Pune-headquartered IT firm Persistent Systems on Tuesday staged an overall strong financial performance for the second quarter of the current financial year. After the market hours, the Tier II IT company reported a consolidated net profit of Rs 471 crore for the quarter ended September 30 — a 10.8 per cent rise over its net profit for the previous three months.
Its second-quarter revenue grew 7.4 per cent sequentially to Rs 3,581 crore, according to a regulatory filing.
Persistent Systems Q2 earnings vs estimates
Both top and bottom lines exceeded analysts’ expectations.
According to Zee Business research, Persistent was estimated to register a consolidated net profit of Rs 450 crore with revenue of Rs 3,531 crore for the fiscal second quarter.
Persistent Systems Q2 margin vs estimates
The IT firm’s margin — a key measure of profitability — improved by 110 basis points (bps) on a quarter-on-quarter basis, according to the filing.
The second-quarter margin stood at 16.6 per cent, an improvement over 15.5 per cent three months ago.
Zee Business analysts had pegged Persistent’s quarterly margin at 15.78 per cent.
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Revenue in constant currency expanded 4.4 per cent sequentially. That was also better than analysts’ estimates.
According to Zee Business research, Persistent’s constant currency revenue growth was pegged at 3.6 per cent.
Management commentary
“We are pleased to report our 22nd sequential quarter of revenue growth… Driven by the continued trust of our clients, this performance reflects our commitment to impactful transformation and execution excellence,” said Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent Systems.
“Our AI strategy builds on a strong platform-led foundation and is powered by deep domain knowledge, differentiated IPs, accelerators and strategic partnerships. This integrated approach brings together enterprise readiness for AI transformation, engineering hyper-productivity and business hyper-productivity, enabling clients to scale innovation, modernize their core and achieve measurable impact faster,” he said.
Deal wins
The IT firm reported order bookings to the tune of $609.2 million in total contract value (TCV) during the quarter.
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Persistent Systems shares
Earlier on Tuesday, the Persistent Systems stock ended 0.1 per cent lower at Rs 5,324.3 apiece on BSE, as market benchmarks suffered minor losses for a second straight trading session.
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