Shares of Persistent Systems rose 3 percent in early trade on October 19, a day after the information technology company posted a healthy set of earnings for the September quarter, marked by its record high deal wins. The IT major's net profit jumped close to 20 percent on a yearly basis while it was up 15 percent sequentially in Q2. Revenue also rose 9.4 percent on year to Rs 2,448 crore while it was up 4 percent sequentially.
Strong deal wins during the quarter were a major factor behind the IT company's healthy earnings in July-September. The company reported its highest-ever deal win at a total contract value (TCV) of $475 million, marking a sharp jump from $380 million in the preceding quarter. The company derives around 80 percent of its revenue from the BFSI and hi-tech verticals.
At 09.32 am, shares of Persistent Systems have been trading at Rs 5,838, up over 2 percent on the National Stock Exchange.
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The only dark spot on Persistent's Q2 results was a slight decline in its EBIT margin to 13.7 percent from 14.9 percent in the previous quarter, which too is likely to improve in the coming quarters. The firm also reiterated that it anticipates margin expansion by 200-300 basis over the next two to three years.
While most IT stocks have remained under pressure this year, Persistent Systems seems like a relative outperformer, having soared over 50 percent in the year so far.
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