Persistent Systems records 8.1% rise in Q1 net profit at Rs 228 crore

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The IT services company Persistent Systems reported a net profit of Rs 228.7 crore in the first quarter of FY24, an increase of 8.1 per cent year-on-year. Sequentially, profit fell 9 percent due to one-time expenses as the company celebrated 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 June 30 driven by strong growth in key segments of software, high-tech, emerging technology and banking, financial and insurance (BFSI). Sequentially, revenue grew 3 percent. The company slightly miscalculated Bloomberg analysts’ revenue estimate of Rs 2,329 crore.

Book order for the quarter was $380.3 million in total contract value (TCV) and $271.9 million in annualized contract value (ACV). Software, high-tech and emerging industries revenue increased by 28 per cent year-on-year to Rs.1,116 crore.

Revenue from BFSI grew by 22% to Rs.774 crore from the Rs.634 crore reported in the same period last year. Healthcare and life sciences, another major segment of the company, brought in Rs 431 crore in Q1 revenue, up about 16 per cent from Rs 372 crore in the first quarter of FY23.

However, EBIT fell by 14.02 per cent sequentially to Rs.298 crore. This compares to analytics estimates of Rs 358 crore. The company’s EBIT margin came in at 14.9 percent, down 50 basis points sequentially.

I am pleased to share with you that we have maintained our growth momentum despite challenging macroeconomic conditions. Our leadership in digital engineering, our broad experience across key industries, curated partner ecosystem and ability to stay ahead of disruptive technology trends has led to our continued success,” said Sandeep Kalra, CEO and CEO of Persistent.

The Pune-based company employed 23,130 people at the end of the June quarter. The company’s attrition narrowed to 15.5 percent from 19.8 percent in the fourth quarter of fiscal ’23 on a twelve-month (TTM) basis. The company also announced the appointment of economist Ajit Ranad as an independent director of its board of directors.

At its Annual General Meeting held on 18th July 2023, the Company passed a final dividend of Rs 12 per share and a special dividend of Rs 10 per share on achieving $1 billion in annual revenue, which is the required majority. This makes the total earnings for FY 23 to be Rs 50 per share.