Persistent Systems fell 10.69% to Rs 699 at 10:59 IST on BSE after the company said it is expecting a decline in IP revenues during Q4 March 2018.
The announcement was made after market hours yesterday, 27 March 2018.Meanwhile, the S&P BSE Sensex was down 211.83 points, or 0.64% to 32,962.56.
On the BSE, 80,000 shares were traded in the counter so far compared with average daily volumes of 5,929 shares in the past two weeks. The stock had hit a high of Rs 734 and a low of Rs 697 so far during the day. The stock hit a 52-week high of Rs 877.50 on 27 February 2018. The stock hit a 52-week low of Rs 558.05 on 24 April 2017.
Persistent Systems said it is expecting a decline in IP revenues during Q4 March 2018 (current quarter). This will impact revenue and EBIDTA margin for the quarter. IP revenues have seasonality and tend to fluctuate on a sequential quarter-on-quarter basis.
While the company continues to see good overall growth for its IP revenue portfolio, relative quarter-on-quarter decline follows a strong Q3 December 2017 (last quarter of calendar year 2017). The firm expects the sequential drop in IP revenues to be about $8 million for this quarter.
The company's focus on data, digital and IoT is aligned with customers as they implement their transformation roadmap as evidenced by a strong pipeline of business opportunities. Overall, the business outlook for the upcoming year (FY 2018-2019) remains strong with revenue growth expected to exceed NASSCOM guidance for the industry.
On a consolidated basis, Persistent Systems' net profit rose 10.95% to Rs 91.67 crore on 4.02% increase in net sales to Rs 791.89 crore in Q3 December 2017 over Q2 September 2017.
Persistent Systems is engaged in the business of building software products.
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