly 2% lower at INR 5,605.50 on the National Stock Exchange.  End

 

US$1 = INR 86.40

 

Edited by Rajeev Pai

 

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