Persistent Systems Posts Strong Earnings on Broad-Based Growth; Profit up 11% On Quarter

Persistent Systems Ltd. reported strong earnings for the September quarter, driven by broad-based growth across all verticals. The company’s consolidated net profit rose nearly 11% sequentially to ₹4.71 billion, marking its fifth straight quarter of profit growth and the sharpest sequential rise in three quarters.

Revenue rose over 7% on quarter and 24% on year to ₹35.81 billion, the highest sequential increase in 12 quarters and extending its streak of 26 straight quarters of topline growth. In dollar terms, revenue rose 4.2% on quarter to $406.2 million and 18% on year.
Operating profit grew nearly 13% on quarter to ₹5.84 billion, with EBIT margin improving 80 basis points to 16.3%. Total expenditure increased 6% sequentially to ₹30.16 billion, led by higher employee and subcontracting costs.

Among verticals, revenue from banking, financial services and insurance rose 10% on quarter to ₹12.46 billion, while software, hi-tech and emerging industries grew 5% to ₹14.32 billion. Healthcare and life sciences revenue rose 7% to ₹9.03 billion.

The company reported a total contract value of $609.2 million, up from $520.8 million in the June quarter. Its annual contract value rose to $447.9 million.

Persistent’s headcount increased to 26,224 as of September 30, with attrition easing slightly to 13.8%. For April–September, net profit rose 42% on year to ₹8.96 billion and revenue increased 23% to ₹69.14 billion.

The board also approved transferring the entire stake in Aepona Group Ltd., held by its wholly-owned subsidiary, Persistent Systems Inc., to the parent company.