Persistent Systems Q3 results: Net profit grows 30% YoY to Rs 373 crore, revenue up 23%

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Mid-tier IT services firm Persistent Systems on January 22 reported 30.4 percent year-on-year jump in net profit at Rs 373 crore for the third quarter ended December 31, 2024,  as compared to the same quarter in the previous fiscal year. This was driven by the company's AI-led, platform driven services strategy, despite being a seasonally weak quarter for the IT sector.

Net profit was up 14.8 percent sequentially.

Consolidated revenue for Q3 grew 22.6 percent YoY and stood at Rs 3,062.28 crore. Sequentially, it increased by 5.7 percent.

The company’s operating margin improved by 90 basis points to 14.9 percent after two consecutive quarters of flat 14 percent margins.

Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent said, “We recorded our 19th sequential quarter of revenue growth, with 4.3% Q-o-Q and 19.9% Y-o-Y increase — highlighting the strength of our AI-led, platform-driven services strategy. We also declared an interim dividend of Rs 20 per share.”

The company’s Board of Directors declared an interim dividend of Rs 20 per share on the face value of Rs 5 each for the Financial Year 2024-2025.

The order booking for the quarter was at $594.1 million in Total Contract Value (TCV) and at $428.3 million in Annual Contract Value (ACV) terms. These were driven by deals won in the BFSI, Healthcare and life sciences, emerging industries, software and hi-tech sectors.

Persistent’s headcount increased by 704 employees sequentially. The total headcount of the company was 23,941 as of Q3.

Attrition rate for the last-twelve months (LTM) grew by 60 bps QoQ to 12.6%.

Ahead of the results, Persistent’s share price fell 4.1 percent today to end at Rs 5,655 on NSE.