Persistent Systems Q2 results: Net profit rises 20% to Rs 263 crore, revenue up 9%

Persistent Systems’ consolidated revenue came in at Rs 2,448 crore. (Representative image)

Mid-tier IT services firm Persistent Systems reported a 19.66 percent rise in net profit to Rs 263.26 crore year-on-year for the quarter ended September 30, driven by a strong order book in Q2.

Net profit jumped 15 percent on a quarter-on-quarter (QoQ) basis. Consolidated revenue for the second quarter stood at Rs 2,448 crore, a rise of 9.35 percent from the same quarter of the previous year. Sequentially, revenue was up 4 percent, the company said after market hours.

The EBIT margin or operating margin declined to 13.7 percent from 14.9 percent in the previous quarter. Persistent Systems had said earlier that it expected to improve margins by 200-300 basis over the next two to three years. One basis point is one-hundredth of a percentage point.

The company reported its highest-ever deal win at a total contract value (TCV) of $475 million, a significant jump from $380 million in the previous quarter.

“We are pleased to announce yet another quarter of strong revenue growth, fueled by client trust in our digital engineering and enterprise modernization capabilities," CEO and executive director Sandeep Kalra said.

"Our proactive approach and ability to adapt has enabled us to thrive in this uncertain macroeconomic environment leading to our highest-ever TCV with more than $475 million in bookings in Q2FY24."

Persistent Systems has a higher exposure to discretionary spending among its peers, as it gets around 80 percent of its revenue from the BFSI and hi-tech verticals.

While the company's attrition rate on the last twelve-month (LTM) basis was down to 13.5 percent from the previous quarter's 15.5 percent, its net headcount addition declined by 288 employees. Total headcount for Q2 stood at 22,842.

Persistent Systems closed at Rs 5,683.70 on BSE, down 0.49 percent from the previous day.