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Informist, Monday, Aug. 3, 2026

 

By Shakshi Jain

 

NEW DELHI – Wage hikes in the current quarter are expected to have an impact of 180-200 basis points on Persistent Systems Ltd.'s margin, in line with the past couple of years, the management told analysts in a post-earnings conference call Monday. "...We have been always looking at improving our operational efficiencies, we expect some portion of that (impact of wage hikes) to be recouped in Q2 itself," it added. The salary increments were rolled out from Jul. 1.

 

The management also expects the ratio of operating cash flow to net profit, on a trailing 12-month basis, to improve over the coming quarters. "We have always said that we like our operating cash flow to PAT (profit after tax) (percentage) somewhere in the around 100% range. In the last couple of quarters, we have been pretty close to that number. And we anticipate, we are pretty confident actually, that we will be able to come back to that during the year," the management said.

For the June quarter, Persistent Systems reported an operating cash flow to net profit ratio of 76.2% on a trailing 12-month basis. For the March quarter, the metric stood at 94.7% and for the December quarter at 103.2%. The company is shifting its disclosure to a trailing 12-month basis from the earlier quarterly basis as the former smooths out seasonality across quarters and also reflects the full-year working capital cycle, according to the management.

 

Providing some colour on the healthcare vertical, the management said it expects healthy growth in the segment on a full-year basis on the back of deals across multiple categories. "So, from scientific instruments, medical devices, pharma, and the pharma ecosystem, including the clinical research organisations and the payers–-across these three segments, we see for at least ourselves, a fairly good number of deals. The provider segment is a little, you know, tepid as compared to the other segments for us." The management also remains confident of the overall deal pipeline and revenue growth ahead.

 

For the June quarter, Persistent Systems reported a consolidated net profit of INR 4.83 billion, down nearly 9% sequentially. Consolidated revenues rose over 6% to INR 43.03 billion. Revenues from the company's largest segment, software, hi-tech, and emerging industries, grew roughly 10% sequentially to INR 17.49 billion. Revenues from the banking, financial services, and insurance vertical rose around 5% to INR 14.63 billion. Revenues from the healthcare and life sciences segment increased just over 2% to INR 10.91 billion.

 

Monday, shares of Persistent Systems ended at INR 5,575 apiece on the National Stock Exchange, up 0.5% from Friday.  End

 

Edited by Shubhayan Bhattacharya

 

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