 "Persistent Systems")
IT services firm Persistent Systems has recorded a net profit of Rs 228.7 crore in the Q1FY24, an increase of 8.1 per cent year-on-year. Sequentially, the profit fell 9 per cent due to one-time expenses owing to the company’s celebration on reaching $1 billion in annual revenue.
Revenue from operations grew 23.6 per cent Year-on-Year (YoY) to Rs 2,321 crore in the quarter ended on June 30 led by strong growth in key segments of software, hi-tech, emerging tech, and Banking and Financial Services & Insurance (BFSI). Sequentially, the revenue grew 3 per cent. The company has slightly missed Bloomberg analysts’ revenue estimate of Rs 2,329 crore.
The order booking for the quarter stood at $380.3 million in Total Contract Value (TCV) and at $271.9 million in Annual Contract Value (ACV) terms. Revenues from software, hi-tech and emerging industries saw an increase of 28 per cent year-on-year to Rs 1,116 crore.
Revenue from BFSI grew 22 per cent to Rs 774 crore from Rs 634 crore reported in the same period last year. Healthcare and lifesciences, another key segment for the firm, brought Rs 431 crore in the first quarter revenues, up around 16 per cent from Rs 372 crore in Q1FY23.
However, Earnings before interest and taxes (EBIT) fell 14.02 per cent sequentially to Rs 298 crore. This compares to analaysts estimate of Rs 358 crore. EBIT margin of the firm came at 14.9 per cent, down 50 basis points (bps) compared to previous quarter.
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“I am pleased to share that we have sustained our growth momentum despite the challenging macroeconomic conditions. Our Digital Engineering leadership, extensive experience across key industries, curated partner ecosystem, and the ability to stay ahead of disruptive technology trends has led to our ongoing success,” said Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent.
Headcount of the Pune-headquartered company was 23,130 people at the end of June quarter. Attrition of the company reduced to 15.5 per cent from 19.8 per cent in Q4FY23 on trailing twelve month (TTM) Basis. The company has also announced the appointment of economist Ajit Ranade as an independent director to its board.
In its Annual General Meeting held on July 18, 2023, the company passed the resolution for a final dividend payment of Rs 12 per share and a special dividend of Rs 10 per share on achieving $1 Billion in annual revenue, the requisite majority. This makes the total dividend for FY23 to be Rs 50 per share.
