Persistent Systems Q2 profit rises 3.6%, $ revenue up 5%

Moneycontrol Bureau

Software solutions provider Persistent Systems' second quarter consolidated net profit grew by 3.6 percent sequentially (up 17.3 percent year-on-year) to Rs 71.3 crore on strong revenue growth.

Consolidated revenue rose by 6.7 percent quarter-on-quarter (up 7.4 percent on yearly basis ) to Rs 464.1 crore in the quarter ended September 2014 while dollar revenue climbed 5 percent on sequential basis (up 11.5 percent Y-o-Y) to USD 76.32 million in the quarter gone by.

However, earnings before interest and tax margin stood at 15.5 percent, declined 110 basis points compared to 16.6 percent in previous quarter and down 440 basis points compared to 19.9 percent in the year-ago period.

Contribution of telecom segment to total revenue declined at 16.7 percent compared to 18.5 percent on sequential basis while infrastructure increased to 56 percent from 54.6 percent and life sciences grew to 13.4 percent from 13.1 percent.

Revenue contribution from North America territory stood at 86.1 percent in September quarter, increased from 85.9 percent in previous quarter while Europe declined at 6.3 percent from 6.5 percent and the rest of world contribution remained unchanged at 7.6 percent quarter-pm-quarter.

Top 10 clients' contribution to revenue dropped by 4% to 45 percent at the end of September quarter from 49 percent in June quarter and even top five clients' contribution slipped 2.6 percent to 36.1 percent from 38.7 percent during the same period.

Onsite utilisation rate in second quarter increased sequentially to 89.7 percent from 88 percent while offshore utilisation rate too increased to 68.4 percent from 65.9 percent during the same period.