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Persistent Systems shares tank nearly 15% post Q2 results

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Press Trust of India New Delhi
Last Updated : Oct 22 2018 | 5:25 PM IST

Shares of Persistent Systems slumped nearly 15 per cent Monday after the company's second quarter earnings failed to cheer investors.

The stock dived 14.61 per cent to settle at Rs 564.95 on BSE. During the day, it tanked 18.37 per cent to Rs 540 -- its 52-week low.

At NSE, shares of the company tumbled 11.47 per cent to close at Rs 585.

The company's market valuation declined by Rs 772.4 crore to Rs 4,519.60 crore on BSE.

In terms of equity volume, 1.68 lakh shares of the company were traded on BSE and over 24 lakh shares changed hands at NSE during the day.

Persistent Systems Sunday reported a 7 per cent rise in its consolidated net profit to Rs 88.14 crore for the second quarter ended September 2018.

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The company had registered a net profit of Rs 82.62 crore in the July-September period of 2017-18.

Total income of the company increased to Rs 858.78 crore in the September quarter of 2018-19 as against Rs 794.89 crore in the year-ago period, it had said in a regulatory filing.

"As of September 30, 2018, Persistent Systems Limited had deposits of Rs 430 million with the financial institutions Infrastructure Leasing & Financial Services Ltd (IL&FS) and IL&FS Financial Services Ltd. These are due for maturity from January 2019 to June 2019. As of September 30, 2018, there have been no defaults in payment of interest on the aforesaid deposits," it said.

"While our digital numbers are lower than expected, we see good growth opportunities across all segments of our business and multiple new projects started this quarter that will deliver long-term revenue growth," said Anand Deshpande, Chairman and Managing Director, Persistent Systems.

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First Published: Oct 22 2018 | 5:25 PM IST

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