Pune-based IT firm Persistent Systems' third quarter profit is expected to increase 1.67 percent to Rs 73 crore and revenue may grow 6.1 percent to Rs 576 crore compared to preceding quarter, according to average of estimates of analysts polled by CNBC-TV18. Earnings will be announced on January 23.
Dollar revenue growth is likely to be 5.3 percent at USD 87.35 million on sequential basis, aided by around 3 percent contribution from Aepona, the Ireland-based tech firm acquired in July 2015.
The company during the second quarter maintained its FY16 dollar revenue growth guidance of 10-12 percent on acquisitions. It acquired four companies since July 2015 (Swiss-based Citrix Systems International in January 2016, Akumina content management services business in November, RGen Solutions in July and Aepona Holding in July).
Operating profit (earnings before interest, tax, depreciation and amortisation) may rise 4.2 percent quarter-on-quarter to Rs 106 crore but margin may shrink 33 basis points to 18.4 percent in Q3. Analysts feel Aepona acquisition cost could also weigh on margin.
Commentary on client budgets, deal pipeline, discretionary spend, contribution from IP-led revenue and any client specific issue would be key factors to watch out for.
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