See FY12 topline at USD 220 million: Persistent Systems

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See FY12 topline at USD 220 million: Persistent Systems

In an interview with CNBC-TV18's Reema Tendulkar, Anand Deshpande, CEO, Persistent Systems says, the revenue for the quarter ended March 31, 2011 is Rs 212 crore and profit after tax (PAT) is at Rs 33 crore. He expects FY12 top-line to be around USD 220 million.

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Persistent Systems has declared its fourth quarter results. In an interview with CNBC-TV18's Reema Tendulkar, Anand Deshpande, CEO, Persistent Systems says, the revenue for the quarter ended March 31, 2011 is Rs 212 crore and profit after tax (PAT) is at Rs 33 crore.

He expects FY12 top-line to be around USD 220 million. "We are going to hire 1,000 fresh graduates and a total of about 1,500 net additions in FY12," he adds.

Here is a verbatim transcript of the exclusive interview with Anand Deshpande on CNBC-TV18. Also watch the accompanying video.

Q: Could you tell us your Q4 numbers on a quarter-on-quarter basis?

A: The revenue number for the quarter ended March 31, 2011 is Rs 212 crore and earnings before interest, taxes, depreciation and amortization (EBITDA) number is Rs 38 crore and profit after tax (PAT) is at Rs 33 crore.

In the revenue number, there is a quarter-on-quarter growth of 9.2% and a year-on-year growth of 23.9%. In the US dollar terms, our revenue was USD 47.02 million which represents a quarter on quarter increase of 8.8%.

Q: By USD 47 million I believe you would have met your FY11 guidance. What are setting out as a dollar revenue guidance for FY12 now?

A: We completed this year with a financial number of USD 170 million for this year. We are suggesting USD 220 million as the top-line number for next financial year.

Q: The other concern this time around is the decline in your operating margins. It's gone down by close to 400 basis points. I think your EBITDA margins would stand somewhere around 18% versus 22%. Is the entire thing on account of that mid-term wage hike that you took in January of 10% or is there any other factor at play?

A: The mid-term salary hike was the main reason for the lower EBITDA on a quarter-on-quarter basis. But if you look at our yearly numbers, our EBITDA is about Rs 158 crore which is a growth against the previous year and PAT also has grown from the previous year. So, about 18% net margin for the year.

Q: For Q4, could you tell us what the volume growth looked like and also there was any kind of pricing improvement?

A: The volume growth is about 8%.

Q: And the rest 1.2% is on account of an increase in pricing?

A: Yes, increase in pricing and better pricing numbers.