Persistent Systems: Quarterly Result update
24-01-2022

Persistent Systems | Market Cap: Rs. 32,883Cr.

CMP 4,184 | PE 40x FY23

 

Results: Persistent Systems reported 10.4% sequential growth in sales (38.7% YoY) and 11.9% growth in the operating profit in Q3FY22.

Operating margins improved to 14.0% (vs 13.9% in previous quarter).

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Key highlights: 

  • Services and IP revenue grew at 16% and 8.3% respectively over previous quarter. Overall it is industry leading growth.
  • Subcontract cost reduced during the quarter due to long term nature of contracts and therefore higher predictability.
  • The revenue from of a top customer formed 17.5% and that from top 10 customers formed 45 % of overall revenue during the quarter. 
  • The company won deals worth Total Contract Value of $334.3 million, impressive 18% higher over previous quarter.
  • Attrition rate increased to 26.9% (vs 23.6% in previous quarter), a negative.
  • Board declared an interim dividend of Rs. 20/Share

 

Outlook:  Persistent has acquired SCI and Shree Partners. The integration of all teams is progressing well and is at an advance stage. Revenue contribution from SCI stood at US$0.37 crore and from Shree partners stood at US$800K. SCI will be the foundation of dedicated payments unit for Persistent Systems, going ahead. The management has highlighted that demand outlook is still healthy in all verticals led by BFSI driven by organic and followed by HiTech and healthcare.

 

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