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Informist, Tuesday, Oct. 14, 2025

 

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--Persistent Systems Jul-Sept consol net profit INR 4.71 bln 
--Analysts saw Persistent Systems Jul-Sept consol net profit at INR 4.44 bln 
--Persistent Systems Jul-Sept consol revenue INR 35.81 bln 
--Analysts saw Persistent Systems Jul-Sept consol revenue at INR 35.24 bln 
--Persistent Systems Jul-Sept consol PAT INR 4.71 bln vs INR 4.25 bln qtr ago 
--Persistent Systems Q2 consol revenue INR 35.81 bln vs INR 33.34 bln qtr ago 
--Persistent Systems Apr-Sept consol PAT INR 8.96 bln vs INR 6.31 bln 
--Persistent Systems H1 consol revenue INR 69.14 bln vs INR 56.34 bln yr ago 
--Persistent Systems Q2 BFSI revenue INR 12.46 bln vs INR 11.30 bln qtr ago 
--Persistent Systems Q2 health, life sales INR 9.0 bln vs INR 8.4 bln qtr ago 
--Persistent Systems Q2 software, hi-tech sales INR 14.3 bln , up 5.3% on qtr 
--Persistent Systems Jul-Sept consol revenue $406.20 mln, up 4.2% on qtr 
--Persistent Systems Q2 consol revenue up 4.4% on qtr in constant currency 
--Persistent Systems Jul-Sept consol EBIT INR 5.84 bln, up 12.7% on qtr 
--Persistent Systems Jul-Sept consol EBIT margin 16.3% vs 15.5% qtr ago 
--Persistent Systems Jul-Sept deals' total contract value $609.20 mln 
--Persistent Systems Jul-Sept annual contract value $447.90 mln 
--Persistent Systems Jul-Sept trailing 12-mo attrition 13.8% vs 13.9% qtr ago 
--Persistent Systems Jul-Sept utilisation 88.2% vs 88.7% qtr ago 
--Persistent Systems Jul-Sept total headcount 26,224 vs 25,340 qtr ago

 

By Arya S. Biju

 

MUMBAI – Broad-based growth across all verticals saw Persistent Systems Ltd. report robust earnings for the September quarter. The company's bottom line rose in the low double digits, up nearly 11% on quarter, after two quarters of single-digit sequential rise. Its top line grew over 7% on quarter, marking the highest sequential rise in 12 quarters.

 

The technology services company's consolidated net profit for the reporting quarter rose to INR 4.71 billion, up over 45% on year and beating analysts' estimate of INR 4.44 billion. This marks the fifth consecutive quarter of sequential growth in the company's bottom line and is the highest sequential growth in three quarters.

 

The company's consolidated net sales for the September quarter grew over 7% on quarter and nearly 24% on year to INR 35.81 billion, beating the Street's view of INR 35.24 billion. With this, the company has reported sequential growth in its top line for the 26th consecutive quarter.

 

Persistent Systems reported a consolidated revenue of $406.2 million, up 4.2% on quarter and nearly 18% on year. This was also higher than the $403.27 million revenue estimated by the Street. In constant currency terms, the company's revenue rose 4.4% on quarter. Its other income for the quarter fell over 5% on quarter but rose over 11% on year to INR 517.8 million.

The company's total expenditure for the September quarter rose over 6% sequentially and over 20% on year to INR 30.16 billion. This was mainly on the back of a near 7% sequential rise in the company's biggest head of expenditure, employee benefits expense, to INR 19.46 billion and an over 12% sequential rise in subcontracting costs to INR 5.38 billion. During the reporting quarter, employee benefits expense accounted for nearly 65% of the company's total costs while subcontracting costs accounted for nearly 18%.

 

The company's depreciation and amortisation expense for the September quarter rose nearly 7% on quarter to INR 1.00 billion, while its other expenses fell 0.5% on quarter to INR 4.14 billion. The company's tax expenses for the quarter rose over 11% quarter to INR 1.45 billion.   

 

The company's earnings before interest and tax for the reporting quarter grew nearly 13% on quarter and nearly 44% on year to INR 5.84 billion. Its operating margin, calculated as the EBIT margin, improved 80 basis points sequentially to 16.3?ter reporting a sequential contraction in the previous quarter.

 

Revenue from the company's largest segment--software, hi-tech, and emerging industries--rose over 5% on quarter to INR 14.32 billion for the September quarter. Revenue from the segment grew 15.5% on year to $162.3 million for the quarter. Revenue contribution from this segment declined to 40% of total sales for the reporting quarter from 40.8% in the trailing quarter.

 

Revenue from the banking, financial services, and insurance segment rose over 10% on quarter to INR 12.46 billion for the reporting quarter. The metric jumped 30% on year to $141.4 million. Sales contribution from the segment improved to 34.8% from 33.9% in the trailing quarter.

 

The company's healthcare and life sciences segment saw an over 7% sequential rise in revenue to INR 9.03 billion. Its revenue rose nearly 7% on year to $102.5 million. Sales contribution from the segment fell slightly on quarter to 25.2%, from 25.3% in the June quarter.

 

Revenue from the company's operations in India fell to 9.2% of total sales from 9.8% in the trailing quarter. Revenue contribution from operations in Europe and in the rest of the world improved 30 bps each on a sequential basis. During the September quarter, the contribution of operations in North America to total sales remained unchanged at 79.8%.

 

The company reported a healthy order book for the September quarter, with a total contract value of $609.20 million, up from $520.80 million in the June quarter. It also reported an annual contract value of $447.90 million for the reporting quarter, up from $385.30 million in the trailing quarter.

 

The company's large clients, which means clients from whom the company gets annualised revenue of more than $5 million, remained unchanged on quarter at 56. Revenue from its top 10 clients rose to 43.2% of net sales during the reporting quarter, up from 42.0% in the June quarter.

 

As of Sept. 30, the company had a total employee headcount of 26,224, up from 25,340 as of Jun. 30. Employee utilisation fell to 88.2%, from 88.7% in the trailing quarter. Its trailing 12-month attrition for the September quarter was 13.8%, down 10 bps from 13.9% in the June quarter but up 180 bps from a year ago.

 

For the six months ended September, the company reported a consolidated net profit of INR 8.96 billion, up 42% on year. Its revenue for the period rose nearly 23% on year to INR 69.14 billion.

 

The Persistent Systems board also approved the transfer of the entire stake in Aepona Group Ltd., held by wholly-owned subsidiary Persistent Systems, Inc., to itself upon execution of a share purchase agreement in due course, Persistent Systems said.

 

The company announced its September quarter earnings after market hours. Tuesday, shares of the company closed slightly higher at INR 5,337.90 on the National Stock Exchange.  End 

 

Edited by Rajeev Pai

 

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